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Export Poteimtial of Sports Goods in Australia

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Export Poteimtial of Sports Goods in Australia EXPORT POTEIMTIAL OF SPORTS GOODS IN AUSTRALIA DISSERTATION Submitted in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION BY SHAHID MOEEN SIDDIQUI Under the Supervision of Mr. ASIF HALEEM Reader DEPARTMENT OF BUSINESS ADMINISTRATION ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 1984 •.H i, Dsrjo/ DS70I CHEc:3:D-::a2 ^\ Tel. No. : 6247 DEPTT. OF BUSINESS ADMINISTRATION ASTP HALPRM Y&^JPfi*] ALIGARH MUSLIM UNIVERSITY S^tember 26, 1984 Certified that the dissertation entitled "EXPORT POTEOTIAL OF SPORTS GOODS IN AUSTRALIA" submitted by Mr. Shahid Noeen Siddiqui^ in partial fulfilment of the degree of Master of Business Administr­ ation has been completed under my svqpervision and guidance^ is his own work* To the best of my knowledge it has not been submitted for the award of any other degree in this University or elsewhere. ( ASIUP HALEIM ) SUPERVISOR A C K K 0 VJ LEDGE K E K T S I vraulc like to record ray deep sense of gratitude for the valuable help and guidance provided by Mr. fisif Haleem resder in the Departraent of Business Administration '.vhc-^upGrvisec mv v;ork. The pireparation of this dissertation v;ould have been very difficult without the able gridance of Mr. T.K. Suri of the sport goods Export promotion council, I am hiphlv obliged t-Cfhlra for helping m.c in collection of appropriate infcrraation and data oertainino to the Eisser-hation. In th^^: end I would lilcs to t" ar]: all my teachers in the Department v.l:0 hc\d beer a continuous source of ins'Tiration durina the ercoaration of this dissertation. C SHAHIL MOELM SIDEI:^UI ) PREFACE Australia is one of the most inportent raarke;r for sports goods as far as export of sporting goods is concerned from India. Sport is a vital element in Australia v/av of liie and the achievemients o:.^ the countr^^ in international Exports have been spectacular. Golf equipment, water sports equipm.ant, erraipmoiit for indoor games and othf.-r miscellaneous items accounteo for n'-arly tv;o-thirds of total imports in 1982-83. '^'hiL is a fast g rn -.. .1 nos e oTn p n t n -^ Australia's sporting goods m.t-.rket in lA'hich Incian participation has been insigni­ ficant. Imports from Indie mainly comprise cricket and hocjcey ecpiipment/ tennis and squash rackets, soccer balls and certain items of tracl-. and fielc equipmient, anc some of these products are likely to experience, in the coming years, com.paratively small rates of grovrth in Australia's imports. 33he purpose of present study is to improve the performance of Indian Sports industry and provide a guide line to exploit the immense ejcport potential of sporting goods__iiL-Aa^stralia, In the present v:ork an effort has been made to identify e:-:port opportuniti;-:s for specific items oi sporting goods and recommend appropriate export development en m.easures in respect of strength/ing the institutional structure for export promotion/ creation of sport oriented production capr_ cities for non-tracitional-products nob being manuf c ctured in the countr^,^ v/ith foreign collobo ration, il necessar"/ in the moc emization and up-gr: cation of the cuality of exieting lines. It is hoped that thi:: studp v/oulc Provide useful guide lines t.^- the exporters, coverniTiOnt loe a ure course ex accion v/ithi . special reference to xAu.'trclian mc-rhet. ( SKAHID MOEEK SIULIuUI ) CONTENTS Page No, ACKNOVJ-LEDGEMENT PREFACE CHAPTSR-I INTRCDUCTI ON 1 CHAPTER-II SPORTS GOODS INDUSTRY IN INDIA 4 CHAPTER-III MARKET Cli-iRACTERISTICS AND REQUIREMENTS [Z CHAPTER-IV Il^JBIA'S EXPORT TO AUSTRALIA 2-7 Q-IAPTER-V NEW EXPORT OPPORTUlSriTIES 50 CHAPTER-VI OBSERVATIONS ANIi SUGGESTIONS 3<^ ANNEXURES REFERENCES •1' INTRODUCTION Australia vith a population of 15.27 million ic a sports loving country'- and the Australian players have, to their credit/ spectacular achievements in the intensely competitive field of int rnational sports again;: t those from the nations of huge population. Certain important cherrc- teristics of Australiam. m.c rket are enujnerated below : 1. The labour force of about six million accounts for 61 per cent of the total population and the average minimum weekly wage rate by the end of June 1982 for an adult male was A$ 129.21 and for an adult fem.ale, A$ 119.63. Imports of various items of sporting goods in AuS'tralia increased spectacularly during last few years. Golf equipment, fishing equipm.ent, enov/ sports ecpaipmcnt, oquipmii;nt for indoor games and other miscellaneous items accountec for over 65 percent of total iirporta in 1982-83. This is the fast grov/ing segment of the sporting goods market in Australia to v/hich India's contribution has so far been insignificant, ^bout 30 manu--acturers/exporte2rs from. India are engaged in exnort trade to Aus'^ralia. Although he qxiality of exi><i;ing products, much efforts have not been made in the introduction of new products in the Australian marlcet. '%- 4. Auctralia is the third important market for sporting- goods from India, Hovjever/ it share in the ex;orf;s frorTi^3^«e*^ ^ave declined curing past fev: years. equipment, hockey ecjuipm.ent, soccer balls and raclcets constituted the bulk of exports, accounting for 97 percent of total exports in 19S2-S3 to Australia, V,ath a view to improving India's perfoxmance in the market for spo.rting goods, this dissertation has been prepared to achieve the follov/ing objectives ;- (a) to study the trend and composition of imports of sporting goods in Australia, (b) to identify products offering expo^~t prospects in the next few years, Cc) to investigate the scpOj^-ocj^diversification and expansion of the ;o2odction-J&ase of Indian inductri' Vv'itji Austrcilicn collaboration for e;:port, (d) to examine the factors inhibiting expansion of India's exports to Australia, and (e) to recomrrend appropriate steps to be intiated by qpjyg^rnm.ent, $snd trade & indu? tr^"- for the )n of the consic err-blc exporc poten­ tial in Australia, -3' I hope that this wo lie of raine would prove to be useful anc helpful to Ino.ian Ex^<?orters and M^.ufacturejrs of sporting goods in exploring new markets in Australia and thus benefit thera in improving their exports o£ Sj.orLs goods to Australia. SPORTS GOOE'S IN.DU5TRY IN imZA The sports goods incustr^^ in Incia ic totclly concentratec in the smeill scale and the cottage sectors. To determine the nuniber of units engaged in the .-anuft'c- turers oi sports goods in the country anc' alto to have an idea about their production figures of the £ollov:in; sports ^goods producing centres such as Punjab, U.P., Janmu & Kashjnir, Maharashtra anc VJest Bengal, the inforraation collected State v/ise is given belov; :- PUNJAB :- The sports goods industry is concentrated mainly in and and around. Jullunder, AiTiritsar, Pr.ticlo., Batala, Malerkotla, Ludhiana., Phagv/ara, Kapurthala ant Chendigarh, About 65 to 70 percent of the sports goods industry in Incia in in Punjab and Jullunder is the leading cen"cre oi prx^cuction. The main areas of production in Jullunder are Bhargav Cairp, Btisti Nev, Bcsti Sheikh, B.sti Danish.rn.rndi, Prem Kagsr, Industrial area etc. More thm 90 percent of the industry- is concentrated in the cottage sector vhere heirijan families are engaged in the manufacture of sports good-s from rav; rnx'terials supp:-licd by the e;:e;>fters. The manufiicturers/exporters in Jullunder buy se'::i-finiL r.cd b?ts from. Kashmir tno, refinish thei, before exporting, sjjvu.i*-^iv - 5- bulk of their exports are actually purchased from the cottage sector. An estiraation of the rr.anufacture of s/iorts goods in Punjab as fol 1 ov/ :- Total number of people employed : 50,00 0 Total Units engaged in the manufapfetfrer : 1,400 of sports goods. For the 5ss—#eilowing, v;e have assumed 300 \;orking days per year. (Va] y.-:^ inl,.» cror Items ManufactiTfec' T rtverage T Average \ -V'otal I daily J price/unit \ ^rji^'icil Value y Production I I J^ i 2 !- 1. Foot balls, leather 14,000 fe. 35 Pc. 14,70 balls etc. 2. Hockey & Cricket 3 00 dozens f:, 15 Pc. 1,62 balls 3, Hockey Sticks 2, 000 dozens Rs, 2 5 pc. 1,5 4. Cricket bats 2,500 R3. 40 pc. F: 3,0 5, Shuttle Cocks 2,500 dozens fc, 2 5 pc. 1,875 6, Composition Balls 5,00 0 Rs, 4 pc. 0.60 7. Bladders 250 dozens R-. 4 pc. 0,36 8, Legguards 600 -airs fis, 6 0 pr. i'3 l.C£ 9, Soft leather goods 2,000 Rs. 20 pr. such as gloves etc. 10, Tennis & Scfuash 1,000 Rs, 40 pc, 1,2 rackets 11, Bed minton Rackets 2,000 Rs, 2 0 p c , 1,2 12, Table tennis bats 300 RG , 15 pc. o, 135 13, Carrom boards 150 Rs, 40 pc. 0.18 -6' 14. Athletic goodS/ body building epnt» 50 E3. 50 pc R3. 0.075 15. Sports Nets 600 Rs. 20 pc Rs. 0.36 16. Sports begs 50 KS . 6 0 pc R-. 0.09 17. Chess eets and indoor games 50U Ro . 10 pc Rs. 0.15 18. Others Ri. 0.10 Total R3.29.425 UTTAR PRADESH :- The second most important centre of production for sports gooas is in and around Meerut in Uttar Pradesh. Here again the industri^ xs mainly concen­ trated in the cottage sector. Meerut and the sn.rroundin''' villages such as Bootpur village, Jawahar Nagc.r, Shcbapur, Village, Abdullapur/ Mohideenpur etc.
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