Sialkot city in Pakistan has been the centre of excellence and hub of sport goods production in Pakistan for more than a century. Pakistan sports manufacturers sell directly and indirectly their production throughout the world. Local raw material, design, manufacturing, marketing and delivery are the prides of Pakistan. This potential industry was ignored for two decades. Rise of entrepreneurial ecosystem in Sialkot is the best opportunity for investors and Government. Government support and Law enforcement is required for the timely availability of raw material, labor availability, productuction, packing and delivery.
This study includes following points
- Production Overview
- Price Comparison
- Rising Sun of Entrepreneurial Ecosystem
- Gap Analysis of Sports Products Industry
Production Overview:
Sialkot industry has been manufacturing best quality sports products at very cheaper rates. Sialkot sports industry is outsourced by the industrial giants like Adidas, Nike, Puma, Umbro, Mitre, Micassa, Select, Lotto, Diadora, Wilsons, Decathlon etc. This outsourcing contract is proof of quality production. Most companies have ISO 9000 and 9001 quality certification. More than 70% of the world’s sports needs are fulfilled by the Sialkot sports industry. There is Rise in football needs during the FIFA world cup up to 60million footballs per annum. Sialkot also produces Sportswear like Track suits, Football, Boxing, Cycling, Casual Wear, Stockings, T-shirts, Windbreakers, Judo-Karate Kits, Shorts etc.
Leather garments, surgical instruments, dental instruments, cutlery and scissors, musical instruments
Price of Pakistani Sports Products as Compared to World:
In sialkot domestic wholesale market and in Lahore ShahAlam wholesale market best quality sport products are available at cheapest prices
- Bat starting from 9$ to 450$ per bat in wholesale market
- Badminton racket starting from only 2.25$
- One dozen badminton shuttle 3.5$ 10$
- Best quality Lantance racket (Tennis racket) starting price 10$ to 25$
- One dozen tennis balls 7$ to 11$
- Foot ball 2$ to 5$
- Skipping rope 0.6$ to 3.5$
- Cricket and baseball Gloves 3.5$ to 30$
- Protective gear (Knee Pads, helmets,guards) 8$ to 25$
- Tennis Pastel ball (table tennis ball) 0.5$
- Hard ball for cricket .9$ to 3$
Wooden and Composite based hockey sticks, bats, baseball bats and polo sticks are the competitive products all over the world. Exercise, Gymnastic, Body Shaping Equipment are highly demanded products. Prices are very low as compared to any other online showcases of the world. Moreover, these prices can be bargained for bulk purchase. For direct purchase, hundreds of Apps are available from the Sialkot production companies.
Rugby-ball, Basket-ball, Volley-ball, Base Ball, Ice & Roller Hockey Sticks, Polo Sticks, Squash Rackets, Exercise Balls, Cricket accessories, Tennis Rackets, Cycling and biking equipment, Protective Jackets are highly demanded products due to best quality and cheaper price.
Rising Sun of Entrepreneurial Ecosystem:
Entrepreneurial ecosystem was introduced a decade ago to cope up with the challenges of technology up comings, quality standards and rising demands. This ecosystem became so successful that it got public private support to raise the businesses and to boost the economy. Public Private Cooperative Sialkot International Airport is the best and successful example of this innovative and well established entrepreneurial ecosystem.
This relations & cooperation and collective actions enforces the alignment of SMEs, AI utilization, raw material supplies, product testing and durability, R&D, HRM support, finances, digital marketing, timely delivery system and end user feedback to improve more. Apps, social media platforms and experimental nanotechnology through AI are being used in production to meet international standards. According to statistics of fiscal year 2021-22 and 2022-23, 31.18% and 71.66% respectively rise in growth is recorded through improving export strategies. Moreover, Pakistan Sports Goods Manufacturers & Exporters Association (PSGMEA) is operating to adopt new strategies to improve export of sports products through digital marketing and app integration.
| Table 1.1 Pakistan Sports Exports Growth by Year | ||
|---|---|---|
| Fiscal years | Exported value in thousands US $ | Growth rate |
| 2016-17 | 220,034 | -5% |
| 2017-18 | 204,713 | -7% |
| 2018-19 | 217,801 | 6% |
| 2019-20 | 224,311 | 3% |
| 2020-21 | 177,661 (SMEDA, 2021) | -21% |
| 2021-22 | 233,056 | 31.18% |
| 2022-23 | 400,064 | 71.66% (Daily Times, 2022) |
Pakistan sports export growth by years is shown in table 1.1 and in Graph figure 1.2. This 71.66% growth rate in 2022 may be due to the FIFA world cup 2022. But the Pakistani sports exporter has captured potential market opportunity and is hoping to maintain a calculated growth rate in future.
Gap Analysis of Sports Products:
Limitations are the part of business in every economy. Energy crisis, lack of technology adoption, HRM issues, slow research and development, lack of accountability were major problems for Pakistan sports industry. The Entrepreneurial Ecosystem (EE) has resolved many managerial problems. Finding new ways to resolve the energy crisis is the only solution, as Pakistan is rich in natural resources. EE is installing hybrid solar panels to resolve the energy crisis problem. Lack of competitive product was the problem due to low technology adoption. Females of SMEs were not ready for high technology adoption but EE has resolved many high-tech and product testing related problems to make uniform products.
In 2007, Nike and Saga signed an agreement to deal only in industrial manufactured products rather than home based stitched products. Lack of technology was the cause of cancellation of the agreement. Continuous cancellation history taught the Sialkot industry to do SWOT analysis again and develop this Entrepreneurial Ecosystem.
Improved business planning, strategies, contracts and legal issues cannot be ignored to stay in competition. Product-design is mostly provided by contractors. By improving R&D, the design options or customized designs can be provided to customers. This innovation will help businesses to attain more potential customers.
Complaints about child labor, law enforcement without regional discrimination, low level accountability and seasonal business is due to political instability. Education, technology usage and allied industry(alignment of all departments of production) can solve these problems. Lack of allied industries such as relocation and moving heavy machinery is a problem (PIDE, 2021). It will take 2 to 3 years to relocate heavy production machinery and align all departments in an industrial zone.
Conclusion
Pakistan Sports Industry Sialkot is the potential of Pakistan. This industry was suffering losses for two decades. The rise in growth is due to the introduction of the Entrepreneurial Ecosystem by the entrepreneurs of Sialkot. This ecosystem has improved education among employees, human resources management issues, research and development, business and finance issues, timely raw material supply, digital marketing, delivery and feedback. 2 to 3 years are needed to implement plans and strategies for allied industry. This Entrepreneurial Ecosystem is rising of a new business model. .
References
Daily Times. (2022, Oct 11). Export of sports goods surges by 71% to Rs14bn. In BUSINESS. Retrieved Nov, 2022, from https://dailytimes.com.pk/1010272/export-of-sports-goods-surges-by-71-to-rs14bn/
PIDE. (2021). Sialkot’s Sports and Allied Industry: Issues and Prospects for Growth. Pakistan Institute of Development Economics. Retrieved Nov, 2022, from https://pide.org.pk/wp-content/uploads/wb-082-sialkots-sports-and-allied-industry-issues-and-prospects-for-growth.pdf
SMEDA. (2018). Cluster Profile Sports Goods, Sialkot [Small and Medium Enterprises Development Authority]. Retrieved Nov, 2022, from https://smeda.org/phocadownload/Punjab/cluster_profiles/Sports%20Goods%20-%20Sialkot.pdf
SMEDA. (2021). Sports Goods Sector Brief [Business & Sector Development Services]. Retrieved Nov, 2022, from https://smeda.org/phocadownload/Sectoral_Information/Sports%20Goods%202021.pdf