Hmmm….What an economy to start blogging on the fitness, sport supplements, and sporting goods industry! I’m subscribed to more newsletters on the industry than I can count, and every single issue is chocked full of bad news. One fitness company files for bankruptcy, a sporting goods manufacturer reports a 25% decrease in profits, and poor outlooks for the industry in general plague every issue. Let’s take a look at some of the grim news…
Nautilus corporation, the makers of the world reknowned Bowflex machine, has had a 25% decrease in profits from one year ago. They’ve cut 15% of their workforce in that time frame.
Smaller companies and corporations, like Herman’s Sporting Goods, who operates 117 stores, are falling like flies. They’re declaring bankrupcty and are either reorganizing or are being bought up by companies who are not suffering quite as badly.
Just about every company in the fitness, sport supplements, and sporting goods industries had a lackluster holiday season. LL Bean, although operating debt-free, will likely have to layoff workers thanks to a poor Christmas season.
Even the news about the average American’s health is grim! One newsletter I received contained an article stating for the first time ever, the number of obese Americans out numbers the amount of overweight Americans!
To top it all off, my issue of the Sports Executive Weekly made yet another grim prediction. It stated that the current economy will make people change their spending habits for years to come. The sport supplements, fitness, and sporting goods industry could very well see long term effects even after the economy recovers.
But not all’s bad news. Companies keep on going. Mizuno USA opened a new distribution center. Companies continue to roll out new products. Despite all the doom and gloom, the sporting goods industry keeps its wheels rolling and takes the blows as they come. Companies are adapting to the changes, and when the economy finally recovers, good news will become much more common.
Please feel free to follow the Fitness and Sport Supplement Marketer blog as I follow the controversial issues that face this industry, from the use of drag reducing suits in high school swimming competition to the economy as a whole. I’ll also throw in posts on marketing tips marketing professionals in the fitness, sport supplements, and sporting good industry can use.
Tags: economy, fitness, sport supplements, sporting goods, sporting goods industry
