Ayesha Saba
Pakistan's sports goods industry holds a promising outlook, driven by opportunities in the China's growing sports sector.
“By prioritising innovation, quality and strategic partnerships, the industry can capitalise on rising global and Chinese demand to secure a stronger market position,” stressed M Alamgir Chaudhry, Chief Executive Officer of National Productivity Organisation, Ministry of Industries & Production. Speaking to WealthPK, he said China's extensive trade networks and global reach have also opened new avenues for Pakistan's sports goods industry.
“Collaborations with Chinese manufacturers and distributors have facilitated access to a wide range of international markets, allowing Pakistani companies to expand their customer base and diversify their product offerings.” “Despite a strong reputation, Pakistan’s sports sector has encountered challenges, including fluctuating export growth and limited diversification of product offerings,” he noted.
Pakistan exports a considerable portion of its sports goods to globally renowned brands such as Adidas, Nike, Puma, Lotto, Umbro, Mitre, Micassa, Diadora, Wilson and Decathlon. “However, the pricing dynamics remains challenging. For instance, Pakistani manufacturers sell their footballs to these companies at relatively low prices at around $5 per unit. This is primarily due to the absence of internationally recognised branding on the products.
Consequently, the buyers add their own logos, and subsequently retail the product for as much as $25. This practice underscores the need for Pakistani manufacturers to establish and promote their own global brand identities in order to capture a higher value in the international market,” Alamgir emphasised.
“It is crucial to establish our own brands and develop a clear vision for investment in branding if we aim to promote the 'Made in Pakistan' concept effectively. However, building a strong brand requires substantial investments in design, packaging, and marketing. To achieve this goal, it is essential that we begin investing in these areas as a first step towards long-term success,” he said.
Talking to WealthPK, Hassan Saleem, chief executive officer of Awan Sports Industries Private Limited, said that a significant portion of sports goods manufacturing units in Pakistan continue to rely on traditional production methods, which adversely impacts product quality and hinders their competitiveness in the international market.
He highlighted that inefficient infrastructure and the absence of advanced technologies are key challenges facing the sector, which negatively affect the overall quality of products and limit their ability to meet international standards. “Ensuring small manufacturing units’ access to credit facilities is critical to enhance product quality and increase production efficiency, enabling them to compete effectively in the global marketplace,” Saleem noted.
Credit: INP-WealthPk