WFSGI Magazine 2013 - Physical activity pays off by World Federation of the Sporting Goods Industry

Magazine

OFFICIAL PUBLICATION OF THE WORLD FEDERATION OF THE SPORTING GOODS INDUSTRY

HEALTH

PHYSICAL ACTIVITY PAYS OFF

2013

Corporate Responsibility AND Sustainability WAYS AHEAD

Retail A changing environment

Table of contents Editorial: Message President and Secretary General

2–3

Health: Physical activity pays off • Getting the world moving • National & regional efforts: Europe, USA, Americas, Africa & Asia/Oceania • Company culture – Think, Drink, Move • Designed to Move: Solving the physical inactivity epidemic • Sport for All – A priority for a healthier and better life

4–5 6–10 13 14–15 16–17

Corporate responsibility & sustainability: Ways ahead • UNEP: Game, Set and Match for those companies out in front • From sustainable compliance to sustainable supply chains – Fair Labor Association • Three major developments with regard to CSR guidance – IOE • Better Work Program by ILO & IFC • Sustainability Management Systems

18–19 20–21 22–23 24–25 26–27

Manufacturers: Key challenges • Balance on people, products and profit • The migration of the Athletic Footwear (OEM) Industry

28–29 30

Trade: Level the playing field • The rising trend of protectionism: Trade restrictive measures • Legal Practice – A peep into the future • Opportunities in Free Trade Agreements

33–35 36 38–39

Bicycle: Sport, design and transportation • Joining forces – Why advocacy and industry must unite • Regulations – UCI approval procedure gathers pace • Design according to Cinelli • Leveraging partnerships – College Cycling • Ciclovia – Community mobilization in the Americas

41–42 45 46–47 48–49 50

Retail: A changing environment • R(e)volution: How retail will be changing towards 2020 • The SportScheck multi-channel strategy • Oakley – Enriching the customer experience • Market report China

52–53 54–55 57 58–59

The World Federation of the Sporting Goods Industry • About us • Sustaining Members • Board of Directors • Standardization ISO & CEN • Committees & Activity Reports • Members Directory

60 61 62–63 64 68–79 80–88

IMPRESSUM • Published by: WFSGI, Obere Zollgasse 75, P.O. Box 1664, 3072 Ostermundigen (Bern, SWITZERLAND), phone: +41 31 939 60 61, fax: +41 31 939 60 69, www.wfsgi.org – info@wfsgi.org • Layout: Republica AG, 360° Kommunikation, CH 3000 Bern 13 • Printing: Print United (Germany) COPYRIGHTS • © iStockphoto © Oakley © ILO/IFC

WFSGI MAGAZINE 2013

WFSGI Magazine Editorial

Message president Dear WFSGI Members, Dear Readers, Since this is the third year as the President of the WFSGI, I would like to express my sincere gratitude to all members, including the Board of Directors, various committees, and other staff, as well as all related parties, for the generous support and cooperation. Looking back on 2012, it was a particularly important year for the sporting goods industry, with the Olympic Games in London. I believe that the Olympic Games have once again convinced people all over the world that sports can peacefully unite people throughout the world. In addition to inspiring and encouraging spectators of various games, sports are essential for promoting the publicâ&#x20AC;&#x2122;s physical and mental health. To review the major activities of the WFSGI during 2012, I had talks in person with IOC President Jacques Rogge and shared with him recognition of the various challenges currently confronting us. Members of the CISO Committee, who separately had talks with IOC members, also defined the issues that both parties should tackle. With this common view, we will take new initiatives towards the next summer Olympic Games, to be held in 2016 in Rio de Janeiro. The Trade Committee has actively worked towards abolishing anti-dumping duties on Chinese products. In fact, the WFSGI held talks with the Chinese government regarding its trade relations with Brazil, Mexico, Argentina, and Turkey. Our efforts actually led to an opportunity for the Chinese government to hold discussions with the Brazilian government, which significantly advanced efforts towards promoting free and fair trade. Moreover, the WFSGI has been eagerly promoting CSR activities. In 2010, ISO 26000 was enacted, necessitating individual companies to fulfill their CSRs even more rigorously than before. Since a great many stakeholders from around the world jointly worked to prepare ISO 26000, this document should be interpreted as a global common code, transcending differences in laws, regulations, and cultures of individual countries. We have also formed a Manufacturers Committee, which has organized a forum to discuss relations between brand manufacturers and manufacturers to bridge the two parties.

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We will strengthen our relationships with the World Health Organization (WHO), because we believe that this will have positive effects on promoting public health through sports. At the WFSGI meeting held last year, we organized a Health Symposium to promote understanding about the prevention of non-communicable diseases (NCDs), which are responsible for over 60% of deaths worldwide. As a dependable partner for the WHO, the WFSGI will continue its commitments to promote healthy lifestyles, based on the recognition that sports have in most cases a positive influence on the control and prevention of NCDs.

I believe that sports have far greater potential to contribute to society than is currently recognized. To maximize the potential of sports, the WFSGI will exert its leadership in advocating practical systems effective in promoting public health and contributing to society in many different ways.

With best personal regards,

Motoi Oyama WFSGI President

WFSGI Magazine Editorial

Message secretary general Dear WFSGI Members, Dear Readers, The year of the Olympics 2012 was split between hard set backs and controlling costs but also with some growth in specific markets. We also noticed a flattening of the outdoor market that previously enjoyed double digit growth. These and others are signs to remain cautious and to control the money flow in your companies. On the other hand we remain very optimistic for the future, but our business model needs to adapt. The base and support for these new models are actually well described in our WFSGI By-Laws, and since 2009 we have been extensively active in this area. The chapters 2.8 and 2.9 of our By-Laws say;

To foster and encourage the participation of citizens of all countries in healthy sporting activities. To support the creation of a better world through sport. Our role has been to promote physical activity on a global level in the UN resolution A/66/L.1 from 2011 by supporting physical activity in the document. This preparation was done through the various stakeholder groups and finally the WHO. Today, the UN Political Declaration of the Highlevel Meeting of the General Assembly on the Prevention and Control of Non-communicable Diseases is the base for many actions and will be crucial for our sporting goods business in the future. The UN text shall create better awareness of the problems and is a strong influence factor for new business. Our industry can develop in new areas where we have not been very active until today. Future opportunities lay in the health area and school education around the promotion of physical activity. Already in 2012 we have noticed an increased interest from the media to this problem, and also the governments have to react (NCD Resolution 2011). Again in 2012

and for the last years we have seen increasing health care costs for me and my family and we are not using the health system more than before. Health care costs and physical inactivity is a major problem and will be taking scary development if we don’t take action soon. Therefore our simple message: Take action now and be part of the solution or you will be out of (good) business in 2030. In this magazine you will find several articles where physical activity is mentioned, and the action report “Designed to Move” provides clear information and suggests several solutions. We urge you to be part of the action and solution because the actual situation of physical inactivity continues to develop like a virus, you cannot see, you cannot feel and it kills our business slowly. Once you notice, it is too late. As for the WFSGI we had a very interesting year with a new and fresh corporate identity. Also our new and friendly website has shown already first results. More and more people are using it, and today we are technically ready for the next half decade. As every year it is a big job to gather the high-level articles and to get support from our partners. I therefore wish to thank every person who contributed to this magazine and especially the WFSGI board and committee chairpersons who are continuously driving the federation and the industry forward. I wish you lots of reading pleasure, good health and prosperity for 2013. We look forward seeing you at one of our WFSGI meetings. With best personal regards,

Robbert de Kock WFSGI Secretary General

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HEALTH: Physical activity pays off Getting the world moving

Getting the world moving: a global goal to get 10% more people moving By Professor Fiona Bull, Chair, Global Advocacy for Physical Activity, International Society for Physical Activity and Health; Director, Centre for the Built Environment and Health, School of Population Health, The University of Western Australia, Perth, Western Australia

Globally, it is estimated that one third of adults aged 15 years and older are not doing enough physical activity to reduce their risk of chronic disease and improve their health and wellbeing. A recent special issue of The Lancet medical journal identified that not only is physical inactivity a global concern but that it is of equal importance and as serious a health risk as smoking. The benefits of being regularly active are well established in literature that now spans over 50 years. Physical activity through sports, recreation and transport reduces your risk of heart disease, cancer and diabetes. It can also help prevent high blood pressure, high cholesterol and weight gain, as well as improve fitness, bone health and mental wellbeing. As Professor Jerry Morris from the London School of Hygiene and Tropical Medicine wrote back in 1994 – physical activity is the “best buy in public health.” Identifying “best buys” to encourage more participation is now receiving centre stage position in the global debate about how to prevent the large burden that chronic disease places on health systems and societies. It is estimated that over 60% of deaths globally are due to chronic disease and 80% of these deaths occur in low and middle income countries (LMIC). Future projections indicate that deaths due to chronic disease will continue to rise and the burden will increase, particularly in low and middle income countries, especially those countries experiencing rapid transition in their economies and societies. The costs of chronic disease are felt at the individual and household level in terms of pain and suffering, but also through the costs of medication, potential loss of employment and the burden of care placed on family and friends. For many, meeting these costs can require a choice between food or medication, education or health care. At the community and national level, chronic disease diverts resources away from other areas of investment and there is a huge loss in human capital and productivity from the labour force. In 2010 the World Economic Forum identified chronic disease as one of the biggest threats to economic development in the coming years. Preventing chronic disease is starting to receive the attention it requires. Most recently, the United Nations General Assembly held their first High Level Meeting on Prevention and Control of non-communicable disease in New York (Sept. 2011). The Political Declaration resulting from this meeting outlined the global agenda and provides clear direction to the national

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actions countries should undertake. It places particular importance on promoting physical activity as one of the four common risk factors that are associated with chronic disease. Smoking, alcohol, poor diet are the other three lifestyle risk factors. The core message of the Political Declaration is on the need for all countries to introduce policies and programs to support participation, provide easier, safe and affordable opportunities and increase physical activity in the entire population. Promoting physical activity to children of all ages is particularly important. Although global data for children and youth are sparse

NON COMMUNICABLE DISEASE PREVENTION:

Investments that Work for Physical Activity A complementary document to The Toronto Charter for Physical Activity: A Global Call to Action

Physical inactivity is the fourth leading cause of deaths due to non communicable disease (NCDs) worldwide - heart disease, stroke, diabetes and cancers - and each year contributes to over three million preventable deaths .1 Physical inactivity is related (directly and indirectly) to the other leading risk factors for NCDs such as high blood pressure, high cholesterol and high glucose levels; and, to the recent striking increases in childhood and adult obesity, not only in developed countries but also in many developing countries. Substantial scientific evidence supports the importance of physical inactivity as a risk factor for NCD independent of poor diet, smoking and alcohol misuse. Physical activity has comprehensive health benefits across the lifespan: It promotes healthy growth and development in children and young people, helps to prevent unhealthy mid-life weight gain, and is important for healthy ageing, improving and maintaining quality of life and independence in older adults. The most recent global estimates indicate that 60% of the world population are exposed to health risks due to inactivity.2 Increasing population-wide participation in physical activity is a major health priority in most high and middle income countries and is a rapidly-emerging priority in lower income countries experiencing rapid social and economic transitions. The Toronto Charter for Physical Activity (May 2010) outlines the direct health benefits and co benefits of investing in policies and programs to increase levels of physical activity.3 Already translated into 11 languages, the Toronto Charter makes a strong case for increased action and greater investment on physical activity as part of a comprehensive approach to NCD prevention. The Charter was developed with extensive world-wide

stakeholder consultation and calls for action in four key areas consistent with the WHO Global Strategy for Diet and Physical Activity: 1) national policy; 2) policies and regulations; 3) programs and environments; and 4) partnerships. There is strong evidence to guide the implementation of effective approaches to increase physical activity.4,5,6 Reversing downward trends in physical activity will require countries to commit to a combination of strategies aimed at the individual, social-cultural, environmental and policy determinants of inactivity. Physical activity is influenced by policies and practices in education, transportation, parks and recreation, media, and business, so multiple sectors of society need to be involved in the solutions. There is the clear need to inform, motivate and support individuals and communities to be active in ways that are safe, accessible and enjoyable. There is no one single solution to increasing physical activity, an effective comprehensive approach will require multiple concurrent strategies to be implemented. To support countries ready to respond, there are seven “best investments” for physical activity, which are supported by good evidence of effectiveness and that will have worldwide applicability.

Whole-of-community approaches where people live, work and recreate have the opportunity to mobilize large numbers of people. 1 | www.globalpa.org.uk | FEBRUARY 2011

The report NCD Prevention: 7 Investments that work for physical activity and the companion report The Toronto Charter for Physical Activity: A global call for action are available from www.globalpa.org.uk.

HEALTH: Physical activity pays off Getting the world moving

compared with data on adults. Recent estimates published in The Lancet suggest that 80% of 13–15 year olds do not meet physical activity recommendations for their age group. Implementing effective solutions is now a priority to achieve the proposed global target of getting 10% more people more active more often. We do know what can work. Effective strategies are available from the very large body of literature that has tested different approaches in different settings with different age groups in different countries. It is notable, however, that there is much more known about what works in high-income countries, particularly from Europe, North America and Australia, and far less evidence and good examples are available from middle and lower income countries. This is a major gap that must be addressed. Increasing research capacity in the field of physical activity, exercise and sports science and public health is another priority agenda. A practical short-term action is that all programs and strategies that are implemented and aim to increase physical activity should be well evaluated to develop a knowledge base from practice to inform future programs and investments.

4. Primary health care that assesses and promotes physical activity within a systematic approach to NCD prevention 5. Public education – sustained mass media campaigns to raise awareness, knowledge and to change social norms towards physical activity 6. Community-wide programs that involve multiple settings (e.g. workplace, faith-based, neighbourhood centres), multiple sectors and the community 7. Sports systems and programs that promote “sport for all” and encourage participation across the life span The 7 actions above reflect the need to increase the places, spaces and opportunities to be active through a combination of providing physical activity programs and providing and maintaining supportive environments. Just telling people to be active is not enough. There is also an important need to better understand exactly what types of urban design can best provide the different combinations of safe accessible public open space such as public parks and recreational and sporting facilities to encourage physical activity.

We all have a role to play in this agenda. To help clarify a set of programs and strategies suitable for implementation in most countries, GAPA, the Advocacy Council of the International Society of Physical Activity and Health (ISPAH), produced a short report called NCD Prevention: 7 Investments that work for physical activity. These 7 interventions are supported by good evidence on effectiveness and have worldwide applicability. It is well recognised, but rarely practiced, that there is no one single solution that will have a big impact on increasing physical activity. Thus, these 7 actions are recommended as part of a comprehensive approach involving partnerships and collaborations between government, nongovernment, civil society and private sector.

We need to increase the places, spaces and opportunities to be active through a combination of providing physical activity programs and providing and maintaining supportive environments.

The 7 investments recommended to increase physical activity are: 1. “Whole-of-school” programs that integrate health and physical activity within the school setting 2. Transport systems that prioritise walking, cycling (particularly for short trips) and public transport 3. Urban-design regulations and infrastructure that provide for equitable and safe places to be active including formal and informal sports and recreation, public open space, and support for walking and cycling across the life course

Implementing a broad base approach as set out in the 7 investments will require the involvement of government, non-government, civil society, private industry and the community. Professional associations and the sporting sector have an important role to play in providing leadership to achieve this goal. Greatest progress will be made, with a shared focus on a common goal. Sharing information and national experiences, within and between countries, will continue to be of great benefit to help achieve our goal of 10% more people moving more often.

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HEALTH: Physical activity pays off National & regional efforts – EUROPE

THE BLUEPRINT: A PLAN FOR MAKING PHYSICAL ACTIVITY APPEALING TO YOUNG PEOPLE By Paul Kelly, Physical Activity Researcher in the British Heart Foundation Health Promotion Research Group in the Department of Public Health at the University of Oxford, Dr Charlie Foster and Dr Anne Matthews (also from Oxford) were co-authors for the Blueprint

What can we do to make physical activity more friendly and appealing to young people? This is the question that was raised when representatives from six European physical activity projects met in Orebro, Sweden in March 2009. This World Health Organization Regional Office for Europe (WHO/Europe) funded study had been commissioned to explore the experiences and learning of physical activity promoters working with young people and to share this knowledge with the wider European community.

The Blueprint discusses each of the 18 Key Aspects and how physical activity projects across Europe might achieve those relevant to them. Each of the aspects is illustrated by one or more Case Studies taken from 12 different countries in the WHO European region. www.euro.who.int/en/what-we-publish

The study revealed that significant progress has been made across Europe in terms of funding, implementing and evaluating physical activity projects; however, a deeper understanding of young people and their needs is still required to increase participation levels.

Through collaborative projects such as this, through the engagement of youth networks such as CEHAPE and through crosssector collaboration with academic institutions we are able to share the experiences and expertise that is developing throughout Europe. Ultimately this will result in improved physical activity promotion and higher participation in young people across the WHO European region and beyond.

In response, the project on Physical Activity Networking (PHAN), co-funded by WHO/Europe and the European Union’s Health Programme, commissioned the Blueprint: a plan for making physical activity appealing to a youth target audience. It is intended to be a resource for guidance to physical activity promoters and projects. The Children’s Environment and Health Action Plan for Europe (CEHAPE) Network youth delegates (34 from 17 countries) attended a workshop at the 5th Ministerial Conference on Environment and Health in Parma on the 10th March 2010 to share their views, experiences and perspectives on this issue. Well planned – formative research

Youth friendly

Funded

Strong partners

Evaluated

Good workers and implementers

Engage parents and teachers

Policy related

The delegates identified 18 Key Aspects within the physical and social environment that influence the experience of physical activity; projects should consider these in order to appeal to young people. Particularly important in the physical environment was ease of participation both in terms of cost and nearby locations. In the social environment a supportive culture and a healthy and adaptive attitude towards being competitive fostered by highquality mentors and coaches were highlighted as crucial aspects.

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Case Study: StreetGames, England www.streetgames.org Cost can be a determining factor in the appeal of physical activity; as soon as there is any fee there is a potential barrier to participation the risk of creating social selection bias. StreetGames is a network of organizations that delivers sporting opportunities to young people in disadvantaged communities in England and Wales, using doorstep sport. Accredited StreetGames projects bring sports to young peoples’ doorsteps and provide stronger and safer communities, encourage social action and volunteering and improve health and wellbeing. Target age group: 5–18 years. “Access to sport is a huge problem in disadvantaged communities. StreetGames projects take sport to the doorstep of young people, utilizing empty urban spaces. Cost is regarded as key to success – sessions are provided at the ‘right price’ – either free or at an affordable level per session (around £ 1). No participant is excluded for inability to pay. This is made possible by convincing partner organizations to subsidise the provision.” (StreetGames Regional Manager)

HEALTH: Physical activity pays off National & Regional efforts – USA

SFIA Works To “Get America Moving” By Bill Sells, Vice President of Government Relations, Sports & Fitness Industry Association (SFIA)

One of the primary objectives of the Sports & Fitness Industry Association’s (formerly SGMA) work every year is to help “Get America Moving.” Each year, SFIA is focused on promoting the importance of physical activity through federal legislation. SFIA’s two main legislative initiatives – PEP and PHIT – do enjoy bi-partisan support which is crucial when dealing with members of Congress. SFIA’s National Health Through Fitness (NHTF) Day Each March, SFIA leads the effort to help “Get America Moving” by organizing meetings with members of Congress on National Health Through Fitness Day. The most recent “big day” on Capitol Hill was March 7, 2012. This day of advocacy in Washington, DC was led by nearly 20 celebrity athletes who sought federal funding for physical education in schools and a tax incentive to promote physical activity. SFIA member companies provided the celebrity athletes to lead the charge and were joined by physical fitness advocates which included physical education teachers; members of the golf, tennis & youth sports communities; sporting goods industry representatives; and SFIA’s Legal Task Force. The group promoted policies to increase physical activity, fund physical education in schools and encourage improved health via active lifestyles. The two primary legislative objectives were P.E. funding through the SFIAsupported Carol M. White Physical Education Program (PEP) and a physical activity tax incentive provided by the Personal Health Investment Today (PHIT) Act. Carol M. White Physical Education Program (PEP) While PEP continues to be threatened by budget cuts and a proposed Department of Education plan to consolidate PEP with counseling programs, the efforts on NHTF Day have successfully preserved federal funds © SFIA: NHTFD 2012: (f.l.t.r.) Former U.S. Open / British Open golf champion Johnny Miller, Callaway Golf executive Steve McCracken, and global golfing ambassador Gary Player.

dedicated to physical education in schools. To date, PEP has provided almost $800 million in physical education funding to schools in the U.S. PEP funds are used to pay for teacher training and necessary equipment to provide quality P.E. in schools and community-based organizations. On National Health Through Fitness Day, SFIA and its partners stressed academic achievement, social behavior and attendance benefits of PEP – and positive longterm impact on health to reduce medical spending. Personal Health Investment Today (PHIT) Act The PHIT Act has gained additional sponsors due to the efforts on National Health Through Fitness Day. The bill currently enjoys support from more than 20 members in the House of Representatives. The PHIT bill modifies the tax code to increase physical activity in the United States. Under PHIT, activity-related expenses (such as health club memberships) could be deducted or paid for using pre-tax medical dollars. With bi-partisan support, PHIT could be an attractive option for future health care reform in the U.S. SFIA will continue to promote PHIT as a physical activity initiative to improve health and lower health care spending to garner additional sponsors. SFIA and its supporters are getting ready to return to Washington, DC on March 13, 2013, for the 14th Annual National Health Through Fitness Day. Make plans to attend. It’s your chance to “walk the halls of Congress” and play your part in helping to “Get America Moving.”

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HEALTH: Physical activity pays off National & regional efforts – Americas

Caribbean Wellness Day: Promoting Mass Physical activity and Wellness in 19 Countries By C. James Hospedales, Senior Advisor, Prevention & Control of Chronic Diseases, PAHO/WHO, and Renee Franklin-Peroune, Health Specialist, CARICOM Secretariat, Guyana

The Caribbean countries have a high health and economic burden of non-communicable diseases (NCDs) and obesity. Deep concern about this situation led the CARICOM (Caribbean Community) heads of government to issue the historic Port-of-Spain Declaration “Uniting to Stop the Epidemic of NCDs in the Caribbean” in 2007*. This mandated inter-sectoral, population-based approaches to prevent and control NCDs and promote health, and designated the second Saturdays in September as Caribbean Wellness Day (CWD). CWD, started in September 2008, has completed 5 years and is designed to strengthen public, private, and civil society partnerships and to promote multi-country activities in support of wellness**. Key to success has been the leadership by Heads of Government, plus the Caribbean has a history of mass movement like Carnival. The need to address NCD risk factors among the Caribbean populations, particularly children, is tantamount to disaster preparedness. PAHO/WHO – CDC Global School Health Surveys of children 13–15 years in 14 CARICOM countries showed obesity ranging from 6–17%; consumption of carbonated beverages one or more times per day was 56–81%; while 36–55% spent three or more hours daily doing sitting activities; and only 13–32% were physically active for at least 60 minutes per day.

Specifically for children, there were children’s camps on healthy eating, and preventing childhood obesity. CWD has been a catalyst for more sustained physical activity, healthy food choices, and health screening in smokefree environments. It has led to increased awareness and social mobilization for health, wellness and physical activity, as hundreds of thousands of people across the 19 countries simultaneously participate, and hundreds of organizations work together. It has led to increased trust and cooperative relations between companies, chambers of commerce, local governments, ministries of health and education, and civil society organizations that augur well for the future. This Caribbean experience has been unique in that it is multicountry and multisectoral. Organizational support and Caribbean branding of products came from the Pan American Health Organization and CARICOM. The CWD also led to the idea of the Wellness Week***, launched in 2011 as a joint initiative between PAHO and the World Economic Forum, and which is spreading rapidly through the region of the Americas. © PAHO: Boys and girls rope skipping at the Caribbean Wellness Day.

In 2012, the focus of CWD was on children, and 19 of the 20 CARICOM countries celebrated with hundreds of activities in communities, workplaces, and schools, supported by mass media. These included health education seminars, dance marathons, running and cycling, basketball and soccer competitions, exercise days, health food exhibitions, health cooking demos, and health screening. Health walks are regular CWD features, which draw government and opposition party leaders, as well as ordinary people!

* http://www.caricom.org

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** http://www.scielosp.org

*** http://new.paho.org

HEALTH: Physical activity pays off National & regional efforts – Africa

Making Mauritius a physically active and healthy nation By Dr R Prakash Ramhith, NCD Coordinator & Programme Manager for Physical Activity, Ministry of Health and Quality of Life (MOH & QL)

The island republic of Mauritius situated in the southwest Indian Ocean is home to a population of 1.25 million people consisting of diverse ethnic and religious groups. Over the past few decades it has seen rapid economic, demographic and epidemiological changes. Communicable diseases and problems of maternal and child health and nutrition have markedly declined and non-communicable diseases (NCDs) and their risk factors have increased significantly. They now account for over 80% of the “burden of diseases” and more than 75% of annual deaths. The current burden of NCDs places Mauritius among those countries with the highest prevalence of NCDs. In 2009 among adults aged 25–74 years diabetes rates were 23.6%, hypertension was 37.9% and 50.9% were either overweight or obese, and 83.5% were physically inactive. Furthermore, the 2007 Global School Health Survey showed that only 13% of children aged 13–15 years were doing 60 minutes of moderate-intensity physical activity every day. NCD Surveys – Mauritius (age 30–74 years) Disease/Risk Factors Diabetes Hypertension Obesity Overweight High Cholesterol Low level of PA

Prevalence % 1987 1992 14.3 16.9 30.2 26.2 6.3 10.2 24.2 29.8 54.5 32.7 6.6 8.8

1998 19.5 29.6 11.5 29.1 42.9 14.2

2004 19.3 29.8 10.3 25.4 40.1 17.0

2009* 23.6 37.9 16.0 34.9 34.7 16.5

* 2009 figures apply to age group 25–74 years

In response to the high prevalence of overweight and obesity and low level of physically activity (PA) several measures to encourage PA have been implemented and in 2010 these measures were stepped up with the institution of a National Action Plan on Physical Activity (NAPPA). The NAPPA aims to promote and sustain the practice of regular PA at all ages. The NAPPA uses an intersectoral approach with the support of several key ministries, the private sector, non-governmental organisations and civil society. The following are some of the measures contained in this plan: • Sustaining awareness on the importance of PA on health in the community • Promoting PA on national radios and TV • Supporting construction of “health tracks” in strategic places for use by members of the community • Supporting the set-up of health gyms at work sites

• Setting up places for doing PA by MOH & QL in 60 localities • Introduction of a module on healthy lifestyle in primary school curriculum • Setting up “Football for Health Project” targeting some 13,000 in collaboration with FIFA • Making PA an examinable subject • Launching of “Swimming for Health” (10-week programme) in 5 regions • Reviving intercollegiate sports meetings • Setting up a “Mass Sport Unit” • Organising a National Sports Day for women • Creating a sports channel by the national TV station Some positive impacts are showing up in the population – especially the youth. It is also observed that more and more people can be seen doing regular indoor and outdoor PA. The National Action Plan on Physical Activity is available on the website: health.gov.mu Percentage of students who were physically active for ≥ 60 min/day on all 7 days of the week 30% 25%

19.4%

20% 15% 10%

13%

2007

2011

As current efforts are sustained and expanded, the authorities expect further increases in PA levels in the population. Mauritians can look forward to better health and wellbeing and a reversal in the trend of NCDS and their risk factors.

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HEALTH: Physical activity pays off National & regional efforts – Asia/Oceania

Getting active in the Pacific Islands By Dr Temo Waqanivalu, Coordinator Non-communicable Disease and Health Promotion, World Health Organization South Pacific Office

Sport and competitive games are a huge part of the Pacific Island culture and serve to enrich social life amongst villages and towns alike. Rugby, which is the national sport of Fiji, Tonga and Samoa, is followed with enthusiasm by young and old, and talking about a recent game is a guaranteed conversation starter. Despite this, an increasingly modern lifestyle has meant that most of the general population is leaving sports to the elite athletes and many are more likely to watch a game than to play it. Less than 50% of the people in Fiji get at least 30 minutes of exercise each day and the statistics are similar across most of the Pacific. This sedentary lifestyle, along with improper nutrition, is taking its toll. In some Pacific countries up to 90% of the population are overweight or obese. Obesity and lack of physical activity are key risk factors for non-communicable diseases (NCDs) such as heart disease, diabetes and cancer, which are now responsible for over 75% of all adult deaths in the region. The World Health Organization (WHO) is supporting countries to help address the escalating prevalence of noncommunicable diseases. One strategy is encouraging Pacific Islanders to do at least 30 minutes of physical activity daily. © WHO: Taking the Pacific Island culture into account – Aerobics in Kiribati

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The 2-1-22 Pacific NCD program, supported by Ausaid and NZaid, is driven by WHO and the Secretariat of the Pacific Community through the region, building capacity, providing grants and infrastructure for coordination of proactive NCD campaigns in countries. Through this, WHO has developed physical activity guidelines which contain specific information relevant to the Pacific island culture and environment to guide health professionals, policy makers, educators and communities. WHO has also designed a series of Pacific aerobics DVDs which have been distributed throughout the countries. WHO also engages local communities through health-promoting settings such as schools, workplaces, villages and churches. These local communities receive resources and encouragement to develop and manage healthy lifestyle initiatives. Many of these communities have already demonstrated positive benefits from their initiatives. In Tuvalu a countrywide “Biggest loser wins” competition is encouraging many to get involved and lose weight through diet and exercise. In Tonga the Kau Mai Tonga: Netipolo (C’mon Tonga let’s play netball) program uses netball as a vehicle for health, specifically targeting women. In Vanuatu the community of Aniwa developed an extensive physical activity for the whole community included volleyball, soccer and walking. In just one year the improvements made to health were outstanding, obesity was halved and instance of overweight greatly reduced.

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HEALTH: Physical activity pays off Company Culture

THINK, DRINK, MOVE: HOW COCA-COLA PROMOTES PHYSICAL ACTIVITY AND WELL-BEING By Dr. Rhona Applebaum, Vice President and Chief Scientific & Regulatory Affairs Officer, The Coca-Cola Company

At Coca-Cola, we recognize that the health of our business is directly linked to the health and well-being of our employees, consumers and communities. We describe our health and well-being strategy in three simple steps: “Think, Drink and Move.” • Think: educating consumers on the facts about our beverages and the importance of an active, healthy lifestyle to empower them to make informed choices to meet individual needs; • Drink: providing beverages for every lifestyle and occasion with an expanding portfolio of low- and no-calorie beverages and package sizes; • Move: promoting physical activity through partnerships and programs to motivate people to be more active. From global properties like the Olympic Games, Paralympic Games and the FIFA World Cup – which help to not only support athletes but also motivate the next generation to engage in healthy competition – to grassroots soccer tournaments, fun runs and walks and after-school programs, we sponsor more than 250 physical activity initiatives in more than 100 countries. And we’re just getting started; our goal is to sponsor at least one program in each of the 200-plus countries where we operate by the end of 2015 and positively impact millions of people. We collaborate with government, health organizations, NGOs, industry coalitions and other stakeholders on a range of global, regional and local partnerships. For example, we are a founding partner of Exercise Is Medicine™, a global program created by the American College of Sports Medicine to encourage health care providers to advise patients on the importance of physical activity, and the EPODE International Network, the world’s largest childhood obesity prevention © The Coca-Cola Company: The Copa Coca-Cola winner team.

network with 25 community-based programs in 15 countries impacting 150 million people. Here in the United States, we support programs such as the Rails to Trails network of walking and biking trails; the Sprite Spark Parks initiative to construct and refurbish neighborhood athletic fields and basketball courts; a partnership with the National Foundation for Governors’ Fitness Councils and the American College of Sports Medicine to build new fitness centers in schools nationwide; the Triple Play after-school program with the Boys & Girls Clubs of America to provide nutritional education and physical activity opportunities to millions of young people; and “Get the Ball Rolling” clinics conducted with pro sports teams in major cities to help kids learn the importance of exercise and balanced nutrition. Outside our flagship market, the Copa Coca-Cola grassroots youth soccer tournament has reached more than 1 million boys and girls age 13 to 15 in the Americas, Europe, Africa and Asia since launching in Mexico in 1998. In Great Britain, we are working with StreetGames to provide sporting opportunities to more than 110,000 disadvantaged teens. In Germany, we teamed up with the German Olympic Sports Confederation to launch the Mission Olympic program to encourage cities to motivate citizens to become more physically active. When it comes to complex, multi-faceted problems like obesity, the right answers aren’t simple and the simple answers aren’t right. To date, results clearly demonstrate that no single sector, organization or individual can effectively tackle these challenges alone. Rather, a collaborative model of partnering across government, business and civil societies is the path forward. We need to start now to advance this multidisciplinary approach, new thinking and creative publicprivate partnerships. Only through such a model can we positively impact and contribute to public health and drive sustainable progress.

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HEALTH: Physical activity pays off Designed to move

Solving the Physical Inactivity Epidemic By Lisa MacCallum Carter, Managing Director, Access to Sport, Nike, Inc.

The human body was designed to move. When we move, good things happen; when we don’t, good things don’t happen. It really is as simple as that. But in a very short period of time, we have become dangerously inactive as a global population.

more prevalent. Like never before in history, their potential is stifled due to the absence of something so fundamentally human: Moving. Something needs to change, and it needs to happen now.

Physical inactivity has become normal, and the statistics are plentiful and concerning. In the USA in just 44 years (fewer than two generations), physical activity declined 32% and is on track for a 46% drop by 2030. China’s 1.3 billion citizens are slowing down more rapidly than any other nation. By age 15, European children are 50% less active than they were at FIG 1.4 THE RISING COSTS OF PHYSICAL INACTIVITY age 9. Youth are not experiencing the enormous spectrum ofAbenPHYSICAL INACTIVITY PERPETUATES VERY DANGEROUS CYCLE BEGINS TAKE Driven by a physical inactivity epidemic, this has become the efits that sport THAT and active playTO bring. As HOLD a directVERY result,EARLY child- IN LIFE most inactive generation in history. Through research, talking hood obesity, preventable diabetes and a whole host of other with children (those with and without access), and working emotional and physical health disorders have never been

As economies develop, technology and other modern conveniences enable us to move less, making physical activity optional. Participation in sports and physically active play has never been more crucial than it is today. But access is limited and the importance is undervalued.

PHYSICALLY INACTIVE CHILDREN

30% of children obese

Misses school 2 days higher than average

Lower fitness associated with lower test scores

DRAINS ECONOMIES Earns less at work

$2,741/yr higher health care costs

Girls: 51% more likely to be held back a year in school

2x AS LIKELY TO BE OBESE AS ADULTS

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5.3 million premature deaths/yr. due to inactivity

Boys: 46% more likely to see themselves as poor students

INTERGENERATIONAL CYCLE

Preschoolers with inactive parents are far less likely to be active

EARLY CHILDHOOD

1 week/yr of extra sick days taken

MAY LIVE UP TO 5 YEARS LESS ADOLESCENCE

ADULTHOOD

HEALTH: Physical activity pays off Designed to move

MAY LIVE 5 YEARS LONGER Compression of Morbidity 1/3 the rate of disability

Active parents associated with active kids

Kids of active moms are 2x as likely to be active

Reduced risk of heart disease, stroke, cancer diabetes

Full week of wages gained due to less absenteeism

Up to 1/10th as likely to be obese PHYSICALLY ACTIVE CHILDREN

Fitness associated with 40% Consistently higher test scores smaller gains in BMI

EARLY CHILDHOOD

Less likely to smoke, become pregnant, engage in risky sexual behavior, or use drugs

15% more likely to go to college

Saves up to $2,741/yr in Earns 7-8% more health costs throughout life

ADOLESCENCE

with a broad group of experts in the field, we have a much better understanding of the underlying issues and barriers that prevent children from having access to sport and physical activity. Importantly, we learned that all children have an innate desire to be active. No one can solve this issue alone. In acknowledgement of this, we worked with over 70 expert organizations in the field of physical activity to release a Framework for Action entitled Designed to Move (www.designedtomove.org). Coauthored by the American College of Sports Medicine (ACSM), the International Council of Sport Science and Physical Education (ICSSPE), and Nike, Designed to Move was developed to accomplish two things: • Make a powerful investment case for urgent investment in physical activity. • Lay out a simple plan for collective action.

STRONGER ECONOMIES

ADULTHOOD

higher wages, to reduced risk of heart disease and significant healthcare cost savings, the benefits of physical activity are both cross-cutting and highly underestimated. We have a vision of future generations running, jumping and kicking to reach their greatest potential, and two asks of the world to achieve this vision: • Create early positive experiences for children in sports and physical activity. • Integrate physical activity into everyday life. The costs of physical inactivity are no longer sustainable. The happiness, health and potential of our children are all at stake. All of our children and their children should have physical activity and access to safe physical play as part of their everyday life. The solution is clear and the ambition significant. We cannot do this alone. Please join us in this effort. Reference for the charts: American College of Sports Medicine, Nike, Inc., and International

The good news is that the future hasn’t yet happened. We get to shape it. From increased educational attainment and

Council of Sport Science and Physical Education. (2012). Designed to Move: A Physical Activity Action Agenda.

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HEALTH: Physical activity pays off sport for all

Get more people moving: a priority for a healthier and a better life By Mr Sam Ramsamy, Chairman of the IOC Sport for All Commission

The International Olympic Committee (IOC) was founded more than a century ago to place sport at the service of humanity. In this third millennium, there is no longer any doubt that the IOC and the sports movement have a social responsibility, namely to enable the largest number of people possible to have access to the practice of sport, and to make this a key element of sustainable social and human well-being for individuals and society. Moreover, one of the fundamental principles of Olympism in the Olympic Charter states that “the practice of sport is a human right. Every individual must have the possibility of practising sport without discrimination of any kind.” And the role of the IOC

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is, also according to the Olympic Charter, “to encourage and support the development of sport for all”, which is done in many ways. The first of these is through our premier event, the Olympic Games. They are more than just competition for the world’s best athletes; they are also an inspiration for others to engage in sport and physical activity. In the host country, the Games leave a strong sporting legacy with many world-class sports venues, thus increasing interest and enthusiasm for sport among the general population. But our efforts to promote sport and physical activity go well beyond support for elite athletes. Many of our initiatives are aimed directly at recreational athletes and young people. This is why the IOC established the Sport for All Commission, to support efforts to spread the health and social benefits of regular physical activity. As Chairman of this Commission, I would like to stress the fact that the Commission’s terms of reference speak of “physical activity”, not “sport” or “athletic competition”. And the Commission makes this vision a reality through advocacy, programmes and the funding of activities at grassroots level.

HEALTH: Physical activity pays off sport for all

The World Conference is one of the IOC’s key advocacy initiatives in this field. Organised every two years, this is a platform for sharing experience and best practice by the various Olympic family constituents, sports organisations, Sport for All bodies, the academic world and institutional partners. The next Conference will be held in Lima (Peru) in April 2013, during which participants will discuss the current and future trends in Sport for All. Another form of support is the annual grant of IOC patronage and financial assistance to between 15 and 20 Sport for All events in each of the five continents. One of the symbols of the Sport for All movement is definitely Olympic Day, another way of getting people from all walks of life and ages to move. Every year, on 23 June, hundreds of thousands of people gathered together by the National Olympic Committees (NOCs) across the globe commemorate the birth of the modern Olympic Movement. Truly aimed at everyone, whatever their sporting ability, Olympic Day is nowadays developing into much more than just a run or sports event. Based on the three pillars “move”, “learn” and “discover”, it is an opportunity to reflect on the meaning of the Olympic Games: i.e. that we must always try to give the best of ourselves, whilst the important thing is not winning or losing but knowing how to play the game well. It thus allows young people in particular to learn about the Olympic values of excellence, friendship and respect, as well as to discover new sports and thus move and acquire healthy habits. This is becoming more and more obvious in today’s society, where young people have access to numerous leisure pursuits, and where physical activity is not at the top of this list. Statistics show that 60% of the world’s population has no physical activity. The same statistics reveal that barely a third of the world’s young people have a healthy lifestyle. Far too many children have little opportunity for sport, exercise or outdoor play. We can see the results in the rising rates of youth obesity and diabetes. The IOC Medical Commission works with leading scientists and experts to play an active role in the promotion of health through sports participation. This concern about youth inactivity and rising obesity rates was one aspect behind our decision to launch the Youth Olympic Games. With this project, the IOC hopes to inspire young people in every corner of the world and to engage them in physical activity and sport. These Games combine sport, culture and education in a global forum that encourages a healthy lifestyle and cultural understanding. After

the success of the inaugural Summer Games in Singapore in 2010 and the Winter Youth Olympic Games in Innsbruck in 2012, the second editions will gather the next generation of talented young athletes in the Chinese city of Nanjing in the summer of 2014, and in the Norwegian Olympic city of Lillehammer in the winter of 2016. Encouraging physical activity was also a prime focus of the 2009 Olympic Congress in Copenhagen (Denmark). The Congress approved several recommendations to encourage healthy lifestyles, and challenged the entire Olympic Movement to do more in this regard. The call to action by the Congress was also aimed at parents, governments, schools and other institutions linked with the lives of young people. Much of IOC’s work to encourage physical activity and healthy lifestyles relies on partnerships including governments, International Sports Federations, NOCs, and nongovernmental (NGO) and sports organisations. Relations between sport organisations and the sporting goods industry are based on this vital partnership. It has helped assist the athletes and promote the practice of sport and physical activity in the world. We also work closely with several United Nations agencies, programmes and NGOs. For example, we strengthened our partnership with the World Health Organization (WHO) through a new memorandum of understanding in 2010 which streamlines our efforts to promote physical activity across the globe. This document names physical inactivity as one of the most important risk factors for non-communicable diseases, and outlines the joint way forward for the five years to come. Later the same year, sport was officially recognised as an important tool for education, development and peace by the world’s leaders during a summit on the Millennium Development Goals (MDGs), recognition confirming the UN decision in 2009 to grant the IOC UN Observer status. In conclusion, in our constantly evolving society, sport more than ever looks to be the social movement capable of offering all generations, especially young people, the chance to live a life that is not only healthier and more balanced, but also better, with more meaning. Because sport can play such an important role, we have the responsibility to encourage and support the development of sporting activities through all generations. Let us together give physical activity and sport the place, role and status they deserve and make the global activity of sport an essential element in the well-being of individuals and society.

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Corporate responsibility & sustainability: Ways ahead United Nations Environment Programme

SUSTAINABILITY IN THE SPORTING GOODS INDUSTRY – GAME, SET AND MATCH FOR THOSE COMPANIES OUT IN FRONT By Achim Steiner, UN Under-Secretary General and Executive Director of UNEP

Achim Steiner has served as UN Under-Secretary General and Executive Director of UNEP since 2006. A German and Brazilian national, Mr. Steiner previously headed the International Union for Conservation of Nature and the World Commission on Dams. His professional career has seen him work globally at all levels from grassroots to international policy-making.

In the wake of the many “green” medals won by the London 2012 Olympics and the welter of sustainable business initiatives showcased at Rio+20, there has never been a more compelling case for companies, including those from the world of sporting goods, to make a definitive transition to an inclusive Green Economy. From a park built on rehabilitated industrial land to the light-weight, low carbon Olympic Stadium, London 2012 ensured sustainability concepts, ideals and actions seeped into the consciousness of the millions who participated in and watched the Games. London’s achievements are part of a growing commitment by organizers of major sporting events to incorporate sustainability across the planning, running and “legacy” objectives, thus generating public and consumer awareness on environmental and social issues. It is part of an unstoppable trend that in some ways began in 1994 with an agreement between the International Olympic Committee and UNEP, which has evolved through the Sydney, Torino, Beijing and Vancouver Games. More recently, UNEP raised environmental awareness amongst the next generation of sporting icons at the Innsbruck 2012 Youth Olympics and a team of UNEP and international experts deliv-

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ered recommendations to the 2014 Sochi Winter Games organizers. Outside the Olympics, UNEP worked with the German football authorities on a Green Goal for the 2006 FIFA World Cup and in 2010 supported South Africa to reduce that football tournament’s carbon footprint. This progress is reflected in the way some sporting goods firms are envisioning more sustainable business models. The names of Nike, Adidas and Puma spring to mind. Also, sporting figures are associating themselves with environmental movements. Indian cricket legend Sachin Tendulkar became a UNEP Goodwill Ambassador in 2010; Cameroonian footballer Samuel Eto’o worked to promote biodiversity in Africa; former NBA giant Yao Ming lent his voice to the fight against the illegal ivory trade; and in the UK, former Manchester United captain Gary Neville has launched Sustainability in Sport to establish eco-standards in sports clubs.

Rio+20 Initiatives The Future We Want outcome and a range of initiatives at Rio+20 in June generated further traction towards sustainability across the corporate world, with implications for the sporting goods industry. Brazil, host of the 2014 FIFA World Cup and 2016 Summer Olympics, was one of over 30 countries and institutions to sign up to UNEP’s International Sustainable Public Procurement Initiative (SPPI), which aims to increase public spending on goods and services that maximize environmental and social benefits. Meanwhile, 30 leading companies from the insurance industry, such as ING and Aviva, agreed to be part of UNEP’s Principles of Sustainable Insurance; 39 banks, investors and insurers joined forces with over 50 countries and corporations in the Natural Capital Declaration, which calls for the value of natural resources to be included in accounting mechanisms; and five stock exchanges, including NASDAQ, said they would urge thousands of listed companies to report on environmental concerns.

CSR XXX

What Can We Do? With sustainability issues gaining a growing foothold, customers are likely to increasingly ask manufacturers of sporting goods what they are doing to conserve the world’s resources and reflect social challenges. The companies who can answer that question best will emerge with the competitive advantage, which will translate into an improved bottom line and reduced reputational risk. Fortunately, there are many examples of corporations riding the tidal wave of green consumer demand to strengthen their businesses. When Puma joined UNEP’s Climate Neutral Network, a study found it produced approximately 107,000 tonnes of CO2 in 2008. The firm immediately switched to a green electricity provider at its major German operations. The Boston Head Office built a solar power station and has set the goal of cutting emissions by five per cent each year between 2010 and 2020. The study also highlighted cost savings, which shows that cutting emissions can create a more profitable business. Other companies are showing what can be done with a bit of ingenuity. Nike produced the team kits for the 2010 World Cup by sourcing discarded plastic bottles from

landfill sites in countries such as Japan and melting them down to produce fabric. The company estimates it has recycled 115 million plastic bottles from the process now used to make kit for teams like Manchester United. This was not purely philanthropic. The process uses 30 per cent less energy to create a jersey that is 23 per cent lighter and 20 per cent stronger, and drew plaudits and business from consumers who incorporate sustainability concerns when shopping. Beyond concrete measures to establish a more resource-efficient and thus competitive business, the power of sporting brands can be used to generate awareness across societies. For example, the “Play for Life” Campaign run by UNEP and a major sporting goods firm supported three conservation projects in Africa during the 2010 International Year of Biodiversity. Online campaigns and events inspired millions and the funds raised were used to help conserve species under pressure across the continent. Drawing on these examples, below are just some of the steps you can take to make your business more sustainable: • Join initiatives, such as those mentioned in this article, which promote climate-neutral businesses, sustainable procurement and the inclusion of natural resources in accounting mechanisms; • Review your own greenhouse gas emissions and look at ways you can use less energy and switch to renewable sources; • Look at reducing the waste your organization produces through packaging and manufacturing processes, using recycled materials whenever possible; • Require your suppliers to sign up to strict sustainability guidelines; • Use your brand, both directly and through the sportspeople you sponsor, to raise environmental awareness. To use a sporting analogy, the ball is in your court. How you hit it can play a part in determining both the future of your company and the fate of generations to come.

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Corporate responsibility & sustainability: Ways ahead Fair Labor Association

FROM SUSTAINABLE COMPLIANCE TO SUSTAINABLE SUPPLY CHAINS By Auret van Heerden, President and CEO, Fair Labor Association, www.fairlabor.org

It is impossible for a so-called “ethical” product to come out of an unethical supply chain. Similarly, it is inconceivable to think of a supply chain as ethical if the factors of production (including labor) are managed in an unsustainable manner. In a practical sense, this means that anyone who stands for ethical trade has to be concerned about the sustainability of the entire supply chain, not only the final manufacturing stages. Take a step into the future and imagine the operating environment of your company’s CSR program in five years’ time. We all know it will look very different, but exactly what will have changed? Here are eight changes I believe we all need to prepare for by 2017: 1. We will no longer rely on social audits as the cornerstone of our programs. We all know that auditing has been overused and has lost much of its credibility with civil society. We need better forms of assessment that analyze root causes and propose realistic remedies. 2. Civil society will no longer be satisfied with due diligence alone. Certainly companies must perform due diligence on their business activities and the UN Guidelines give due diligence a major role, but this needs to be outcomes-oriented and should lead to real improvements. 3. The focus of due diligence will have shifted from a single link (e.g., at the factory level) to the entire supply chain. The issue will no longer be about how compliant the farm or the factory is, but how sustainable the entire supply chain is – from raw materials to recycling. 4. Regulators and consumers will want to know how sustainable a product is. Does the product rely on raw materials, processing, manufacturing, distribution, consumption or disposal that compromises human, labor or environmental standards? Stakeholders will want information on these issues and how they are being remedied or mitigated. 5. The definition of sustainability will change. Whereas before the term might have been used primarily to refer to environmental factors, by 2017 it will be understood

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as an umbrella concept that includes human and labor rights issues along with environmental standards. Leaders in the corporate social responsibility field will be rating suppliers on all these issues using composite indices that appear on their websites and their product packaging (some FLA affiliates are already doing this). 6. Public-private partnerships with government, business and civil society participation will play a major role in addressing key sustainability challenges. These partnerships will often be managed or brokered by forums set up specifically for that purpose. 7. FLA-affiliated companies will be tracing their supply chains from raw materials to recycling, producing risk maps of those chains and engaging with governments, other companies and civil society to address risks. The most advanced FLA-affiliates are already operating on this basis and the FLA needs to support this evolution throughout the affiliate base. We already have the tools to conduct these exercises and those tools can easily be incorporated into the internal due diligence programs of companies. 8. Company sustainability, human resources, labor compliance and philanthropy programs will converge or harmonize around the concept of sustainability and they will need to work with a series of different organizations to get the input and support they need to address the range of issues they face along the supply chain. Large companies such as Nestlé or IKEA already engage with a range of stakeholders at multiple levels of their supply chain. Some of the issues are addressed through certifications (sustainable forests, organic farming, fair trade), some through partnerships with intergovernmental agencies (UNICEF for child labor, UNEP or IUCN for environment or conservation), multi-stakeholder forums and initiatives, or global NGOs such as WWF. Companies could easily be overwhelmed by the number and diversity of issues in their supply chains and they will clearly have to prioritize which issues they take up, and which partnerships they engage in.

Corporate responsibility & sustainability: Ways ahead Fair Labor Association

One of the clear conclusions of this brief look into the future is that companies will not be relying on audits for their due diligence and they will not be looking at only one level of the supply chain. They will be using a new set of tools to assess a range of issues all along the supply chain with a view to achieving a truly sustainable supply chain. The FLA core program will expand to accommodate this broader focus. We already have the tools required and they have been road-tested, most recently in the assessment of Nestlé’s cocoa supply chain in the Ivory Coast. I see that exercise as a model for the core program in years to come. What we did there was assess how Nestlé maintains its labor standards in the procurement of cocoa beans. To do so, we traced the process from corporate headquarters, through various intermediaries, all the way down to the farm level. At every stage in the process we assessed whether Nestlé was taking adequate steps to ensure that its social responsibility criteria were being respected by Nestlé’s own staff and by its business partners. The result is a set of recommendations that will enable Nestlé to strengthen the custody of those criteria at every level and in this way, to develop a more sustainable supply chain.

The FLA operates in the regulatory gaps that punctuate the global supply chain. I have no statistical basis for saying that these gaps are growing, but it is clear to me that this is the case. The financial crises of recent years have only aggravated the situation while reducing the resources needed to fill those gaps. As such, the role of CSR programs is more vital than ever, but we have to adapt to the changing circumstances of the global supply chain (gaps and all). The FLA and its affiliates all need to converge around an integrated concept of sustainability and to ensure that it informs all our activities. That convergence will drive closer integration of programs within each company, within the FLA, and between the FLA and its stakeholders. Understanding and managing that convergence will be one of our main challenges in the next five years and will largely determine our impact in 2017.

Auret van Heerden is President and CEO of the Fair Labor Association. He began campaigning for workers’ rights as a young student in apartheid South Africa and co-authored a book in 1976 that called for trade union rights for black workers. He served two terms as president of the National Union of South African Students. After graduating in industrial sociology from the University of the Witwatersrand in Johannesburg, he founded an institute that provided research and training services to trade unions and civil society groups. He was forced into exile in May 1987 after long periods of solitary confinement and torture. In 1988, Auret joined the International Labor Organization (ILO) and worked on its Program of Action against Apartheid in Geneva until 1994 when the new democratic South African government appointed him Labor Attaché in the South African Permanent Mission to the UN in Geneva. He returned to the ILO in 1996, where he worked on labor relations issues in 25 zone-operating countries and established a Swiss-funded project to improve labor relations in Special Economic Zones in China.

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Corporate responsibility & sustainability: Ways ahead International Organisation of Employers

Three major developments with regard to CSR guidance By Matthias Thorns, Senior Advisor, International Organisation of Employers / IOE

Corporate social responsibility (CSR) has featured high on the agenda in many regions around the world for some time and the last two years in particular have seen three major developments with regard to CSR guidance: In November 2010, the ISO 26000 guidance standard on social responsibility was adopted; in May 2011 updated OECD Guidelines for Multinational Enterprises were approved and in June 2011 the UN Human Rights Council endorsed the UN Guiding Principles on Business and Human Rights.

how these impacts are addressed”. Due diligence is not new for companies, especially as it relates to matters such as mergers and acquisitions. The difference between the way companies have understood due diligence so far, and due diligence as understood by the three instruments is that it is not the risks to the business itself that need to be examined, but the risks of adverse impacts of business operations on others.

Undertaking such a due diligence process can be a huge challenge for companies: questions arise around the extent, scope and implementation of the process, which departments within the company are to be involved, and so on. Accurate information is essential, but even large multinational companies can have difficulties bringing it all together. For small and medium sized companies it can be nearly impossible. One problem is the absence of an easily accessible tool with country-specific information. Business has stressed this problem time and again and indeed asked for a “helpdesk” during both the multi-stakeholder consultations on the UN Guiding Principles, the update process of the OECD guidelines and again in the run-up to the EU Commission CSR communication. If the aim is to facilitate human rights risk assessments by SMEs with transnational business activities, such a “one-stop-shop” is essential. To date, there has been no adequate response to this request.

Although all three instruments are voluntary, they raise expectations for the behavior of companies. All three introduce the idea of “due diligence” into the CSR and human rights debate. According to the instruments due diligence means basically “to identify, prevent and mitigate actual and potential adverse impacts and account for

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A further challenge lies in undertaking meaningful due diligence without ending up in a bureaucratic quagmire that paralyses business activities. One company, for instance, took 18 months to undertake a human rights impact assessment for only one of its mines. The assessment included a desk-based study and review of over 700 secondary documents, 189 individual interviews, 9 group interviews with 84 participants, 8 informal discussions, and 10 focus groups with 95 participants. In parallel, a review of corporate policy and management systems was conducted. This kind of extensive assessment becomes impractical across the range of issues business will need to address. These three instruments show the extent to which developments in the CSR and human rights debate influence each other. A new chapter on human rights was introduced into the OECD Guidelines based on the UN Guiding

Corporate responsibility & sustainability: Ways ahead International Organisation of Employers

Photos: © shutter stock.com Designed and printed Geneva — GE.11-4 by the Publishing Service, United Nation 6529 — Januar s, y 2012 — 4 951 — HR/PUB/11/4

Principles, and included a due diligence provision. However, while the due diligence provision in the UN Guiding Principles relates only to human rights. In the update of the OECD guidelines, a due diligence provision has been included to cover all areas of operations, including the supply chain. One question that now arises is how, for example, a company can undertake meaningful due diligence on whether suppliers comply with the tax laws in the countries in which they operate. Interdependency amongst documents can result in complications, with certain provisions being taken out of one specific instrument and integrated into another initiative in a completely different context. In the case of the OECD guidelines, representative business federations were able to have the due diligence provision removed from the chapters on Science and Technology, Competition and Taxation. However, the OECD Guidelines still remain much broader in their approach to due diligence. As well as presenting challenges to business itself, these developments also challenge employers and business federations who give advice and support to their member companies in coming to grips with these new provisions and requirements. At the global level, the International Organisation of Employers (IOE) provides guidance to member federations and companies through training materials, webinars, protected platforms and networks for the exchange of experiences and best practice. In addition to their support and advice function, employers and business federations also play a monitoring role. As a range of very different players are now offering assistance in the implementation of the UN Guiding Principles, business has to be vigilant as to whether the different proposals are indeed in line with the UN Guiding Principles or whether they are just a new way of pushing their own agenda. As an example, in a workshop on the implementation of the Guiding Principles by the EU and EU member states, organized by the Danish EU Presidency in May 2012, NGOs and Trade Unions demanded the introduction of extraterritorial jurisdiction; the linking of the Principles with export credits and public procurement; as well as obligatory reporting on due diligence outcomes. Developments are ongoing, In a public conference to take place in Geneva on 7 and 8 November 2012, ISO will look at the implementation and future of ISO 26000. Business should be present to articulate their message that ISO 26000 should remain a guidance document, since CSR is too complex and multifaceted to be one certifiable Management Standard. Companies must have the flexibility to develop and implement the best CSR approaches for their individual situation.

GuidinG Pr inciPles on Busines s and Huma n riGHts

Implementing the United Na tions “Protect, Respec t and Remedy” Frame work

On 4 and 5 December 2012 a UN Forum on Business and Human Rights, organized by the UN Working Group on Business and Human Rights, will look into these questions and give recommendations on how best to promote the UN Guiding Principles. Again, it is important that business participates to ensure that this work develops in ways that are practical and feasible for business. CSR will therefore remain on the international agenda. Business must be engaged to ensure that its means of operation are not unrealistically or unnecessary curtailed by the demands of others and that at the heart of the debate lies the need for governments to properly execute their responsibility so that business can continue to be the source of economic and social development and the creation of jobs.

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Corporate responsibility & sustainability: Ways ahead Better Work Program

BETTER SUPPLY CHAIN PRACTICES, BETTER SUPPLY CHAIN OUTCOMES By Chandra Garber, Communications Officer for Better Work

Over the past 20 years, multinational corporations have increasingly recognized the importance of social compliance, as a means to protect workers’ rights, to ensure stable and productive global supply chains and to promote a positive public image. Concerns about non-compliance with labour laws and international standards have led many companies to individually audit working conditions in their supplier factories, and duplication of efforts by different companies in the same factory has led to greater expense, inefficiency and frustration for everyone involved. With an innovative approach to continuous improvement, the ILO/IFC Better Work program plays a significant role in helping international buyers uphold their commitments to compliance with international labour standards and national labour laws, as well as making practical changes in global supply chains. At the enterprise level, Better Work country programs assist factories to achieve measurable progress in compliance through a set of core services that involve an assessment of the factory – performed by internal staff, and based on ILO jurisprudence and national legal expertise – followed by advisory work and targeted training courses. 100%

Suppliers can then share assessment and progress reports with their customers. For the factories, participation in the program means increased clarity in expectations (i.e., meeting one internationally recognized set of standards rather than numerous client-based codes of conduct). Together with tailored guidance, this unified approach allows factories to focus more of their resources on improvements. The credibility of Better Work reports is based on strong quality assurance systems that ensure accuracy and integrity, and on the expertise of the International Labour Organization in understanding and promoting the core international labour standards. Being able to trust the quality of Better Work assessments allows international buyers that participate in the program to reduce their own auditing efforts and to redirect cost savings to helping factories in their remediation efforts. Importantly, Better Work does not see the assessment as an end in itself, as a procurement or CSR manager might. Rather, investigating and reporting on compliance performance helps the program to identify where changes are needed.

Compliance Rates Over Time Collective Agreements Unions Payment of Wages Contracts/Hiring Health/First Aid Overtime Workers’ Compensation for Accidents/Illnesses Holidays and Annual/Special Leave

95% 90% 85% 80% 75% 70% 65% 60% 55%

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From Better Factories Cambodia: Compliance rate means shown across firms by period. P1: 06/2001–10/2002, P2: 12/2005–07/2006, P3: 08/2006–01/2007, P4:02–07/2007, P5: 08–12/2007.

CSR ILO

For companies that are interested in moving “beyond auditing”, Better Work benefits have included the building of good management systems, greater factory ownership of remediation processes and improved worker/manager relations. As surveys of managers in a number of Better Work countries have indicated, shortages of low-skilled labour are a serious concern for their business, on average surpassing concerns about costs of materials and other infrastructure challenges. But evidence also shows that better working conditions and improved dialogue can lead to less turnover and fewer workplace conflicts. For factories with a more stable and loyal workforce, the ability to add production activities and develop worker skills can mean new and stronger relationships with customers. To ensure factory changes are supported by good policy that is locally owned and sustainable, Better Work is engaging with governments, employers, trade unions and buyers – at national and international levels. In this respect, Better Work is unique among the many multistakeholder social compliance initiatives – as a partnership of the International Labour Organization and the International Finance Corporation, Better Work has ability to bring all key actors together to realize the goal of improving the lives of millions of workers and their families. Visit: www.betterwork.org

Surveys conducted in Better Work country programs reveal that managers are taking notice of our impact: After one year of participating in Better Work Vietnam, factory managers had changed their perceptions about worker/management dialogue. Initially unsure or negative, factory managers in the second round of the impact survey unanimously regarded the committees as effective in improving problem resolution within the factory. Working in Partnership: In late February 2012, representatives of Better Work and PUMA met in Cambodia and agreed to collaborate on a coordinated content package and implementation strategy for a joint Human Resources Management program. This is one of numerous examples of how Better Work is working with buyers to share expertise and amplify impact in factories.

WFSGI MAGAZINE 2013

Corporate responsibility & sustainability: Ways ahead Sustainability Management Systems

SUSTAINABILITY MANAGEMENT SYSTEMS IN THE SPORTING GOODS INDUSTRY By Bob Pojasek, Management Consultant and adjunct Professor at Harvard and Dai Forterre, Responsible for the Sustainability and CSR programme at ASICS Europe

The sporting goods industry is known both for its competitiveness and its high level of globalization. This combination has created challenges in the form of labor volatility, increasing energy prices, natural disasters, commodity shortages and other issues associated with the responsibilities for environmental stewardship, social well-being and economic prosperity – something we have been calling sustainability. Whereas in the past companies would pursue an individual sustainability path, we have seen a growing awareness that industry-wide approaches were needed to achieve real and lasting change. A key milestone in this development has been the coming together of the Sustainable Apparel Coalition (SAC) and a suite of sophisticated open-source sustainability indicators recently rebranded into the Higg Index. The Higg Index aims the environmental and social impacts of apparel and footwear products throughout the value chain. Through the use of the Higg Index, companies can identify opportunities to improve on sustainable sourcing and production. The sustainability indicators measure environmental outcomes in the categories of water use and quality, energy and greenhouse gas, waste, chemicals and toxicity. Additional work is being done to include key social and labor results. This is improving the accountability or our practices. But there is still more that the sporting goods industry still needs to do. On one hand, individual companies are pursuing sustainability as a source of competitive advantage by maximizing their score with the Higg Index. On the other hand, the same companies need to seek even more collaboration to improve the collective ability to solve systemic issues that normally are beyond the reach of the individual company. In our article on Sustainability Management Systems in the textile Industry, we will discuss two issues that we believe will frame the agenda for the next few years. The first concerns the mainstreaming of sustainability within our operations and value chains rather than having it operate separately from our operations and sourcing activities. This mainstreaming will come from the development and use of integrated sustainability management systems, just as other industries (e.g., electronics, automotive, medical devices, aerospace, and telecommunications) have done by creating their own unique management systems. Some industries have even created standards for sustainable products using a management system as a foundation. The second issue concerns the development of a set of quantitative leading indicators to drive the SAC results (i.e., lagging indicators) over the long term. The SAC indicators measure the “what.” There are quantitative leading indicators

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that are easily adaptable to the industry that measure the “how” performance can be improved to lead to better results – the outcomes of performance. Over 30,000 companies in Europe are currently using leading indicators in their operational excellence programs. It is helpful to use both leading and lagging indicators to drive good performance.

Mainstreaming Sustainability

For a sustainability program to be effective, it must find a way to be mainstreamed within an organization. It must move beyond “green teams” and “random acts of sustainability.” The best way to drive sustainability throughout an organization is through the use of management systems. Despite their unpopularity, integrated management systems offer the most effective means for driving sustainability responsibilities to every worker through their work instructions. They can also make sustainability an integral part of how products and services are delivered to customers and how stakeholders engage with the organization. There is no need to independently certify to the management systems unless a customer demands it. You can self-certify or just use the management system for the purpose of implementing a sustainability program that is clearly mainstreamed within your organization.

ISO 9001 9004 ISO 31000 Risk Mgmt. SarbanesOxley Sect. 404

ISO 14001 14004

Integration

National CSR Std.

Corporate responsibility & sustainability: Ways ahead

OHSAS 18001 18002

Sustainability Management Systems

ISO 50001 Energy Other Standards

ISO 26000 Some Management System Components in an Integrated SMS

We will define sustainability as the capability of an organization to transparently manage its responsibilities for environmental stewardship, social well-being, and economic prosperity over the long term while being held accountable to its stakeholders. This avoids euphemisms and slogans that will not be readily comprehended by the employees in the organization. The purpose of a management system (there are a countless number of management systems in existence) is fourfold: • Say what you do – have a transparent approach • Do what you say – be held accountable for the approach • Do it effectively • Be able to prove it! ACTIVITY

IMPACT

RISK

Activity, Impact and Associated Risk in the Sustainability Footprint

Developing Leading Indicators With the Higg Index and a host of applicable indicators in place, the sporting goods industry should consider creating a sustainability management system that will organize the efforts to make sure that they can produce great results. Many industries have successfully created a specific management system for similar imperatives. Some of the industry members already have a number of the systems already in place to serve as the foundation for their sustainability program. This will go a long way to mainstream sustainability into everything they do and into their supply chain. The focus can now shift from the Higg Index to the development of some industry-wide leading indicators that will help the member firms drive improvement of the results over the long term. Since there are already sufficient models in place, it may not be so difficult to put a performance framework in place that drives both leading and lagging indicators and uses the industry-specific management system when it is developed.

Even though the members of this industry compete with one another, the sustainability of the entire industry will be like the famous saying of former US President John F. Kennedy, “A rising tide lifts all boats.” Once this is accomplished, the companies can demonstrate their sailing skills on the rough waters of these economic times. Read full article: Sustainability Management Systems.

Bob Pojasek has been active in management consulting for nearly 40 years, helping senior corporate managers understand, plan and implement mainstream sustainability programs. He uses a variety of management systems, performance frameworks and improvement methods to create custom operational sustainability programs. In addition, Bob is an adjunct professor at Harvard University. He also is chairman of the board of governors for the Corporate Responsibility Officers Association and a member of the board of directors of the International Society for Sustainability Professionals. He has received numerous awards and recognitions for his pollution prevention and sustainability achievements and is a thought leader in these fields. You can reach him at rpojasek@fas.harvard.edu Dai Forterre is a CR and sustainability professional with non-profit, governmental and corporate experience. Since a number of years, he is responsible for the Sustainability and CSR programme at ASICS Europe. In this role, an important part of his work lies with the integrated upgrading of processes, products and services through the design, development and deployment of Sustainability Management Systems across ASICS facilities and the whole lifecycle of footwear, apparel and packaging. Furthermore, he supports ASICS efforts in the Community and within industry networks such as the WFSGI CSR committee, Sustainable Apparel Coalition and around the development of the Higg Index. You can reach him at: d.forterre@eu.asics.com

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Manufacturers: Key challenges Balance on people, products and profit

WHY DOES SUSTAINABLE DEVELOPMENT MATTER TO FOOTWEAR MANUFACTURERS? By Dr Joseph J. S. Shieh, Director of Sustainable Development, Pou Chen Group

Dr Shieh graduated from Georgia Institute of Technology with a PhD degree in Applied Math and Statistics. He received his Master of Science in Environmental Engineering from the National Taiwan University. Dr Shieh has been with the Pou Chen Group since 1996 and is responsible for business development and strategy planning with major brand customers of the Group. Since 2006 when the trend of rising commodity prices had begun, footwear manufacturing entered into a new era of competitiveness. For those manufacturers who wish to plan for the future, it has become necessary for them to consider sustainable development (SD) as one of their key organization goals. The Old Approach – Production-Oriented Strategy In the past, the focus was only on establishing OEM/ ODM output capability: limited attention was paid to operational transparency and the need for corporate social responsibility (CSR). As a consequence there was little desire to improve the factory operations and no attempt was made to achieve any CSR standards. Incidents occurred that impacted the factory workers, the environment, and the brand image. These were handled on a reactionary basis with no consideration given to sustainability in the long term. The Present Methodology – Factory Self-Governance As expectations for the industry came into existence, manufacturers developed systems to hold managers accountable and implemented frameworks that gave rise to proactive approaches for managing operating incidents. Various brands have established CSR standards for their suppliers to follow. For those suppliers who wish to partner with a number of brand name customers, they have found it expedient to establish their own CSR standards so that whenever possible the best practices are being followed.

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Tomorrow’s Focus – Leading in Sustainability Pursuing sustainability in manufacturing is the essential way forward. Consistent and frequent communication within the manufacturing operation is a prerequisite to pursuing sustainability. Manufacturers are able to build partnerships with their brand name customers and the institutions of society. It leads to innovation that connects the manufacturer with its various clients and stakeholders. It gives rise to interaction between significant players and communities that leads to initiatives that “go beyond compliance”. Manufacturers who wish to lead must move away from just complying with basic CSR standards to achieving sustainable CSR performance. Just following prescriptive compliance approaches to meet brand name customer requirements is no longer sufficient. Pursuing sustainability leads to the development of one’s own CSR standards and fosters stronger partnerships with the brand name customers. Joining organizations such as the Fair Labour Association (FLA) can assist the development of sustainable CSR performance. The FLA’s “Sustainable Compliance Initiatives” (SCI) auditing program is a tool that can help manufacturers. It comprises a holistic approach to measuring Human Resource Management System, Environment and Health/ Safety requirements. Adopting the FLA SCI requirements will facilitate the smooth development of “One CSR Standard” for suppliers with multiple plant sites. Other trade organizations such as the World Federation of the Sporting Goods Industry also provide a platform and communication network to promote and enhance CSR in the industry. Balance on People, Products and Profit From another perspective the pursuit of SD initiatives may be viewed as achieving appropriate balance between people, products and profit within the following contexts and diagrams below:

Manufacturers : Key challenges

fit Pro

Product Process

New Priorities & Balance!? Mindset & Attitude Challenges

Balance on people, products and profit

re le Ca Peop & ect Resp

• Integration into business function and strengthened production planning. This is achieved by congregating front- to back-end production plans into one blueprint. A good blueprint provides strategic management which reduces gaps, duplication, risk, waste and avoids backend issues related to people, product and profit. This also helps to promote better management in almost all aspects. By integrating lean-, green- and people-orientated mindset management, employees are empowered to drive sustainable manufacturing and performance. • Readiness to challenges in a dynamic and competitive environment. By investing in holistic human management approaches to build a talented, skilled and smart organization, the people become an asset to the company. Cultural differences are respected so that social bonding is enabled and equality is upheld that leads to a harmonious working environment. In the dynamic and competitive environment of today’s business world, staff needs to be better equipped to adapt to the ever changing new technology and processes, which are continually introduced into the production line due to new product complexity and upgraded manufacturing requirements. Therefore, the aim is to enable the transformation of a worker’s status from that of an assembly line worker to that of a craftsman specialist, technician or engineering assistant. The ultimate goal would be the evolution to an engineer. “Building people as assets” will enable a supplier to become the employer of choice. • Move on to new business models (more machines, less people and a “smart people” environment). Labour-intensive manufacturing industries will continue facing uphill challenges to recruit and retain skilled labour. With labour costs rising, new manufacturing facilities need to be set up in the inland Chinese cities or in other emerging countries. Furthermore there has been an increasing trend of automation among the brand name customers to improve manufacturing excellence within the various labour-intensive industries. Product complexity is now a general trend in the footwear manufacturing industry and thus another factor that creates the need for more automation.

A Sustainable Development Organization aims at strengthening the following core functions: Sustainable Corporate Social Responsible (CSR) Performance > Human Resource Management > Check & Balance (Key Performance Indicator) Legal Liabilities • Compliance Performance • Lean & CR Synergy • Facilities Risk Management • Statutory Equipment & Machinery Compliance Social Accountability (SA) > Internal & External SA Communicator > install Code of Conduct and Ethics > Check & Balance • Employee Relation Program • Grievance Management (Key Performance Indicator) • Community Outreach • People Connectivity > Project Management Sustainable Green Business > Sustainable Environment > Collaborate with Energy Team & Energy Conservation Initiative > Carbon Footprint Assessment > Check & Balance (Key Performance Indicator) • Waste Management • Recycling Program > Green Education Program The Fundamental Role of Sustainability Development • Strategize, align, account and audit for CSR performance • Research and develop, risk mapping, analyze potential initiatives of future projects • Initiate and implement “One Consistent CSR Standard” across group of business • Capacity building and continual improvement

The pursuit of SD initiatives will promote harmony within the manufacturer so that factory staff will be motivated, processes will be executed efficiently and the brand name customers will have confidence they can depend on their suppliers for the long term.

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Manufacturers : Key challenges Shoe manufacturing

The Migration of the Athletic Footwear Original Equipment Manufacturing (OEM) Industry By Charles Yang, Executive General Manager, Apache Footwear

I remember, during my college days, a friend of mine invited me over to Taichung (central part of Taiwan) for summer vacation to tour around a footwear factory his family owned. I ran into my friend a few years later in the early 1990s and learned that their factory in Taichung was closed, and everyone was going to China. Looking back to the history of the athletic footwear manufacturing, Taiwan, succeeded by Korea and Japan, had become the manufacturing hub until the labor rate hit the point that industry could no longer afford. Started in the late 1980s and early 1990s, China emerged as the new production center of the manufacturing industry. Low labor rate and abundant labor supplies attracted foreign investors to establish their operations and created the fame of “Factory of the World” out of China. Guangdong and Fujian were among the first few provinces foreign-invested factories migrated to due to the proximity to Hong Kong and easy access of the management resources abroad. During this period, the key to success was fast growing capacities to accommodate the demands. The scale of the operation has grown from hundreds to tens of thousands of workers. The infrastructures and supply chains were also established to reduce the disruptions to operations and enhance the profitability. From the 1990s to early 2000 were the golden days for foreign investors. The success in China also triggered another wave of migration besides low labor rate: investmenthungry southeastern Asian countries. The journey of chasing low labor rate continued. During these years, LEAN was introduced to shorten the lead time and reduce wastes. LEAN manufacturing turned out to be a shining milestone for the footwear manufacturing industry. The long lasting benefits of the LEAN operation have prepared some footwear manufacturers to confront rising cost pressures and labor shortages even until today.

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The strategies built around chasing low labor rate were seriously challenged after the hit of the financial crisis in 2008. Escalating labor rate, labor shortage and rampant international trade blocks all pointed to the need of different strategies as an answer to rising cost structures. Manufacturers were forced to turn to the long overlooked automation strategies for solution. The machinery-dominant strategies are re-evaluated with a whole new set of assumptions: different shoe constructions were introduced to reduce processing labors; mechanical or chemical solutions emerged to engineer more efficient production processes and even new materials were invented for easier processing and less labor dependency. The role of manufacturers evolved to become a solution integrator and to aggressively develop new cost efficiency ways for shoe manufacturing to reduce labor dependency. Having new innovative solutions combined with relatively low labor rates may create room for the footwear manufacturers to breathe. However, new management paradigm to adapt to this new solution integrator role is essential before the new adequate automation solution could be developed. And with this change, maybe, it will be the beginning to the end of the “migration”.

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ASICS comes from the latin phrase “anima sana in corpore sano”, meaning a “sound mind in a sound body”.

I AM MADE OF ALL THE DAYS YOU DON’T SEE. NOT JUST THE ONE YOU DO. JAN FRODENO, TRIATHLON CHAMPION

ARE YOU MADE OF SPORT? ASICS.CO.UK

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TRADE: Level the playing field Restrictive Measures

The rising trend of protectionism By Edwin Vermulst and Juhi Sud, they are trade counsels to the WFSGI and practice law in Brussels, Belgium

Resembling a garden full of weeds, the world map on pages 34 & 35 shows the existing trade restrictive measures imposed by the various countries and is a good reminder that we cannot fight fire with water from far away. With old players setting the rules and new players joining the game, the arena of trade restrictive measures has continued to remain pretty crowded over the past months. On the whole, Chinese footwear and textiles’ exports continue to be the victims of the majority of the trade restrictive measures. In the footwear sector the anti-dumping instrument seems to dominate the scene, and the textiles sector is being swayed by safeguard measures. Increasingly common issues seem to be plaguing both sectors in terms of import restrictions and technical import formalities such as the Argentine “sworn import statement” and the Egyptian certification requirements. On a more specific note, the footwear sector was marked by two notable events over the past months. First, the Turkish safeguard measure was extended for the second time thereby bringing the total duration of the measure to eight years! The silver lining though was the exclusion of special technology athletic footwear of $15 and above from the scope of the measure. Second, the Brazilian anti-circumvention investigation against footwear from Indonesia and Viet Nam was terminated without the extension of the measures as no circumvention was found to be taking place. Although a welcoming decision, it demonstrates the ease with which domestic producers can get away with flimsy allegations which end up disturbing trade flows. In the textiles sector, safeguard measures have been springing up like mushrooms. Following Turkey’s lead, Egypt imposed safeguard measures on cotton yarn and cotton textiles. Added to this, Peru recently initiated an ex officio anti-dumping investigation against Chinese apparel imports covering dozens of tariff lines. Although legally permitted in “exceptional circumstances”, an ex officio anti-dumping investigation is a rare occurrence and a worrisome

development as it is an investigation initiated by the importing country without a complaint from the domestic producers. While the result of the Peruvian investigation is awaited, the exceptional nature of the circumstances claimed is extremely doubtful. On the brighter side, while “zero for zero” continues to remain a good weedicide to stop proliferation of measures, having felt the pinch of the growing trade restrictions, some WTO members took the first step towards what may be a long march to victory. The European Union in May 2012, followed by Japan, the United States and Mexico in August 2012, filed WTO disputes against Argentine import restrictions including the non-automatic import licensing system and the requirement of “sworn import statements” among others, which hamper trade in footwear, textiles and a variety of other sectors. Needless to say, Argentina is retaliating by filing counter disputes against some of these countries. That, however, is neither novel nor unexpected and should not be considered a deterrent. The fight against protectionism is not an easy one but then nothing ventured, nothing gained. For more information visit the Trade Committee at www.wfsgi.org. WFSGI members go to the Member Area for the complete and regularly updated overview and background information.

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TRADE: Level the playing field Restrictive Measures

Overview of global trade restrictive measures in the footwearâ&#x20AC;&#x2030;&â&#x20AC;&#x2030;Textiles sector* Updated October 2012

For more information visit the Trade Committee at www.wfsgi.org. WFSGI members go to the Member Area for the complete and regularly updated overview and background information.

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TRADE: Level the playing field Restrictive Measures

Importing Country

Argentina

Sector

Targeted countries of origin

Type of measure

Footwear

China

Anti-Dumping & Import licensing Non-automatic import licensing

Raw Materials & Fabrics All Apparel

Brazil Chinese Taipei Ecuador

Egypt

Indonesia Mexico

Peru

Russian Federation

Turkey

“Sworn Prior Import Statement” Non-automatic import licensing “Sworn Prior Import Statement”

Apparel

All

Safeguards

Footwear

China

Anti-Dumping & Import licensing

Footwear

China

Anti-Dumping

Apparel

All

Footwear

All

Footwear

All

Technical Barriers to Trade

All

Technical Barriers to Trade

All excluding some developing countries

Safeguard

Apparel

All

Technical Barriers to Trade

Accessories

All

Technical Barriers to Trade

Raw Materials & Fabrics

Tariff increase

Footwear

All

Non-automatic import licensing

Raw Materials & Fabrics

All

Safeguard

Footwear

China

Negotiated measure & Import licensing

China

Anti-Dumping 1. Sandals and flip-flops 2. Footwear with uppers of leather, rubber or plastics, and of any other materials excluding footwear with textile uppers

Viet Nam

Anti-Dumping Flip-flops/thongs, sandals, slippers and mules, espadrilles and clogstyle shoes with uppers of textile materials and outer soles of various materials.

Apparel

China

Anti-dumping

Footwear

All countries

Reference Price Mechanism (customs internal measure to secure a minimum customs value)

Footwear

All Excluding some developing countries accounting for less than 3% of Turkish imports

Safeguard

All

Tariff increase

All excluding some developing countries

Safeguard

Apparel

All

Tariff increase

Accessories

All excluding some developing countries

Safeguard

Footwear

Raw Materials & Fabrics

* Non-exhaustive list.

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TRADE: Level the playing field Legal Practice

A peep into the future of international trade defence cases By Edwin Vermulst and Juhi Sud, they are trade counsels to the WFSGI and practice law in Brussels, Belgium

Over the past decade, as the phenomenon of outsourcing of labor intensive production steps to Asian countries gained pace, China gradually became the main target of trade defence measures by Western nations such as the EU and the US. In recent years, however, China has equally grasped the attention of the Latin American countries despite its efforts to sign various types of trade agreements with them. Hence the game is no longer between the East and the West but increasingly between the BRIC countries and amongst the developing Asian and Latin American countries as well. Despite the universal recognition that trade in goods depends on global value chains and can no longer be defined in the mercantilist sense, an abatement of trade cases against China seems somewhat unlikely. In fact with China moving higher up in the value chain, the target of EU and US trade cases is gradually shifting from basic industrial products to sophisticated high-technology goods such as wireless modems and solar panels among others, which tend to represent higher trade value. For instance, the recent EU anti-dumping case against Chinese photovoltaic products reportedly covers trade worth over $20 billion. Such high value trade cases are likely to gain momentum in the future.

Closely resembling the product expansion strategy of the brands, over the years VVGB expanded the range of its specialization from trade defence to customs and WTO law. VVGB now houses the most extensive experience of any EU law firm in the field of WTO litigation. With an extremely varied client base ranging from renowned players in various industrial sectors or the Fortune 500 to various MNCs, SMEs and national governments, VVGB is recognized as the “go to” firm for trade remedy cases worldwide, particularly in the footwear and textiles sectors.

While the outcry against China remains loud, over the past ten years of its WTO membership, China has rightly learned to defend its interests against those who don’t play by the rules themselves but nevertheless point fingers towards others. Unquestionably, China will defend the interests of its exporters but what remains to be is seen is how and to what extent it will do so.

Edwin Vermulst has practiced international trade and EU law and policy since 1985 and is a founding partner of VVGB Advocaten. He is invariably selected as a top trade practitioner by publications such as Chambers, Euromoney, Who’s Who Legal and Legal 500. Chambers 2012, for example, ranked him in Band 1 in the international trade/WTO area in the EU-wide group and as Star individual in Belgium. Mr. Vermulst serves as trade counsel to WFSGI and specializes in the representation of trade associations and multinationals in various sectors (e.g. Footwear, Wireless modems and Silicon). Mr. Vermulst was a WTO Panellist and has been involved in various WTO dispute settlement proceedings, most recently as lead counsel for MOFCOM in EU Footwear. He has co-authored nine books and numerous articles, and the second edition of his book on EU Anti-Dumping Law and Practice was published in 2010 by Sweet & Maxwell. E-mail: edwin.vermulst@vvgb-law.com

VVGB Advocaten: Boutique Law Firm For International Trade & Customs Law VVGB initially focused its legal practice on trade issues involving the EU and US, but gradually – and similarly to the expansion of many footwear brands in Asia – VVGB diversified its involvement in trade cases concerning Asian countries such as China and Viet Nam among others and is considered a market leader in the field of international trade law, having represented clients in over 200 international trade defence proceedings.

Juhi Sud is a counsel at VVGB Advocaten and is a member of the Brussels Bar and the Bar Council of Delhi. Ms. Sud was named in the 2010 Chambers and Partners Europe edition and commended in the 2011 Legal 500 edition for being on “top of the issues”. Ms. Sud serves as trade counsel to WFSGI and advises a diverse range of clients in international trade law proceedings and WTO disputes. She was counsel to MOFCOM in EU Footwear. Ms. Sud has authored several articles on various trade and customs laws issues. E-mail: juhi.sud@vvgb-law.com

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TRADE: Level the playing field Free Trade Agreements

Trade Liberalization and the Sporting Goods Industry: Opportunities in Free Trade Agreements By Jeff Whalen, VP Global Government Affairs, adidas Group & Chair of the WFSGI Trade Committee, and Karl Sedlmeyer, VP Global Government Affairs, adidas Group & Vice Chair of the WFSGI Trade Committee

In the lexicon of international trade, a “level playing field” is the frequently cited standard of fair trade. Like sports competition, this concept is premised on the idea that international trade rules should promote fair competition in the marketplace. Protectionism in the form of extremely high customs duties has been the historic norm for footwear and apparel in many countries of the world. These high duties exist in both advanced and emerging economies. For example, in the US, average footwear duties are 12.0 percent and average apparel duties are 14.7 percent. In Europe, the average duty for apparel is approximately 12 percent. For synthetic apparel, which includes many technical fabrics used in athletic apparel, average duty rates climb in the US to 30 percent. In contrast, average duties for consumer goods in the United States are around 1.3 percent. From a policy perspective, as Pascal Lamy, the Director General of the WTO, argued in the 2012 WFSGI publication, protectionist duties do not support domestic production and job creation in an industry of globally integrated supply chains. The paralysis of the WTO Doha Round and hopes for global duty reduction has predictably led to an increasing number of bilateral and multilateral free trade agreements. As countries seek to promote exports and job creation through greater market access, more countries are engaging in free trade negotiations. A number of current negotiations hold promise:

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Trans-Pacific Partnership The Trans-Pacific Partnership (TPP) is a free-trade agreement currently being negotiated by nine countries: Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the US, Canada and Mexico will join the negotiations in December 2012. This FTA would open a vast market: the total population of these countries is over 650 million people with a GDP of almost US$ 20 trillion. Japan and Korea have also expressed interest in joining the negotiations. The TPP is being billed as an ambitious 21st century agreement that will promote innovation, economic growth and development, and job creation. With the sporting goods industry’s emphasis on design, innovation, and cutting-edge globally integrated supply chains, WFSGI members would appear to be well positioned to benefit from the TPP. As a major market for many WFSGI members, the potential opening of US trade with Vietnam and Malaysia presents the first opportunity for trade liberalization for our most important products. Vietnam is the second largest manufacturing origin of footwear for the United States, and Malaysia and Vietnam are among the top manufacturing origins for apparel. The politics of protectionism in the US is playing out in full force and has the potential to seriously undercut possible benefits of the TPP for the sporting goods industry. The vast majority of athletic footwear and apparel importers support the TPP. They argue that our industry provides a large number of high-end jobs in design, marketing, and sales and that high duties limit investment in innovation and place our industry at a competitive disadvantage in the marketplace for consumer goods. Some US footwear manufacturers support the TPP, arguing that they continue to manufacture highend products in the US to achieve higher craftsmanship and to be closer to their consumers, but they are still dependant on imports. In sharp contrast, a number of US domestic footwear interests are seeking to exclude tariff numbers important to the sporting goods industry by claiming that these products compete with footwear currently being made or assembled in the US. For wearing apparel, restrictive rules of origin being advocated by protectionist interests will seriously limit the products that will be eligible for benefits under the TPP. Parties to the TPP negotiation are hopeful that agreement will be reached in 2013.

TRADE: Level the playing field Free Trade Agreements

European Union-Vietnam In March 2012, the EU and Vietnam agreed to start negotiations for an ambitious agreement that will cover all issuesectors: removal of tariffs, trade in services, technical barriers, intellectual property rights (IPR), and competition. The EU Commission has engaged in public consultations with EU industries to capture private sector input. The first negotiation round will take place in late autumn 2012 with cautious expectations of concluding an agreement in 2014 or 2015.

Parties to the agreement are cautiously optimistic that a formal agreement could be reached by mid-2013. Even with implementation in 2014, tariff-reductions relevant for our industry will be slow as there is a 7-year transition period after the FTA has entered into force. Major remaining obstacles in the negotiation concern the opening of the Indian market for retailing and other service sectors, IPR, and market access concessions for automotive and beverages. The current political and economic climate in both regions could further interrupt and delay the process.

The sporting goods industry, especially from the EU, is actively promoting the fast conclusion of the agreement with an immediate dismantling of the tariffs. Since Vietnamese footwear graduated in the GSP-system, there is a competitive disadvantage of Vietnam relative to other supplying countries in South Asia.

European Union-Indonesia Indonesia and the EU started talks in February 2012 to establish a Comprehensive Economic Partnership Agreement (CEPA), which is broader than an FTA: market access, facilitation on trade and investment, and capacity building (e.g. financial cooperation, infrastructure programs, and PrivatePublic partnership). The intention of the negotiating parties is to conclude the agreement within two years.

European Union-India Representing a major origin for apparel sourcing as well as a country of fast economic growth and a substantial market for sports products, an EU-India FTA will create important opportunities for the sporting goods industry. These negotiations were started in 2007 and have been complicated. The talks are officially in the â&#x20AC;&#x153;final phase,â&#x20AC;? but expectations to produce a final result in 2012 are low.

Updates can be found on the EU website: http://trade.ec.europa.eu or via the following website: http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/

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BICYCLE: Sport, design and transportation Advocacy

Joining Forces: Why Advocacy and Industry Must Unite By Kevin Mayne, Development Director of the European Cyclists’ Federation

This year has seen bicycle industry and advocacy organisations working together more than ever to get more people cycling and buying bicycles. Why? The answer lies as much in the built-environment as it does in product marketing. Make a city cycle friendly and people are more likely to head to their local bicycle store. But making cities friendly for cyclists worldwide takes joined-up advocacy efforts. At 2012’s Eurobike trade fair leading figures from cycling held an Advocacy Summit to send this clear message to the rest of the European trade. Stronger advocacy is the engine of sales. At the Summit Tony Lo, CEO of world leading company Giant Bicycle announced that his company would join industry leaders who are supporting the Cycling Industry Club, a cycling advocacy movement for Europe launched by founders such as Accell, SRAM, Trek and Schwalbe the previous year. This European fund enables the European Cyclists’ Federation to strengthen civil advocacy for cycling at the EU and through its national affiliates. Lo told a panel including Robbert de Kock of WFSGI: “It’s our obligation to join forces with all of you to see how we can make cycling more popular in Europe. We want to have more people cycling.” Giant has already funded US body Bikes Belong and advocacy in its home market of Taiwan so Europe was a natural next step. Cycling Modal Share

Source: Eurobarometer Future of Transport, Oct 2010

35 30

The following month a similar message was heard from John Burke, CEO of Trek Bicycles, at a business breakfast for US bike show Interbike in Las Vegas attended by over 500 delegates. So why is industry getting closer to civil advocacy as well as strengthening its industry groups such as WFSGI and manufacturers’ bodies in Europe? The answers are both tactical and strategic. The tactical answer is that the civil advocacy route opens up channels of influence and investment that are difficult for industry. The necessity of market forces means that industry bodies have to focus on issues of trade, taxation, competition and branding which don’t always lend themselves to the work of transport, health and environment policy makers. By contrast cycling advocacy groups specialise in political influence and have relationships with cities, governments and the EU. Governments and businesses are keen to promote cycling. It is unique in recessionary times because cycling investments can yield results in health, transport and carbon reduction which benefit public policy and corporate social responsibility. ECF believes the EU could be convinced to invest up to 6 billion euro from its 2014–2020 budgets if approached by a united movement with a clear business plan. When such funding is being handed out it is often restricted to public and not for profit bodies so supporting them makes tactical sense for industry. The same story can be seen in the US with Federal investments in cycling and walking rising as high as $ 1.4 billion per year after sustained advocacy by industry and civil groups. This is bigger than any comparable investment in physical activity except megaevents such as the Olympics and has a much wider impact on society.

25 20 15 10 5

Malta

Cyprus

Spain

Portugal

Luxembourg

France

Bulgaria

Greece

United Kingdom

Italy

Ireland

Estonia

Romania

Lithuania

EU 27

Slovenia

Czech Republic

Latvia

Poland

Austria

Finland

Slovakia

Sweden

Belgium

Germany

Hungary

Denmark

Netherlands

The strategic imperative is long term alliances for growth. Historically cycling’s civil advocacy movement struggled to extend localised successes such as the Netherlands and

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BICYCLE: Sport, design and transportation Advocacy

Denmark worldwide. But the combined forces of industry, civil advocacy and supportive governments have the potential to change this. The advocates bring passion, credibility and contacts. The industry brings financial leverage, professional skills and innovation. Successful cities like Copenhagen, Portland and Vienna complete the team by demonstrating their success. With ECF in Europe and a new advocacy strategy in the US with industry-funded Bikes Belong in the vanguard, the potential is huge. ECF released new analysis prior to Eurobike that showed just how huge the potential is. Daily cycling is the key determinant of market size and pricing for bikes even in countries with a strong sports cycling heritage. Danes for example buy nearly five times as many bikes per capita as Italians and spend almost three times as much per bike despite Italy being the home of some of the great sports cycling brands and heritage. The difference? More Danes ride every day, four times more in fact. As well as bikes they buy the outdoor clothing and accessories needed to ride year round even in a Scandinavian winter. Repeat this across Europe and we can sell 30 million more bikes. Business CSR managers are also recognising that getting their employees cycling to work reduces the company footprint and brings healthier, more productive employees. Working with local advocates and governments improves cycling conditions around the workplace while advocates can be employed to pass on cycling know-how and inspiration. UK cyclists’ organisation CTC provides Cycle to Work Challenges that have reached over 1000 companies while Germany’s national Bike to Work campaign is a partnership between national cyclists’ group ADFC and a leading health insurer. The panellists at the Advocacy Summit spoke with one voice: working together is the only way forward. Each sector can bring its competences and its resources, but with so much growth potential, working together will be essential. If we fail to unite, movements such as the global car industry will continue to dominate the attention of politicians despite the huge potential we bring to society. And this is a battle we can win. Despite billions of investment by governments and industry just 11,000 electric cars sold in

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Western Europe in 2011. In the same year the bike industry sold 1 million bikes with electrical assistance, bringing health and congestion benefits because they get the population pedalling. The Advocacy Summit was just the beginning. All the parties are now committed to working together in coming years to ensure that cycling realises the many benefits it can bring to society and business. Frank Bohle, CEO of Schwalbe, summed it up for all of us at the end of the Advocacy Summit: “This is important for all of us. Advocacy is more than marketing or product development; it is the way we work together to build markets. Schwalbe believes our support for ECF’s Cycling Industry Club and the Advocacy Summit is an investment in the future of cycling.”

ECF is the European federation of cyclists’ member associations and associates with over 60 members in over 40 countries worldwide. It is the world’s largest and best known international cyclists’ advocacy and umbrella organisation focusing on the development of cycling as an accessible and attractive mode of transport, leisure and tourism.

To the 2,000,000 people who purchased our bicycles worldwide: Thank you! BICYCLE XXX

We love bicycles. Last year 2,000,000 of you loved our bikes too. When you choose an Accell Group brand, you are choosing quality and innovation with recognizable added value. We are 100% committed to offering the best products from our broad portfolio of international brands that all work independently to develop bicycles and accessories for their own markets. See for yourself, www.accell-group.com If you are a bicycle manufacturer and have an interest in joining our team, please contact us at exec.board@accell-group.com.

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BICYCLE Design cinelli

WFSGI MAGAZINE 2013

BICYCLE: Sport, design and transportation Regulations

UCI APPROVAL PROCEDURE FOR FRAMES AND FORKS GATHERS PACE By UCI (Union Cycliste International – International Cycling Union)

An increase in labelled bikes, checks at races using scanners, a climate of cooperation with manufacturers: the approval procedure for frames and forks has been a clear success.

Romer measurement arm manufactured by Hexagon Metrology) to scan the geometry of the frames and forks. These scans were then compared to the 3-D designs of approved models in order to check compliance.

On 1 January 2011, the International Cycling Union (UCI) introduced an approval procedure for frames and forks used in competition in conjunction with its cycle industry partners in order to guarantee equity between riders. Over a year and a half later, the results have been wholly positive.

The procedure lasted a little under 15 minutes for each bike tested. All the professional teams were very accommodating and indeed expressed great interest in the work of the UCI technicians and engineers. “The teams know that these procedures guarantee that the rules are respected by all participants in a fair manner,” said Julien Carron, the UCI Technological Coordinator.

The number of manufacturers with at least one UCI-labelled product rose from 57 at the end of December 2011 to 77 at the end of August 2012. The number of approved models also rose from 139 to 217 over the same period. “This significant growth of approvals shows that the cycle industry is a very creative and productive sector of the economy and that it shares our fundamental ethical objectives,” explained UCI President Pat McQuaid. “The close contact we have maintained with manufacturers has been an excellent thing for everyone involved in the sport and for the development of cycling as a whole.”

After the success of the checks conducted on road bikes, the UCI is planning similar operations for other disciplines such as track and cyclo-cross.

In an example of this climate of cooperation, the UCI and some 10 manufacturers met to discuss equipment safety at the Eurobike show in Friedrichshafen in Germany in August. The implementation of the UCI approval procedure for frames and forks went up a gear over the summer of 2012. Checks were conducted on the ground using a portable scanner. This project started at the Tour de France with examinations of the equipment used by 11 teams. Barcodes were affixed to the bikes to be checked and these were then analysed at the teams’ hotels using 3-D measurement equipment (a

WFSGI MAGAZINE 2013

BICYCLE: Sport, design and transportation Design cinelli

DESIGN ACCORDING TO CINELLI By Antonio Colombo, Owner of Cinelli

There is a misunderstanding that circulates in the world of sports manufacturing and that of the bicycle in particular, an idea I have always tried to avoid: namely that the job of the designer is to give a pleasing form to products, a sort of final stroke of genius (the hairdresser’s last twist) of pure aesthetic value. Like saying, now that the product is ready, let’s pass it on to the designer, who in the best of cases will give it a nice exterior. This is not design, it is just make-up or, even worse, a facelift in the case of older ideas.

asset. Which is actually not so intangible, since today it might be seen as a secret weapon: something that in times of crisis and production surplus can make all the difference.

Good design is a method, a process that should involve the entire production chain: from the initial idea to the production to the packaging to consumer satisfaction, all the way to correct disposal at the end of the product’s life span.

In my outlook, the bicycle is much more than a machine. It is a product made by people for people, with the striking characteristics of becoming a sort of extension of the human body. So of course it has to respond to practical needs of speed, comfort and durability, depending on the type: but it must also express humanity, wellbeing, effort and joy. Emotions in other words. The bicycle simply is everything cars would like to be and struggle in vain to try to resemble, spending mountains of money on advertising: body, life, emotion.

In other words, as I sum it up, design is everything … the whole company is design. It’s true that today we hear a lot more talk not just about product design and graphics, but also about strategic design. About the correspondence between the fundamental ideas of an entrepreneurial project and all the components of the company, including the social aspects. Good design is good not only for the businessman who makes a profit, but also for the whole society that makes use of it. What sense does it make to deceive riders offering extremely light frames that are not safe? Why not clearly indicate the life span of a magnesium stem? If I am clear, if I fully explain things to my world of reference, I can say I have made a design product for extreme competition. Otherwise I can say I have hoodwinked some maniac, putting him in a situation of grave risk as well. The job of a company that fully applies the principles of strategic and global design is also to provide all the necessary, clear information for use. If design is seen as an idea that involves the entire company structure, then it can easily become a valuable intangible

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So let’s get to our bicycle, which for 40 years has been my personal obsession, though I certainly cannot boast of being an athlete (in spite of constant practice) or a designer, but just an attentive, engaged observer of the contemporary scene and the arts.

Design is the company, I was saying. And companies, in short, are made of people, products and places. People in tune with the company’s mission. Products that bring happiness, either because they help you win or make you feel like a hero, or because they let you go on vacation or to work free of cares, or truly offer savings without compromising on life span. Products that grow on you, that gain your affection over time. The places are those of work, the spaces where the company expresses itself to the outside world (races, stores, trade fairs, catalogues, advertising, etc.) and, today, the virtual spaces of the web (sites, social networks, etc.). Strategic design has to mix all these components in a harmonious blend, making them work together. A good product is good thanks to the chromosomes of a good company. So-called “lovemarks” are a very timely marketing theory, but the result does not come from ads that show happy kids consuming poisonous snacks… instead, it comes from all the people who have worked to apply these extended concepts of design.

BICYCLE: Sport, design and transportation Design cinelli

It’s great to have a company that can manage to communicate all this without deception! It is a well-known fact, actually, that good advertising can bring on the death of a bad product. We have the great good fortune of working on the bicycle, a product that is a gem but also a toy. This is why Cinelli design has never been limited to turning out good products, but has also always worked on emotional content, coordinating a mixture of technology, art, competition, enthusiasm and fun: a way of working that sometimes allows us to have an impact on the history of the bicycle. In conclusion, I would like to clarify the intentions of my famous habit of giving products rather weird sounding names, often quite different from each other, like Spinaci (a product that deserved better luck), Hoy Hoy, WYSIWIG, Deus ex Machina, Lucille, just to mention a few. Giving a

name to things is also part of the design, and it reveals the fact that design is a very human process, of filiation, with the gestation of a birth and then the debut in society.

Biography Antonio Colombo (Milan, Italy, 1950) has been the President of Columbus tubing since 1973, the owner of Cinelli since 1979, and the director of his own contemporary art gallery since 1998. Throughout his career, Colombo has been responsible for industry-wide innovations derived from a unique combination of design, art, technology and competition, and in 1991 won the Compasso d’Oro for the groundbreaking Laser frame. He lives and works in Milan.

WFSGI MAGAZINE 2013

BICYCLE: Sport, design and transportation College Cycling

Leveraging Partnerships to Build a Sustainable University Bicycle Culture By Jaimie Smith, Director of Business Practice Improvement and the Bike Emory program at Emory University

In 2006, the bicycling culture at Emory was endangered after years of automobile-focused development at Emory and in the surrounding community. However, 2006 was a transformative year for bicycling at Emory as several forces, namely local traffic congestion, demand for sustainable transportation options, pressure from the community, and the growth of the University and its healthcare function, compelled Emory to convene a broad conversation focused on improving the quality of life in the Emory area. The project was named the Clifton Community Partnership (cliftoncommunitypartnership.org) and a primary focus area is transportation options. I worked for the Clifton Community Partnership (CCP) at that time and was assigned the task of developing a program to encourage and enable more people to ride a bike to Emory. To achieve this goal, we sent “cold-call” letters to bicycle brands and pitched the idea of creating a unique set of incentives to encourage more students, faculty, and staff to get on a bike and reduce trips in their cars. Advanced Sports answered the call and together, with our local bicycle shop Bicycle South (owned and operated by an Emory alumnus), we developed a plan to transform Emory into a bicycle-friendly campus. The concept was named Bike Emory (bike.emory.edu) and this partnership allowed us to provide special incentives to our students and staff. Some examples: • deep discounts on bicycles and accessories with free delivery to campus © Bike Emory: “Win a bike!” promotion

• free safety packages including U-locks, helmets and lights • a bicycle repair center on campus • a bike share program • bicycle classes and events • a new bicycle-focused website • dedicated bicycle program staff We blanketed the campus with provocative marketing materials that promoted bicycling at Emory with the tagline “Why Not?”. Students, staff and visitors could not walk anywhere on campus without seeing images of bicycles on windows, light pole banners, posters, and even coffee cup sleeves. As a result of our incentives and campaign, we sold hundreds of bicycles in our first three years and the program had an immediate impact on campus transportation and culture. Our bicycle racks started to overflow in year two and each year we saw more and more bicyclists on the roads around Emory. • Survey data showed an 853% increase in the number of University employees and students who ride a bicycle for at least a part of their commute to Emory or to class between 2008 and 2010. • Bicycle mode share at Emory is now 2.5% which is five times that of the surrounding community. • 73.5% of Emory bicyclists report “always” using a helmet, twice the national average, which we attribute to our commitment to safety throughout our programming and free bicycle safety packages. • In 2011, Emory was named a Bicycle-Friendly University by the League of American Bicyclists. The increasing demand for bicycling on campus has also impacted planning efforts by Emory and the surrounding community. Emory is now recognized by local agencies as an activity zone where cyclists must be accommodated. As such, accommodations for bicyclists, although not required by local policy or law, are included in roadway projects where feasible. Local county planners supported making Clifton Road, a key multilane route that bisects the campus, the first roadway segment in the state to receive shared lane markings (sharrows) and “bikes may use full lane” signage.

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BICYCLE: Sport, design and transportation College Cycling

Since then, new bicycle lanes connecting cyclists to Emory Village (local activity center adjacent to campus) have opened, a bicycle box has been added to a busy intersection, linear feet of bicycle lanes on campus have increased, and plans are in place to add additional bicycle roadway and end-oftrip facilities in the coming months and years. Six years since the launch of the program, Emory has transformed into a place where bicycling is flourishing and becoming more popular every year. Where once we needed to post images of bicycles on campus, now the sheer number of Emory bicyclists organically promotes the activity to our campus. The impact of the growth in bicycling on our campus has been measurable and serves as an example of how a strong commitment to bicycling can be successful even in areas that have historically been planned to only accommodate automobiles.

ÂŠ Bike Emory: Come by bike â&#x20AC;&#x201C; why not?

Jamie Smith is the Director of Business Practice Improvement and the Bike Emory program at Emory University (Atlanta, Georgia, USA). Jamie has over 10 years of higher education management experience and is entering his sixth year leading Bike Emory. Jamie also serves on the Board of Directors of the Atlanta Bicycle Coalition.

WFSGI MAGAZINE 2013

BICYCLE: Sport, design and transportation ciclovia – Community Mobilization in the Americas

Ciclovia-Recreativa in the Americas: A growing and successful Public Health and Social Program By Enrique Jacoby, Nutrition and Physical Activity, PAHO/WHO, and Frances Sabatier, Prevention & Control of Chronic Diseases, PAHO/WHO

The Ciclovia-Recreativa, hereinafter Ciclovia, began in Colombia during the 70s. The program temporarily closes the streets to motorized vehicles to allow access only to runners, cyclists, walkers and rollerbladers. Typically, Ciclovia programs take place in the region during Sundays or holidays; the duration of this operation could be from 2 to 12 hours, the frequency varies from 18 to 64 events per year, and the length of the closed streets varies from 1 km to 121 km.1 Ciclovias has already been established in many cities through the years; for example in the 1990’s there were only 20, by 2005 there were already 100 and in 2011 there were 150 of them. However, most of them are located in Latin America. Among the United States, the cities already incorporated with this program include: Seattle, Portland, Cambridge, Cleveland, New York, Chicago, Baltimore, San Francisco, El Paso and also Los Angeles.2 The Ciclovia programs produce various health and social outcomes: promote physical activity, improve quality of life and social capital, generate environmental benefits, and social benefits.1 The Ciclovias are an efficient promotion of physical activity for all ages and families not only because it is free but also because well-organized Ciclovias provide easy access, safety, good connection to parks, and physical activity

programs as dancing, skipping, jogging, etc. In well-organized programs such as the Bogotá, Quito or Guadalajara Ciclovias, there is high participation weekly, and the average use time per participant is 2 hours or more.1 This potentially contributes to meeting the overall target of WHO, mentioned earlier. Nearly all Ciclovia programs implemented have the purpose of increasing the quality of life and social capital, which may be the result of community mobilization, volunteering, community empowerment, promotion of recreation, among others. The physical environment benefits are proven by a pilot study done in Bogotá’s Ciclovia that shows pollution was 13 times higher during a regular weekday. On a Ciclovia day, 3,797 people replace 4,865 vehicles. Finally, Ciclovia also can have a positive impact on the labor markets and cause social environmental benefits in a city. Various programs were evaluated and it was reported that there was a 55% increase in the number of temporary business.1 The Ciclovia program, according to a study, has the lowest cost per week compared with alternative physical activities that can be promoted. For instance the average cost per user per week for Bogotá’s Ciclovia is $ 10, while for a private fitness center in San Francisco its $ 20.31. Nevertheless, these comparisons would have to be seen with caution because of the differences in programs regularity and opportunity.3 We anticipate that the data presented here could serve as a tool to promote the expansion and establishment of other Ciclovia programs in different cities worldwide. Ciclovias locations in the Americas 2012

Sarmiento O, Torres A, Jacoby E, Pratt M, Schmid T, Stierling G. The Ciclovia-Recreative: A Mass-Recreational Program With Public Health Potential. Journal of Physical Activity and Health, 7 (Suppl 2), 163–180, 2010. 2 http://en.wikipedia.org/wiki/Ciclov%C3%ADa 1

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Montes F, Sarmiento O, Zarama R, Pratt M, Wang G, Jacoby E, Schmid T, Ramos M, Ruiz O, Vargas O, Michel G, Zieff S, Valdivia J, Cavill N, Kahlmejer S. Do Health Benefits Outweight the Costs of Mass Recreational Programs? An Economic Analysis of Four Ciclovia Programs. Journal of Urban Health: Bulletin of New York Academy of Medicine, 2011.

www.sport2000international.com

BICYCLE XXX

We keep the world in motion RETHINKING BOUNDARIES INTERNATIONAL EXPERTS COMMUNITY PERSONALLY CARING FOR CUSTOMERS EXPERTISE THROUGH PASSION We are the professional and passionate companion that enhances the individual capabilities of every athlete by understanding their personality and needs.

MORE THAN 3.500 RETAIL S TORES IN 23 COUNTRIES WFSGI MAGAZINE 2013

RETAIL: A changing environment Consumer

(R)EVOLUTION – HOW RETAIL WILL BE CHANGING TOWARDS 2020 By Frank Quix, Managing Director of Q & A Research & Consultancy

In the past 20 years; retail had to face many change one of the most named ones was the ever-changing consumer. In some cases even claimed to become the consumer that is uncatchable and even schizophrenic. From our perspective the consumer basic needs did not change in the past 20 or even 100 years and will not change in this decennium. Consumers will keep on searching for the right product to the right price to the right value, so nothing is changing here, but the environment did change. Retail has to face five new rules to the game that changed the way of doing business permanently. We call these five rules the 5 Rs of retailing: Reach, Repopulation, Resources, Revenue, Real estate. Each of the 5 Rs is related to, and influenced by, one or more of the ten megatrends we have identified. In the course of this essay we will describe each of the Rs and highlight some of the corresponding trends. Reach Probably the biggest change in our environment in the past 20 years is the growth of the Internet. In Western Europe the Internet penetration reached extreme heights (80%–95%). Almost everybody got online. As the Internet penetration grows, the online shopping landscape is becoming bigger and bigger. In the past decade, online

shopping in Europe faced double digit growth rates and reached serious market shares as high as 5% of the retailing goods market. A Nielsen study in 2010 showed that 85% of all people in Europe made an online purchase. With the tablet (mobile) revolution ahead, that started in 2010 with the introduction of the iPad; the Internet became instant. Consumers are able to access websites wherever and whenever they want and instantly. This created the New Digital Consumers that easily adopt new technologies and features on their mobile devices. These consumers will adopt social media as easy as they did with email and the use of the cell phone in the past. Another consequence of the rise of the Internet is the importance of Cross Channel approach by the retailers. Consumers have arrived in the postchannel era and want to have everywhere – in every channel – the same experience with a brand or retailer. We use the acronym AWATAD, anywhere, anytime, any-device for the way of communicating and shopping. Make sure that websites are accessible on any device in the correct way, where the website does adjust itself to the type of device and platform to have the best experience. Repopulation In Western Europe aging is probably one of the most significant demographic trends, and we are moving towards the end of the pyramid. Birthrates will decrease and a new generation of “old people” will arise. Another significant trend is the rise of the single households in most European countries. By 2020 approximately 40% of all households will be single households (Germany 43%, The Netherlands 40%, UK 38%, France 37%). On average the number of single households shows a growth rate of 7% whereas the total population growths are less than 3%. The single household seems to become the new norm, especially when we have a close look on how demographics are changing within countries. Young people are moving towards the big cities, and these are becoming bigger and bigger as older people stay in the rural areas. The consequence of this trend is urbanisation. The combination of the above mentioned trends creates larger

Frank Quix is Managing Director of Q & A Research & Consultancy (member of Ebeltoft Group) and Assistant Professor of Retail Marketing at the University of Amsterdam where he holds the Anton Dreesmann Chair for Retail Marketing. Frank Quix has more than 15 years consulting experience in the retail industry. www.q-and-a.nl, Follow on twitter @frankquix

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RETAIL: A changing environment Consumer

Affluenza

Cross-Channel

Digital SuperConsumer

Einstein-Time

End of the Pyramid

Glocalising

New Markets

Individualization

cities with a relatively younger population living in single households. For retail probably a good trend in the big cities. Young people spend more money than older people, and each single household has its minimum needs. However, living single is more expensive. Living single will give four trends a boost. The first we would call Einstein-Time: time is becoming precious, and those retailers and service offering companies that can save time will create more value to the customer. Individualization is the second trend: consumers want to create their own products or at least have the idea they can have a little bit of influence on what and how they are buying. Creating your own designs is one of the ways. The Digital Super Consumer is also here again a dominant trend: the young urban population will adopt new technologies faster, and the Internet is surrounding their world. Connectivity is even entering sports via apps and devices for tracking your own and others performances. As a result, Cross-Channel will be their way of shopping. Resources As a result of the growing global population and the wealth growth, we have to face the limitations of all our natural resources and our environment. This will have an effect on the attitude of consumers towards sustainability. As the Internet is making the world more transparent, this transparency is a trend retailers and manufacturers have to cope with. Consumers want to know how and where products are manufactured and under what conditions. Give them the opportunity to track and trace their products. Another way to be transparent is showing the global footprint per product or informing customers of the usage of green energy if applicable. The increasing demand for raw materials will have an impact on pricing and margins for retailers. Revenue The economy in most European countries is slowing down for some years. The limited growth in combination with increasing prices leads to stagflation. After a period of overconsumption a period of Affluenza will manifest. Due to the economic situation in combination with uncertainty, consumers are spending more consciously and no longer

Transparency

The new Mid-Market

buy everything they come across. Another trend that emerges is Recommerce. Consumers are reselling products they bought earlier. Sometimes it is by trade-ins, made possible by retailers, but also by selling their goods via marketplaces or even websites that do buy second-hand goods. With the limited growth forecasts in mind, retailers and manufacturers should think of recommerce solutions that fit their business. Real Estate The number of square meters increased over the past three decades as did the retail sales; however, in the last decade the retail sales could not follow the growth in square meters. As a result the sales per square meter, the floor productivity, came under pressure. The decreasing floor productivity is often explained by decreasing footfall due to e-commerce. This is not correct. Due to the Internet in general in combination with the perceived time pressure, the footfall does decrease, but research shows the number of people with a purchase intention is going up. So the real problem for retailers is the conversion and the number of square meters they currently use. Even in the future footfall will be under pressure, but since consumers are well informed the number of people with a purchase intention among the visitors will be high. The real challenge for the future is how to increase conversion rates and how to rationalize the store locations in the new Cross Channel approach. This essay is based on an ongoing research project Retail2020, initiated and sponsored during the first year by CBW-Mitex in the Netherlands. Since then, Q & A Research & Consultancy continues the research. Since the start of the project we have interviewed over 40 European retail executives, over 20 European retail experts and over 40 directors/owners of SMB companies. Over 20.000 consumers participated in online researches in several European countries. We track the 10 megatrends in desk research daily by using all kinds of international sources. For detailed research information, or specially developed reports for your own industry or company, feel free to contact us.

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RETAIL: A changing environment E-driven retail

The SportScheck multi-channel strategy By Stefan Herzog, Managing Director of SportScheck GmbH

The strategy is taking off. The expansion of the multi-channel concept to create an e-driven company, the investments in publicity and branding, the emphasis on innovation and the clear focus on service and advice have paid off: during the previous financial year, we achieved the highest overall gross sales figures in the company’s 65-year history, some 408 million euro. The very positive way the company is developing is bucking the trend for the market as a whole, and the market share we have gained has helped us become one of Germany’s biggest providers of sports goods and the country’s leading multi-channel sports retailer. The 16 SportScheck branches bring in around 50% of sales, while the online business has returned brilliant figures for the fifth time in a row based on double-digit growth and now accounts for nearly 40% of sales with the help of Mcommerce. The catalogue business contributes 10% of sales and is an important source of stimulus. A comparison between these figures and the breakdown of sales for 2005 tells you all you need to know about the trend towards online shopping: the breakdown for distance selling has been turned on its head, and our decision to develop into an e-driven company was and remains the correct one!

Investment in Publicity and Branding: “We do sports. What about you?” The new flagship store due to open in Munich during the autumn of 2013 will do a lot to help shape the SportScheck brand. But, we didn’t want to wait such a long time. In 2010 we decided to launch the first TV brand campaign in the

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company’s history, which massively increased our advertising profile. Unsurprisingly, we also opted for a 360° interconnected communication strategy for our “We do sports. What about you?” (Wir machen Sport. Was machst Du?) marketing campaigns to help us target customers at all the various touch points like TV, social media, the Internet, mailshots, and in-store events and ensure they receive a consistent message.

The 360° brand campaign really made a mark, helping us gain lots of new customers and generating a great response from existing ones. So much so that we are now seen as the most relevant and “likeable” sports retail brand in Germany (based on a representative survey done by GfK Deutschland). The campaign also scooped the multi-channel special price at the German mail order conference (Versandhandelskongress). These results clearly showed we should keep running the 360° brand campaign and also continue to establish ourselves as a specialist partner for all aspects of sport across the various social media. Some 150,000 Facebook users have now clicked the “Like” icon on our fan site, creating a loyal community of fans in the process. We also have a presence on both YouTube and Google+, as well as having our own blog (blog.sportscheck.com) since August 2012. Here, employees give exclusive insights into the company, its ongoing projects, and various current trends. The blog is all about transparency. For us, “We do sports.” is more than just an advertising slogan, and our blog provides us with another platform on which to share this passion with customers and other interested parties.

RETAIL: A changing environment E-driven retail

Emphasis on Innovation: “SportScheck goes mobile” At the end of 2011 we coined the phrase “SportScheck goes mobile” (SportScheck macht mobil) to reveal our aim of becoming number one provider in the mobile sports market. The foundations were laid right from the start with our improved online shop for all smartphones. We now also offer a shopping app for the iPhone, iPad, and android phones, and are regularly expanding the applications to make them more innovative and add value. For example, the new “Interactive Print” function links the SportScheck catalogue with the mobile shop. So customers find it easier to order goods online. The user can browse through the catalogue and photograph the page showing the product they like. The mobile version of the SportScheck club and the use of “location-based services” represent further milestones in the efforts to link mobile and location-based retail channels. These give customers access to information and advice and the opportunity to shop directly wherever they are and whenever they like. With a view to helping customers enjoy their particular sport, we launched the third mobile sports application in mid-2012, thereby expanding our mobile portfolio. Hot on the heels of the running app, which scored very well in a quality test done by PC Welt (a German computer magazine) in June 2012, and the winter sports app, we now offer a comprehensive mobile outdoor package for fans of outdoor sports. All the apps can be used to access tips on planning tours and training, as well as information on our own organised events, such as Germany’s largest series of city road races with around 80,000 participants or the outdoor and glacier “testivals”. The idea is to highlight the expertise of SportScheck and turn mass-participation sport into an emotional experience.

Shopping App

Running App

Focus on Service and Advice: “SportScheck – a German service champion” As well as providing top-quality products, we also want to offer all our customers a comprehensive service, whether in our branches, online, via mobile applications, or in our catalogues, and rekindle their enthusiasm every day. This is why we are continually expanding our inter-channel services to make the various sales channels even more interconnected. These include the multi-channel customer card, our iShops for ordering items not currently available in branch (to be picked up in branch or sent to the customer’s own home), sales staff advice using iPads, online booking of personal advice sessions in branch, or the mobile applications already described. Our attempts to consistently develop the multi-channel service offer have been vindicated by our success in coming first for the third time in a row in the sports shop service survey (Servicestudie Sportgeschäfte) conducted by the German institute for service quality (Deutsches Institut für Service-Qualität – DISQ), making us the “German service champion”. The strategy is definitely taking off then. The expansion of the multi-channel concept to create an e-driven company, the investments in publicity and branding, the emphasis on innovation, and the clear focus on service and advice have paid off:

SportScheck is well on the way to becoming the leading brand, an expert sports retailer delivering a real experience! Stefan Herzog is since 2005 Managing Director of SportScheck GmbH, an OTTO Group company. He is spokesperson for the management and responsible for purchasing and marketing. Before he was Director of Karstadt Sport (2003– 2005), Managing Director at Sport Voswinkel (2000–2003), a company owned by Douglas Holding shareholders, and worked first as Department Manager (1987–1992) and then as Purchasing Manager at SportScheck GmbH (1992–1999).

WFSGI MAGAZINE 2013

With more than 5'400 shops in 42 countries, INTERSPORT has the worldwide leading position in the sporting goods retail market. Visit us at www.intersport.com WFSGI MAGAZINE 2013

RETAIL: A changing environment Retail Experience

ENRICHING THE CUSTOMER EXPERIENCE By Thierry Verdejo, Retail Director EMEA, Oakley

Style is what you make it, and Oakley believes you should make it your own. That’s why the company’s retail experience is supported by the Oakley Custom Program (OCP), an initiative that lets customers design their own sunglasses. Back in the 1990s, Oakley had a build-to-order program that included its most popular sport performance designs. Events like the Tour de France brought enormous media exposure that resulted in public demand for more. Fans pleaded for customized designs like those worn by their favorite sport pros. In 2006, Oakley vastly expanded both the breadth and content of the program, and its growth continues worldwide. 2011 saw the activation of 50 OCP kiosks across Europe.

Customers can choose their own frame finish, frame component colors, lens tints and more. They can even add custom lens engraving to personalize their creations.

“If you want the perfect sunglasses, make them yourself.” That’s the message of the Oakley Custom Program, and today it includes a wide range of performance and lifestyle eyewear products, as well as select goggles. Customers can choose their own frame finish, frame component colors, lens tints and more. They can even add custom lens engraving to personalize their creations. The company promotes OCP within all market disciplines. The program can be accessed via the Oakley website, and it enriches the retail experience at Oakley stores, key accounts and pop-up stores. In fact, the best demonstration of OCP is the hands-on experience of retail where customers walk in off the street, unleash their creativity, and walk out with their own custom design. Oakley takes pride in offering the best of form and function, and with OCP, customers can choose from a comprehensive array of premium lens tints that match performance to the environment.

WFSGI MAGAZINE 2013

RETAIL: A changing environment Market report

the Development of the China Sporting Goods Industry By China Sporting Goods Federation, CSGF

Added Value of China Sporting Goods Industry 2006â&#x20AC;&#x201C;2011 200 150 100 50 (billion yuan)

17.63% owth Rate Annual Gr

78.2

2006

100.9

2007

123

135

2008

2009

169.2

176

2010

2011

The Pace of Development 18 16 14 12 10 8 6 4 2 0

9% 25.8

16.146

13.5 12.5

12.825

12 11.5 11 2009

2010

Sportswear Sales Revenue (billion yuan)

13.198

10.5

14 .9%

The China Sporting Goods Federation (CSGF) formally issued the Report on the Development of China Sporting Goods Industry 2010â&#x20AC;&#x201C;2011 to the public on the 30th China Sport Show 2012 in Beijing. This report mainly focuses on three major categories of sporting goods including sportswear, sports shoes and sports equipment. It is based on the comprehensive analysis of the data issued by the National Bureau of Statistics, the General Administration of Customs and relevant industry associations and the annual reports released by sporting goods enterprises. It is the first time for the CSGF to release the industry development. But with the late definition of classification standard for sporting industry and the difficulty in gaining statistics caused by the diversification of enterprises, this report only focuses and analyses on the overall situation and the above-mentioned three categories. The CSGF will systematically and deeply improve its future work regarding further classification of sporting goods and other aspects to better satisfy the needs of society and enterprises.

11.487

2009

2010

Sports Shoes Sales Revenue (billion yuan)

90 80 70 60 50 40 30 20 10 0

4% 28.5

83.042

64.606

2009

2010

Sports Equipment Enterprises Sales Revenue (billion yuan)*

* The 8 publicly traded sporting goods companies companies are: LI-NING, ANTA, China Dong Xiang, X-TEP, PEAK, TOREAD, China Flyke, MEIKE.

2. The effect of industry cluster is evident. With regards to the production output, the sporting goods industry cluster is located in Guangdong, Fujian, Jiangsu, Zhejiang, Beijing, and Shanghai accounting for 85% of the total number. In the view of enterprise cluster degree and product category, sports shoes manufacturers are mainly located at Jinjiang (Fujian), Dongguan (Guangdong), Cixi (Zhejiang), Kunshan (Jiangsu) and sportswear ones at Shishi (Fujian), Zhongshan (Guangdong), Haining (Zhejiang) and sports equipment enterprises at Fuyang (Zhejiang), Cangnan (Zhejiang), Jiangdu (Jiangsu), Taizhou (Jiangsu), Cangzhou (Hebei). Basketball, Volleyball and football products manufacturers are concentrated in Shanghai, Tianjin, Fenghua (Zhejiang), Fuyang (Zhejiang), Changtai (Fujina) and Yonglin (Fujian). Ball game Products

The features of sporting goods industry development are as follows: 1. The level of market concentration is increasing gradually. After a long-time development, major domestic sporting goods brands have already built up a quite complete manufacturing and marketing network and take the major share of the domestic sporting goods market. In the sharp market competition, famous brands are winning the upper hand, their annual shipments are increasing. Their market share is enlarging and many brands will further squeeze the living space of small enterprises.

WFSGI MAGAZINE 2013

From 2009 to 2011, sales for ball game products, with more than a 20% annual growth rate, increased year by year. In 2011 sales revenue of above designated size ball game goods enterprises increased by 20.14% and account for 11.067 billion yuan.

Fitness equipment From 2009 to 2011 sales volume of domestic fitness equipment rose at an annual average of 15.36%. In 2011 sales revenue of above designated size fitness goods enterprises increased by 11.48% accounting for 27.666 billion yuan.

RETAIL: A changing environment Market report

Outdoor Products In 2010, total retail sales of outdoor products was 7.13 billion yuan and shipments were worth 3.21 billion yuan. From 2000 to 2010, the annual retail growth rate was 47.33% and shipments grew by an average of 43.29% per year.

Venue Facilities From 2008 to 2010, the operating income of large-scale sports venues in China increased by 27.78% per year. The number of all sports venues, with the expected compound annual growth rate of 4%, will reach 1,209,929 in 2012.

5. The growth rate of 2011 slows down. During the 11th five-year plan, the growth rate of domestic sporting goods stores is about 10%, while sales grow at about 20%. However, in 2011, the annual reports of the largest publicly listed sports enterprises indicate the slowdown of the industry development which was caused by the increasing inventory, rising cost and falling net profit. Here is the form which shows us the detailed financial data of the five largest sporting goods brands.

Development Trends 3. The sporting goods export is dominated by sporting equipment and the trade surplus is rather high. In 2011, the total volume of domestic sporting goods import and export was 16.591 billion dollars and trade surplus was 15.240 billion dollars. For import, the total volume was 676 million dollars (+â&#x20AC;&#x2030;16.40% compared to the previous year) and export volume was 15.916 billion dollars (+â&#x20AC;&#x2030;8.75% compared to the previous year). Sporting equipment dominated in export, while other kinds of sporting goods take the majority in import. In 2011, sporting equipment accounted for 48.87% of the export volume of the domestic sporting goods industry, and other sporting goods accounted for 67.97% of total import.

Protectionism will rise.

Competition will intensify.

Battle for emerging markets will escalate.

E-commerce will attract more attention.

Sporting goods intelligence will be realized.

4. The intellectual property situation has ameliorated. From 2000 to 2010, IP applications concerning sports equipment, sportswear, sports shoes, sports cap, sports bag, golf equipment, billiard equipment, bowling equipment were 1099 and the number increased by an average of 20.7% per year and the annual growth rate was 22.94%. Most of these applications are utility models and invention patents, and appearance design patents are few, taking less than 2%.

WFSGI MAGAZINE 2013

WFSGI About us

WFSGI ORGANIGRAMME PRESIDENT EXECUTIVE COMMITTEE

WFSGI SECRETARIAT

BOARD COMMITTEE

MEMBERS

Brands Manufacturers Retailers Associa ons

COMMITTEES Board of Directors in Hoofddorp at Asics Europe in 2012

CSR

CISO

Bicycle

Legal (IPR)

Trade

Federa ons

Manufacturers

The WFSGI is: • the world authoritative body for the sports industry officially recognized by the International Olympic Committee (IOC) as the industry representative within the Olympic Family; • an independent association with no objective of economic character for its own gains; • formed by sports and sports-inspired leisure brands, manufacturers, suppliers, retailers, national/regional federations, industry and trade associations and all sporting goods industry related businesses. OUR SERVICES WFSGI PLEDGE FOR THE FIFA QUALITY PROGRAMME The pledge embraces the global production of FIFA-licensed soccer balls and shall ascertain that FIFA-inspected, FIFA-approved and IMS soccer balls are produced in compliance with globally recognized labor principles and without the involvement of child labor. Free of charge for WFSGI members.

Magazine The WFSGI Magazine (former Handbook) is our communication flagship. High-level authors and experts give insight in to industry topics, tendencies and facts Published annually.

OLYMPIC FAMILY The WFSGI represents its members vis-à-vis the International Olympic Committee (IOC) and International Sports Federations (IFs) on any subject of concern for the sporting goods industry.

JOB MARKET All about sports: advertise and search for international job positions in the “WFSGI Job Market” in cooperation with Global Sports Jobs. Special rates and services for members apply.

TRADESHOW DISCOUNTS WFSGI members benefit from special exhibitor terms for tradeshows: ISPO Munich, ISPO Bike and ISPO Beijing. NETWORK The WFSGI offers access to a wide network of major brands, retailers and manufacturers and direct contacts to executives and specialists of the sporting goods industry. The WFSGI organizes specialized high-profile events and supports in business expansion. NEWSLETTERS Free WFSGI newsletter “News Alert” with worldwide industry information and “Members Only News” with confidential background information.

BECOME A WFSGI MEMBER Do you wish to become a WFSGI member and benefit from a powerful, industry-wide network that independently negotiates and is globally represented? Download the WFSGI Member Application Form at www.wfsgi.org/ membership. For more information and latest news visit www.wfsgi.org or follow us on Twitter @WFSGI

WFSGI MAGAZINE 2013

MEMBER AREA Confidential background information for WFSGI members: meeting documents, minutes, financial information, reports and documents on the committees’ work. CSR, LEGAL AND Trade HELPDESK Service available to the whole industry with free initial advice and discount legal fee for WFSGI members. The CSR Helpdesk is free of charge for WFSGI members.

SUSTAINING MEMBERS

Sustaining Members

The sustaining membership is a complimentary membership. Companies that choose to be a sustaining member demonstrate a strong identification with the WFSGI and its objectives

GOLD minimum spacing guide line

SILVER

BRONZE $3$&+( The WFSGI thanks all sustaining members for their confidence and support!

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WFSGI board

Board of Directors 2011–2014 President

Vice-Presidents

Motoi Oyama Asics/Japan President

Tom Cove SFIA/USA Vice-President Americas

Rajan Mayor SGEPC/India Vice-President Asia/Oceania

Frank Dassler adidas Group Vice-President Europe/Africa

Peter Bragdon Columbia Sportswear Company/USA

Killick Datta International Brand Partners LLC/USA

Hilary Krane Nike, Inc./USA

Kevin Plank Under Armour/USA

Ma Jilong CSGF/China

Hirotaka Miyaji JASPO/Japan

George Wood TSMA/Taiwan

AMERICAS

Fernando Beer Alpargatas/Brazil

Asia/Oceania

Nouman Butt SCCI/Pakistan

Honorary Directors Masato Mizuno, past President, Mizuno Corp. Benjamin Liu, past Representative TSMA Klaus Uhl, past Representative Uhl Sport Giancarlo Zanatta, Tecnica Group Raul Hacker, past Brazilian Federation Representative Anil Sharma, past Representative SGEPC India

WFSGI MAGAZINE 2013

Liu Jun, past Representative CSGF China Arthur Lin, Freesport Corp. John Riddle, SFIA, former SGMA Pashi Sondhi, F.C. Sondhi & Co. (Pvt.) Ltd. Lindsay Stewart, Nike, Inc. James Easton, Jas. D. Easton, Inc. Armin Dassler, late CEO Puma

WFSGI board

Europe/Africa

Martin Kuenzi Intersport International Corp.

Andy Rubin Pentland

Jeroen Snijders Blok Accell Group/NL (Bicycle)

Christian Voigt Puma

Alberto Zanatta Tecnica Group

Michel Perraudin MP Consulting

Christina Li Wei Li Ning/China

Charles Yang Apache Footwear/ China

Klaus Uhl Chairman Administrative Board Uhl Sport WFSGI Treasurer

Jochen Schaefer Law Office Dr. Jochen M. Schaefer WFSGI Legal Counsel

Executive Nomination

Klaus Dittrich Messe Munich GmbH/Germany

Steve Li Yue Yuen Industrial Holdings Ltd./China

Past president

Ex Officio

John Larsen New Balance Athletic Shoe, Inc./USA Past President

Robbert de Kock WFSGI Secretary General

Honorary Presidents Stephen Rubin, Honorary President representing Pentland Group

Honorary Members Manfred Wutzlhofer, Honorary Member, past Representative Messe Munich

WFSGI MAGAZINE 2013

WFSGI Standardization ISO & CEN

WFSGI Liaison with ISO TC 83 Sports and other recreational facilities and equipment By Dr. Claudia Laabs, Team Manager at DIN German Institute for Standardization and Secretary to ISO/TC 83

The WFSGI is registered as liaison organization with ISO/TC 83 “Sports and other recreational facilities and equipment”, the technical committee within the International Organization for Standardization (ISO) responsible for the standardization for sports and recreational facilities and equipment (e.g. terms, dimensions, tolerances, functional, operational, performance and safety requirements, including their test methods). Excluded from the scope of ISO/TC 83 are amusement rides and amusement devices covered by International Standards within the scope of ISO/TC 254 “Safety of amusement rides and amusement devices”. ISO/TC 83 consists of three subcommittees: • ISO/TC 83/SC 2 “Camping tents” • ISO/TC 83/SC 4 “Snowsports equipment” • ISO/TC 83/SC 5 “Ice hockey equipment and facilities” Participants come from countries all over the world: Australia, Austria, Finland, France, Germany, Islamic Republic of Iran, Italy, Kenya, Republic of Korea, Poland, Russian Federation, Switzerland, United Kingdom, USA. Being a liaison organization, WFSGI has observer status and may comment on all activities within ISO/TC 83. WFSGI may also nominate experts to participate actively in the elaboration of a specific standard. There are 68 published standards covering such diverse areas as: • Stationary training equipment

• Gymnastic equipment • Tennis rackets • Alpine skis, snowboards, cross-country skis, telemark skis, including boots, bindings and poles • Rental ski shop practice • Camping tents and awnings for leisure accommodation vehicles • Head and face protection for use in ice hockey All standards undergo a regular review (every five years) and are being updated as necessary. Currently, several standards are being revised, e.g. on alpine skis, on stationary training equipment and on awnings for leisure accommodation. Another new project is the adoption of the European Standard EN 13537 “Requirements for sleeping bags” as ISO 23537. Experts who are interested in participating are welcome to contact the ISO/TC 83 Secretariat under nasport@din.de.

WFSGI Official Liaison with CEN TC333 “Cycles” Since the beginning of 2012 the WFSGI has also an official liaison with CEN TC333 (Cycles) which means that a representative of the WFSGI has access to the meetings of this Committee. This way, the WFSGI is informed at first hand of all developments on CEN level. A liaison has the right to offer an opinion or new ideas to this Committee, but no voting right. Although the WFSGI has no influence on the decisions of CEN TC 333, the World Federation has an opportunity to offer information to the decision makers so that they have all relevant info before deciding.

WFSGI MAGAZINE 2013

CEN TC 333 meets normally twice a year (in Brussels or Milan). Chairperson of this Committee is Mr. Siegfried Neuberger (Germany). The Secretary to CEN/TC 333 “Cycles” is Gian Luca Salerio. For more information visit: www.cen.eu/cen/Sectors/TechnicalCommitteesWorkshops

WFSGI XXX

WFSGI MAGAZINE 2013

ISPO MUNICH FEBRUARY 3—6, 2013 ISPO.COM 66

WFSGI MAGAZINE 2013

WFSGI Advertorial

ISPO – Sports.Business.Connected. ISPO is considered the global hub and contact exchange for the international world of sports business. During ISPO’s more than four decades of offering events and services it has evolved from a pure order event to a multi-communications platform and the internationally leading sports business network. It channels expertise from all over the world, offers innovative services and promotes developments and trends throughout the sports business. Its international character and multitude of partnerships allows ISPO to consistently pave the way for new concepts. For the future, ISPO is working on further expanding its engagement as a full-service partner for the international sports business. ISPO offers the industry the added value needed for successful establishment in the global competition. The offers include exceptional services to help increase customer profitability, and maintain and intensify personal contacts and relationships. Among these services are currently the ISPO AWARDs, ISPO DISTRIBUTOR MATCHMAKING, export seminars, as well as exhibitor workshops like “Key To Your Trade Fair Success.” Another very successful element is the ISPO BRANDNEW Award – the world’s largest sports industry newcomer competition, held since 2000 during ISPO MUNICH and now also during ISPO BIKE. In addition, ISPO actively promotes special topics to provide the sports business with new, interesting selling potential. In the past, theses topics included Womenswear, Best Ager, Sustainability and Healthstyle, which were embraced by industry and media alike.

ISPO’s international leading trade shows further promote the information exchange within the sporting goods industry. They are still the only venue where industry participants can present themselves at a set time in an international environment, or gain comprehensive information on the current markets and the industry’s latest product innovations. ISPO MUNICH and ISPO BEIJING, both successful international sports business platforms and unique multi-segment trade shows present a dependable, complete market overview. They offer the ideal presentation of the © Messe Muenchen: Political and sports celebrities come together at ISPO. upcoming sporting goods trends, thus minimizing the risk of an incorrect product selection and increasing the chance for the best possible market position. ISPO BIKE, the new member of the ISPO family, focuses on the growth topics E-Mobility and Urban Biking, and thus on the future of the cycling industry. This clear, strategic direction was an important step for the ISPO’s cycling show towards becoming the leading platform for bike mobility. All trade shows have in common their goal to further endorse the genuine exchange of information and expertise, as well as the acquisition and maintenance of personal contacts. In short, ISPO • brings together sports business professionals • offers sports business professionals exceptional services • supports sports business professionals in their business • presents new developments and trends to sports business professionals

WFSGI MAGAZINE 2013

WFSGI Committees

Bicycle Committee Activity Report 2012 In June 2010 the Bicycle group within the WFSGI was established. After only 2 years it can be concluded that the bicycle industry took the right decision to join forces by cooperating under the flag of the WFSGI in the discussion points with the UCI, IOC and ISO/CEN. Besides this communication with important organizations, initiatives were started/supported in the domains of CSR and advocacy. Although important results have been realized, the road ahead is still long and certainly not free of bumps. A young group needs growth. Over 10 new members joined the Bicycle group, bringing the total to over 40 as of October 2012. The campaign to convince industry players, who are not member yet, of the added value and the importance of the WFSGI is still actively pursued especially during trade shows like Taipei Cycle Show, ISPO Bike, Eurobike and Interbike. Further growth is required (and expected) to strengthen the representativeness of the WFSGI even more. In 2012 most attention was addressed to the UCI frame and fork approval process, the wheel approval process and the communication between the UCI and the WFSGI in general. Within the Technical Committee a Wheel Committee was established to focus on the safety specifics around wheels. Chair of the WFSGI Bicycle Wheel Committee is Josh Poertner (Technical Director, Zipp). Several member meetings were held during trade shows, at the UCI in Aigle and by conference calls. Results were shared with all members. Like in 2011 a meeting open to the press and non members was organized at Taipei Cycle Show. This turned out to be a well attended presentation with interesting discussions afterwards. After discussion with the IOC an agreement was reached to adapt Rule 50 for cycling during the London 2012 Olympics. It was allowed to have the bicycles equipped with the normal brand logos instead of the limited 60 cm2 which saved a lot of hassle for all bicycle brands involved in the Games.

Ex Officio

Robbert de Kock WFSGI Secretary General

WFSGI MAGAZINE 2013

Jochen Schaefer WFSGI Legal Counsel

Members were offered technical accreditations for venue access. The WFSGI applied for a liaison status in the ISO TC 149 Cycles Committee. Unluckily this request was not accepted. Alternative ways to be involved in the new technical standards are considered. Fortunately several members are already represented in ISO and CEN committees. At the Eurobike 2012 in Friedrichshafen, a pilot group of 8 companies was formed to start up the cooperation between the pilot members on CSR. Fair Factory Clearinghouse will be the partner to facilitate the communication platform. This very positive outcome was the result of thorough preparations by the CSRâ&#x20AC;&#x2030;&â&#x20AC;&#x2030;Trade Manager of the WFSGI in cooperation with a selected group of bicycle members. Presentations and conference calls were held to promote participation. It is obvious that the bicycle industry has to be involved in this domain more intensively and integrate it in normal business practice. The advantages to be realized for all parties in the supply chain are crystal clear; uniformity, efficiency, speed and cost saving. The Cycling Steering Group will organize more meetings in the future to move ahead in this domain.

WFSGI Committees

CHAIR

Bicycle Steering Committee

Jeroen Snijders Blok COO, Accell Group

Roman Arnold CEO, Canyon Bicycles

Dirk Bruynseraede Chief Information Officer, Ridley Bikes, Chair WFSGI Bicycle Technical Committee

Mariolino Corso Cicli Esperia

Pascal Ducrot VP Bike and Winter Sports, Scott

Ignacio Estelles CEO, Rotor Bikes Components

Armin van Hoogstraten General Manager/President VP ASI Europe, Advanced Sports

Denis Kelleher VP of European Operations, SRAM

John Koo Vice President & Chief Staff Officer GGG Office Corporate Headquarters, Giant

Tony Lo President, Giant

Robert Margevicius Executive Vice-President, Specialized

Claudio Marra Managing Director, FSA

Morgan Nicol AeroDesign

Takeshi Oi Senior Executive President & Head of Bicycle Components Division, Shimano Inc.

Chris Peck Vice President of Research and Development, Cannondale Bicycle Corp.)

Gervais Rioux President, Argon 18

Jordan Roessingh Team Liaison Manager, Trek Bicycle

Marc van Rooij President, Shimano Europe Holding BV

Martin Schuttert Koga

Martin Walthert Head of Staff R & D, DT Swiss

Phil White Cofounder, Cervelo

WFSGI MAGAZINE 2013

WFSGI Committees

CISO Committee Activity Report 2012 2012 was an important year with the new FIFA quality programme in place where the WFSGI has increased the activity when it comes to the pledge support for licensed brands and their manufacturers. This provides for FIFA and WFSGI a professional approach to the compliance of brands and manufacturers against the WFSGI Code of Conduct. Also with FIS (International Ski Federation) we have started further discussions around where and what the WFSGI can contribute to the World Snow Day. Having major retailers and a few big winter sport brands in our organizations, there is potential to develop activities. 2012 was also an important year due to the London Olympic Games and the respective development of the relationship between the brands, the IOC, LOCOG, WFSGI and the athletes. We had this year more issues with accreditations than before and it is always a problem when processes are changing from Games to Games. Here, further discussions shall take place to improve this for the next Games. The ticketing went smoothly. It was also one of the goals of the CISO committee to sign a new MOU with the IOC in London. Unfortunately, until this article was written, we were unable to come to an agreement on the final wording of the document with the IOC. The WFSGI Board asked the CISO committee to continue the discussion with the IOC and to discuss the integration of important amendments. London Olympic Games Rule 40 (former rule 41) and 50 (former Rule 51) were hot topics for the industry. Regarding

WFSGI MAGAZINE 2013

Rule 50 WFSGI has a good relation to the IOC, but the enforcement and implementation during the Games could strongly improve. Further discussions are taking place with the IOC for future Games. In addition, we had good collaboration for cycling during the London 2012 Olympics. Although the rules still give our supplier big problems it saved the involved bicycle brands a lot of hassle since bicycles with normal brand logos were allowed. Concerning Rule 40 LOCOG had provided a guideline of which activities were possible in the UK. Unfortunately, this was not adopted by other NOC’s which resulted in many different interpretations causing uncertainties among the brands – especially on a global level. During the Board Meeting on September 27, 2012, it was decided to approach IOC to try finding a common ground towards a solution that respects the natural interest of the sports industry to do “generic advertising” or business as usual during the Games and the IOC’s desire to work around the exclusivity of the IOC TOP sponsors. New element here is the fact that athletes seem to show their grief and are unhappy with Rule 40 in today’s form. We are sure that 2013 will give new directions in our work with the IOC. We are certain to solve also some of our problems together. In the end there are many development possibilities together, but it shall remain a balanced collaboration. Other projects with IF’s continue on a day-to-day basis and we especially thank IRB, UCI, FIS and ITU for their good collaboration.

WFSGI Committees

Chair

Vice-Chair

Wolfgang Schnellbügel Chairman, SPORT 2000 International

Celia Muir Worldwide Head of Sports Marketing, Sponsorship & PR, Speedo International

Members

Nadia Erni Head of Sports Marketing & Event, Odlo

Franck Horter General Manager for EMEA, TYR

John Larsen President Emeritus, New Balance Athletic Shoe, Inc. & Director, New Balance UK & WFSGI past President

Christina Li Public Relations Director, Li-Ning

Craig Masback Director of Business Affairs, Global Sports Marketing, Nike, Inc.

Jean-Pierre Morand Secretary General, SRS Ski Racing Suppliers Association

Rachel St. Peter Senior House Counsel, Under Armour

Marc Pinsard Deputy Senior General Manager Global Sales & Marketing Division, Asics

Michael Riehl Senior VP Global Brand & Sports Relations, adidas Group

Reto Rindlisbacher Managing Director Sales & Marketing Nordica, Tecnica Group

Hiroshi Sako European Apparel Business Manager Sports Division, Mizuno

Hamish Stewart SVP International and Apparel, Brooks Sports, Inc.

Ex Officio

Christian Voigt Senior Head of Global Sports Marketing & Sports Law, Puma International Division

Robbert de Kock WFSGI Secretary General

Jochen Schaefer WFSGI Legal Counsel

WFSGI MAGAZINE 2013

WFSGI Committees

CSR Committee Activity Report 2012 As the sporting goods industry operates as a truly global industry, it can and may not ignore the wider impacts of the global “megatrends”. These megatrends are related to overall population developments, increasing resource shortages, changing consumption patterns and technological innovations posing many challenges but also opportunities for the sporting goods industry. None of these developments can be influenced or solved by an individual company but needs close collaboration and engagement among the industry players, governmental authorities and supranational institutions, if these challenges to be tackled successfully. In 2012, the CSR committee strategy has been focusing its work to support and facilitate engagement that aim to drive change in the industry and enhancing companies’ performance. So the committee focused its engagement and work on the following key areas: Share Knowledge and Best Practice Frequent updates and sharing activities Communication was further intensified within the committee and towards members about relevant developments in the marketplace related to CSR and sustainability practices. This included the publication of “CSR Head-up report” outlining important country-specific developments in major sourcing countries. Information was also shared with members about other industry alliances addressing specific topics like restricted substances management and products safety as well as management of chemicals in global supply chains. In this context, the committee operated as CSR directory, i.e directing members to well- established working groups within the industry that can provide profound information and guidance on specific topics. One example for effective engagement were meetings between the international bicycle federation (UCI) and the adidas Group to discuss the Group’s global supplier compliance management program. Join Forces to Drive Collective Approaches Developing as an industry agenda setting hub A major focus of the CSR Committee work was to identify and to understand critical topics where members asked for further clarification and guidance. Members, for example, were asking about greater clarity and guidance on the terms “framework agreements” and on “living wage” demands. Accordingly, The CSR Committee

WFSGI MAGAZINE 2013

reached out to the international Organization of Employers (IOE) in order to obtain their standpoint with respect to these labor- and supply- chain-related issues. Representatives of the IOE participated in the CSR committee meeting held in September 2012 and provided their positions along with further guidance on the revised OECD Guidelines for multinational enterprises and the UN Business and Human Rights Framework. Promoting the Fair Factory Clearing House as sharing platform In 2010, the WFSGI signed a membership agreement with the New-York-based non-for-profit organization Fair Factories Clearinghouse (FFC). This action was taken to further drive and support collaboration among brands and manufacturers in supply chain monitoring and compliance management. This action supports the industry-wide goal to achieve greater audit harmonization and enhanced sharing platform for all players in the sporting goods industry in order to avoid costly duplication of factory auditing and audit fatigue. The CSR committee and FFC organized a range of webinars and presentations for its members to further explain the details of the tools. Lead and Represent the Industry Revised WFSGI Pledge for the FIFA Quality Programme: Through the mechanism of the WFSGI pledge for FIFA companies that market balls under the FIFA license commit to comply fully with the WFSGI Code of Conduct. In 2012, the WFSGI Pledge for the FIFA Quality Programme was amended to ensure a level playing field for all manufacturers who are requested to provide audit reports for each production place proving their compliance with the WFSGI Code of Conduct. The pledge shifts from a single-point focus on anti-child labor to a general focus on internationally recognized labor principles set forth in the WFSGI Code of Conduct (still including anti-child labor). Furthermore FIFA licensee applicants have to submit now a pledge for each individual production place. In addition to the amended pledge form the WFSGI has also created a “WFSGI Pledge for the FIFA Quality Programme Guidance Manual and Agreement” to clearly explain the requirements and procedure. Since those latest changes increase the burden of work for the WFSGI secretariat, it has been agreed that this service is chargeable henceforth for non-WFSGI-members.

WFSGI Committees

Chair

Members

Frank Henke Global Director Social & Environmental Affairs, adidas Group

Brigitte Amherd CSR Manager, Odlo

Helen Ashton Ford CR Director, Pentland Brands

Norman Cook Executive VicePresident, Kamik

Dai Forterre CSR Coordinator, Asics

Reidar Magnus Senior Manager CSR / Supply Chain, Intersport International Corp.

Reiner Hengstmann Global Head Environmental & Social Affairs, Puma

Klaus Hohenegger CSR Manager, Skins

Erik van der Hout R & D Manager, Accell Group N.V.

Michael Levine Senior Director of Corporate Social Responsibility and Senior Counsel, Under Armour

Christine Madigan Vice-President Responsible Leadership, New Balance Athletic Shoe, Inc.

Toshiaki Mizuno Senior Manager, Presidential General Affairs Office, Mizuno

Caitlin Morris Director of Integration and Collaboration CR Compliance, Nike, Inc.

Abel Navarette Director of Corporate Responsibility, Columbia Sportswear

Hans van Vliet Corporate Communications, Shimano, Inc.

Minako Yoshikawa General Manager CSR, Asics

Ex Officio Robbert de Kock, WFSGI Secretary General

Jochen Schaefer, WFSGI Legal Counsel

Marc Magnus, WFSGI Trade and Corporate Responsibility Manager

WFSGI MAGAZINE 2013

WFSGI Committees

Legal (IPR) Committee ACTIVITY REPORT 2012 The activities of the Legal Committee itself in 2012 were limited and primarily visible as part of the World Federation meetings last February in Munich. The meeting – which has been also open for non-committee members – focused on product safety issues including a presentation provided by Mr. Kay Groenhardt, Managing Director of Intertec Consumer Goods GmbH, dealing with safe products and how to protect your brand and manufacturer. He also gave an overview on existing international legislation in this special area and the different methods and standards applied in the course of product testing in various countries such as the U.S., Australia, Canada, Russia, and Japan. Detailed legal advice has been given to the WFSGI in several areas, notably relating to the work and issues handled by the CISO Committee as to legal implications of advertising and marketing rules and restrictions of international sports bodies in the context of global sports events and managing of the FIFA pledge project by the WFSGI at administrative level.

Chair

Members

Dr. Jochen Schaefer WFSGI Legal Counsel

Frank Dassler General Counsel, adidas Group

Mark Granger Head of Legal Task Force, SFIA – Sports & Fitness Industry Association – USA

Ex Officio

Hirotaka Miyaji Director General, JASPO – Association of Japan Sporting Goods Industries

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Gumercindo Moraes Neto Owner, GMN Marketing Consulting

Given the fact that various types of online brand abuses (from the illegal use of domain names of well-known/famous brands to the misdirection and manipulation of consumers up to the sale of counterfeits on rogue websites are spreading like viruses and constitute a very serious and continuously growing problem for the industry a collective approach and project has been proposed to the WFSGI’s leading brands to efficiently combat this plague by using highly sophisticated software technology. The project is pending at the time this activity report has been written.

Robbert de Kock WFSGI Secretary General

Edward J. Haddad Vice-President Intellectual Property and Licensed Products, New Balance Athletic Shoe Inc.

Kingson Lai Legal Counsel, TSMA – Taiwan Sporting Goods Manufacturers Association

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WFSGI MAGAZINE 2013

THE COMPLETE COLLECTION OF COMMUNICATION.

Republica AG

| 360째 communication | www.republica.ch

WFSGI Committees

Manufacturers Committee Activity Report 2012 Objectives In 2013, new WFSGI manufacturers are most welcomed to join in. The first priority is to raise and identify problems and issues related to manufacturing, business development, or social, political issues. History In 2008, Manufacturers Forum was established in Munich upon request of the manufacturers. Continuously, the Forum was held in Taipei (Taiwan) 2009, 2010, 2011 and 2012. Viewing the development of the Manufacturers Forum and to upgrade the function within the WFSGI, the WFSGI Board agreed to change the Manufacturers Forum into Manufacturers Committee in 2011. Whereas the Manufacturers Committee will continue to organize the Forum annually. Role • To have a better mutual understanding between brands and manufacturers of credibility and difficulties. • To clarify issues and problems between manufacturer and brand. • To recognize compliances, norms, regulations. • To care for social and environment issues. • To cooperate with the WFSGI CSR and Trade Committee.

2013 Directions The sustainable development between manufacturer and brand continuously remains the core issue. The mechanism of trust, understanding and cooperation between manufacturer and brand is extremely vital and important. In 2013, the Manufacturers Committee will need more participation of WFSGI members joining and raising voices and concerns. The WFSGI Manufacturers Committee is certainly a bridge between brands and manufacturers. Discussions and actions are necessary for a better understanding and the future development. The annual Manufacturers Forum 2013 will be held in March in Taipei, Taiwan. More details will follow on www.wfsgi.org.

Chair

Vice-Chair

Members

George Wood Chairman, TBS Group & Honorary President TSMA – Taiwan Sporting Goods Manufacturers Association

Hirotaka Miyaji Director General, JASPO – Association of Japan Sporting Goods Industries

Nouman Butt Director Marketing & Development Capital Sports & SCCI The Sialkot Chamber of Commerce & Industry

Advisor

Johannes Rathmer Managing Director, Brands & More

Tom Cove SFIA – Sports and Fitness Industry Association – USA

Ex Officio Robbert de Kock, WFSGI Secretary General

Jochen Schaefer, WFSGI Legal Counsel

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WFSGI Committees

TRADE COMMITTEE ACTIVITY REPORT 2012

In 2012, the Trade Committee held two face-to-face meetings and regular global conference calls to collaborate on trade advocacy. We worked closely with local sporting goods associations to ensure policy alignment and to provide global support. Members representing the Trade Committee also had both formal and informal meetings with officials from governments around the world. Our efforts have been focused on the following issues: • Market Access in Brazil: Brazil will host two of the world’s major sporting events in the next four years: the FIFA World Cup in 2014 and the IOC Summer Olympics in 2016. The success of these games will depend in part on the ability of the sporting goods industry to fully engage by providing superior performance products to the athletes competing in the games and to Brazilian consumers. To meet these needs, our brands strive to leverage the best of Brazilian local manufacturing and our vast global supply chains. However, access to the Brazil market for imported goods presents challenges, for we continue to operate under high tariffs, restrictive antidumping duties for footwear from China, and numerous non-tariff barriers. Through close collaboration with MOVE, we did move closer to an open market in Brazil in 2012. Of greatest significance, in July, the Brazilian Government concluded an investigation in which it

determined that sporting goods brands were not circumventing the Chinese anti-dumping duties through imports of footwear from Vietnam and Indonesia. • Trade Restrictions: The Trade Committee also engaged directly and through local associations on the following issues: – Turkey: Turkey imposed or extended separate safeguards on footwear, apparel, and bags through increased duties on these products. Of significance to our industry, we were able to achieve exclusion for special technology athletic footwear. – Mexico: Mexico continued transitional safeguards by defining minimum import prices for footwear from China. – Argentina: The Trade Committee reviewed compliance with new import licensing requirements. • Trade Liberalization: The sporting goods industry – particularly athletic footwear and apparel – confronts trade protectionism globally through high customs duties, technical barriers to trade, and non-tariff barriers. Collectively, our industry pays over a billion dollars a year in customs duties around the globe. The Trade Committee has discussed important efforts at trade liberalization that may significantly help the sporting goods industry including free trade agreement such as the Trans-Pacific Partnership (Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US) and European Union negotiations with Vietnam, India, and Indonesia. We have also evaluated the challenges of different customs rules and interpretations and how these affect our industry.

Chair

Vice-Chairs

Jeff Whalen Senior Counsel, Customs and International Trade, Legal Department, Nike, Inc.

Peter Bragdon VP & General Counsel, Columbia Sportswear Company

The objectives of the Trade Committee are focused on the promotion of free and fair trade in our industry. Our work is premised on the idea that we serve our consumers best when competition in our industry occurs in the marketplace, not through trade protectionism.

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Karl Sedlmeyer VP Global Government Affairs, adidas Group

WFSGI Committees

Members

Alberto Bichi Secretary General, FESI – Fédération Européenne du Sport et de l’Industrie

Tom Cove President & CEO, SFIA – Sports & Fitness Industry Association – USA

Frank Dassler General Counsel, adidas Group

Wilfried Hauenstein Director Global Logistic Distribution, Puma

Ma Jilong Vice-President, CSGF – China Sporting Goods Federation

Hideaki Kitahara Director Corporate Strategy, Asics

John Larsen President Emeritus, New Balance Athletic Shoe, Inc. & Director New Balance UK & WFSGI Past President

Andy Long COO, Pentland Brands

Hirotaka Miyaji Director General, JASPO – Association of Japan Sporting Goods Industries

Toshiaki Mizuno Senior Manager, Presidential General Affairs Office, Mizuno

Gumercindo Moraes Neto Owner, GMN Marketing Consulting

Jonathan O’Riordan Expert Governmental Affairs, Puma

André Raduan Executive Director, MOVE – Associação Brasileira da Indústria de Artigos Esportivos

Patrisia Reyes de Gottschall Head of Legal and Government Relations, adidas Group

Hamish Stewart SVP International and Apparel, Brooks Sports, Inc.

Leonid Strakhov Vice-President, RASIE – Russian Association of Sports Industry Enterprises

Jeff Tooze Director Global Customs & Trade, Columbia Sportswear Company

George Wood Chairman, TBS Group & Honorary President TSMA, Taiwan Sporting Goods Manufacturers Association

Ex Officio Robbert de Kock, WFSGI Secretary General

Edwin Vermulst, WFSGI Trade Counsel

Marc Magnus, WFSGI Trade and Corporate Responsibility Manager

WFSGI MAGAZINE 2013

WFSGI Members Directory

FULL MEMBERS – INDUSTRY SUPPLIERS 3T Cycling Srl., Via Vittorio Veneto, 25, 24041 Brembate (BG), Italy, www.3tcycling.com, +39 035 494 3451 Accell Bisiklet, See Accell Group Accell Group N.V., P.O. Box 435, 8440 AK, Industrieweg 4, 8444 AR, Heerenveen, The Netherlands, www.accell-group. com, +31 513 638 703 adidas Group, World of Sports, Adi-Dassler-Strasse 1, 91074 Herzogenaurach, Germany, www. adidas-group.com, +49 9132 84 0 Advanced Sports Inc., 10940 Dutton Road, Philadelphia, PA 19154, USA, www.advancedsports.com, +1 215 824 1050 AeroDesign, Via Mattorino 25, 6927 Collina d’Oro, Switzerland, +41 91 994 69 09

Argon 18, 6833 Avenue de l’Épée, Suite 208, Montréal, Québec, Canada, H3N 2C7, www.argon18bike.com, +1 514 271 2992 Ashworth, See adidas Asics Corporation, 1-1, 7-chome, Minatojima-Nakamachi, Chuo-Ku, 650-8555 Kobe Hyogo, Japan, +81 78 303 2231 Batavus, See Accell Group Berghaus, See Pentland Bike parts, See Accell Group Blizzard, See Tecnica BMC Trading AG, Sportstrasse 49, 2540 Grenchen, Switzerland, www.bmc-racing.com, +41 32 654 14 54

Akay International, Post Box 108, 276, Central Town, 144 001 Jalandhar, India, +91 181 45 55 20

Bosco Sport S.r.l., Via Cocchi, 11/a, 42100 Reggio Emilia, Italy, www.boscosport.it, +39 (0522) 230 550

Ali Trading Co. (Pvt) Ltd., Ali Building, PO Box 8, 51310 Sialkot, Pakistan, www.alitrasports.com, +92 52 325 11 10

BPM Sport – Beata Budzova, Mednanskeho 28, 03608 Martin, Slovakia, www.bpmsport.sk, +421 43 43032961

Apache Footwear Ltd., TaiPing Industrial Area, Qingxin County, Qingyuan City, Guangdong Province, China, +86 763 5772688

Brasher, See Pentland

Aravon, See New Balance

Bremshey, See Accell Group

Arena International SpA, Contrada Cisterna 84/85, Tolentino (NC) 62029, Italy, www.arenainternational.com, +39 0733 956200

Brine, See New Balance

WFSGI MAGAZINE 2013

Brasseur, See Accell Group Breezer, See Advanced Sports

Brooks Sports Inc., 19910 North Creek Parkway, Suite 200, Bothell, WA 98011-8223, USA, www.brooksrunning.com, 1-800-2-276 657

Brunotti Europe BV, Spacelab 10, P.O. Box 2677, 3824 Amersfoort MR, Netherlands, www. brunotti.com, +31 334517000

Cicli Esperia S.p.A., Viale Enzo Ferrari 10/12, 30014 Cavarzere (VE), Italy, www.cicliesperia.it, +39 0426 317511

Budget Sport, See Intersport

Cicli Pinarello S.p.A., Viale Della Repubblica 12, 31050 Villorba (TV), Italy, www.pinarello.it, +39 0422 420 877

Cannondale, See Dorel Industries Canyon Bicycles GmbH, KarlTesche-Strasse 12, 56073 Koblenz, Germany, www.canyon. com, +49 261 40 400 27 Capital Sports Corp. Pvt Ltd., Kashmir Road, Sialkot, Pakistan, www.capital-sports.net, +92 52 426 58 31 Cervelo Cycles Inc., 15 Leswyn Drive, Toronto, Ontario, Canada, www.cervelo.com, +1 416 425 9517 Champion Europe S.p.A., Via Dell Agricultura 51, 41012 Capri, Italy, www.champion-eu.com, +39 059 625 91 20 Chang Shin (DS Korea), 558 Shinpyeong-Dong, Saha-Gu, 604-030 Busan, Korea, +82 51 960 8839 Chingluh Shoes Co. Ltd., Fuzhou Lian Jiang Aojiang Investment Zone, Fujian, China, www. chingluh.com, +86-06-7226161 Chung Ah Athletic Wares Factory, G/F Block A, Por Mee Factory Building, 500 Castle Peak Rd Blocks, Cheung Sha Wan Kowloon, Hong Kong, http://chungah.smeitrade.com, +86 852 2741 7494 Chung Jye Shoe Co. Ltd., Taiwan Head Office, No. 88, SEC 4, Chung Ching Rd., Ta Ya Shang, Taichung, Taiwan, R.O.C., +886 42 5661116

Cole Haan, See Nike Colnago Ernesto & C. S.r.l., Viale Brianza, 9, 20040 Cambiago (MI), Italy, www.colnago.com, +39 02 95308082 Columbia Sportswear Company, 14375 NW Science Park Drive, 97229 Portland, USA, www.columbia.com, +1 503 985 4000 Comet Sports Corp. Pvt Ltd., PO Box 366, Plot N° 57-59 SIE, Sialkot, Pakistan, www.cometsports.net, +92 52 325 20 05 Converse, See Nike Corima SA, Sortie Autoroute A7, 26270 Loriol, France, www.corima.com, +33 4 75 63 85 37 Cosco (India) Ltd., 2/8 Roop Nagar, 110007 Dehli, India, http://cosco.in, +91 112 238 43 000 Currie Technologies, See Accell Group Cycles France Loire, See Accell Group Cycling Sports Group, See Dorel Industries Dacor, See Head Dayton Industrial Company Ltd., 2-12 Kwai Fat Road, 11-A, Kwai Chung, NT, Hong-Kong, China, +852 242 24 404

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Shift your expectations

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WFSGI MAGAZINE 2013

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DiWaS

www.taispo.com.tw WFSGI MAGAZINE 2013

www.taipeicycle.com.tw

WFSGI Members Directory

Dean Shoes Company Ltd., N°97, Industrial 20th Road, Taiping City, Taichung Hsieh 41154, Taiwan, +886 422712711 Descente Ltd, 4–8, Mejiro 1-Chome, Toshima-Ku, 171-8550, Japan, www.descente.net, +81 3 5979 6006

Etonic, See Lotto Sport EVA Overseas International Ltd., P.O. BOX 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands, +86 763 6865888

Diamondback, See Accell Group

F.C. Sondhi & Co. (Pvt.) Ltd., 15 Adarsh Nagar, 144008 Jalandhar, India, www.fcssport.com, +91 181 267 0696

Dolomite, See Tecnica

Five Ten Footwear, See adidas

Dorel Industries Inc., 1255 Greene Avenue, Suite 300, Montreal, Quebec, Canada H3Z 2A4, www.dorel.com, +1 514 934 3034

Fortune Sports Co., Ltd., N0. 142–1 Jen-Ai Road Sec.2, Tan-Tzu, 42742 Taichung, Taiwan, +886 4 25361805

DT Swiss AG, Solothurnstrasse 1, 2500 Biel, Switzerland, www. dtswiss.com, +41 32 344 79 30 Dunham, See New Balance Easton-Bell Sports, Inc., 7855 Haskell Avenue, Suite 200, Van Nuys, CA 91406-1902, United States of America, www.eastonbellsports.com, +1 800 632 7866 Ellesse, See Pentland Emirates Sports Stores, PO Box 87, Dubai, UAE, +97 143 435 000 Enkay (India) Rubber Co. (Pvt), Ltd., B-3, SMA Industrial Estate, G.T. Karnal Road, 110033 Dehli, India, www.enkayrubber. com, +91 11 27693333 Enve Composites, 690 W. 1100 S. # 4, Ogden UT 84405, USA, www.enve.com, +1 801 476 3363 Esprime Ltd, Room 509, World Commerce, Centre Harbour City, 11 Canton Road, Kowloon – Hong Kong, China, www.ssife. com, +852 (2736) 803

Forward Sports (Pvt.) Ltd., PO Box 1704, Wazirabad Road, Sialkot, Pakistan, www.forward.pk, +92 52 357 19 00 Freesport Corp., Taipei (Head Office), 3rd Fl-No 475, Sec.2 Tiding Blvd, 114 Taipei, Taiwan, www.freesport.com, +886 2 8797 4788 Freewill Group Pvt. Ltd., S-32, Industrial Area, Jalandhar, Punjab 144008, India, www.freewill.in, +91 181 229 1000 03

Gildan Retail, 1980 Clements Ferry Road, Charleston 29492, United States, www.gildan.com, +1 843 606 3600 GoldToe, See Gildan Retail Gravity, See Full Speed Ahead

InStep, See Dorel Industries International Brand Partners LLC, 222 East Carrillo Street Ste 400, CA 93101 Santa Barbara, United States of America, +1 805 966 66 99

GT Bicycles, See Dorel Industries

Iron Horse Bicycles, See Dorel Industries

Guangzhou Panyu Pegasus

JD Sports, See Pentland

Footwear Comp., Ltd., Room 1517, Tower 3, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong, China, +852 23170167

Jordan, See Nike

Haglöfs, See Asics Hai Bike, See Accell Group Head Sport GmbH, Part of the HTM Group, Wuhrkopfweg 1, 6920 Kennellbach, Austria, www.head.com, +43 5574 60 80 Hercules, See Accell Group Honav, 4/F., i Block, ZhengRen Plaza, No. 9 Chongwenmen Wai Road, ChongWen District, 10006 Beijing, China, www.honav.com/ en, +86 10 67082233-6610

Juncker, See Accell Group Kamik – Genfoot Marketing Europe GmbH, 1940 55th Avenue, H8T 3H3 Lachine, Canada, www.kamik.com, +1 514 341 3950 KangaROOS, See Pentland Kapur (Pvt) Ltd./ 41-A, Industrial Estate, Sialkot, Pakistan, www.kapur.com.pk, +92 (52) 325 22 65 Kestrel, See Advanced Sports Kézmü Non-Profit Kft, Winner Gyareegysege, Hermina Strasse 49, 1146 Budapest, Hungary, www.kezmu.hu, +36 1 47 87 100

Fuji, See Advanced Sports

Hurley International LLC, See Nike

Fulgent Sun International (Holding) Co., Ltd., Shuang Yang Town, Luojiang District, Quanzhou, Fujian, China, www.fulgentsungroup.com, +86 595 22061688

Hwaseung (H.S. Corporation HS Dalian), Chang Chun BD. 1287-21, Yeonje Gu, Yeonsan Dong, Busan 611-839, Korea, www.hwaseunggroup.com, +82 51 850 7000

Full Speed Ahead (FSA), Via Del Lavoro, 56, 20040 Busnago, Milan, Italy, www.fullspeedahead.com, +39 039 688 5265

I & I Srl. (Agla), Via Degli Olmi n.2 – 63075 Acquaviva Picena (AP), Italy, www.agla.it, +39 0735 583752

Laser Sports (Pvt) Ltd./ 10 Km Pasrur Road, Dheer Sandha, Sialkot 51310, Pakistan, www.lasersport.com.pk, +92 (52) 42 95 280

Ghost, See Accell Group

IIC-Intersport International Corp., Wölfli-Strasse 2, 3006 Bern, Switzerland, www.intersport.com, +41 31 930 78 00

Leatherware Pvt. Ltd., 19KM Daska Road, Sialkot, Pakistan, www.leatherware.com.pk, +92 (52) 622 8310

Giant Manufacturing Co. Ltd., 19 Shun Farn Road, Taichia, Taichung County 437, Taiwan, ROC, www.giant-bicycles.com, +886 4 2681 4771

Koga, See Accell Group Lacoste Chaussures, See Pentland Lapierre, See Accell Group

WFSGI MAGAZINE 2013

WFSGI Members Directory

Likai Shoes Manufacturing Co. Ltd., No.1 ChiLing Management Zone, HouJie Town, DongGuan City, Canton 523940, China, +86 76985583101 Li-Ning Sporting Goods Co. Ltd., No.8, 5th XingGuang Street, Guangjidian Yitihua Jidi, Tongzhou District, 101111 Beijing, China, www.lining.com, +86 10 8080 07 98 LK International AG Kjus, Atrium Gewerbestr. 11, 6330 Cham, Switzerland, www.kjus.com, +41 41 748 08 08 Loekie, See Accell Group Lotto Sport Italia S.p.A., 5/7 Via Montebelluna, 31040 Trevignano, Italy, www.lottosport.com, +39 0423 6181 Lowa, See Tecnica Madrigal Sport Pvt. Ltd., PO Box 1030, Ghuinki, Daska Road, 51040 Sialkot, Pakistan, www.madrigalsports.com, +92 52 652 7156 Mares, See Head Marker Völkl International GmbH, Ruessenstrasse 6, 6341 Baar, Switzerland, www.voelkl.ch, +41 41 769 73 00 Mavic SAS, Metz Tessy, 74996 Annecy Cedex 9, France, www.mavic.com, +33 4 50 65 4141 Mayor International Ltd., 366 Mansarover Building, 3rd Floor, MG Road, Sultanpur, 110030 New Delhi, India, www.mayorworld.com, +91 11 30674300 Mayor & Co., G.T. Road, Suranussi, Jalandhar 144 027, India, www.mayorworld.com, +91 124 4030304

WFSGI MAGAZINE 2013

Metropolis, See Full Speed Ahead Mitre, See Pentland

Orbea S. Coop, Polígono l. Goitondo, 48269 Mallabia, Spain, www.orbea.com, +34 943 171 950

Mizuno Corporation, 1-12-35, Nanko-Kita, Suminoe-ku, 5598510 Osaka, Japan, www.mizuno.com, +81 6 6614 8135

Oval Concepts, See Advanced Sports

Molten Corporation, Yokogawa Shin-machi 1-8 733-0013 Nishi-ku Hiroshima Japan, www. mol-ten.co.jp, +81 82 292 1246

Penn, See Head

Mongoose, See Dorel Industries Montrail, See Columbia Mountain Hardwear, See Columbia New Balance Athletic Shoe Inc., Brighton Landing, 20 Guest Street, 8th Floor, 02135-2088 Boston, USA, www.newbalance.com, +1 617 783 4000 Nike, Inc., One Bowerman Drive, 97005 Beaverton, USA, www.nike.com, +1 503 671 6453 Nike Golf, See Nike

Pacific Trail, See Columbia

Pentland Brands plc, The Pentland Center, Squires Lane N3 2QL, London, United Kingdom, www.pentland.com, +44 20 8346 2600 PF Flyers, See New Balance Phenix Co. Ltd., Forecast Shinjuku Avenue 7F, 2-5-12, Shinjuku, Shinjuku-ku, 160-0022 Tokyo Japan, www.phenix.co.jp, +81 3 6833 3410 Powersox, See Gildan Retail Poyang International Co. Ltd., 8F-2, 128 Chung-Te Road, Sec. 2, Taichung City, Taiwan, www.poyang-intl.com.tw, +886 4 2230 4321

Reema Group, Zafarwal Road, Neka Pura, Sialkot-51310, Pakistan, +92 (52) 3541247 Reynolds Cycling LLC, 3392 W. 8600 South, 84088 West Jordan, USA, www.reynoldscycling.com, +1 801 5658003 Ritchey Design, Inc., 620 Spice Island Dr., Sparks, NV. 89341, USA, www.ritcheylogic.com, +1 650 517 1850 Roadmaster, See Dorel Industries Rockport, See adidas Rollerblade, See Tecnica Rotor Bike Components, C/Mino 16-18, Poligono Industrial Conmar, 28864 Ajalvir – Madrid, Spain, www.rotorbike.com, +34 91 8843846 ProStar, See Pentland Sakay Traders, Village Valiana, Kapurthala Road, 144002 Jalandhar, India, +91 1812650281

Puma SE, Puma-Way 1, 91074 Herzogenaurach, Germany, www.puma.com, +49 9132 81 0

San-Ei Corporation, 108-1 Judayu Nagareyama, Chiba 2700133, Japan, www.sanei-net. co.jp, +81 47 153 15 11

Nitro, See Tecnica

Race Productions N.V. (Ridley bikes), Beverlosesteenweg 85, 3583 Paal-Beringen, Belgium, www.ridley-bikes.com, +32 13 67 36 00

Sanspareils Greenlands Pvt. Ltd., A-1 Sport Complex, Dehli Road, 250001 Meerut, India, www.sgcricket.com, +91 121 2513749

Nordica, See Tecnica

Raleigh Cycle, See Accell Group

Oakley Inc., One Icon CA 92610 Foothill Ranch, USA, www.oakley.com, +1 949 829 6154

Ranson Sports Industry, 378-379 Leather Complex, Karpurthala Road, Jalandhar 144021, India, www.ransongroup.com, +91 181 265 03 79

Saucony Inc., 191 Spring Street, Lexington MA 02421, United States of America, www.saucony.com, +1 617 824 6000

Nippon Takkyu Co., Ltd., 1-2-8 Chiyoda-Ku Kanda-Izunisho 1010024, Japan, www.nittaku.com, +81 338620911 Nishi Athletic Goods Co., Ltd., See Asics

Odlo International AG, Im Bösch 47, 6331 Hunenberg, Switzerland, www.odlo.com, +41 41 785 70 70

Redline, See Accell Group Reebok, See adidas

Schwinn, See Dorel Industries Scott Sports SA, Route du Crochet 17, 1762 Givisiez, Switzerland, www.scott-sports.com, +41 26 460 16 16

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com WFSGI MAGAZINE 2013

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taylormadegolf.com

WFSGI MAGAZINE 2013

@taylormadegolf

/taylormadegolf

WFSGI Members Directory

SE, See Advanced Sports Seattle Bike Supply, See Accell Group Sharma Export, B-16, Sports & Surgical Goods Complex, Kapurthala Road, Jalandhar 144021, India, www.sharmaexportindia.com, +91 181 265 00 10 Shimano Inc., 3-77 Oimatsu-cho, Sakai-ku, Sakaicity, Osaka 5908577, Japan, www.shimano.com, +81 72 223 3210 Silver Star Enterprises Pvt Ltd., Silver Star Road Rajoke, Daska Pak 51310, Pakistan, www.s-stargroup.com, +92 52111123774 Skins International Trading AG, Sennweidstrasse 43, 6312 Steinhausen, Switzerland, www.skins.net, +41 41 500 55 00 Soccer International Ltd., Basti Sheikh Road, 144 002 Jalandhar, India, www.soccerindia.com, +91 181 225 04 16 Sparta, See Accell Group Speedo, See Pentland Specialized, 15130 Concord Circle, Morgan Hill, CA 95037, USA, www.specialized.com, +1 877 808 8154 Sport 2000 International GmbH, Nord-West-Ring-Strasse 11, 63533 Mainhausen, Germany, www.sport2000international. com, +49 6182 928-5399 Sports View, Islamia Park, Sports View Road, 51310 Sialkot, Pakistan, www.sports-view.com, +92 52 46 03 337-38

SportVenture, Larsensvej 12, Vedbaek 2950, Denmark, www. sportventure.eu, +45 40151062 Sram, 1333 N. Kingsbury, 4th Floor, Chicago, Illinois 60622, USA, www.sram.com, +1 312 664 8800 Staiger, See Accell Group Starpak Martial Arts (Pvt) Limited., PO Box 1123, Wazirabad Road, 51310 Sialkot, Pakistan, www.starpak.com.pk, +92 432 55 66 11 Sugoi, See Dorel Industries Tae Kwang Industrial Co. Ltd., #258-9, An-Dong, Kim Hae City 621-200, Korea, www.tkgroup. co.kr, +82 55 330 1741 Taiwan Butyl Co., Ltd., 5F-3, No. 195, Section 2, Chunjing Road, Luodong, Yilan County 26549, Taiwan, +886 3 9615592 or 9615593 Tajmahal Sports, PO Box 26, Daska Road, 51310 Sialkot, Pakistan, www.tajmahalpk.com, +92 52 325 0401-0502 Talon Sports (Pvt), Ltd., Daska Road Addah, Po Box 2664, Sialkot, Pakistan, www.talonsports.com, +92 52 652 66 33 Tampa Bay Recreation LLC, ISM Saddles, 1909 Foggy Ridge Parkway, Lutz, FL 33558, USA, ismseat.com, +1 813 909 1441 TaylorMade adidas Golf, See adidas TBS Group Corporation, 7F-3., No. 79, Sec. 1, Xintai-Wu Rd., Xizhi Dist., New Taipei City, Taiwan, www.tbsgroup.com.tw, +88 6 2 2698 1000

Tecnica SpA, Via Fante d’Italia, 56, Giavera del Montello, 31040 TV, Italy, www.tecnica.it, +39 0422 8841 Terry, See Advanced Sports

Vision, See Full Speed Ahead Vivasports Co., Ltd., 722-9. Mok-Dong, Yangchen-Gu, Seoul, Korea, www.vivasports.co.kr, +82 2 2644 2387

Toa-Strings Co, Ltd., 1-24 Yagumodori, 3-Chome, Chuo-ku, 651-0078 Kobe, Japan, www. toalson.co.jp, +81 78 232 1995

Warrior Sports, See New Balance

Topper, Av. Doutor Cardoso de Melo, 1336 - 10º andar, Vila Olímpia São Paulo, Brasil Cep 04548.004, www.alpargatas. com.br, +55 11 38 47 73 22

Wintex Exports, GT Road, Suranussi, 144027 Jalandhar, India, www.wintexexports.com, +91 181 20 66 11

Tramondi Sport AG, Industriestrasse West 10, Postfach 548, 4614 Hägendorf, Switzerland, www.tramondi.com, +41 62 205 15 25

Winora, See Accell Group

XLC, See Accell Group Yamamoto Kogaku Co. Ltd., 25-8 Chodo 3, 577 Higashiosaka City, Japan, www.yamamotokogaku.co.jp, +81 667 83 11 04

Trek, 801 W. Madison, Waterloo, Wisconsin 53594, USA, www.trekbikes.com, +1 920 478 2191

Yonex Co. Ltd., 3-23-13 Yushima, 3-Chome, Bunkyo-Ku, Tokyo, Japan, www.yonex.com, +81 3 38 36 12 01

Tunturi, See Accell Group

Yuan Chi Overseas Ltd., 7F-1, N° 857, Ching-Kuo Road, 330 Taoyuan City, Taiwan, www.sports-vega.com, +886 3 356 01 56

Tyr Sport, Inc., 15391 Springdale Street, Huntington Beach, 92649 California, USA, www.tyr.com, +1 714 897 0799 Tyrolia, See Head Umbro International Ltd., See Nike Under Armour, Inc, 1020 Hull Street, MD 21230 Baltimore, USA, www.underarmour.com

Yue Yuen Industrial (Holdings) Ltd., Suites 3307-09, Tower 6, The Gateway, 9 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong, www.yueyuen.com, +852 3183 0888

Velocite Tech Co. LTD, No. 20 De Min Rd, Nanzi District, Kaohsiung City 811, Taiwan, www.velocite-bikes.com, +886 7 3010277

WFSGI MAGAZINE 2013

WFSGI Members Directory

FULL MEMBERS – INDUSTRY SUPPORTERS Anwaltskanzlei Dassler, Cadolzburgerstr. 6, 91072 Herzogenaurach, Germany, www.dassler.info, +49 9132 84 23 01 Brands & more GmbH, Am Wiedemann 12, 87761 Lauben, Germany, www.brandsandmore. com, +49 8336 81 38 78 GMN Marketing Consulting, Rua Pocone 64, CEP 01254-040 Sumare, Sao Paulo, Brazil, +55 11996194515

Law Office Dr. Jochen M. Schaefer, Lachnerstraße 32, 80639 Munich, Germany, +49 (89) 21 26 94 - 10 MMG – Messe München GmbH, Messegelände, 81823 Munich, Germany, www.messemuenchen.de, +49 89 9 49 2 01 00

Granger Legal Consulting, PO BOX 487, 1134 US RT 9, Suite 4, Schroon Lake, NY 12870, USA, www.mgrangerlaw.com, +1 518-532-7459 MP Consult, Eichendorffstraße 27 b, 90491 Nurnberg, Germany, +49 911 597 52 62

SportVenture, Larsensvej 12, Vedbaek 2950, Denmark, www.sportventure.net, +45 40151062 Thürl PR, Schindholzweg 5, 96194 Walsdorf-Erlau, Germany, www.sportpress.de, +49 (95) 49 82 22

Navispace, Madeleine-Ruoff-Str. 26, 82211 Herrsching, Germany, www.navispace.de, +49 81 52 909 90 47

FULL MEMBERS – NATIONAL OR REGIONAL ORGANIZATIONS

ASSOCIATE MEMBERS

ASGA – Australian Sporting Goods Association Inc., Suite 1.03, Level 1, 492 St Kilda Road, Melbourne, VIC 3004, Australia, www.asga.com.au, +61 3 9263 5394

FIFA – Federation Internationale de Football Association, FIFA-Strasse 20 P.O. Box, 8044 Zurich, Switzerland, www.fifa.org, +41 43 222 7777

CSGF – China Sporting Goods Federation, No.3, Tiyuguan Road, 100763 Beijing, China, www.csgf.org.cn, +86 10 87183963 FESI – European Sporting Goods Federation, Rue Belliard 20, 1040 Brussels, Belgium, www.fesi-sport.org, +32 2 762 86 48 JASPO – Association of Japan Sporting Goods Industries, 9th FL, Misaki Bldg., 28-9, 3-Chome Kanda-Ogawamach I, Chiyoda-KU, 101-0052 Tokyo, Japan, www.jaspo.org, +81 3 3219 2041

Klaus Uhl, Grünewaldstrasse 154, 72336 Balingen, Germany, +49 7433 38 52 89

WFSGI MAGAZINE 2013

MOVE – Associação Brasileira de Artigos Esportivos, Rua Cubatão, 320 - 11 andar, São Paulo – SP, Brasil, CEP 04013-001, +55 11 2659-8254 Multisport Industria Comercio Representcao Ltda, Av. Rebouças, 3007, Jardim America, 05401-912 Sao Paulo – SP, Brazil, +55 11 30 65 65 65 RAPSI – Russian Association of Sports Industry Enterprises, Ivanovskaya Street, 23, 127434, Moscow, Russia, http://rapsi.ru/ start, +7 495 681 58 29 SGEPC – The Sports Goods Export Promotion Council, 1-E/6, Swami Ram Tirth Nagar, 110055 New Dehli, India, www.sportsgoodsindia.org, +91 11 230 61 818 SFIA – Sports & Fitness Industry Association, 8505 Fenton Street, suite 211, Silver Spring MD 20910, USA, www.sfia.org, +1 301 495 6321

SRS – Ski Racing Suppliers Association, c/o Jean-Pierre Morand, Carrard & Associés, 1, place Saint-François, PO Box 7191, 1002 Lausanne, Switzerland, +41 79 417 61 18 Taiwan Textile Federation, 5th Floor, No. 22, AiGuo East Road, Taipei 10092, Taiwan, +886 2 23417251 The Sialkot Chamber of Commerce & Industry (Pakistan) (SCCI), Shahra-e-Aiwan-e-Sanato-Tijarat, Kashmir Road, P.O. Box 1870, Sialkot-51310, Pakistan, http://home.scci.com.pk, +92 52 426 5831 TSMA – Taiwan Sporting Goods Manufacturers Assoc., Floor 8, N°22, Teh-Hwei Street, 10461 Taipei, Taiwan, www. tsma.org.tw, +88 6 2 2594 1810

KSPO – Korea Sports Promotion Foundation, 424 OlympicRo, Bangi-dong, Songpa-Gu, Seoul, South Korea, www.kspo. or.kr, +82 2 410 1114

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