PAKISTAN SPORTS INDUSTRY

PRESENTED BY: SANA SAEED

AYESHA ALI

AREEBA NAREJO

HISTORY:

• The beginning of Sports goods Industry in Pakistan can be traced back to as early as 1870.
• It was 1918 when the first football supplied by a British Army personnel, was re-stitched in Sialkot followed by its local production.
• In 1922, Sayed Sahib, was awarded first Export Award from the British Empire for his outstanding venture to supply (Export) footballs to British Army camped in Singapore.
• The history of sports goods manufacturing in this part of the subcontinent dates back to the late 1800s. The foundation of the sports industry in the region was laid down by a British Army Soldier Sardar Ganda Singh
• Sialkot an example of a small Pakistani city that has emerged as a "world-class manufacturing hub."

​

HISTORY:

• It covers area of 3013 km north-east of Punjab.
• Total population is 1.7 million.
• Pakistan’s sports sector involves 400,000 workers.
• Industry provides employment to unskilled laborers.
• Most of the firms fall under commercial exporter’s category.
• 98% of sports goods are manufactured in Sialkot.
• Major sports items manufactured are inflatable balls, footballs, gloves, cricket bats, hockey and polo sticks, sportswear.

​

HISTORY:

• Pakistan exports its sports goods to Nike, Puma, Adidas etc.
• Low manufacturing cost and improved quality materials.
• Manufactured according to target market.
• 70% of soccer balls are manufactured in Sialkot.
• Hand-stitched footballs were a part of World Cups since 1990-2010.
• Pakistan’s total exports is 1.52%.
• During 2017-2018, sports goods had a rise of 0.5%.

​

HISTORY:

• The people of the area are sturdy and hardworking. A considerable portion of the population comprises artisans having expertise in metal forming (surgical), woodworking, leather processing, apparel stitching and sports goods production
• Due to these artisans that the city has become an important international city for the production of sports goods, surgical instruments, leather garments and musical instrument.
• “These industries – particularly the sports goods industry – have been an important source of Pakistan’s foreign exchange earnings,” says Mr. Arshad Javad Sandal, Chairman of the Pakistan Sports Goods Manufacturers and Exporters Association
• https://youtu.be/AtyDltjjk10

​

INTRODUCTION:

• Pakistan operates one of the largest and most prominent sports goods industries in the world.
• Pakistan operates one of the largest and most prominent sports goods industries in the world.
• Sports goods in Pakistan are supplied to both local and international brands.
• Pakistan produces between 1.5 and 2 million footballs per month. It's famous "thermos-bonded" soccer balls were used in 2018 World Cup in Russia.
• Pakistan had supplied footballs for almost all the world cups from 1990s to 2010.

INTRODUCTION:

• The product range includes different types of sports equipment used in football, volleyball, rugby, cricket, hockey, baseball, tennis, badminton, and a variety of other sports. operates one of the largest and most prominent sports goods industries in the world.
• It also produces beach balls, nets, gloves, protective guards, pads, and sportswear.
• Pakistan produces between 1.5 and 2 million footballs per month. It's famous "thermos-bonded" soccer balls were used in 2018 World Cup in Russia.
• Pakistan had supplied footballs for almost all the world cups from 1990s to 2010.
• Footballs, gloves, and sportswear account for more than 80% of the total sports goods exported.

INTRODUCTION:

• Pakistan has exported sports goods to around 90 different countries including Germany, the USA, UK, France, and Italy.

​

• Large export sports goods to some of the most famous international brands including Nike, Adidas, Puma, Umbro, Lotto, Wilson, Mitre, Micassa, Diadora, and Decathlon.
• made with the finest of raw materials such as leather, wood, glue, nylon guts, rubber, and different types of chemicals. They are not only of good quality but are also extremely durable.
• More than 200,000 people are directly employed in the sports goods sector exporting sports goods worth US$ 450 million annually from around 2,400 companies.
• Before China’s massive entry into international trade a few years ago, Pakistan was the world’s largest exporter

INTRODUCTION:

Sportswear exported include:

​

• Track suits
• Football
• Boxing
• Cycling
• Shorts
• T-shirts
• Wind Breakers
• Judo/Karate Kits
• Casual Wear
• Stockings

​

INTRODUCTION:

Leather Garments

​

• Leather garments sector is an important foreign exchange earner for the country.

​

• As per the survey conducted by LIDO in 1997, there were a total of 355 units in the country out of which 186 are in Sialkot.

​

• In Sialkot approximately 12,000 people are directly employed by the sector.

Manufacturing Process

• INPUT:

First stage is input in which basic raw materials are required for manufacturing sports goods include leather wood, glue, nylon guts, rubber, and chemicals, cotton and synthetic mat.

• PROCESSING:

Second step is processing which includes weaving, stitching, crafting, cutting, polishing, knitting with the use of Manuel work and machines.

​

• OUTPUT: Then last step is output which includes final products which are football, cricket balls and bats, hockey sticks, baseball bats, gloves, tennis and volleyball etc.

https://youtu.be/hkOiFLsCDbA

​

SPORTS GOODS PRODUCED

INFLATABLE BALLS:

​

Inflatable balls includes following:

• Soccer and futsal balls.
• Volley balls.
• Basket balls.
• Net balls

​

COMPOSITE BASED PRODUCTS:

​

Composite based products include following:

•Field hockey sticks.

•Roller hockey.

​

SPORTS GOODS PRODUCED

WOODEN BASED PRODUCTS:

Wooden based products include following:

• Cricket bats.

• Polo sticks.

• Squash rackets

​

PROTECTIVE GEARS:

Protective gears products include following:

• Shins pads.

• Elbow pads.

• Knee pads.

• Chest guards.

​

PAKISTANS SPORTS INDUSTRY STRUGGLES TO RECOVER DURING COVID-19

• Sports industry is struggling to recover from the hit it has taken from coronavirus restrictions.
• Hundreds of orders from Europe, South America, and the Far East were cancelled due to the global coronavirus lockdown.
• 70% decline in new orders.
• Shipment after importers cancelled them or extended the delivery dates due to the lockdown," Ahsan Naeem, chief executive of Vision Technologies, a Sialkot-based sports manufacturer, told Anadolu Agency.
• Apart from other sports goods, Naeem's company had to recall over 100,000 footballs ready to be shipped to different countries in April and May.

around 25% workers have lost their jobs during the lockdown period.

​

​

Structure of sports industries:

• Bola Gemma:

1.It is in Sialkot a city that produces most of the world’s footballs, nearly 70%.

2.The industry has been around for nearly a century that is why our perfection of skills in amazing.

3. For the 13years, Waseem Shahbaz Lodhi has been running this factory.

4.They make balls in weight range 420g-440g which is perfect weight for FIFA approved balls.

5.It is an export-oriented company and selling footballs all over the world and licensed by FIFA and manufacture top, pro quality balls in factory that are mostly sent to Germany, Spain, holland and Belgium.

6.Ahead of the last world cup 2018 Pakistan exported over 37 million footballs across the globe.

7.Bola Gemma has its eyes on the prize: 2022 world cup in Qatar.

vvv

Pakistan Sports Good Manufacturers and Exporters Association:

​

1.This Association was established in the year 1945 i.e. two years before the creation of Pakistan.

2.The objective of government as to improve the export of quality sport goods to foreign countries.

3.They installed modern wood working machines at the Sports Goods Service Centre, Sialkot for seasoning and fabrication of the woods for quality sports goods.

4.To produce leather sports goods there is Sports Goods Service Centre, which is equipped with modern leather shaving, buffing and cutting machines along with the football specifying machines of the latest design.

5.This association was to represent the exporters of various items of Sports Goods and Sports Wears of Pakistan with its Head Office at Sialkot.

​

Forward Sports and Gear:

1.Forward Sports is a Pakistani company based in Sialkot, Punjab that makes sports equipment, primarily soccer balls.

2. It produces 750,000 balls per month for global brands including Adidas and many other world-renowned brands.

3.It was founded in 1991 by Khawaja Masood Akhtar. It started working with Adidas in 1994 and since then it has produced balls for many international events including UEFA Champions League on several occasions and is the official provider of balls for the 2014 FIFA World Cup (the Brazuca) and the 2018 FIFA World Cup (the Telstar 18).

https://www.youtube.com/watch?v=3PZhAhYImcg

MB MALIK:

1.Malik Sports was founded in 1960 by cricket enthusiast, Malik Inayat Ullah.

​

2.In1989, Sachine Tendulkar was signed player.

​

3.In 2017, Misbah Ul Haqq, Muhammad Hafeez, Azhar Ali was the signed player.

CA Sports:

1.CA Sports is a Pakistani sports equipment manufacturing company headquartered in Sialkot, Punjab, focused on cricket clothing and equipment.

2.Founded in 1958, the company's name refers to the first initials of its founder's name, Charaghdin Abdul Rasheed.

3.The range of cricket products manufactured by CA Sports include on-field equipment (bat, batting gloves, balls, leg pads, protection guards), clothing (shirts, trousers, raincoats, hoodies, polo shirts), athletic shoes, and accessories (bags, backpacks).

https://www.youtube.com/watch?v=QeZtrTB5nqk

World Renowned Brands :

• Adidas.
• Nike.
• Puma.
• Lotto.
• Umbra.
• MITRE.
• Mikasa.
• Diadora.
• Wilsons.

Supporting Industries:

• Plastic Industry.

​

• Leather Industry.

​

• Paint Industry.

​

• Textile Industry.

​

• Rubber Industry.

Pakistan Exports To These Countries:

• USA
• GERMANY.
• JAPAN.
• UK.
• FRANCE.
• CHINA.
• DENMARK.
• CANADA.
• ITALY.
• NETHERLANDS.

CONTRIBUTIONS OF SPORT INDUSTRY:

1. OUTPUT:
1. The production of inflatable balls exceeds 60 million per annum during the peak season, which repeats after four years on the FIFA World Cup.
2. The share of the sports industry in exports of Pakistan is 1.52% of the total exports of Pakistan. Inflatable balls, i.e., 0.73%, and others constitute 0.56% and 0.23% respectively of sportswear and composite technology, the major contribution in sports exports.

​

CONTRIBUTIONS OF SPORT INDUSTRY:

2. INVESTMENT:

• The sports industry in Sialkot is currently amongst the major producers of Nike Inc (NKE) sports gloves, football for Adidas, Slazenger hockey sticks and Grays of Cambridge hockey and cricket products etc.
• Pakistan’s Sport Industry manufactures more than 70% of total world demand for hand-stitched inflatable soccer balls i.e. around 40 million balls annually worth US$ 210 million, which creates a huge opportunity for foreign investors to invest in this sector.

​

CONTRIBUTIONS OF SPORT INDUSTRY:

Exports:

•Sialkot is the second largest exporting city of Pakistan. Almost 60% of total exports of Sialkot are done via Sialkot Dry Port Trust and 40% is exported from other ports like Lahore, Islamabad, Karachi, and other cities.

•The export of sports goods from the country increased 6.44 to $26.169 million in July 2020, as compared to the exports of $24.585 million in July 2019, Pakistan Bureau of Statistics (PBS) reported.

•According to PBS data, glove exports grew 0.61 percent to $7.118 million in July 2020, up from $7.075 million in July 2019.

•On the other hand, the export of footballs decreased by 9.12 per cent in July 2020 to $12.539 million from $13.797 million in July 2019.

•From $3.713 million in July 2019 to $6.512 million in July 2020, exports of all other sports goods increased by 75.38 percent.

​

CONTRIBUTIONS OF SPORT INDUSTRY:

CONTRIBUTIONS OF SPORT INDUSTRY:

Imports:

​

•The total imports of Pakistan Sports Industry are $42 billion in 2019. imports declined from $3.713 billion IN 2019 to $3.640 billion in 2020, showing a decline of 1.97%.

​

•In 2012-13, Pakistan imported some 5.5 million football bladders, 3,000 water ski boards, 17,000 golf equipment, 7,000 golf balls, 250,000 badminton rackets, 700,000 tennis balls, 400,000 badminton shuttle cocks and 12,000 cricket balls, etc.

​

CONTRIBUTIONS OF SPORT INDUSTRY:

•Pakistan Imports of Toys, games, sports requisites was US$46.93 Million during 2021, according to the United Nations COMTRADE database on international trade.

Employment:

•There is total 400 units where inflatable balls are manufactured, and 15,000 employees are working in a single unit.

•400 units of gloves and other protective gears and 12,000 employees are working in this unit.

•20 units of composite – based products in Pakistan and 1,000 employees are working in this unit.

•Wooden sports product has 100 units in Pakistan and 5,000 employees are working over there.

•We have 300 units of sportswear in Pakistan and around 12,000 employees are working in this unit.

•280 units of other items and 10,000 employees are working in these units.

•There are 2500 firms working in Pakistan sports industry and approximately more than 200,000 people are directly employed in the sector exporting goods worth US$450 million annually.

•These firms fall into four categories:

•Large manufacturers-cum-exporters (more than 250 employees)

•Medium manufacturers-cum-exporters (100–250 employees)

•Small manufacturers-cum-exporters (10–100 employees)

•Commercial exporters (1–10 employees)

​

GOVERNMENT INITIATIVES

SPORTS INDUSTRY DEVELOPMENT CENTRE (SIDC):

• Sports Industries Development Centre is a project which is funded by the Ministry of Industries and Production to help the sports sector.
• The purpose of this initiative is to help the sport sector in adopting new technology and reverse engineering by providing facilities to Small and Medium Enterprises (SME), training the labor force, high manufacturing facilities, workshops, mold making machinery, services.
• It will help the manpower in adopting the Thermo Laminated technology and produce soccer balls, bladders, volley balls, futsal balls, and rubber basketballs.
• Up till 2018, SIDC have manufactured almost 54,000 thermal balls, 1,600,000 bladders, 30,000 basket balls for the local industry.

GOVERNMENT INITIATIVES

THE PRODUCT DEVELOPMENT CENTRE (PDC):

• Product Development Centre is a project of Small and Medium Enterprises Development Authority (SMEDA) and Pakistan’s government to facilitate the sports sector to increase their exports, enhance productivity and produced skilled labor force.
• It will provide laboratory testing, prototype sampling and raw material for various of products including hockey sticks, cricket and baseball bats, fishing tackles, golf sticks, rackets, etc.
• It would also provide technical consultancy and facilities to develop imported machinery, industrial units, and skilled workforce for the sports industry.

CHALLENGE FASHION INDUSTRIAL PARK:

• The government of Pakistan has allowed a Chinese firm to develop a $150 million industrial park in the peripheries of Lahore named “Challenge Fashion Industrial Park”, this grand-scale industrial estate project in Punjab is expected to be functional by July 2022.

​

• Challenge Fashion Industrial Park is expected to create around 10,000-11,000 job opportunities for the locals.

​

• Located in outskirts of Lahore near Kasur district of Punjab, this large-scale facility has been planned with fully equipped dyeing facilities and fabric manufacturing units for the production of sportswear. It will turn Pakistan into a major sportswear export hub.

SWOT ANALYSIS

Strengths:

• There is high availability of skilled labor in Pakistan.
• There are many independent stitching facilities and large enterprises in Pakistan which are built by business community of Sialkot.
• Sports is a major export zone for Pakistan since beginning because most of the world sports goods are imported from here, this sector highly attracts government intervention and government is compiled to start developing initiatives for the industry.
• The foreign exposure of entrepreneurs and their strong relations with the multinational brands has helped Pakistan gain FDI and high exports resulting in economic development.
• Pakistan has the highest international market share of a soccer ball in the Sports goods.
• There are dynamic and reliable linkages in international brands like Adidas, Nike, Puma, Select, Lotto, Umbra due to long history of working in international markets.

SWOT ANALYSIS

Weakness:

• There is high dependence of industry on international buyers.
• There is also a lack of local brands and its competitiveness internationally.
• Lack of R&D and weak testing facilities, use of obsolete printing, lamination and cutting technology and lack of innovation and designing.
• Non-compliance of international labor laws and inefficient monitoring mechanism in the industry.
• Lack of technical and professional education institutes
• Energy and Water Shortages, lack of infrastructure.
• Lack of working Capital which is problem for every industry in Pakistan.
• The poor governance and law and order situation in the country.

SWOT ANALYSIS

Opportunities:

• Increasing in the trend of people towards sports globally.
• Government should focus on new technology for soccer ball manufacturing.
• Raw material should be developed at the local level.
• Fully utilization of Sports Industrial Development Center established recently for compliance and training purpose.
• Skill and capacity development program should be started for increase in manpower.
• Development of laboratory testing facility by government and international agencies on compliance.
• Newly emerging markets of Middle East, Far East and Central Asian Republics are new opportunities for us.

SWOT ANALYSIS

Threats:

• The decreasing price trend internationally.
• Low competitiveness due to decrease in export prices and increase in production overheads.
• The increasing use of the mechanized ball in international events has reduced the demand for hand stitched balls.
• Non-compliance to the international labor, social and environmental laws resulting in the withdrawal of business deals.
• Cut-throat competition among the local and international players.
• The weak supply chain of raw material that doesn’t meet the increasing demand of the industry and poor infrastructure.
• Lack of technological advancement and mechanization for innovation and productivity.

PORTER’S FIVE FORCES MODEL

Barriers To Entry:

• High barriers to entry because many big players are ruling the industry.

​

• Pakistan economic situation at its lowest and energy crises at its highest makes it difficult for entrepreneurs.

​

• High fixed Cost and high Investment requirement.

PORTER’S FIVE FORCES MODEL

Bargaining Power of Suppliers:

• Since there are few companies so the bargaining power of suppliers is low and switching costs are high.

​

• Pakistan depends completely on imported on raw material that doesn’t give upper hand to the suppliers.

​

• Availability of Sports Material at low cost from countries like Bangladesh.

PORTER’S FIVE FORCES MODEL

Bargaining Power of Customers:

• Competitors can supply similar products at lower prices. E.g., China
• Buyers are highly price sensitive due to commodity nature of items.
• More discounts and offers.
• Customer Information is so high.
• International buyer has more bargaining power than National buyer because most of profit comes from international buyer and they have many other options to buy sports good.

PORTER’S FIVE FORCES MODEL

Threat of Substitute:

• Common substitute of physical sport is online game which can affect demand of export goods.

​

• The trend has now shifted from physical to online game but still physicals sports can not vanish entirely, it will stay as a major entertainment for people.

PORTER’S FIVE FORCES MODEL

Competitive Rivalry:

• Existing competitor like China and India are engaged in price undercutting to retain marks.

​

• Comparative advantage of cheap labor and land are under threat from other Asian rivals like Bangladesh, Taiwan and China.

PEST

• Political instability and importance of Sporting Goods Stores sector in the country's economy.

​

• Level of corruption - especially levels of regulation in Services sector.

​

• Modern machinery is required for the process that needs to be imported but heavy taxes are being imposed by the government on the import of machinery.

​

• No subsidy provided by the government.

POLITICAL:

PEST�

• Economic growth rate.

​

• Less investment in R&D sector by government.

​

• Unemployment rate.

​

• High Inflation and Interest rates.

​

ECONOMIC:

PEST�

• The requirement of skilled labor.

​

• Attitude of the local community towards the preference of imported products.

​

• Entrepreneurial spirit is low.

​

• The local market is captured by the low quality and low-price Chinese products.

​

SOCIAL:

PEST�

• Recycling of Used Equipment.

​

• Usage of Advanced Machine.

​

• Need for research and development centers.

​

• Solar energy.

​

• Technical Skilled Labor will Increase Productivity.

​

TECHNOLOGICAL:

RECOMMADATION

• Soccer ball producing firms should opt for machine making process where products are made according to international standard.

​

• Government should provide technical and financial support for automation of infrastructure and mechanization of the stitching process.

​

• The industry also needs design experts who can assist in innovative ideas for the industry.

​

• Monitoring mechanism should be improved to comply with international standards.

​

• Exposure to the industry should be provided by facilitating a visit to the best soccer ball factories in the world.

​

• If needed hire experts/consultant on modern technology such as machine stitching, thermo molding and printing facilities from China or Thailand and develop the “Made in Pakistan” football brand locally and try to establish it internationally.

CONCLUSION

Sialkot is the hub of sport industry in Pakistan. Like any other industry, the industry of sports is also being dominated by the Chinese products. Previously, the market in Sialkot was believed to be very strong in sports manufacturing producing quality products even for the world cup matches held in various countries. At present, the whole market has been affected by the Chinese products because of the low prices they offer. A few items are still available in the market manufactured by the local industry. Due to electricity shortage and technical issue the export of the goods badly suffers, so that Government should provide energy resources as per the requirement of the sector.

Overall, we need a complete restructuring of the sports industry in Pakistan at many levels. However, the words should be put in action and to economically develop, we as a nation should use innovative means to bring real economic change.

THANK YOU