Sports Industry Stu

SPORT INDUSTRY PRESENTED BY:

TAIMOOR RAFIQ SP07-BB-0169

AGENDA            

Introduction World cup 1994 Development program Competitor Major export Market share of industry Nike in Pakistan local brand Sialkot city Value added product Child labour Wages and working condition

INTRODUCTION(PSB) 

Pakistan Sports Board was established under the Ministry of Education through the Sports (Development and Control) Ordinance, 1962 as a corporate body for the purposes of promoting and developing uniform standards of competition in sports in Pakistan comparable to the standards prevailing internationally, and regulating and controlling sports in Pakistan on a national basis.

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Subsequently, in July, 1977 with the creation of Ministry of Culture, Sports and Tourism, the administrative control of the Pakistan Sports Board was transferred to it.

HEADQUATER

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The Board has a General Body, with its Headquarters at Islamabad. The General Body consists of 75 members

WORLD CUP 1994 

Sialkot is renowned throughout the world for manufacturing sports goods of fine quality. The year 1994 give more prominence to the city when Sialkot Exporters were selected to export official soccer ball to the FIFA football World Cup, USA 94.

DEVELOPMENT PROGRAMS The setting up of three important projects

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Sports industry development centre

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Product development centre

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Commerce centre

Sport industry development centre 

The concept of initiating Sports Industries Development Centre was to enable sports goods sector to adopt new technology of mechanized ball which is posing serious threats to hand stitched inflatable soccer ball.

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A Sports Industry Development Center (SIDC) is on its way to be set up in Sialkot by the Small and Medium Enterprise Development Agency (SMEDA) with a capital investment of Rs272.16 million for upgrading and modernizing the sports goods industry of the region.

Product development centre 

The aim of setting up of Product Development Centre was to facilitate sports goods industry and to enable it to cope with the emerging technology of composite materials and to enter into the largest segment of sports goods exports (more than 55 percent of the sports goods are composite based.

Commerce centre 

Sialkot city is under the process of development and the concept of displaying products is taking grounds and increasing exposure to international markets, industry people are realizing the utter need of new marketing and selling hubs. Keeping in view of the importance and increasing need the project of Sialkot business and commerce centre was initiated but due unknown reasons the development work on the project was stopped.

COMPETITORS    

INDIA JAPAN TAIWAN SOUTH KOREA

MAJOR EXPORTS 

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Adidas and Puma which are giants of manufacturing sports goods Tennis Hockey stick Sports gloves polo sticks Cricket bat Kits bags

EXPORTS 

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Sports goods industry in the country with total exports of about US $350 million per annum. Sialkot supplies about 85 percent of the total world demand of hand stitched inflatable ball which means that it exports 40 million balls worth $210 million

MARKET SHARE OF INDUSTRY 

The approximate share of various major countries in the world sporting goods market is as follows: 1. United States of America (USA): 30% 2. European Union (EU): 33% 3. Japan: 22% 4. Canada: 3% 5. India: less than 1 %. 6. Rest of the world: 12%.

U.S. Soccer Ball Imports Top 10 Suppliers (in thousands of U.S. dollars  

1989

Pakistan

1990

1991

1992

1993

1994

1995

1996

4,549

9,238

11,509

12,047

13,542

21,988

21,638

24,272

620

1,398

2,899

4,834

6,587

9,386

7,729

6,490

0

377

952

1,575

1,375

2,119

1,371

1,837

India

128

168

357

223

525

981

131

371

Thailand

111

714

348

1,358

512

335

211

324

1,882

1,791

1,144

877

558

666

447

299

Germany

11

22

18

0

19

32

19

203

Hong Kong

70

88

55

237

317

227

358

178

159

255

194

122

130

176

61

76

0

0

0

0

0

0

5

41

14,051

17,476

21,273

23,565

35,910

31,970

34,091

China Indonesia

Taiwan

Mexico Spain Total Imports

7,530

SOCCER BALLS 

Nearly all soccer balls are made in and around Sialkot,Pakistan a region famous as a soccer ball producing hub for at least 80 years. Seventy-five percent of the world's soccer balls were produced in Sialkot in 1996.

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10000 Urban workers

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30000 rural workers

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Total industry employment 60000

NIKE IN PAKISTAN 

US multinational Nike has agreed to resume imports of about 5,000 hand-stitched soccer balls per day from Pakistan and will subsequently increase its order to about 15,000 per day after 90 days of successful operations.

SILVER STAR 

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Silver Star Group, a local soccer-equipment manufacturer, has reportedly been given a contract with Nike for about 6 million to 7 million balls a year. Last year, Nike - the official supplier of soccer balls to the English Premier Football League - had shifted its production base to China and stopped soccer-ball imports from Pakistan after a dispute over issues relating to labor laws. Pakistan lost a guaranteed export of about Rs2 billion per annum.At the time of suspension, Saga was supplying 15,000-25,000 balls per day. Each ball, depending on quality, fetched $5-$8 in foreign exchange for Pakistan. Saga Sports alone accounted for $33 million of the industry's $210 million total worth.

LOCAL BRANDS      

CA MB MALIK IHSAN SPORTS SAGA SPORTS RHOMBUS SAHARA

SIALKOT CITY 

Sialkot is famous all over the world because of its sport equipment

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The industrial city of Sialkot in Punjab province is internationally known for its sports goods. Sialkot's hand-stitched-ball industry, with nearly 50,000 stitchers, is a big business. Some 80% of the world's soccer balls are produced by Nike in this bustling commercial hub

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VALUE ADDED PRODUCTS 

The industrial setup in Sialkot comprises small and medium enterprises, which are believed to be the driving force behind the growth in exports from Sialkot.

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musical instruments,

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badges, sports goods

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surgical instruments

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martial-arts uniforms

CHILD LABOUR 

Child labour is the big problem for Pakistan sports industry as well as for any other country sports industry

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With a total of 40 million children between 5 and 14, Pakistan has about 3.3 million child workers. This is in spite of the fact that the country has ratified the Convention on the Rights of Children and 5 out of the 7 basic conventions of the International Labour Organization (ILO), including the one forbidding the labour of children under 14. According to the ILO, between 5 and 7000children aged between 5 and 14 worked in the football industry

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Cont….. 

NGO Save the Children published a survey showing that 81% of the children who stitched footballs did so to meet basic needs such as food, clothing, shelter and education.

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children stitching footballs contribute up to 23 % to the household income.

Wages and working conditions 

The job doesn' t require special equipment and is, for that reason, regarded as a better alternative to other kinds of work. Its main disadvantage lies in the poor wages it brings in comparison with other jobs. On average, a person stitching footballs produces 3.5 balls a day, and piece rate varies between Rs. 20 and 35 according to quality. It is estimated that to earn a living wage, workers would need to be paid piece rate of $ 2 (i.e. Rs. 160) per ball.

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More than 90 percent of the children stitching soccer balls are between the ages of 10 and 14. Most work in small shops or at home. Seventy percent of the children work 8 to 9 hours a day; others work 10 to 11 hours per day. 26 It is estimated that 19 percent of the boys and 36 percent of the girls have never attended school.

POTENTIAL 

Most of population live in rural area so that’s why labour is cheap

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The best cricket and hockey players of the world prefer to use bats and hockey sticks "Made in Sialkot“

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Pakistan enjoys a unique position in the global trade with reference to sports goods and its main forte is hand stitched inflatable balls.

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About 85 percent of total production of soccer ball of the world comes from Sialkot Thought investment in this industry we can reduce unemployment

PROBLEM

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There are between 7 and 10 people in an average family and such a family needs between Rs. 10,000 and 12,000 a month to pay for food, health care and school

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There are between one and three wage-earners per family. Each worker earns between Rs. 1,800 and 2,500 a month, and they sometimes have to pay up to Rs. 30 a day to travel to the factory.

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On the other hand, soccer ball manufacturers and exporters were facing shortage because of size of trained and highly skilled soccer ball stitchers is reducing day by day due to non availability of training institute for producing fresh skilled and semi-skilled stitchers.

WORLD CHILD PROBLEM 

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Daily 26 to 27 children died due to poverty in all over the world(2 billion 20 cor) In Pakistan, every 2nd child will not be able to go school In which every 3rd child due to shelter(64 coror) In which every 4th child is unable to meet his food requirement In which every 5th children due to clean water (14 lace ) In which ever 7th children due to health Approximately 57 lac children work on camps 12 lac children smuggle or sale all over the world

RECOMMANDATION     

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Education provide health care Wages high Technology Up-gradation & capacity building Determined to contribute to the efforts for human progress and the reduction of poverty Government must establish unit in different cities so as the production can be increased which will increase our export