Market contraction due to the declining birthrate and intensifying competition from other business formats

「If price increases for food, daily necessities and other goods continue to outpace household income growth, spending on sporting and leisure goods may be restrained. In addition to existing sporting and leisure goods retailers, competition has also emerged from new entrants from other industries and new business formats such as online shops. Competition has intensified further as national-brand manufacturers expand direct-to-consumer (DTC) sales.」

「In the sporting goods retail industry, conditions were generally steady, supported by the recovery in demand for competitive and general sports, increased interest in sports around opportunities such as the Paris Olympics, and stronger demand for winter goods due to falling temperatures from mid-November onward.」

「Although the domestic sporting and leisure market is affected over the long term by the declining birthrate, ageing population and population decline, it is generally on a gradual expansion trend, supported by rising health consciousness, the spread of lifestyles incorporating sports and outdoor elements into daily life, and, more recently, growing inbound demand.」

「In the sporting goods retail industry, demand for general sporting goods continued to recover steadily as sporting activities normalised. However, the record late-summer heat and warm winter created challenging conditions for seasonal product sales.」

「In the sporting goods retail industry, demand for golf and camping goods declined as the boom during the COVID-19 pandemic subsided, while demand for general sporting goods continued to recover steadily as sporting activities, including school club activities, normalised.」

「If household income remains stagnant while prices of necessities and other goods continue to rise, spending on sporting and leisure goods may be restrained. In addition to existing sporting and leisure goods retailers, competition has also emerged from new entrants from other industries and new business formats such as online shops. Competition has intensified further as national-brand manufacturers expand direct-to-consumer (DTC) sales.」

「In the sporting goods retail industry, the easing of activity restrictions strengthened the recovery in sports demand, which had previously declined. However, some categories struggled as leisure demand shifted to travel and other activities.」

「Although personal consumption continued to recover, rising prices also led to greater cost-consciousness, raising concerns about declining consumer sentiment.」

「Although the spread of COVID-19 resurged during the first quarter, economic and social activity continued to normalise because large-scale restrictions on activities were not imposed as before. Meanwhile, resource and energy prices continued to rise and the yen continued to weaken, leaving the outlook uncertain.」

「In addition to existing sporting and leisure goods retailers, competition has also emerged from new entrants from other industries and new business formats such as online shops. Competition has intensified further as national-brand manufacturers expand direct-to-consumer (DTC) sales.」

「In the sporting goods retail industry, sports demand declined as school club activities were restricted nationwide to prevent infections.」

「During the six-month period ended 31 December 2021 (1 July 2021 to 31 December 2021), the business environment remained unpredictable. Infection levels showed some stability as vaccination progressed, raising expectations for the economy to normalise, but the emergence of new variants was also confirmed. In the consumer environment, restrictions on daily activities were gradually eased after October, when the state of emergency was lifted, and personal consumption showed signs of recovery. In the sporting goods retail industry, school club activities, which had been curtailed under the state of emergency, gradually resumed, and sports demand, which had declined, showed some recovery.」

「In the sporting goods retail industry, demand for sporting and leisure goods generally declined due to restrictions on sporting activities, particularly school club activities, as well as the effects of unsettled weather in August.」

「During the nine-month period ended 31 March 2021 (1 July 2020 to 31 March 2021), the business environment remained challenging. Although the domestic economy, which had deteriorated rapidly due to the spread of COVID-19, showed temporary signs of recovery, the situation remained difficult amid the reissuance of a state of emergency declaration due to the renewed spread of COVID-19. The consumer environment also remained challenging, as restrictions on various daily activities continued, and the outlook remained uncertain.」

「The consumer environment has become extremely challenging due to the consumption tax increase implemented in October, a record warm winter and, more recently, the spread of COVID-19, resulting in very difficult conditions for personal consumption.」

「In the sporting goods retail industry, expectations are rising for market revitalisation as sports items become more integrated into daily life and various sporting events are held. However, competition is intensifying across industry boundaries due to changes in consumer behaviour and market entry by companies from other industries.」

「In the sporting goods retail industry, interest in sports generally is increasing against a backdrop of rising health consciousness. However, the business environment remains challenging as competition intensifies due to the declining number of participants resulting from the declining birthrate and ageing population and changes in consumer behaviour centred on digital channels, in addition to the effects of natural disasters such as earthquakes, typhoons and torrential rain, and climate conditions including heatwaves, warm winters and insufficient snowfall.」

「In the sporting goods retail industry, interest in sports generally is increasing against a backdrop of rising health consciousness. However, the summer was significantly affected by natural disasters, including earthquakes, typhoons and torrential rain, while during the quarter the delayed decline in temperatures and warm-weather trend resulted in a continued challenging business environment.」

「In the sporting goods retail industry, interest in sports generally is increasing against a backdrop of rising health consciousness. However, during the quarter, the market declined significantly due to the unprecedented heatwave, which was severe enough for the Japan Meteorological Agency to urge people to avoid unnecessary outings, the July 2018 torrential rains that caused disasters mainly in western Japan, record heavy rainfall nationwide caused by intensified weather fronts, and the major impact of unsettled weather, including heavy rain, strong winds and storm surges caused by repeated landfalls of powerful typhoons, as well as the earthquake in Hokkaido. The challenging business environment continues, with discounting taking precedence in an effort to recover weak sales.」

「In the sporting goods retail industry, some categories continue to face challenging market conditions due to the declining golf population as core participants age and the decline in participation in competitive sports, particularly school club activities, resulting from the declining birthrate. At the same time, interest in sports driven by rising health consciousness is increasing, and running and fitness wear continue to perform steadily. The trend of incorporating sports items into everyday fashion is also continuing, and further market expansion is expected.」

「In the sporting goods retail industry, the market environment remains challenging due to the declining golf population as core participants age and the decline in participation in competitive sports, particularly school club activities, resulting from the declining birthrate. However, the market for personal sports such as fitness and running continues to expand, supported by rising health consciousness. In addition, the trend of incorporating sports-related items into everyday fashion has gained momentum, driving demand for sports apparel and creating expectations for further market expansion.」

「In the sporting goods retail industry, the market environment remains challenging due to the continued decline in the number of participants resulting from the declining birthrate and ageing population, as well as two consecutive warm winters with insufficient snowfall. At the same time, new market expansion is expected, including the growing trend of incorporating sports into daily life and increased demand for running and fitness driven by rising health consciousness.」

「In the sporting goods retail industry, sports that can be pursued routinely and individually, such as running and fitness, remained firm due to rising health awareness. However, because the weather remained unusually warm with little snowfall through early January, not only the winter market but winter apparel generally was affected. In addition, the overall market remained challenging because of the declining golf population as core participants aged and the decrease in new entrants to competitive sports, particularly school sports clubs, due to the declining birth rate.」

「In the sporting goods retail industry, sports that can be pursued routinely, such as running and fitness, remained firm due to rising health awareness. However, the overall market remained challenging because of the continued contraction of the winter market, the declining golf population as core participants aged, and the decrease in new entrants to competitive sports, particularly school sports clubs, due to the declining birth rate.」

「The team sports market, including soccer and baseball, remained sluggish and continued to perform poorly.」

「The market is tending to shrink due to the declining youth population resulting from the falling birth rate and changes in lifestyles. In addition to existing sporting goods and leisure goods retailers, intensifying competition from new formats such as used golf club shops and online stores has also led to lower prices, creating a challenging environment for the industry.」