Earlier this week ASGA hosted a seminar for those in the industry involved in human resources.

ASGA's partners Scopic Group (www.scopicgroup.com.au), a consultancy specializing in providing organizational and staff development strategies and solutionsprovided a presentation to HR professionals on the following topics including;
•    The employee Lifecycle
•    Recruitment for the Sporting Goods industry
•    Increasing competency in the Sporting Goods industry
The Seminar also covered the benefits of ASGA’s job management system, careers in sport, and a demonstration of its capabilities.
Attendees gained alot from the seminar and can see the real value of an industry specific jobs portal.

On Wednesday 13 April, ASGA along with the Australian Retailers Association hosted the first of a series of seminars and workshops was held to discuss and educate the industry about online retail trends.

Over 150 people attended the event, held at the Como in South Yarra, which was booked out to capacity.
Keynote speaker Quantium Director Tony Davis spoke about consumer purchasing patters.  His keynote presentation indicated that Australian retailers are losing sales to overseas websites regardless of the strength of the Australian dollar, and warned online sales to overseas websites wouldn’t wane. His presentation warned that online shopping was an increasing tendency for consumers across all demographics and had moved beyond early adopters.
Key facts from his presentation included; 

The productivity Commission has released its issues paper about the Productivity Commission inquiry into the structure of the retail industry.
It has been revealed that up to $12billion is being spent per year by Australian consumers online, and up to 40% and in some categories a great deal more, of this online retail is offshore.
This paper has identified  that, the Commonwealth Government is losing an estimated $1.3m per day or $480 per year in uncollected GST. This figure does not include uncollected Customs Duties, for example an additional 10% for apparel and 5% for footwear. It is ASGA’s view that this would push that figure of uncollected revenue far beyond $600m per year.
The Productivity Commission’s issues paper can be found here http://www.pc.gov.au/projects/inquiry/retail-industry

As many would know the ASGA has been instrumental in lobbying for a review of importation laws and taxation and custom duty regulation which resulted in the Assistant Treasurer Bill Shorten causing a Productivity Commission review into the future of retail.

As part of its work as a spokesperson and secretariat for the Fair Imports Alliance ASGA has lead the charge in continuing our lobbying efforts.  Over the last few months we have met with many Members of Parliament and their staff including;
•    The Hon Bill Shorten, Assistant Treasurer
•    The Hon Brendan O’Connor, Minister for Home Affairs, Justice
•    Senator the Hon Nick Sherry, Minister for Small Business
•    Bruce Billson, Shadow spokesperson for Small Business
•    Senator Scott Ryan, Shadow Parl Sec for Small Business
•    Senator Nick Xenephon
•    Senator Matthias Cormann, Shadow Assistant Treasurer
•    Michael Keenan MP Shadow Spokesperson for Customs and Border Protection
•    The office of Senator the Hon Stephen Conroy, Minister for
•    Kathryn Lees and Mark Roberts, Advisers to Tony Abbott, Leader of the Opposition
•    The office of Julie Bishop, Deputy Opposition Leader
•    The Office of Andrew Robb, Shadow Minister for Finance, Deregulation and Debt Reduction
•    The office of Warren Truss, Leader of the Nationals
•    Sophie Drew, Policy Adviser to Senator Fiona Nash
•    The Office of Joe Hockey MP Shadow Treasurer Tony Crook, Member for O’Connor (Independent National)
•    The Office of the Hon Bob Brown


Our lobbying efforts will ensure that our industry’s position is made clear and we are making our case for change.

We are working hard on preparing our submission to the Productivity Commission over the coming months.

As you would be aware ASGA has been involved with a group lead by our legal partners, Corrs Chambers Westgarth, to pursue changes to the laws that enable us to fight counterfeiters.

Customs and IP Australia have previously released a discussion paper and sought public comments concerning proposed changes to the Trade Marks Act 1995 to deal with both Customs seizures and with other trade mark matters, specifically targeted at the counterfeiting problem.

In December 2010 the Federal Government published proposed amendments to the Trade Marks Act 1995 in order to implement the recommendations that had been made by IP Australia and by Customs. 

Attached is a copy of the submission the Corrs Chambers Westgarth has prepared.

ASGA will be working with Corrs and others, to ensure that, following the implementation of these legislative measures other new measures are considered including
1.    The landing cards signed by all passengers arriving in Australia should be amended to include a statement as to whether passengers are carrying with them into Australia counterfeit or pirate goods;
2.    Anti-counterfeiting messages and posters should be erected at the arrivals halls at the various Australian airports and ports;
3.    Where counterfeit goods are seized by Customs, Customs should be entitled to made ex officio decisions to destroy the goods and, if appropriate, impose penalties on the importers;
4.    Government should allow private industry to fund specific Customs officers devoted to anti-counterfeiting roles;
5.    Government should engage in public education programs with private industry, designed to discourage the current consumer acceptance of counterfeiting; and
6.    The Trade Marks Act 1995 should be amended so dealing in counterfeit goods, even for personal use, is an infringement.

Corrs Chambers Westgarth is not charging any of its clients or any others in the submission for this work. They are undertaking the work on a pro-bono basis for the benefit of ASGA members.

The Australian Payments Clearing Association (APCA), the payments industry self-regulatory body has announced a new campaign in the fight against card fraud – the Safeguard Against Skimming education program for retailers.

The program was officially launched in Sydney by the CEO of the Australian Crime Commission (ACC) Mr John Lawler APM and attended by more than 50 stakeholders including retailers, financial institutions, point-of-sale (POS) service providers, card schemes and law enforcement agencies.

Safeguard Against Skimming was designed and developed by APCA with support from the ACC, the Australian Federal Police (AFP) and the NSW Police. It provides retailers with information on how card skimming occurs and how they can detect and prevent this criminal activity on their premises.

Australian consumers make more than 10 million debit and credit card purchases at in-store terminals each day. This safe and convenient method of payment is essential to the smooth operation of retail businesses. Nonetheless, card skimming fraud is a growing global problem and, as was seen in the well-publicised attacks on in-store terminals in 2009, Australia has been targeted.

The program comprises two education videos, an information brochure and other related training materials for retailers. Financial institutions and other POS service providers who choose to participate in the program will progressively roll-out the program as required. The information brochure and an excert from the staff training video can be viewed at www.apca.com.au/merchanteducation.

Through the work that ASGA is undertaking as a member of the industry coalition the Fair Imports Alliance (www.fairimportsalliance.org.au) we have been lobbying for more funding for business to deal with the emerging online market place.
The Fair Imports Alliance is seeking government funding to provide specialist e-tailing and online education for retailers because the Government’s AusIndustry Small Business Online Funding Program ignored the retail sector when it granted over $14 million to training providers in 2009.
Funding is needed to specifically assist retailers who are facing tremendous structural and consumer shifts with an increase in online sales and a rapidly changing marketplace.
The AusIndustry Small Businesses Online Funding Program didn’t recognize the unique situation retailers are facing with consumers making more of their purchases online from local and offshore websites. Not one funding recipient was a specialist in the retail space and since then there hasn’t been any funding programs developed specifically to help Australian retailers adapt.  The Retail sector needs support to re-engineer their businesses and ensure they are ready to meet the challenges of the new online marketplace.
The Fair Imports Alliance and ASGA will continue to fight to ensure that retailers are recognized and receive the level of Government support they require.

Carlsbad 5000 welcomes New Balance

Global athletic leader New Balance announced the signing of an official sponsorship deal with the historic Carlsbad 5000. The company will serve as the official footwear and apparel sponsor of this year’s 26th annual race, which will be held in Carlsbad, CA on Sunday, April 3, 2011.

The Carlsbad 5000, the world’s fastest 5K, features a 3.1 mile seaside course, scenic views and a post-race “Party by the Sea”. The annual event features a series of nine races, including a highly competitive elite division that has been the site of 16 world records and 11 American records.

“New Balance is thrilled to become a sponsor of the prestigious Carlsbad 5000,” says Josh Rowe, running marketing manager at New Balance. “The race is rich in history and as such it attracts both elite and everyday runners. There is an excellent opportunity to for us to highlight our innovative footwear, apparel, and unique brand attributes to runners of all abilities.”

As the official footwear and apparel sponsor of the race, New Balance will showcase their performance running collection at the weekend’s Health and Fitness Expo, provide a technical performance top as the official participant shirt and offer a new line of Carlsbad 5000 branded performance merchandise – which will be available to runners all weekend at the race expo. Race and volunteer staff will also be outfitted in New Balance products.

“We are thrilled to welcome New Balance as a partner,” said Shannon Davis, Event Manager. “The Carlsbad 5000 has built a proud legacy over the last 26 years as a premier running event and New Balance shares that vision in both the quality of their gear and their commitment to the race.”

The Carlsbad 5000 began in 1986 and quickly established the 5K (3.1 mile) as a recognized racing distance, eventually outpacing the 10K as the most popular running distance in the country. Elite runners annually seek to test their speed at the historic event, while thousands of everyday runners, families and spectators along the course share in the accomplishment of the finish line.

Races will begin at 7:05am on Sunday, April 3rd with nine races designed to include walkers, wheelchair athletes and runners of all abilities. At 12:15pm, the world’s fastest athletes will toe the start line in the Elite Invitational. Participants can relax and enjoy the beer garden as they celebrate their own accomplishment and watch the elites vie for a lucrative prize purse and a new world record.

Race weekend kicks off with the Junior Carlsbad on Saturday, April 2. More than 2,500 children ages two-12 will take part in a variety of age appropriate races of varying distances.

A free Health & Fitness Expo takes place on race weekend, running from 7 a.m. to 2 p.m. Saturday, April 2 and 6:30 a.m. to 1 p.m. on Sunday, April 3. Located on Roosevelt Street between Grand Avenue and Carlsbad Village Drive, the Expo serves as Carlsbad 5000 race registration headquarters, allowing participants to pick up their race number, timing chip, t-shirt and goodie bag.

Woman-only store format to be trendsetter for adidas

In Korea, adidas opens the first women’s specific retail store whose new concept and image aims to be a trendsetter for adidas retail worldwide. This new and exciting sport and style destination designed especially for women, stands for a personalized service of advice whilst the purchase of the functional and attractive designed adidas Women collections, making it a trend-setter of a new way of shopping.

“The new store concept designed especially for our female client shows Korean consumers how much the brand cares and the importance of following the market tendencies. The women’s business is growing day by day and adidas Korea is excited to open the first adidas women’s store with a totally new concept that will definitely be a trendsetter” states Zion Armstrong, Managing Director of adidas Korea.

The store environment has been created specifically with women’s needs in mind with a visit turning into a personal and enjoyable experience, accomplished through an in-store design featuring clean lines, a soft colour palette and an uncompromising focus on detail.

This unique women’s retail concept features an improving way of servicing the consumer. The in-store staff feature training and fitness experts, able to direct consumers in their fitness goals and give advice about the most appropriate footwear and apparel to wear for different sports disciplines as well as help with styling so consumers can take their own personal daily style to the gym.

Another first for this women’s concept store is the creation of a training and fitness community with regular training workshops organised as well as frequent styling sessions, seasonal special offers and also exclusive product previews. Information on local workout classes and gym partners is also provided to consumers providing a holistic women’s fitness package.

The in-store highlights are adidas women and adidas by Stella McCartney collections. The spring/summer 2011 Women’s collection introduces exciting concepts that come together with leading adidas technologies and the latest design innovations that cater to every workout need of the female athlete. Highlights for this season are the Women’s TechFit compression garments and the very feminine adilibria range.

In the adidas by Stella McCartney collection, the pinnacle fusion of performance and style enters the spring/summer 2011 season with the introduction of Weekender, a new outdoor category for Korean consumers to look out for alongside other collection highlights such as Cycling, Running and the new seamless underwear line. This season’s collection also features new styles in Golf, Gym Yoga and Gym Studio and Tennis.

Solid Q3 results demonstrate the power of NIKE brand

NIKE Inc reported financial results for its fiscal 2011 third quarter ended February 28, 2011. Earnings per share for the quarter were up 7 percent on a 7 percent increase in net revenue as higher NIKE, Inc. sales and SG&A expense leverage offset lower gross margin results.

"Our solid third-quarter results demonstrate the power of the NIKE, Inc. portfolio," said Mark Parker, President and CEO of NIKE, Inc. "Our unique ability to create deep connections with consumers, led by an impressive pipeline of innovative product and exciting retail experiences, continues to strengthen our brands and accelerate growth. Moving forward, we'll continue to leverage our scale, financial resources, and operational discipline to drive near and long-term value to shareholders."

Futures Orders

As of the end of the quarter futures orders for NIKE Brand athletic footwear and apparel, scheduled for delivery from March through July 2011, totaled $7.9 billion, 11 percent higher than orders reported for the same period last year. Excluding currency changes, reported orders would have increased 9 percent.

Third Quarter Income Statement Review

Revenues for NIKE, Inc. increased 7 percent to $5.1 billion or up 8 percent on a currency neutral basis. Revenues for the NIKE Brand were up 8 percent. Excluding the impacts of changes in foreign currency NIKE Brand revenues rose 9 percent driven by growth in all seven NIKE Brand key categories and every geography except Japan. Revenues for our Other Businesses increased 1 percent, with minimal impact from changes in foreign currency exchange rates, as growth in Converse, Cole Haan, and Hurley was largely offset by lower revenues in Umbro and NIKE Golf.

Gross margin declined 110 basis points to 45.8 percent mainly as a result of higher product costs, elevated freight costs, including additional airfreight incurred to meet strong demand for NIKE Brand products, and a smaller proportion of license revenue due in part to the conversion of Converse's U.K. business to direct distribution. These factors more than offset the positive impacts of favorable year-over-year changes in foreign exchange rates, a higher mix of full-price sales, the benefits of ongoing product cost reduction initiatives, and growing sales from our Direct to Consumer operations.

Selling and administrative expenses grew at a slower rate than revenue, up 5 percent to $1.6 billion. Operating overhead expenses increased 6 percent to $1.1 billion as a result of additional investments made in both our wholesale and direct to consumer businesses. Demand creation expenses rose 3 percent to $578 million due to marketing support for key product initiatives and investments in retail product presentation for wholesale accounts.

Other income was $17 million, comprised largely of non-recurring items and foreign exchange gains, primarily from currency hedges. For the quarter, we estimate the year-over-year change in foreign currency related gains included in other income, net, combined with the impact of changes in foreign currency exchange rates on the translation of foreign currency-denominated profits had an insignificant impact on pretax income.

The effective tax rate was 26.0 percent compared to 24.9 percent for the same period last year. The effective tax rate was higher due to a larger percentage of pretax income coming from operations in the United States which has a higher effective tax rate than operations abroad.

Net income increased 5 percent to $523 million and diluted earnings per share increased 7 percent to $1.08, reflecting higher net income and a 1 percent decline in the number of diluted weighted average common shares outstanding.

February 28, 2011 Balance Sheet Review

• Inventories for NIKE, Inc. were $2.5 billion, up 18percent from February 28, 2010, to meet strong demand and given comparisons to extremely low levels last year when inventories were down 13 percent.
• Cash and short-term investments at period-end were $4.5 billion, 11percent higher than last year mainly as a result of higher net income.

Share Repurchases

During the third quarter, NIKE Inc repurchased a total of 5.5 million shares for approximately $468 million as part of its four-year, $5 billion share repurchase program, approved by the Board of Directors in September 2008. As of the end of the third quarter the Company has purchased a total of 22.9 million shares for approximately $1.7 billion under this program.