Nike, Adidas and Puma put historic differences aside to target tariffs and inactivity crisis
The sporting goods industry is no stranger to bitter rivalries, from the family split that spawned Adidas and Puma to the former’s decades-long battle for supremacy with Nike. Now, however, those brands and others have united to lobby policymakers worldwide for lower tariffs as part of a joined-up approach which they say will tackle rising [...]
The sporting goods industry, which includes well-known brands like Nike, Adidas, and Puma, is uniting to lobby policymakers worldwide to reduce tariffs and tackle rising inactivity. This collaboration is part of a report by the World Federation of the Sporting Goods Industry (WFSGI), which has quantified the industry's significant economic contribution.
The report, produced by consultants Oliver Wyman, reveals that the industry generates a global GDP of $675bn, equivalent to the GDP of Sweden, and supports 28 million jobs around the world. The industry also generates $120bn in direct tax revenues, with this figure nearly doubling when considering taxes across the supply chain and workforce spending.
The report emphasizes that the sporting goods industry generates a public health dividend, as its products are essential for physical activity. Unlike many consumer industries, sporting goods enable participation in sports and physical activity, and their commercial success is closely linked to overall societal health. The industry faces an average applied tariff of 14%, almost three times higher than the average tariff of 5% for all traded goods.
Moreover, an inactivity epidemic is estimated to cost the global economy $30bn annually in healthcare expenses and threatens to reduce sporting goods revenue by $133bn in the next four years.
The WFSGI hopes that this united lobbying effort will open dialogue between the industry and policymakers on a global scale. Tony Simpson, global sports industry lead at Oliver Wyman, explains that policymakers across different countries have varying approaches to promoting active populations. Some policymakers are part of government structures, while others work through coalitions.
However, affordability is a key driver in all cases, as it is directly linked to better health outcomes and increased participation in sports and physical activity. Simpson stresses that the goal is not merely to make products cheaper for the sake of affordability but to increase overall wellbeing and produce better societal outcomes, which can be achieved through effective policy interventions.
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