March 2017 Newsletter

Shannon Headshot - Beard2   

Executive Director’s Report

A well-respected group of active wear retail and marketing experts have predicted a strong future for female active wear, in the latest stage of ASGA’s Active Wear: Forecasting future trends in female consumer behavior research project.

Australian active wear businesses are very fortunate. Through this research, they have the rare opportunity to take advantage of the distilled wisdom and insights from some of Australia’s best active wear marketers and retailers.

The experts, from companies including Nike, adidas, Stylerunner, Under Armour and Rebel Sport, took part in a Delphi study managed by researchers at Victoria University. Over three in-depth surveys they predicted seven main trends they believe will influence the active wear market in the next five years.

The trends are:

  1. Sports participation trends
  2. Influences of growth in the market
  3. Potential threats
  4. Retail trends
  5. Product Innovation
  6. Modes of communication
  7. Future scenarios

They also looked at four main consumer segments and forecast how important those segments will be to active wear brands and retailers in 2021.

Principal researcher, Associate Professor Clare Hanlon from Victoria University, said “Brands and retailers marketing to women should be aware of how these seven trends will affect the way women make purchasing decisions. Using this research they can tap into those forces as a means of engaging with their current and future female customers.

The next step in the $140,000 project is a national survey to understand how female customers make their purchasing decisions, and what language brands can use to entice them.

Active Wear: Forecasting Future Trends in Female Consumer Behaviour, is a $140,000 research project that will result in a comprehensive report about the trends in female active wear, consumer sentiment about the category and the future of the category in the Australian marketplace in the next five years. The report will provide valuable insights to brands, retailers and marketers of female active wear.

Companies interested in subscribing to the research, or finding out more about the project, should call Shannon Walker on 03 9320 2655.

 

Fed_Gov_Logo   

Which of your overseas competitors should register for GST?

As part of our lobbying efforts around the Low Value Threshold, ASGA has convinced Treasury and the ATO to consult with Australian retailers about which of their overseas competitors should be approached to register for the GST.

The Treasury Laws Amendment (GST Low Value Goods) Bill 2017 was introduced into Parliament last month. The Bill scraps the Low Value Threshold for GST and makes overseas online retailers register for GST with the Australian Tax Office, charge Australian consumers GST at the point-of-purchase, and remit the GST back to the ATO – the same way every Aussie retailer does.

This is great news, but there are still a number of issues we are concerned with. One of our concerns is: how will overseas online retailers even know they have to register for GST? Now, for most, that’s pretty easy – many have a large Australian presence and the ATO assures us they have a comprehensive communications plan in place.

Still, there is plenty of opportunity for overseas retailers to fall through the cracks. As such, we’ve convinced Treasury and the ATO to consult with the Australian retail sector to identify overseas competitors that the ATO can then target specifically for GST registration.

The details are still being worked out, but basically, if you have a competitor you believe should be charging Australian consumers GST, you can identify them to ASGA and we will pass their details onto Treasury and the ATO.

That way, the ATO can improve their communications plan and the sporting goods sector (and other retailers) can make sure you are on a level playing field with your overseas competitors.

We continue to consult with Treasury and the ATO regarding other enforcement issues around this change to the law, to ensure Australian sporting and active lifestyle goods retailers are not disadvantaged by structural issues against overseas competitors.

For more information about the LVT please email me at shannon@asga.com.au

 

CAS Logo   

Calls for a national strategy to combat physical inactivity

ASGA joins the Confederation of Australian Sport (CAS) and other bodies in calling on the Federal Government to develop a major new national campaign to unlock the real potential of a cross-sector approach to combat physical inactivity, underpinned by Australian sport.

Figures released by CAS reveal 3.2 million children are not doing enough exercise to meet current health guidelines. It is – staggeringly – enough children to physically fill 6,400 jumbo jets.

In a media release, CAS highlights 25 per cent of 5 to 17 year olds are now overweight or obese. A huge 80 per cent of children now do less than the one hour a day of physical activity needed to meet guidelines. 57 per cent of overweight adults also do not meet physical activity guidelines. Overall a staggering 14 million Australians do not meet guidelines.

CEO of CAS, Rob Bradley, said the nation needs to be re-engaged in sport and physical activity. He highlights a 15 per cent jump in the number of people meeting guidelines within five years is a realistic goal if major campaigns are put in place. He says thousands of lives and millions of dollars can be saved through action.

Deakin Health Economics’ modelling reveals if we reduce physical inactivity by 15 per cent, 10,000 new cases of disease will be avoided, 3,000 deaths will be prevented and $434 million will be saved by the economy every year.

“There is massive frustration that Australia has a viable solution – underpinned by our national sports system – to the ever growing health problems caused by obesity and sedentary behaviour. The reality is the sport system is not being maximised. The costs created by obesity and overweight are over $60 billion per year and getting higher. The Government has said clearly these costs are unsustainable. It is well and truly time for action,” Mr Bradley said.

For more information about the call for a new campaign to tackle the physical inactivity crisis, please visit the CAS website.

 

WFSGI_Logo_NEW   

WFSGI elects new Chairman of the Board

Sean O’Hollaren, Senior Vice President, Government and Public Affairs at Nike Inc., was elected for a three-year term as Chairman of a renewed Board at the World Federation of the Sporting Goods Industry (WFSGI), at the federation’s general assembly in Munich on February 4.

ASGA is a member of the WFSGI.

O’Hollaren was previously a representative of the Americas on the WFSGI’s Board, where the presidency rotates between members from Europe/Africa, the Americas and Asia/Oceania.

O’Hollaren takes over from Frank A. Dassler, General Counsel at the adidas Group. Dassler remains on the WFSGI’s Board as a representative for Europe/ Africa.

The new Chairman is preparing to push forward the industry’s interests in favor of reduced trade barriers, and to pursue joint initiatives in areas such as physical activity and governance.

“Efforts to increase physical activity are aligned with what governments want to reduce healthcare costs. It unifies divided parties, it has broad social benefits and supports our industry,” said O’Hollaren.

“We also want to further advance governance in our industry, to make sure that the sports community has full confidence in our standards in this area, and that consumers feel good about buying our products,” he added.

The election of the new Board was accompanied by changes in the WFSGI’s structure. The general assembly approved a proposal to adjust the federation’s business structure, changing the title of President to Chairman of the Board, and the title of Secretary General to President and Chief Executive Officer (CEO).

“With the changes we wish to modernise the federation and adapt it to current business structures, providing more stability and making it fit for a sustainable future management,” explained Robbert de Kock. He has been the WFSGI’s Secretary General since 2007 and became its first President and CEO combined at the assembly.

To read more about the new Chairman and other changes to the WFSGI, please read the Federation’s media release.

 

NSW Govt Logo   

Changes to the NSW Retail Leases Act

For the first time in more than a decade, and following lobbying by ASGA, significant changes have been made to the NSW Retail Leases Act, creating stronger and fairer relationships between tenants and landlords in the retail industry.

According to a media release from the NSW Deputy Premier and Minister for Small Business, John Barilaro, the ability for a tenant to strike a fair agreement with a landlord is the cornerstone of any successful retail business.

A detailed list of the changes to the Act can be found on the NSW Government’s Retail Leases website.

“With retail subject to such rapid change it’s critical we make sure legislation is refreshed to remain relevant, the NSW Government has been working hard to ensure the changes to the Act were the most progressive, wide-ranging and balanced in Australia,” Mr Barilaro said.

“In NSW alone, there are up to 44,500 retail businesses which employ about 390,000 people, generating $36 billion in annual sales which make a huge contribution to our local communities and the economy.

“The updated Act is designed to bring the greatest transparency, certainty and fairness between our retail businesses and landlords,” he said.

To read more please read the Government’s media release or contact our preferred supplier for retail leases – Leasing Information Services.

 

FWC_Logo   

Penalty rates for retail workers

On 23 February 2017, the Full Bench of the Fair Work Commission (FWC) reduced Sunday Penalty Rates under the General Retail Industry Award 2010 (GRIA) from double time (200 per cent) to time and a half (150 per cent).

According to the ruling, Sunday Penalty Rates for permanent and part-time employees will be reduced from 200 per cent to 150 per cent, while penalty rates for casual employees will be reduced from 200 per cent to 175 per cent.

The Full Bench also reduced Public Holiday Penalty Rates for permanent and part-time employees from 250 per cent to 225 per cent, while Public Holiday Penalty Rates for casual employees will be reduced from 275 per cent to 250 per cent.

The Commission outlined a process to implement these reductions and has called for submissions in relation to various aspects of the ruling.

In a media release, Russell Zimmerman, Executive Director of the ARA, said the decision is an incredible outcome for Australian retailers as it will sustain growth in the retail industry and increase employment rates across the board.

Conversely, the Australian Council of Trade Unions said, in their own media release, “This is a cut Australian workers cannot afford and do not deserve. The decision also comes a day after record low wage growth was reported for the second consecutive quarter. Australians deserve a pay rise, not a pay cut.”

ASGA members and others in the sporting and active lifestyle goods space are encouraged to seek advice from their HR and IR experts to see if these changes affect your business.

 

Australia Map   

News from around Australia

ACT

New Melrose Football Precinct to Benefit School and Woden Region

Funding to increase participation in sport

Northern Territory

Alice Springs Netball Stadium Ready for Elite Action

South Australia

Thirteen South Australian sporting groups to receive new or upgraded female change rooms

Tasmania

Construction Begins on Central Coast’s Dial Regional Sports Complex

Victoria

Asia Cup Still Kicking Goals For Local Soccer Clubs

Big Win For Sport Across The Valley

Support Boosted For Gender Equality Programs In Local Sporting Clubs

 

WFSGI_Logo_NEW   

International News

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

- NEW ADIDAS CEO TARGETS FASTER SALES, PROFIT GROWTH

 – NIKE’S FIRST HIGH-PERFORMANCE HIJAB IS COMING – AND FEMALE MUSLIM ATHLETES ARE DELIGHTED

- COLOMBIA SPORTSWEAR COMPANY ANNOUNCES APPOINTMENT OF JOE VERNACHIO AS MOUNTAIN HARDWEAR BRAND PRESIDENT

- UNDER ARMOUR SPORTSWEAR RELEASES SECOND COLLECTION

- VF CORPORATION ACTS TO MINIMIZE IMPACTS ON ENDANGERED FORESTS

Plus lots more!

 

ENDS