12/22/2011

IN FOCUS: SPORTS INDUSTRY IN BAVARIA - BAVARIA MOVES THE WORLD

The proximity to the Alps, a dense network of suppliers and optimal logistics: Bavaria – as the cradle of global players Adidas and Puma – offers many attractions to sports companies. National as well as international enterprises from the industry are moving to the Free State and from there are developing the latest trends and innovations.

BAVARIA MOVES THE WORLD
As outdoor sports country, Bavaria offers special attractions for the sports industry.
According to data provided by the Federal Association of the German Sporting Goods Industry (BSI) about 120,000 people work in the sporting goods sector. They make an annual turnover of EUR 10.9 billion, a majority of it generated in Bavaria. “A strong collection of sports industry enterprises is clearly visible in the South of Germany”, stresses Adalbert von der Osten, Managing Director of BSI. The reasons for this are historical as well as geographical – the proximity to the Alps is one of the most important factors for the establishment of enterprises in Bavaria.

Bavaria is not only a leader in winter sports. The success story of Adidas AG, based in the Middle Franconian town of Herzogenaurach, is proof of this. The three stripes logo of the sports and fashion company is among the most wellknown brands worldwide. With an annual turnover of about EUR 12 billion, Adidas is now the world’s second largest sporting goods manufacturer. Since 1995, the company, which employs 43,000 staff, has been listed on the DAX, the lead index of the Frankfurt stock exchange.

TWO BROTHERS - TWO GLOBAL PLAYERS
Adidas has its origins in the workshop of shoemaker Christoph Dassler, who specialized in the production of felt slippers. His sons, Adolf and Rudolf, recognized the market niche for sport shoes and developed trainers with cleats in the 20s. After the Second World War, a controversy first split the brothers, then the company 'Gebrüder Dassler'. Adolf Dassler named his new company after his nickname 'Adi' and the first part of his surname 'Das'. His brother Rudolf created the company 'Puma'. So today, two of the leading sporting goods manufacturers worldwide have their head offices in Herzogenaurach, only a few hundred meters away from each other.

With a turnover of EUR 2.7 billion, Puma is also a heavyweight in the industry and alongside Adidas and Nike forms the top of the largest sports goods manufacturers worldwide. The enterprise created by Rudolf Dassler is considered one of the first sporting goods brands, which was successful for producing practical and functional products for sports as well as for marketing and fashion.
Willy Bogner took a similar path when he took over the sports goods company of his parents. The former Bavarian ski pro turned the company into an international fashion enterprise. Founded in 1932 as an import business for skis, accessories and knitwear, the brand Bogner conquered the American market at the beginning of the seventies. In 2010 the company, which is now a manufacturer of exclusive sports and fashions clothing, generated EUR 194 million in revenue.

Chiemsee AG & Co. KG from the Traunstein district has also developed into an international fashion company. Established 1982 in the Upper Bavarian town of Grabenstätt under the name 'Windsurfi ng Chiemsee',the company first exclusively produced equipment for snowboarders and surfers. Today the company ranks among the most important founders of fashion sports.

GLOBAL PLAYERS ARE DRAWN TO BAVARIA
The dense network of suppliers and optimal logistics also attracts new enterprises to Bavaria. Alpina Sports GmbH markets its goods from the Swabian town of Friedberg. Arbor Europe GmbH produces snowboards with renewable materials and is based in the Franconian city of Nuremberg. And the fi rst highresolution sports action camcorder with integrated GPS marketed by Gobandit GmbH – was developed in the Upper Bavarian Aschheim.

The American enterprise Amer Sports has been operating its German subsidiary from the business campus at Garching, since 2010. Directly between the airport and the state capital Munich, the sports goods manufacturer rents 6000 square meters in the multi-functional offi ce and service park, from where it markets its brands - Salomon, Bonfire, Atomic, Wilson, Precor, Suunto and Mavic. In future, the enterprise intends to increase its activities in the area.

www.bsi-ev.de

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For more information about establishing a location in the State of Bavaria, please contact Jan Danisman, phone: 212-317-0588 or email: info(AT)bavaria.org.

Source: Invest in Bavaria, Business Bavaria newsletter, Issue 12 2011