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A market set to soar. |
Bulgaria isn't renowned for specialist sports stores, but local firm Sportrax recently announced plans to open three in major cities soon. The country's largest sports chain, Sport Depot, already has 17 stores. The news for sports goods businesses is generally positive, given Bulgaria's lowly expectations for rapid economic development as one of the poorest members of the EU.
It's worth remembering also that specialist sports equipment is the major seller and Sportrax's big sales were in the capital Sofia's Mladost 1 neighbourhood, which features several upmarket spas and fitness centres.
Meanwhile, some analysts expect sports clothing and shoes to climb in demand. "The global economic crisis has not yet significantly affected the sport goods market because when people cannot afford to buy apartments they prefer buying goods such as trainers," said Kr Tsonov, Director of Sport Depot.
To a large extent, sales of sporting clothing and goods are determined by the weather, according to Tsonov. Winter sporting equipment such as skis and skates (and accessories) will soon rise as the colder months draw in.
Tsonov said annual turnover of branded sport goods in Bulgaria last year was approximately Euros63 million, relatively small for a population of 7.5 million people. The figure doesn't include significant equipment imports from China and Thailand.
Germany's Adidas has some 40% of the market share, with revenues of about Euros20 million annually. The US Nike and German Puma brands each earns Euros5.2 million over the same period.
The Bulgarian sport goods market is still developing. Branded sport clothes and shoes are generally favoured sales compared to specialised sport equipment, including that for extreme sports.
But the current small volume of sales is the main reason why large international sports chains have yet to enter the market. The only representative is Swiss chain, Intersport.
The franchising rights in Bulgaria for Intersport are hold by the Greek Furlis Group and the first shop opened two years ago in Sofia. Initially the plan was to open six more stores in the major cities but these plans have yet to be realised.
Currently, specialised sport goods are offered by a large number of retailers, but most dealers have just one store. In Sofia, there are about 20 such stores and countrywide there are around 70.
But mass distribution has yet to gain a stronghold. When it does, as large brands seek to leverage growth in untapped territory with franchising deals, the Bulgarian sports market will streak away.
from Beata Balazs, Budapest Consultant
(Image courtesy of Intersport)
