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19Sep, 2013

E-commerce Industry Outlook Series: Sporting Goods Going Global

According to market research firm Lucintel, the U.S. sales of sporting goods is approximately $110 billion annually. This is a significant amount, however rising material and labor costs as well as inflation pose a serious threat to profits. New product technology and performance features as well as interest in changing lifestyles will continue to drive the industry, yet companies seeking to do more than survive will need to expand their offerings to the global marketplace.

A recent Forrester Research study set e-commerce spending in the U.S. alone at approximately $262 billion. Sporting goods, toys, and video games combined to make up 7% of all U.S. e-commerce sales, placing it in the top ten hot items online. Another research company eMarketer predicts global e-commerce sales will top 1.2 trillion this year with the Asia-Pacific region leading the way with sales. This means as the sporting goods industry looks to expand, it only makes sense for companies to combine their brick and mortar stores with online purchasing channels to grasp the virtually untapped niche of the growing global market.

The Sporting Goods Industry Needs E-commerce

With the recent trends in sports retail industry, retailers need an efficient, flexible e-commerce solution that caters to the unique demands the industry.

  1. Inventory Management: With two or more warehouses, suppliers, and drop shippers located worldwide, it is crucial to have a system that manages and gives up to date inventory information. This prevents product shrinkage as well as overselling to your B2B and B2c customers. Companies need an e-commerce solution, like Instant e-commerce, that will follow orders from purchase to the warehouse and out to delivery to ensure the operation is running efficiently.
  2. Marketing &Promotion: Companies need an e-commerce that provides a centralized inventory and organized catalogue. This makes cross selling and upselling products easy whether online or in person.  For dynamic demonstrations, images and videos should be linked to the online catalogues. It should also create and implement special promotions and customer loyalty programs with little hassle.
  3. Cross channel Integration: Consumers are buying through multiple channels, including mobile, online, and in-store as well as third party vendors like eBay and Amazon. Cross channel integration allows retailers to connect with their inventory, suppliers, logistic partners, and multiple stores.  It allows companies to put their goods in multiple channels and makes sure the same high quality of service and pricing is maintained in every location.  This provides a consistent experience whichever medium consumers choose.
  4. Personalization: Consumers are migrating towards companies that provide personalized service and one of a kind experiences every time they shop. Companies need an e-commerce system that offers personalized pricing with special discounts to specific customers or customer groups. This allows customers to feel they are unique and are given special considerations, and it increases the likelihood of their repeated business.

About i95Dev

We are the leading e-commerce solution provider in the United States, focusing primarily on the Magento e-commerce platform. Our Instant E-commerce solution contains various, unique features essential for the success of any online sporting goods store. We offer real time integration between Magento e-commerce and your ERP system, as well as POS, CRM and mobile POS systems to improve your sales without any hassle.

For any further information on our product, please drop us an email at info@i95dev.com or call us at 301.760.7499. We would be more than happy to look at your business’s needs and use our expertise to help you.

 

 

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E-commerce Industry Outlook Series: Sporting Goods Going Global