The Federation of the European Sporting Goods Industry (FESI) has published the results of its industry survey on the effects of the corona crisis. According to the survey, the entire sporting goods industry at all levels of the supply chain is severely affected by the effects of the corona pandemic. The retail trade is the most directly and severely affected by the crisis.
45 percent of the companies that took part in the survey have suffered revenue losses of between 50 and 90 percent since the beginning of the crisis.
Above all, liquidity gaps are the greatest challenge in the short term. “The closure of brick and mortar stores all over Europe and internationally, as well as changes of consumers' behaviour lead to serious drop of sales. Most of our companies are currently struggling to cope with fixed costs (rent, employment costs…), which create significant liquidity shortages”, declared Neil Narriman, FESI President.
E-commerce and digitalization can provide relief, but are not a panacea in the crisis. For 85 percent of those surveyed, an own e-commerce website could only compensate for between 0 and 20 percent of the loss of income.
Around 35 per cent of survey respondents said they are reorganising their supply chains to help produce medical respirators and other medical equipment.
25 percent of the participants have also launched campaigns to keep EU citizens physically active - for example through free fitness apps or training programmes.
In view of the survey results, FESI is urging Europe's national governments to support the industry. “In the short term, the sporting goodsindustry needs strong measures from national governments to address the current liquidity gaps and strengthen their cash flows," commented Jérôme Pero, Secretary General of FESI. "But it is crucial to also start preparing gradual longer-term strategies now, in order to re-launch the economy sustainably in a safe and coordinated manner once the crisis is over."