February 2017 Newsletter

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Executive Director’s Report

Last month I welcomed the appointment of the new Minister for Sport and Health, the Hon. Greg Hunt MP.

We’re pleased Minister Hunt has been appointed as the Minister for Health and Sport. By continuing to link health and sport, the Government is showing a very real understanding of how sport and physical activity can have an enormous influence on health outcomes for Australians.

However, I’d also suggest that, with the Health portfolio such a massive job, appointing a junior sport minister to assist Mr Hunt would be a great idea.

As noted in ASGA’s recent 2017-18 pre-Budget submission, Australia, like much of the rest of the developed world, is facing a physical inactivity crisis. Obesity has risen to record highs, with over 65 per cent of adults classified as being overweight or obese. One in five Australian adults has cardio vascular disease. Over 25 per cent of 5-17 year old’s are overweight or obese.

Minister Hunt has a very real opportunity to take action and leadership in the lead-up to the 2017-18 Budget. We encourage him to take a visionary, national approach to combating physical inactivity, much the same way the UK government did as part of securing the legacy of the London Olympics.

The UK’s Parliamentary Commission on Physical Activity was formed in October 2013 to respond to Britain’s physical inactivity problem. ASGA recommends forming a similar, multi-sector task force (including representatives from sport, health and education), under COAG and the Australian Sports Commission, to review the outcomes and recommendations of the UK Commission; identify local and global pro-physical activity solutions and develop a National Sport and Physical Activity Plan for all levels of Government, the private sector and the non-government sector.

We also call on the Minister to ensure the Government’s Smart Cities Plan incorporates the latest thinking and research on the positive effects of designing and managing cities to promote physical activity. For example, by requiring schools that receive government funding to make their sports facilities accessible to the local community.

The sporting and active lifestyle goods sector urges Minister Hunt to work with Minister Birmingham in Education to put qualified PE teachers into every primary school. At the moment, less than a third of primary schools have a dedicated PE teacher – one of the reasons why only 33 per cent of primary schools provide at least 150 minutes of physical education per week to students.

Finally, the Sporting Schools initiative was funded for $100 million over three years (2014-15 to 2016-17). That funding is due to run out at the end of this financial year and ASGA strongly urges to Federal Government to renew the Sporting Schools funding for another three years.

Minister Hunt has a very real opportunity to make his mark on both the sport and health portfolios. We look forward to working with him to encourage Australians to participate in sport and an active lifestyle and to improve health outcomes for people of all ages.

 

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ASGA’s 2017-18 pre-Budget submission

In addition to the sporting and active lifestyle issues in our pre-Budget submission, discussed above in my report, we also used the submission to lobby the federal government on business, tax and regulatory issues of concern to our members.

Our submission looked at five key areas we’d like to see the Federal Government consider in the 2017-18 Budget:

Taxes

Government has committed to scrapping the low value threshold and introducing a vendor registration model for overseas retailers to charge Australian consumers GST at the point of purchase.

We strongly support this model, but there remain a number of concerns about how the changes will be implemented and enforced. How, for example, will the government enforce the new laws on overseas companies? And how will they know which overseas online retailers to target to register for the GST? ASGA will continue to work with the government to ensure the new law is implemented effectively.

The second tax issue we raised in the submission is our support for FITnotFBT, the campaign by Fitness Australia to extend the FBT exemption to small businesses that want to subsidise off-site fitness services for their employees. Extending the FBT exemption to small and medium enterprises that want to encourage their staff to access external fitness providers is a simple and inexpensive way of encouraging more Australians to participate in a healthy and physically active lifestyle.

Counterfeiting

Counterfeiting is an ever-increasing problem for Australian retailers and particularly for Australian sporting goods retailers. We’d like to see the Government adopt several new policies that will improve anti-counterfeiting measures, including improving border control measures to identify and halt the importation of counterfeits, remove the ‘personal use’ exemption for importation of counterfeit goods and clarify the right of citizens and companies to act as “private prosecutors” in criminal cases involving counterfeit products.

Employment and Skills

As noted in the Australian Workforce and Productivity Agency’s recent Retail Workforce Study: “Over the next five years retail employment is projected to grow by 8.9 per cent (i.e. 109,100 new jobs), an average of 1.7 per cent per annum. The projected 1.7 per cent rate of growth compares with growth of 1.0 per cent per annum over the past decade and 0.2 per cent per annum in the last five years.” Given all this, it is vital the Federal Government assists retail employers and employees to (1) recognise the value of qualifications and training, (2) recognise how specific skills and qualifications are changing over time and (3) access such training.

Retail Tenancy

ASGA is concerned with retail tenancy issues, including: the power imbalance between landlords and retailers currently in favour of landlords; transparency of information available to both parties; security of tenure; the use of retail turnover to determine occupancy costs; rent and fit-out costs. We’d like to see the Federal Government working with State governments to encourage them to reform existing retail tenancy laws to provide a level playing field for tenants.

Transport

The cost of moving goods internally within Australia is a significant cost for businesses, especially compared to many overseas jurisdictions. It is vital that workers in retail, transport and logistics have the opportunity to train on and use the latest technologies to make the system as efficient as possible. ASGA notes the publication of the National Land Freight Strategy and encourages the federal government to prioritise transport infrastructure that serves the needs of Australian retailers.

ASGA’s submission for the 2017-18 Federal Budget is an important document for the sector and sets out our concerns and issues with government for the next several years. If you’d like ASGA to lobby the government about particular issues (whether or not they are in the submission) please contact us on 03 9320 2655.

 

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ASGA pleased to support Good360

ASGA is pleased to support Good360 and encourages our members and others in the sporting and active lifestyle good sector to do the same.

Good360 is a way for businesses to donate brand new, unsold goods to charities and not-for-profits to help Australians in need. When founder Alison Covington discovered Good360 in the USA, she was amazed by the scale, innovation and efficiency of the charity. A$12 billion of goods, including clothes, toys, sporting goods and school supplies from America’s top brands, including Home Depot, Walmart and HP, had been delivered to 40,000 charities in the US.

In Australia, over 500 charities of all different sizes are registered with Good360, covering a range of causes across the country. So far, over $15 million worth of goods have been donated by Australian companies, including L’Oréal, Woolworths, LUSH, Linen House and 3M.

Good360’s website provides charities with a one-stop destination for accessing these non-perishable goods from some of Australia biggest brands, retailers and manufacturers. From bedding, clothes, shoes, toys to office supplies, beauty products and electrical goods, Australian charities can order the goods they want and have them delivered to their doors. A nominal shipping and handling fee is charged to cover some of the warehouse and freight costs.

ASGA is helping Good360 talk to sporting and active lifestyle businesses because both organisations know how a new football, a bat-and-ball or a basic pair of runners can have profound effect on families finding life difficult.

Good360 is deliberately designed to help the donors just as much as the charities. They will work with your company to protect your brand, giving you the opportunity to track your donations and see where your goods are being distributed to Australians in need. They can take donations from anywhere and in sizes ranging from individual boxes to truck loads.

They will work with your company to create Impact Stories, showcasing the measurable impact your donation has had on the lives of Aussies doing it tough.

The social good that sports-related businesses can provide is immense. At this time Good360 are very short of sporting related goods and any assistance ASGA members can offer will be greatly appreciated by hundreds of Australian charities.

If you are interested in donating, please contact Good360 through their website.

 

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Kate Palmer’s first public address as CEO of the ASC at BOSS 2017

Australia’s only event dedicated to sports business strategy and management, The Business of Sport Summit, has announced the latest addition to its stellar speaker line-up for 2017: Kate Palmer, newly appointed CEO of the Australian Sports Commission.

Having served a decade-long term as the head of Netball Australia, Kate is among the nation’s most successful sports executives and is recognised for her ability to transform organisations. Now occupying the role of CEO for the country’s primary sports administration body, she faces the remit of rejuvenating Australian sport, having grappled with a recent period of instability.

In her first major public speech, Kate will be featuring alongside 30 local and international speakers who will be tackling the industry’s most pressing topics at the annual Business of Sport Summit to be held at the Swissotel Sydney on 4 and 5 April 2017.

Other confirmed speakers include:

  • Kate Johnson, Vice-President, Head of Global Sponsorship Marketing, Visa (USA)
  • Sarai Bareman, Chief Women’s Football Officer, FIFA (SUI)
  • Vinai Venkatesham, Chief Commercial Officer, Arsenal F.C (UK)
  • Victor Cui, Chief Executive Officer & Owner, ONE Championship (SGP)
  • Amy McNicol, Director, Global Sponsorships, AIG (NZ)
  • The Hon. Peter Beattie AC, Chairman, Gold Coast 2018 Commonwealth Games
  • The Hon. Stuart Ayres MP, Minister for Sport NSW
  • Tony Shepherd AO, Chairman, GWS Giants
  • Craig Tiley, Chief Executive Officer, Tennis Australia
  • Patrick Delany, Chief Executive Officer, Fox Sports
  • Marina Go, Chair, Wests Tigers
  • Ray Gunston, General Manager, Finance, Corporate and Special Projects, AFL
  • Raelene Castle, Chief Executive Officer, Canterbury-Bankstown Bulldogs
  • Andrew Westacott, Chief Executive Officer, Australian Grand Prix Corporation
  • John Lee, Chief Executive Officer, Sydney Roosters
  • Marne Fechner, Acting Chief Executive Officer, Netball Australia
  • Jeremy Loeliger, General Manager, National Basketball League
  • Steven Trigg, Chief Executive Officer, Carlton FC
  • Finn Bradshaw, Head of Digital, Cricket Australia
  • Rebekah Horne, Chief Digital Officer, NRL  
  • Walter Lee, Head of Strategy, AFL
  • Dr Stephanie Kovalchik, Senior Sport Scientist, Tennis Australia
  • John Young, Chief Analyst & Technical Scout, Central Coast Mariners
  • Anthony Everard, General Manager, Big Bash League
  • Matt Braid, Managing Director, Supercars
  • Nick Vanzetti, Managing Director, Electronic Sports League (ESL)
  • Karren Rogers, Head of Media Partnerships, Facebook
  • Pat Moloughney, Director – Network Sport Sales,Seven West Media
  • Darren Birch, General Manager, Commercial Operations, AFL
  • Jonathan Prosser, Group General Manager Strategy & Growth, Cronulla Sharks FC
  • Andrew Woodward, Chairman & Host
  • David Parsons, Sponsorship and Events Assistant Manager, Hyundai Motor Company Australia
  • Scott Dinsdale, Managing Director, Accenture
  • Mark Cameron, Chief Executive Officer, Digital
  • Drew Oryszczyn, Managing Director, Polar Electro Australia
  • Sally Bateman, Finance Director, NIKE Pacific

Further information, including online registration, is available at sportsleaders.com.au or by contacting Connect Media Group on 02 8004 8590. ASGA members will receive 10 per cent off the ticket price for the conference.

 

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Golf Premier League

Golf Australia recently announced, on their website, that the Golf Premier League has gone national, with the support of all state and territory golf associations.

Golf Premier League teams play in a league-style competition (such as the AFL or NRL) at their clubs, within their normal competition routine. Players book, pay and play in their club competitions and team members don’t need to play in the same group, so there is no disruption to member play.

There’s also very little additional administration for club staff.

Golf Australia chief executive Stephen Pitt said: “Clubs already engaged in Golf Premier League have shown that it increases member engagement, frequency of play and retention, whilst generating additional food and beverage revenue for the club.”

“We are delighted to join with Tony Craswell and his team to promote Golf Premier League and improve the health and viability of our clubs.”

Golf Premier League Director Tony Craswell said: “Golf Premier League has grown from a small product at Latrobe Golf Club in Melbourne to a product which is strengthening the health of clubs around the country.”

“The success we have had at Latrobe, and at other Golf Premier League clubs, has been wonderful. We hope Golf Australia’s endorsement will see other clubs rewarded with the same positive outcomes.”

The benefits of Golf Premier League for clubs include:

  • Increasing profi­tability, with members playing more regularly and socialising after rounds
  • Reducing membership attrition and attracting new members
  • Creating a club atmosphere characterised by camaraderie and enjoyment
  • Transcending friendship groups and bridging age, gender and ability gaps across club membership bases

For participants, Golf Premier League helps:

  • Ensure players are more motivated and have more fun on the golf course
  • Discover a new ‘team spirit’ dimension within their golf experiences – players no longer play only for themselves
  • Keep golfers engaged in their rounds right up until their last putts of the day, because every point they score could be the one that gets their team over the line on the day, or even the season
  • Give club members the chance to experience ‘pride in the jumper’ and establish new bonds, friendships and rivalries

 For further information about Golf Premier League, or to get your club involved, visit www.golfpl.com.au

 

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Have your say on new retail skills packages

For retailers to thrive in today’s climate a skilled workforce is imperative. Australian retailers have long been challenged by the availability of local talent to fill buying, planning and online retail roles. This shortage of skills is compounded by the lack of formal training options that support employers in growing their internal teams. It has become critical that the national training system supports skills development in these key areas to ensure Australian retailers remain competitive and commercially viable.

A number of major Australian retailers have acted as key drivers in the planning and development of formalised, nationally recognised, qualifications. Extensive work has been undertaken to analyse job roles and define skills needs that allow individuals to make valuable contributions to a retail business.

You now have an opportunity to shape the future of training in your sector by attending the following industry forums:

Merchandise Buying & Planning

  • Adelaide: Wednesday 1st March 11:00am – 2:00pm
  • Melbourne: Tuesday 21st February 8:00am – 10:30am

Online Retailing

  • Adelaide: Wednesday 1st March 11:00am – 2:00pm
  • Melbourne: Tuesday 21st February 3:00pm – 5:30pm

 These forums will gather together small groups of industry professionals and subject matter experts to discuss the following topic areas. 

Merchandise Buying & Planning

  • Merchandise strategy development
  • Merchandise planning
  • Merchandise buying
  • Merchandise production
  • Supplier management
  • Post-trade analysis

 

Online Retailing

  • Customer engagement and support
  • Ecommerce strategy development
  • Digital marketing
  • Social media engagement
  • Ecommerce security
  • Planning to trade internationally
  • Content development

In another state or cannot attend? Please contact us for more information on how to be involved in your state.

Please contact Lauren Hosking at lauren.hosking@skillsiq.com.au to register your interest or for more information.

 

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Future of Sports Retailing

Apparel stores operating as designer workshops, retail outlets organising training sessions or offering customized products made on the spot: These were some of the concepts described at the World Sports Forum (WSF) earlier in February, focusing on the future of sports retailing.

The WSF was organised by the World Federation of the Sporting Goods Industry (WFSGI) in Munich. It was held on February 4 after the federation’s general assembly.

The future of sports retailing and the shift toward online sales was discussed by John Terra, retail research director at Q&A, a Dutch firm specialized in retail insights and solutions. He strongly advocated that sporting goods brands and retailers should turn their stores into points of engagement, to deal more efficiently with the rise of online retailing.

The last years have seen several retailers suffer from reduced footfall and Terra’s research suggests there could be an over-capacity of retail space reaching up to 20 per cent in some developed markets, due to the growing market share of online retailing. An estimated 40 per cent of consumers prefer to buy their sports and outdoor equipment online. “People don’t have to go to stores anymore,” said Terra. “That means stores have to rethink their concept to make sure that people want to go there.”

His analysis was backed up by a White Paper on customer engagement in retail stores published by Ebeltoft, an alliance of retail consulting firms with members in more than 20 markets.

Terra explained that the decisions of consumers for shopping destinations are chiefly guided by efficiency, expertise and experience. He acknowledged that online retailers are hard to beat in terms of efficiency, but added that their physical counterparts may still adjust their own concept to offer some of the same advantages.

New Dutch retailers are adopting more efficient business models, for example by opting to cover only a few of the largest cities. Others are focusing on an efficient customer journey, such as in-store tablets that enable consumers to access a wider range of products online.

However, Terra argued that experience is often the most compelling way for retailers to draw consumers away from their keyboards and into the stores. Leading sporting goods brands have opened spectacular facilities from New York to London and Shanghai. “They are turning retail facilities into a third layer of marketing,” explained Terra.

Expertise is another card that sporting goods retailers are well-qualified to play. REI conveys that in a creative way, by organizing events and building stories around the expertise of its employees. Terra also referred to Globetrotter stores in Germany, where customers may try out kayaks indoors or test clothing in an “Arctic room.” Another example was Lululemon, which organizes yoga sessions in its facilities.

In such points of engagement, retail staff are no longer just selling products but they may also act as trainers, guides or artists. “Staff recruitment and training should focus on the right skills, to make sure that employees are really eager to assist or even entertain customers,” said Terra.

The speaker recommended that retailers could try out various ideas on a small scale. Tactics may also be adjusted to locations: Stores in busy shopping streets should work most intensely on experience, because such locations tend to generate impulsive buying; while stores in smaller cities tend to be targeted for planned customer journeys, which makes expertise more valuable.

Efforts to create retail experiences are all the more relevant since digital natives have become a dominant force in global consumption, outnumbering the digital immigrants. These consumers have to be engaged, preferably with an experience that may be shared.

“Sports retailing has huge potential to make the difference on points of engagement compared to other retail sectors, due to the products that they sell, the knowledge that they require and the passion of their customers,” said Terra. He has worked for many real estate companies and retailers, and produced several sector studies for the sporting goods industry.

 

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National Sports Convention

The inaugural National Sports Convention in 2016 attracted 600 participants, including over 80 speakers, 55 expo stands and broad representation from all levels of government, sport, education, NFP and the commercial sectors. With the success of the 2016 event, the goal for 2017 is to address how we collaborate, plan, develop and deliver programs to activate people, through a more innovative approach.

This is the main focus of the National Sports Convention (NSC), a series of sport and recreation management events to be held in Melbourne on 19 to 21 July 2017. The National Sports Convention is developed by the industry for the industry and key collaborators include VicHealth, Australian Sports Commission (ASC), Victoria University, Sport New Zealand, Sports & Play Industry Association (SAPIA), VicSport and Aquatics and Recreation Victoria.  

‘The 2016 National Sports Convention highlighted the opportunity for even greater collaboration between sport and local government to support sports clubs and programs to encourage more people to participate’, said Mark McAllion, Former Chief Executive Officer, Vicsport.

‘The Sports and Play Industry Association is pleased to once again participate in the National Sports Convention. During the 2016 NSC in Sydney, we announced to the industry our rebranding from the Sports Contractors Association to SAPIA. Since that time we have had a significant increase in membership numbers, from individuals to international corporations who share our best practice goals.  NSC provides a forum for manufacturers and installers to promote their products and services to end users, ensure they are up to speed with the latest techniques and technological advances from home and abroad and take a look at what their competitors are offering’, says Mark Edmondson, Association President, SAPIA.

The National Sports Convention is also partnered with Community Sport Australia (CSA), Football Federation Victoria (FFV), Football Federation Australia (FFA), Football NSW, Australian Sporting Goods Association (ASGA) and Australian Sports Tech Network (ASTN).

With the support of these key collaborators and partners, the National Sports Convention will feature several aspects, including:

  • National Sports Convention Conference (20 – 21 July)
  • Community Sport and Recreation Expo (20 – 21 July)
  • National Football Conference (20 – 21 July)
  • Australian Sport, Recreation and Play Innovation Awards (Thursday 20 July)
  • Industry Best Practice Tours (Wednesday 19 July)
  •  Community Sport Think Tank (Wednesday 19 July)

Delegate registration is now open on the event website at  www.nationalsportsconvention.com.au

 

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News from around Australia

ACT

New outdoor spaces open up new learning experiences

$2.7 million to boost local sport and recreation

Fun and fitness for Moncrieff community

New South Wales

NSW Sport and Recreation Centres: Retain, Modernise, Optimise

Demolition work makes way for new Western Sydney Stadium

Northern Territory

Tiwi Bombers to play on

Bringing Back the Arafura Games – Territorians Have Their Say

Queensland

$1.3 million funding boost for better football facilities

Retail trading hours overhaul a win for jobs, consumers and workers

Tasmania

Netting goals for women’s sport

Tennis Investment Serving Up a Host of Benefits to Burnie

Victoria

Women Challenged To Out-Do Men Again At Active April

$2.3 Million To Drought-Proof Sport Facilities

Western Australia

$8m supports strong sporting culture in WA

 

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International News

In the latest edition of the WFSGI News Alert you’ll find articles about:

- adidas celebrates sport at NYC flagship store opening with iconic athletes

- Nike introduces Breaking2

- IAAF and ASICS announce new partnership

- TYR Sport announces official partnership with British swimming federation

- Product piracy: the dangerous repercussions of counterfeit sporting goods

- L Catterton acquires Pinarello, a leading premium cycling brand

 

ENDS