Volume 8 Issue 2
Macro Trends
Participation Trends
Wholesale Market
Retail Market
Consumer Trends
Facility Trends
TENNIS HEALTH INDEX +10.8% INCREASE (2003-2007)
(SEE CENTER INSERT)
www.Tennislndustry.org
Dave Haggerty, President
Jolyn de Boer, Executive Director
P.O. Box 7845, 117 Executive Center
Hilton Head Is., SC 29928
Tel: 843-686-3036 Fax: 843-686-3078
BOARD OF DIRECTORS
Jean Louis Boyre, Babolat
Dave Bone, USRSA
Kevin Callanan, IMG
Linda Clark, ATP
Tom Cove, SGMA
Rick Devereux, IHRSA
Steve Dunlap, The Sports Authority
David Egdes, Tennis Channel
John Embree, Prince Sports Group
Don Galliers, SportMaster Industries
Chris Gaudreau, Racquet Koop
John Graham, DecoTurf
Dave Haggerty, HEAD/Penn Racquet Sports
Ray Harrington, Gamma Sports
Tim Heckler, USPTA
Kurt Kamperman, USTA
Ilana Kloss, World TeamTennis
Jon Muir, Wilson Sporting Goods
Kai Nitsche, Dunlop Sports Group
Dale Queen, Your Serve Tennis
Dan Santorum, PTR
John Welborn, Lee Tennis Products
Jeff Williams, Tennis Magazine
PAGE
TWO
Jolyn de Boer,
Executive Director
The Tennis Marketplace posted healthy year-end figures on all fronts with participation
levels the highest since 1999 at 25.1 million players, plus positive industry shipments
including an impressive 80% increase in youth racquet shipments since 2003. Making
its debut (see insert), the new Tennis Health Index will annually combine six different
elements to collectively provide an accurate measure of the state of U.S. tennis
participation.
However, as overall economic indicators show declines, it’s important to keep a steady
pulse on our industry. On page 4, we’ve analyzed these measures against tennis data …the good news
is tennis players do not stop playing in a bad economy, although there are other factors to consider
regarding sales. Tennis products cost more to manufacture, higher fuel prices affect distribution and
there are growing shortages and competition for materials. And while the consumer may eventually
have to bear the brunt of these realities, tennis as an industry is somewhat cushioned with relatively
easy access and low-cost to play plus an overall demographic that may be less affected by economic
fluctuations.
Another focus of the tennis marketplace is consumers’ ever increasing appetite and growing demand to
access online information, services and products. The Tennis Consumer Study (page 8) shows 24% of
racquet purchases were made online (up from 6% since 2002) while the relative share of purchases at
pro/specialty has declined in all categories. However, due to the overall increase in the size of the
market and a small decline in the retailer base, individual pro/specialty stores are typically reporting
increased racquet sales and also forecasting positive future sales. (page 6-7)
On page 9, we’ve analyzed facility and consumer trends using the Growing Tennis System - the national
database provides online information about places to play, instructional programs and leagues, and
player matching. We’ve seen a 1000% increase in facilities using this technology, with an equally
impressive reaction from consumers searching online—1 million queries per month.
There are many new tools, services and online products that can benefit our industry and tennis
consumers, and we must carefully examine the impact they may have as we go from adapters to
adopters of this technology. As always, we need to work together to make sure the outcome will be
positive for tennis, its players and our businesses.
CONSUMER CONFIDENCE CONTINUES TO FALL
Says Lynn Franco, Director of The Conference Board Consumer Research Center:
“Consumers’ confidence in the state of the economy continues to fade and the Index
remains at a five-year low (March 2003, 61.4). The decline in the Present Situation
Index implies that the pace of growth in recent months has weakened even further.
Looking ahead, consumers' outlook for business conditions, the job market and their
income prospects is quite pessimistic and suggests further weakening may be on the
horizon. The Expectations Index, in fact, is now at a 35-year low (Dec. 1973, 45.2),
levels not seen since the Oil Embargo and Watergate.”
Consumer Confidence Index
Index 1985=100
The Consumer Confidence Survey is based on a
representative sample of 5,000 U.S. households.
The monthly survey is conducted for The Conference
Board by NFO WorldGroup.
Source: Conference Board
Consumers’
assessment of
present-day
conditions weakened
further in March.
Those claiming
business conditions
are "bad" increased
to 25.4 percent from
21.3 percent, while
those claiming
business conditions
are "good" declined
to 15.4 percent from
19.1 percent.
Consumers’ appraisal
of the job market
was also more
pessimistic than last
month. Those saying
jobs are "hard to
get" rose to 25.1
percent from 23.4
percent, while those
claiming jobs are
"plentiful" decreased
to 18.8 percent from
21.5 percent.
PAGE
THREE
TENNIS PARTICIPATION – GOOD NEWS FOR TENNIS INDUSTRY
We’ve analyzed 2
leading economic
measures against
player numbers and
equipment shipments.
The results of the
regression analysis
were very interesting.
• Player totals tend to
be independent of
economic consumer
confidence
• The number of
frequent players
tend to increase
during times of
increased consumer
confidence
• Racquet and ball
shipments tend to
increase in line with
industrial trends
PAGE
FOUR
Balls, Racquets, Players types vs.
Dow Industrial & Consumer Confidence
(Indexed to 2002)
WHOLESALE MARKET
Aim: To define the total size of the U.S. market for tennis racquets, balls strings, and
accessories. This report enables participating companies to track market changes and
determine their own market share.
Method: Confidential quarterly reports provided by all manufacturers in that category on
wholesale shipments (units and dollars)
TENNIS INDUSTRY SHIPMENTS 2007
Racquets Shipments
Ball Shipments
Wholesale Dollars (In millions)
Units (In millions)
Racquet shipments
(Wholesale dollars)
have increased for
the last 5 years
Racquets +42.1% (in
dollars) from 2003
Balls +15% (in units)
from 2003
Strings +6%
(in units) from 2003
Tennis Racquet Shipments Exceptional Growth in the Youth Market
By Type
2003 Units
2004 Units
Adult
2,395,924
2,688,239
Youth
745,911
3,140,935
Total
2005 Units
2006 Units
2007 Units
4 Yr. % Change
2,941,843
2,962,553
3,120,679
30.2%
949,502
1,080,921
1,110,883
1,341,106
80.0%
3,637,741
4,022,764
4,073,436
294,461,785
42.1%
Source: TIA Census Reports
PAGE
FIVE
RETAIL MARKET
The Retail Audit measures actual sales at the model level using a panel of representative retailers across the
USA. Sports Marketing Surveys has been tracking tennis racquets in this channel for 18 years.
Top Selling Tennis Racquets (not combined)
Top Selling Tennis Racquets (combined)
Year-End 2007
Year-End 2007
Avg. Price
1
2
3
4
5
6
7
8
9
10
BABOLAT PURE DRIVE CORTEX
PRINCE O3 WHITE
WILSON K SIXONE 95 (16X18)
WILSON K SIXONE TOUR 90
WILSON K SIXONE TEAM 95
PRINCE O3 SPEEDPORT RED
BABOLAT AEROPRO DRIVE CORTEX
PRINCE O3 SPEEDPORT BLUE
PRINCE O3 SPEEDPORT SILVER
WILSON K SURGE
MP
MP
MS
MS
MS
OS
MP
OS
OS
MP
$171.69
$185.37
$174.21
$183.77
$176.00
$223.42
$174.82
$240.61
$263.30
$165.65
Avg. Price
1
2
3
4
5
6
7
8
9
10
BABOLAT PURE DRIVE CORTEX
WILSON K SIXONE 95
BABOLAT AEROPRO DRIVE CORTEX
PRINCE O3 WHITE
WILSON K SIXONE TOUR 90
HEAD MICROGEL EXTREME
WILSON K SIXONE TEAM 95
PRINCE O3 SPEEDPORT RED
HEAD MICROGEL RADICAL
PRINCE O3 HYBRID HORNET
$171.62
$174.76
$174.14
$185.37
$183.77
$151.88
$176.00
$223.42
$163.57
$147.64
• ‘Combined’ includes racquet head sizes (mid, mid-plus, oversize) of one model are combined for the analysis and correspondingly a
‘Not combined’ analysis recognizes different head sizes of the same racquet model as different units.
Specialty Store Racquets Sales:
Specialty sales continue to increase (+30% 2007 vs. 2003) (In millions dollars)
PAGE
SIX
DEALER SURVEY
The results are based on 100 in-depth interviews with pro/specialty tennis
retailers across the US. The panel is representative of dealers in terms of store
size and region. Research was carried out by Sports Marketing Surveys.
Considering the positive trend in unit shipments (2006 to 2007 Racquets
+10%, balls +3.2% & Strings +15%) inventory levels look good,
especially when compared to 2004 levels.
Pro/Specialty Dealer Forecast Increase in Racquet Market
Future Racquet Sales
Early Season 2003
Late Season 2003
Early Season 2004
Late Season 2004
Early Season 2005
Late Season 2005
Early Season 2006
Late Season 2006
Early Season 2007
Late Season 2007
Increase
17%
36%
49%
47%
59%
59%
53%
43%
58%
51%
Decrease
Same
41%
21%
14%
13%
10%
13%
5%
9%
11%
17%
42%
43%
37%
40%
31%
28%
42%
48%
31%
31%
Net (Increase minus Decrease)
-24%
15%
35%
34%
49%
46%
48%
34%
47%
34%
• Late Season 2007 saw the highest predicted decrease in future sales since 2003. However the
“Net” predictions are still positive.
Year End Inventories Back Under Control
% of carrying dealers
PAGE
SEVEN
CONSUMER POINT OF PURCHASE TRENDS
The following data is derived from the TIA tennis consumer study that interviews over 2,000 frequent tennis
players each year. The pro/specialty channel still accounts for 51% of frequent player racquet purchases but
this has declined from 62% in Early Season 2002.
% of Purchases Made at Pro/Specialty
Frequent tennis players
% of Purchases Made Over the Internet
Frequent tennis players
• Consumer
purchases over
the internet have
increased in all
categories.
PAGE
EIGHT
FACILITY TRENDS GROWING TENNIS SYSTEM
More than 13,000 facilities are in the growing tennis system, currently 2,100+
are TWCs and 1600 Cardio Tennis sites. Any facility can update their
information and program listings 24/7 to appear on consumer sites. In a oneyear period there was a 1000% increase in facilities using this system to
manage and market their information. These technology tools are proven to help
businesses grow and increase participation and retention. Online Court
Reservations are a function of the TennisConnect system.
Growing Tennis.com Utilization
eCalendar (Event) Queries
Online Event Enrollments
Online Tennis Court Reservations
PAGE
NINE
CARDIO CONSUMER STUDY
In the second year of this study over 1100 visitors to the Cardio Tennis web site answered a
20 question survey. To better understand fitness behavior of consumers additional questions were
added to this year’s survey.
Work-out patterns of tennis players
Before contacting the Cardio Tennis site
what level of tennis player were you?
How likely are you to play tennis in the future?
Did you play any tennis, other than Cardio
Tennis, during the year?
2006
2007
Of the beginners who contacted the
cardio tennis website:
Took part in a cardio tennis session
Are still playing tennis
PAGE
TEN
2006
2007
21%
28%
43%
59%
CARDIO TENNIS FACILITY STUDY
The results are based on over 240 Cardio Tennis sites across the United States.
Administrators and pros completed a 50 question survey covering a variety of questions of,
programming, planning, marketing and implementing Cardio Tennis programs at
their facilities.
How do you think cardio tennis programs will
impact your facility?
Number of Cardio Tennis Sessions during
Peak season
Average # of Participants per Session
New Cardio tennis programs are perceived to attract more fitness orientated participants & increase
the play time of current members
Continued growth in peak season programming & participation
Has the Cardio Tennis program benefited your
facility financially?
What financial benefits has your
facility seen?
Cardio tennis programs continue to provide favorable financial benefits
Highlights of the financial benefits Cardio tennis provides facilities
PAGE
ELEVEN
2007 YEAR-END
EXECUTIVE
SUMMARY
About This Report
This 2007 End of Season Executive Summary contains highlights from the following research
studies. These complete reports are available for purchase by contacting the Tennis Industry
Association.
Tennis Participation
Research and
Market
Intelligence
Highlights
This research was carried out by Taylor Research and Consulting Group and Sports Marketing
Surveys USA on behalf of the USTA and the TIA, Results are based on 25,500 random
screening household interviews (covering 66,000 individuals) across the USA and 2,500 indepth interviews with tennis players, former players and non-players during the Fall of 2004.
The survey methodology was designed to be comparable with previous studies:
• 1988, 1989, 1992, 1995, and 1996 for the TIA conducted by Audits and Surveys
• 1999, 2000 and 2001 for the TIA conducted by Sports Marketing Surveys
• 2002, 2003, 2004, 2005 and late 2007 conducted by Taylor Research and Sports
Marketing Surveys.
Tennis Consumer Study
The results are based on 2,000+ interviews with tennis players across the country. Tennis players
were recruited from the spectators at a wide range of professional and amateur tennis events
during the 2007 season and online using a number of tennis websites. This is the fourth year of
this research. The questions asked enable results to be trended from 2001. There were also
several new areas of investigation to improve our knowledge of the tennis consumer. Research
was carried out by Sports Marketing Surveys.
Dealer Trends Study
The results are based on 100 in-depth interviews with pro/specialty tennis retailers across the
US. The panel is representative of dealers in terms of store size and region. Research was
carried out by Sports Marketing Surveys.
Retail Market Overview
Pro/specialty Retail Audit
The Retail Audit measures actual sales at the model level using a panel of representative retailers
across the USA. Sports Marketing Surveys has been tracking tennis racquets in this channel for
18 years.
The Tennis Industry
Association is a not-forprofit trade association
representing all areas of
the industry.
TENNIS INDUSTRY ASSOCIATION
117 Executive Center
Hilton Head Island, SC 29928
Telephone: 843-686-3036 Fax: 843-686-3078
email: [email protected]
www.tennisindustry.org