WFSGI_Handbook_2012 by World Federation of the Sporting Goods Industry

OFFICIAL PUBLICATION OF THE

WORLD FEDERATION OF THE sporting goods industry

HANDBOOK

HEALTH

the IMPORTANCE OF PHYSICAL ACTIVITY FOR HEALTH

TRADE

Challenging barriers

bicycle

more than a sport – Mobility for the future

matterhorn (SUI)

michael.meisl

Table of contents

Table of contents Main chapters & Highlights

Message President

p. 2

Message Secretary General

p. 3

London 2012 Olympic Games – Ready, set, go

p. 4

Interview with Seb Coe, Chair of LOCOG Vision beyond the ordinary London calling – The power of the rings

all passion

trade – Challenging barriers

p. 12

Made in the World : The importance of global supply chains in the footwear industry Shattered dreams : The WTO Doha failure – Implications for the sports industry Global trade restrictive measures on footwear & textiles : An endless tunnel

Health & Corporate Social Responsibility p. 28

The importance of physical activity for health Integrating the sporting goods industry into systemic approaches to health Fair play for ball makers Child and Social Development Organization Sialkot – Pakistan

Making retail a success – New strategies p. 42

Licensing rights : Intersport is involved in all UEFA football events until 2018 The European sports market is growing by leaps and bounds – Sport 2000 International is following suit The state of sporting goods retailing in America

Bicycle – more than a sport – Mobility for the future p. 48 Local leaders embrace the answer to urban congestion : The bicycle How can cycling be made safer ? Interview with Pat McQuaid, UCI President

just the two of us

WFSGI Presentation

Another romantic winter ramble? Not for Michi Lerjen and Denise Wenger, who prefer the Furggen ridge on the Matterhorn. Another thing that connects them is TERREX™ equipment.

p. 60

Company profile Board of Directors Committee members Trade show calendar 2011 Members directory

adidas.com/outdoor

IMPRESSUM Published by : WFSGI headquarters / WFSGI / Obere Zollgasse 75 / P.O. Box 1664 / 3072 Ostermundigen (Bern Switzerland / Ph : +41 31 939 60 61 / Fax : +41 31 939 60 69 / www.wfsgi.org - info@wfsgi.org / Layout : Agence Pulsion / Pictures : iStockphoto, Shutterstock and © godfer - Fotolia.com / Printing : PrintUnited Cover : © Shutterstock join us on facebook.com/adidasoutdoor

WFSGI Handbook 2012

MESSAGE PRESIDENT

Message Secretary General

MESSAGE PRESIDENT

MESSAGE Secretary general

By Motoi Oyama, WFSGI President

By Robbert de Kock, WFSGI Secretary General

and the CSR Committee, we aggressively addressed various problems now confronting the sporting goods industry, including solution of international trade issues and IOCrelated issues, collaboration with WHO, in addition to environmental and labor problems. In September 2011, the WFSGI had the opportunity to host for the first time a session at the WTO Public Forum. The purpose of that session – whose theme was " Made in the World and Value-Added Trade " – was to show the importance of open markets for sporting goods in order to increase public access to sports. A rise in the sports population will lead to improvement of public health and revitalization of the sporting goods industry itself, thereby creating a " win-win " relationship between society and the industry. This opportunity marked a great step for the WFSGI.

We aggressively addressed various problems now confronting the sporting goods industry. First of all, I would like to express my sincere gratitude to the Board of Directors, the committees and all the staff who have dedicated their efforts over the past year toward addressing and resolving the issues confronting us. A major role of the WFSGI is to promote free and fair trade in the globalized market and improve the well-being of mankind through the practice of sports. In 2011 as well, under the leadership of the Trade Committee, the CISO Committee

We will also proactively promote a closer relationship with the WHO. We have received a message from the WHO, saying that they believe a closer relationship between the two organizations would have positive effects on public health through sports. Since a little over a year, WFSGI has been asked by the WHO to come to the table in their fight against NCD’s as the world largest death cause (over 60% of the world death is caused by NCD). To support this, the sporting goods industry should aim for a new target group with the responsibility to support society in the fight against NCD’s.

As a first step, we will work together to combat such diseases with the WHO via an unofficial relationship. Moreover, I want to serve as a bridge between leading brand manufacturers and manufacturers. The sporting goods industry of today, like in other industries, has accelerated global efforts in both markets and production areas. I am determined to serve as a bridge between the two sides, and at the same time to work together with all of you toward sustainable development of the sporting goods industry, keeping consumers’ perspective in mind. In this respect, I ask your understanding and cooperation. In 2012, the Summer Olympic Games will be held in London. Toward that event, the CISO Committee must be more united and enhance its information and communication capabilities, in particular its communication with the IOC. I met with IOC President Jacques Rogge twice last year ; we discussed and agreed that we would pursue negotiations in good faith on bilateral issues between the WFSGI and the IOC. In 2012, we still have many issues to be tackled and resolved. I request your continued cooperation and support. ■

Motoi Oyama, WFSGI President

Dear WFSGI members, Dear readers, 2011 was another difficult year. There were many pressures within and on national economies starting with currency exchange problems to countries with extremely high sovereign debt with all consequences to follow. The sporting goods industry is not immune to these problems and this seems to be a trend that will not stop. Pricing pressure caused by faltering national economies combined with significant cost increases from supplier countries, added to market disruption. The sporting goods industry has been rather stable in past crisis situations, but how many influences like those we had in 2011 can we tolerate in the coming years ? In difficult periods we see that industry organizations, like the WFSGI, become more homogeneous and people have more interest in collaborating and joined efforts. The WFSGI has also seen this and we are working hard to support the industry. Today we are intensively involved in trade issues (footwear and textile) around the world and we wish to thank the various governments for their openness to support and discuss the possible solutions. Unfortunately this is not working in all countries. For example, Brazil imposed high anti dumping surcharges on athletic footwear along with already high duties. The way this was done cannot be good for the future of a country organizing a variety of major sporting events such as the Olympic Games and World Championship Football. 2011 was for the WFSGI another year of membership growth. We are happy to say that we have welcomed

many of world’s major athletic footwear manufacturers as members. Also the bicycle group grew in numbers. Interesting progress was made for this group with collaborative efforts – saving them several millions of dollars per year. WFSGI also hired new staff to support the increasing workload and new tasks that we are faced with, such as trade, health and bicycle. Our past collaboration with the WHO, Civil Society Task Force and WEF has made it clear that it is not only an obligation but also an huge opportunity when we support healthy lifestyles and physical activity in a structured manner. We can reach new potential customers that we have not reached before in our actual communication. It is clear that if we don’t take serious action to promote healthy lifestyles, we will be confronted in 30 years with a non active population and extremely high health care costs. As an example, it is a fact that if a child hasn’t learned to be physically active before the age of 12, there is only a 5% chance that he/she will be doing sport and physical activity after the age of 12 ! Something to think about or better yet, " take action ". WFSGI will initiate and coordinate several action oriented activities around the " Health " theme during the year 2012.

If we don’t take serious action to promote healthy lifestyles, we will be confronted with a non-active population. you lot’s of reading pleasure and good health and business for 2012. We look forward seeing you at one of our meetings. ■

With best personal regards, Robbert de Kock WFSGI Secretary General

To finish, I wish to thank every person who contributed to this handbook and especially the WFSGI Board and committee chairpersons who are continuously driving the federation and the industry forward. I wish

WFSGI Handbook 2012

Ready, set, go

London 2012 OLYMPIC games

Olympic Games 27 July-12 Aug 2012

We want to use the power of the Games to inspire young people around the world Interview with Seb Coe, Chair of the London Organising Committee of the Olympic Games and Paralympic Games

How will the London Olympics be different and better than past Games ? We want the London 2012 Games to be memorable, and to use British energy, creativity and buzz to showcase the best of our city and country to the world. The sports-mad London and UK public will undoubtedly deliver fantastic support to Team GB and Paralympics GB athletes. However, in keeping with the international nature of the Games, we look forward to the multi-ethnic nature of London’s boroughs providing enthusiastic " home-style support " for competitors of the 203 other competing nations. I look forward to that enthusiasm creating a great atmosphere in London in the run-up to and during the Games.

The vision we set out to the IOC when we were bidding for the Games was that we wanted to use the power of the Games to inspire young people around the world to choose sport and leave a lasting legacy.

What will be the break out sports of the London Games ? London has witnessed unprecedented ticket sales for Olympic and Paralympic Games at this stage of planning. In addition to athletics and cycling, for example, sports like handball and equestrianism have sold out and I look forward to that prompting new interest after the show has moved on. After all, the beauty of the Olympic and Paralympic Games is that they give people around the world a chance to discover new sports and new athletes. What role does the sporting goods industry play in the success of the Olympic Movement? It’s an obvious point that athletes simply could not train and compete without the great products innovated from within the sporting goods industry, and I know from my time as a competitor that technological developments helped improve my performance. Related to this, one of the positive spin offs to interest in the Games should be an economic boost for the industry as fans buy equipment in sports they have been inspired to take up thanks to the action they witness next summer.

WFSGI Handbook 2012

What will be the greatest legacy of the London Games ? The vision we set out to the IOC when we were bidding for the Games was that we wanted to use the power of the Games to inspire young people around the world to choose sport and leave a lasting legacy. I am proud to see young people in schools and sports clubs taking up sports that they had never experienced before thanks to Games-related initiatives or that spark of interest attached to 2012. Similarly, long-committed athletes are using the events as motivation to push themselves on to new levels, whether that culminates in an Olympic final or at good club or regional performances. © LOCOG : Double Olympic gold medal winner Dame Kelly Holmes and Seb Coe reveal the London 2012 Olympic medals at the celebrations in Trafalgar Square to mark one year to go to the London 2012 Olympic Games.

From a London 2012 perspective, the 50 new adiZone multi-sport facilities that our sportswear partner, adidas, have provided in communities the length and breadth of the United Kingdom demonstrates the strong sporting infrastructure legacy that is happening thanks to the Games.

Rule 40 was established to protect against ambush marketing, prevent unauthorised commercialisation of the Games and to protect the integrity of athletes’ performance at the Games. Given the contributions of the sporting goods industry to athletes, events, federations, and NOCs, why should manufacturers be prevented during the Rule 40 period from running generic advertising (advertising that does not utilize Olympic marks or create an association with the Olympics) ? Ambush marketers have, in the past, used their association with athletes and NGBs to suggest or imply that they have an association with the Olympic Games. This undermines the exclusivity that Organising Committees and NOCs can offer official Games and Team sponsors, and without their sponsorship the Games simply could not happen. Rule 40 was established to protect against ambush marketing, prevent unauthorised commercialisation of the Games and to protect the integrity of athletes’ performance at the Games.

The physical legacy is clear to see on the east London skyline where fantastic new venues on the Olympic Park offer much-needed sporting facilities for elite and community athletes in Stratford and far beyond. Our International Inspiration programme, which aims to provide high-quality sport, play and PE opportunities to children and young people around the world, is currently reaching 12 million young people in 17 countries. This is a vision that we have achieved a year earlier than planned. ■

London 2012 Olympic Games – Ready, set, go

" Citius, Altius, Fortius " – Faster, Higher, Stronger. A motto that Pierre de Coubertin, one of the founding fathers of the modern Olympic Games, proposed when establishing the International Olympic Committee in 1894.

By Christian Mascarenhas, Communications Manager Oakley Europe

Coubertin had a vision of something incredibly big and beautiful : He wanted to revive the Olympic Games as a platform for athletes from around the world to compete in one event. Almost 100 years later there another man with a bold and beautiful vision that whould change the world of sports. " Everything in the world can and will be made better , " Jim Janard stated in 1975 when he set the foundations of a company that changed the sports market. Always looking for the best solution to enable athletes to achieve better results, Janard founded Oakley – a company that has since supported athletes around the world with the best eyewear product out there, to perform better and safer.

the products, a vision beyond the ordinary, and faith in the athletes. Unlike other brands, Oakley has never feared tapping into new sports and into new worlds. Clearly understanding that working with humans who dedicate 100% of their energy to top performance, Oakley has never tried to buy into any space. " You can’t buy the respect of the athletes, you have to earn it, " emphasizes Hyam when explaining one of the key aspects of his work with the world’s best athletes, adding : " You can’t buy best in class either, you have to train and work for it. "

Initially gaining recognition mainly in the world of board and action sports, Oakley did not waste time before starting to strive for innovations that would help endurance, and track and field athletes to improve their performance through better vision with a more lightweight sunglass or prescription lens. " Approximately 600 athletes from all around the globe, of whom 120 are most likely from the EMEA region, will compete at the London 2012 Olympic Summer Games with Oakley performance eyewear equipment, " states David Hyam, Sports Marketing Manager for the EMEA region. They will see more clearly where to jump, when to stop and how to react, and therefore will be more focused on their sports performance than on adjusting their sight to bad eye conditions or changing weather conditions. © Oakley : David Hyam Developing from a niche action sports brand to the brand it is today did not come easily for Oakley. More than 20 years ago sports marketing managers started to work very closely with athletes, trainers and sports managers to understand the mechanics and the particular scene and environment of each of the different sports that Oakley supports today. Becoming the market leader in performance eyewear required a lot of insight from athletes, incorporating their feedback into

Oscar Pistorius – an extraordinary ambassador. One of today’s most extraordinary ambassadors for this kind of mindset is Oscar Pistorius. The South African sprint runner, who has a double amputation, has evolved into an inspiration for people with and without physical handicaps. After winning several Gold Medals at the Paralympics in Athens and Beijing, Oscar has fought his way to participating in able-bodied athletes’ competitions, and is currently training for qualification for the London 2012 Olympic Games. Oakley started working with and supporting Oscar five years ago, and has seen incredible success stories inspiring people to go beyond the expected. The visionary approach that man needs to follow his path over years and decades to reach a set target has made Oscar one of the most esteemed athletes in the Oakley team. Shaun White, another long-time Oakley athlete is facing a different but huge challenge with his Olympic plans. Snowboarder and 2-time gold medalist at the Olympic Games in the Halfpipe, Shaun wants to compete both in Halfpipe and Slopestyle at the 2014 Games in Sochi. The Californian brand will be setting up a Safe House for athletes from all around the world for before, during and after the Games in London. This place of recreation and retreat will be located at the Design Museum and will offer athletes an opportunity to mingle with sports women and men from other countries and disciplines.

Vision beyond the ordinary

Shaun White – has challenging Olympic plans " These are the athletes who inspire people to go beyond the ordinary, to look for goals that other people don’t dream of , " Oakley EMEA Brand Director Olaf Dunz claims. " This is the attitude our brand is built on and that is crucial for these incredible personal and performance-related success stories. London 2012 is not only the greatest stage to show their skills and performances, but a great place to celebrate our athletes’ success stories. "

The Safe House is just the tip of the iceberg. Special eyewear collections celebrating the US and British Olympic teams will give the brand visibility in a highly competitive environment. Country flag editions will help fans express their national pride and support their teams. " Being part of the Olympic Games and contributing to the spirit in London and around the globe is a great honor and unique experience, " Olaf Dunz concludes. " ... I promise that we shall take part in these Olympic Games ... in the true spirit of sportsmanship, for the glory of sport and the honor of our teams. " ■

WFSGI Handbook 2012

London 2012 Olympic Games – Ready, set, go

London Calling – The Power of the Rings

Sports in which athletes set off in a group and are, therefore, difficult to recognise individually represent significantly weaker platforms for effective advertising contacts. If the event is also particularly dynamic or fast, it is impossible to generate high rates of advertising contacts.

Coca-Cola, McDonald’s and Panasonic have been among the most important sponsors of the Olympic Games for many decades and invest many millions of dollars into the Olympic Partner (TOP) programme of the IOC, yet worldwide TV viewers of the event cannot see this directly.

An example of this combination of quantitative and qualitative factors is provided by the star sprinter, Usain Bolt, for Puma, which is both the equipment supplier of his country, Jamaica, as well as the brand he personally endorses. Hardly any other athlete on the planet allows the various factors to be analysed more effectively. His sporting success in recent years boosts media interest enormously, leading to special reports and features in the run-up to the event.

By Andreas Ullmann, Senior Consultant at SPORT+MARKT

When the 200-plus participating nations begin the hunt for medals in summer 2012 at the Olympic Games in London, the stadia and arenas in the British capital will largely be free of advertisements – but the partners still reach their target groups in the key day-to-day environment. Approximately 900 million people across thirty-six selected countries (Sport + Markt Sponsoring 21+, May 2011) stated in a study conducted by Sport + Markt that they are interested in the Olympic Games – an enormous figure rivaled only by the FIFA World Cup on a global scale. There is no escaping the five rings and no logo in the sporting world is more valuable or better known than the unifying symbol of the Olympic Games, designed by Pierre de Coubertin, which will once again be omnipresent in the coming months. When Coca-Cola kicks off its integrated global " Move to the Beat " campaign on mobile and digital communications platforms in the weeks ahead and homes in on the special significance of music to young people as a key element, the rings will be visible in TV spots, apps, text messages and especially on product packaging. Of course, the accompanying musical anthem by Grammy award winner Mark Ronson will also play its part when the sounds of various sports are combined with the beat of the music and act as a call-to-arms in the biggest interactive campaign carried out in the 84-year partnership, yet without the global marketing rights to the Olympic symbols, the campaign would be missing its central element. The global (or sometimes, solely national) marketing rights to the Olympic symbols and the associated sector exclusivity are the two key components of the often

longterm partnership deals. Highly visible and quantifiable advertising surfaces, as are the norm at many other events, are missing in action during the live broadcasts from Olympics stadia and arenas. It is a marketing model practiced for many decades, deployed in a similar fashion in the North American Major Leagues, albeit in a more flexible manner. The partner programme of Wimbledon is virtually identical in this respect, where only the scoreboard (Rolex) and players’ apparel feature as small manufacturers’ logos and the " Wimbledon " seal is stamped on the products of sponsors.

Approximately 900 million people across thirty-six selected countries are interested in the Olympic Games.

While the majority of partners therefore comprehensively activate their Olympic engagements in all media formats, the advertising surfaces visible on TV are limited to the equipment suppliers of the athletes and officials, as well as the timekeepers. Manufacturers such as Adidas, Nike or Puma, which appear on the apparel of the athletes and officials, can be recorded and evaluated in quantitative and qualitative terms. Sport + Markt and its international cooperation partner REPUCOM offer methods and tools for this purpose, to enable global assessment of the engagements of the sponsors present at the 2012 Olympic Games in London in all media formats. Regarding quantities on TV, individual durations of visibility can be shown in cumulated terms or on average. Qualitative parameters analyse a further dimension of sponsor exposure. The background is the fact that not all incidences of sponsor exposure can be evaluated identically in qualitative terms. Variables include on-screen positioning, the size of the advertising message, multiple exposures within a sequence and the duration of the individual sequences. In addition, certain disciplines provide superior opportunities as such, if competitors are presented individually in close-ups prior to events, as is usual for athletes in running events. The obligatory laps of honour following events, featuring further close-ups and poses by the athletes in front of scoreboards and times, also boosts brand visibility.

The cameras in the stadium focus on the athlete in close-ups and consequently position the logo on his spikes or vest at the centre of the image. The close-ups mean that the sponsor’s logo appears in a relatively large format for a certain duration, whilst hardly any competitors share the screen. When compared to jersey sponsorship in football, the comparatively small logos on the sprinter’s vest mean that this process is vital to achieve a size large enough for evaluation. Additional interviews, as well as images of the charismatically celebrating athlete are also beamed around the world, ultimately conveying the advertising message of the equipment supplier, Puma, across all media on a global level.

The advertising surfaces visible on TV are limited to the equipment suppliers of the athletes and officials, as well as the timekeepers. This exposure via advertising surfaces is just one component of the rights packages received by sponsors or equipment suppliers, which often pursue completely differing strategies and objectives. Brand visibility is more important for companies aiming to boost awareness levels, while other companies focus on the associated B2B benefits or image aspects. The Olympic Games presents an almost unrivalled platform for worldwide brand exposure for sponsors and partners, not from branded advertising surfaces – the traditional staple of most other major international sport events – but stemming primarily from the sheer power of association with the Olympic logo, whether on individual products or, for instance, TV ad campaigns. Critical to the activation of this immense potential, however, as well as its measurement and ensuring its continued success, is effective monitoring of such engagements. Sport + Markt and REPUCOM provide their clients the bespoke tools and crucial expertise in order to achieve this crucial objective. ■

WFSGI Handbook 2012

TRADE

Challenging barriers

Made in the World : The importance of global supply chains in the footwear industry By Pascal Lamy, Director-General World Trade Organisation (WTO)

Businesses today must navigate a vastly different international trade landscape than the one they faced at the turn of the 20th century. As a global community, we no longer subscribe to the Ricardian notion of trading solely in final goods. Over half of all current international trade in manufactured goods comprises of component parts and semifinished products. Manufacturing processes themselves have grown so geographically inclusive that international trade and global supply chains are now virtually synonymous concepts. Goods may be assembled in one country, but derive their commercial value from a sum of other nations that contribute to the design, component production, and logistical support of the product as a whole. Such globalised production networks have rendered

the idea of " Country of Origin " almost obsolete; the contributions of each country involved in the supply chain make it much more accurate to say that the resulting products are " Made in the World " rather than in any one country. The amalgamation between production and trade means that international commerce is no longer a zero-sum game where one party gains only at the expense of another. Illustrative of such integration, recent WTO estimates indicate that in Korea, Malaysia, and Chinese Taipei,

around 50% of each country's total export value actually originates abroad. While this figure is lower for the USA and Japan, it still constitutes a significant portion of their total exports. Such economic interdependence between countries greatly increases the potential for mutual gains through trade. One clear example of such communal benefit can be seen in Asia, where developing economies have caught up with Japan in terms of trade with the USA and other countries. Rather than negatively impacting the wealth of Japan, this phenomenon has led to increased growth and development in the region as a whole, Japan included. Case studies show that innovating countries that outsource production functions actually reap the majority of the resulting profits, and that job creation in both domestic and foreign markets often accompanies such production structures. On a more microeconomic level, companies that outsource production tasks may benefit from an increased focus on core business functions, while receiving companies may welcome the accompanying advances in production technology. These factors provide huge incentives for nations to resist protectionism in their manufacturing cycles. On the other side of the coin, one of the dangers of increasingly globalised production chains is

The role of the footwear industry should be to push against such protectionism and focus instead on promoting the efficient and transparent growth of global production networks.

that each individual country involved in the process is more sensitized to disruptions that affect its partner economies. When Japan was struck by the earthquake and tsunami earlier this year, the impact on Japanese suppliers caused electronic and automobile production lines in both the USA and Europe to slow down. Similarly, the 2008 global financial crisis originating in the USA rapidly spread and negatively impacted trade around the world most countries. In fact global supply chains had to adjust themselves to the uncertainty and reduced demand resulting from the crisis. It is therefore very important to ensure that international trade interactions are properly reflected to acknowledge their benefits while accounting for their accompanying risks. Concurrently, it is imperative that countries and industries refrain from implementing protectionist measures in misguided attempts to support domestic production. Such policies are most likely to have a negative domestic impact. The role of the footwear industry should be to push against such protectionism and focus instead on promoting the efficient and transparent growth of global production networks. This will serve to increase both domestic and global gains through trade. Industry collaboration with research institutions should also be encouraged, as this will shed more light on the realities of global commerce. Such co-operation will better enable the industry as well as governments to maximize their benefits from international trade. ■

WFSGI Handbook 2012

Trade – Challenging barriers

Shattered Dreams : The WTO Doha Failure – Implications for the SGI

of incompetence, myopia and unenlightened selfishness. There is a grave risk that if the economic downturn worsens, as it seems increasingly will be the case, the global economic institutions will implode. And many of the 100 millions recently lifted from poverty returning to poverty.

There is a deep analogy between trade and sport : neither can be conducted properly without a level playing field. By Jean-Pierre Lehmann , Professor of International Political Economy, IMD, Lausanne, Switzerland, Founding Director of The Evian Group, and Senior Fellow of the Fung Global Institute, Hong Kong.

The reality is that the global trade regime instituted after World War Two has been for decades a markedly tilted playing field in favour of the rich countries of the North. Developing and emerging economies face myriad forms of discrimination against their products – typically agriculture and labour intensive industries, including textiles, footwear, toys and sports goods – whether through tariffs, non-tariff barriers, or unfair subsidies. Tariffs in the US paid by poor countries such as Bangladesh, Cambodia, Vietnam, Indonesia, Sri Lanka, etc, typically range between 11% and 16%, whereas for rich countries such as Sweden, Switzerland, Canada, Japan, France, the UK, etc, tariffs are about 2%. This is morally unacceptable and economically unsustainable. There is a close correlation between trade and prosperity. Especially in early stages of economic development, the ability to export provides not only precious revenue, but also a great amount of learning and an opportunity to go up the value chain. South Korea in the 1960s was exporting cheap textiles and footwear ; today it is one of the most prominent players in information and communication high technology goods. The South Koreans have gone from being among the poorest people on earth to high income levels. (The North Koreans who do not trade remain dirt-poor.) The dream when launching the Doha Development Round a decade ago was that the playing field would be levelled, discriminatory measures would be abolished, that the desires of what has been called " the aspiring classes " in emerging economies would be realised.

To a considerable extent, in spite of the failure of the WTO Doha Round to meet the commitments that had been made and to conclude the negotiations, tremendous strides have been made. It is estimated that approximately 100 million people per year rise from below the poverty line, from subsistence to consumption. This represents a HUGE number of table tennis rackets, cricket bats, running shoes, golf clubs, snorkels, footballs, badminton shuttlecocks, fishing rods, etc. While these figures are impressive, the point is that had the Doha Round not turned out to be the disaster that it is, not only could they be significantly higher, but more importantly the world economy and society would be in a far

more robust condition. Once again borrowing from sporting analogies, there are more players on the field, for sure, but the field remains steeply tilted and tawdry for some, while immaculate for others, the clubhouse is in shambles, and the rules are openly flouted. And there is no " global team spirit ". The governments of the rich countries, bending to vested interests, remain determined to aggressively maintain their unfair privileges.

What can be done ? Somehow we need to get back on the right track. We need to demonstrate the vital importance of generating equitable and sustainable growth on the basis of a fair rules-based global market economy and trade regime. A more prosperous society is a healthier society with a greater sense of welfare. In such a vision, sporting goods will greatly benefit. But the sporting goods industry also stands to contribute. Leaders of sporting goods companies could make an excellent case and provide the leadership to realise the dream of a prosperous and fair global society.

We need to demonstrate the vital importance of generating equitable and sustainable growth on the basis of a fair rules-based global market economy and trade regime.

At the beginning of this century, with the collapse of the Soviet Empire, the opening of China, the market reforms in many erstwhile Third World countries, and the establishment of the WTO, it was permissible to dream that the 21st century would be dramatically different from the previous century. It was permissible to dream that the world might be guided by enlightened self-interest and a vision of an equitable global market economy resting on an increasingly prosperous global society.

The 7th billionth human being is expected to be born in October 2011. By October 2041 the 9th billionth child will be born. The next few decades will see the biggest youth population ever not only in absolute terms, but also in proportional terms. Former Brazilian President " Lula " has stated : " how will we explain to the next generation that we had so much and we did so little ? " As Brazil will be hosting the Olympic Games in 2016 and it is a country with a very young population, the Sporting Goods Industry could articulate a vision for the next generations by making every effort that by that date and on that occasion the playing field should be levelled, the clubhouse spruced up and the rules upheld – and especially by instilling a sense of global sporting team spirit ! ■

As some of us argued, the real importance of Doha was of course in good part in the substance of the negotiations, but also very much so in the symbolism – in the kind of message it would send regarding what kind of planet do we want ?

The world is now in a grave economic crisis. What makes the situation much worse is that the global governance institutions are weak and, especially so in respect to the WTO, have lost legitimacy and credibility. The Doha Round has been paralysed and the negotiations and ministerial meetings provided a sordid picture

In 1995, Professor Lehmann launched the Evian Group, an international coalition of corporate, government, and opinion leaders, united by a common vision of enhancing global prosperity for the benefit of all by fostering an open, inclusive and equitable global market economy in a rules-based multilateral framework. The Evian Group has developed as a leading global voice on global trade and investment issues that acts as a forum for dialogue and a birth place of ideas ; it also engages actively in advocacy to counter the forces of protectionism and chauvinism.

WFSGI Handbook 2012

Trade – Challenging barriers

The EU reforms GSP : More help for those in need, economic operators One of the core priorities of EU trade policy is to help developing countries integrate into world markets. Since the 1970’s, the EU’s Generalised Scheme of Preferences (GSP) has provided reduced or zero tariffs for developing countries so they could increase exports to the EU. By Francisco Pérez-Cañado1 , Deputy Head of Unit, Trade and Development European Commission, DG TRADE

These preferential tariffs have allowed WFSGI members to help developing countries find a market for their products in the EU, notably for textiles and footwear. With the impending expiry of the EU’s current GSP at the end of 2011, the Commission has taken a hard look at how the system has performed. It collected views from stakeholders and placed the GSP under independent review. The conclusions : GSP has been successful, but it also has shortcomings. In May 2011 the Commission presented a proposal to update the current scheme by 1 January 2014 at the latest. The most salient changes are as follows. 1. The updated scheme focuses help on those countries which genuinely need it. These are around 80 partners : least developed countries, low and lower-middle income economies, as defined by the widely recognised World Bank indicator. High or upper-middle income countries, which have a solid export base, no longer receive preferences, creating extra space for the poorest to export. In practice, preferences are deferred for around 20 countries (salient examples are Gulf States ; Argentina, Brazil, Kazakhstan, Libya, Malaysia, Russia and Venezuela). We do not expect the effects on these countries to be significant (at most, exports would drop by 1% or so), but even such a marginal impact provides large extra opportunities for the poorest, whose exports are very low. 2. The Commission also proposes changes to the " GSP+ " scheme–the additional preferences for countries that implement core international conventions on human rights, labour rights, and sustainable development. The Commission's proposal relaxes the economic entry criteria for GSP+, making more countries (such as Pakistan or the Philippines) eligible. Also, graduation (the removal of preferences for specific sectors of beneficiary countries which are competitive) will not apply to GSP+ beneficiaries. The rationale is that our generosity must support countries which are serious about implementing core international values.

in duration. This removes the uncertainty linked to the current scheme, which lapses (and thus needs to be re-discussed) every three years. Secondly, transition periods of at least one year are introduced for any changes which may be necessary (changes in product coverage, country coverage, different GSP+ or graduation thresholds...). This allows stakeholders sufficient time to adapt. Thirdly, the proposal clarifies procedural steps and rights of parties for all key decisions which may be taken (e.g., temporary withdrawals of countries from GSP). Transparency leads to more predictability. Given the products typically sourced by WFSGI members and the new opportunities offered by the proposal, there should not be any negative impact for WFSGI business. Nonetheless, it is useful for companies to make their own assessment. As the existing scheme has been extended until the end of 2013, companies have the time to make such an analysis while continuing to enjoy the current preferences. Thanks to the extension of the current scheme, there is ample time for the decision makers (the European Parliament and Council) to discuss the Commission proposal and define the final shape of the EU’s new GSP. Of course, the sooner a decision is taken, the more time operators will have to adapt to the new scheme. If the Commission proposal is followed, the new GSP will bring more help to those in need, and more predictability for stakeholders who wish to help the poorest grow out of poverty. ■

3. The proposal aims to improve predictability for economic operators. First, the Commission proposes an open-ended scheme, without limit

WHOA NELLY

1 The opinions expressed in this article are the author's own and do not necessarily reflect any views of the European Commission

THE RIDE OF YOUR LIFE

Trade – Challenging barriers

The circle of protectionist measures concerning footwear and textiles seems to be ever expanding with new countries joining the race to impose measures and more products falling in the circuit.

Updated December 2011

On the footwear front, as the table on pages 19 and 21 shows, China has remained the top target of the measures, majority of which were imposed by Latin American countries. Needless to say, the antidumping instrument remains the most commonly used tool. Currently, ten countries across the globe have in place varying forms of tariff and non-tariff measures often imposed concurrently. These include – (i) anti-dumping measures imposed by five countries – Argentina, Brazil, Mexico, Peru, and Chinese Taipei ; (ii) import licensing procedures instituted by Argentina & Brazil ; (iii) safeguard measures imposed by Turkey ; and (iv) a customs valuation approach based on minimum import prices increasingly used by the Russian Federation. Additionally, certain WTO Members have resorted to tariff increases, such as Ecuador. Last but not the least, the end of the five year long EU anti-dumping measure on 1 April 2011 was accompanied by the parallel institution of monitoring of imports from China and Viet Nam.

Footwear - China has remained the top target of the measures. It is not merely the form of the measures which is worrisome ; their duration is equally a serious issue. Some WTO members such as Peru have retained anti-dumping measures on Chinese footwear imports for over a decade. While measures imposed by Mexico and Turkey for almost an equally long period if not more, are in their final year of application, it remains to be seen whether they will be definitively ended or just given a new form. In any event, one swallow does not make a summer, and real victory would follow only when all protective measures are eradicated. The plight of textiles and clothing imports is even more challenging. While the table on pages 23 to 25 lists onerous import requirements and tariff measures imposed by nine

WTO members on a diverse range of fabrics, apparel items and clothing accessories, a significant number of other restrictions are in place which practically makes the list never ending. Noteworthy is the recent proliferation of measures as Turkey introduced tariff increases on fabric and apparel imports covering hundreds of tariff lines in addition to the existing safeguard measures on cotton yarn and travel goods respectively. Not the least, other members such as Ecuador also increased the import tariffs and Indonesia joined the bandwagon by imposing safeguard measures while Argentina has continued to expand its list of textile imports subject to non-automatic import licensing. As regards duration, the situation is no different from the footwear context with the Turkish safeguard measure on travel goods being a perfect example. The economic effect of these measures on global trade of footwear and textile products is unquestionably crippling and the perpetuation and proliferation of these protectionist measures needs to be brought to an end. Admittedly this may be a herculean task, but as the old saw says, a rising tide lifts all boats ; a rising tide in the form of a plurilateral agreement – zero for zero for sporting footwear, apparel & accessories – can alleviate the situation.

Zero for zero for sporting footwear, apparel & accessories can alleviate the situation.

■

Targeted countries of origin China

Importing Country Ecuador

By Edwin Vermulst and Juhi Sud , trade counsels to the WFSGI and practice law in Brussels, Belgium.

Importing Country Argentina

Overview of global trade restrictive measures in the footwear sector*

Importing Country Brazil

Global Trade Restrictive Measures on Footwear &Textiles : An endless tunnel

Type of measure

Anti-Dumping & Import licensing

Stage and date

1. Provisional AD measure imposed on 22 July 2009. Definitive measure from 22 March 2010. Duties in place for 5 years 2. Started an origin investigation on footwear imports from Malaysia on 13 August 2010 3. Non-automatic import licensing since November 2008

Effect

1. Definitive measure : minimum FOB value of $13.38/pair. Footwear covered by the measure is classifiable in Mercosur Common Nomenclature headings 6401- 6405, excluding orthopedic shoes and shoes for skiing and snowboarding. 2. Outcome pending

Type of measure

Anti-Dumping & Import licensing

Stage and date

1. Provisional AD measure imposed on 9 September 2009. Definitive measure imposed on 5 March 2010 for 5 years 2. Since June 2011, random origin checks concerning footwear from Indonesia and Viet Nam 3. Anti-circumvention investigation initiated on 4 October 2011 4. Non-automatic import licensing

Effect

1. Definitive measure : fixed duty of $13.85/pair Footwear covered by the measure is classifiable in Mercosur Common Nomenclature headings 6402 to 6405. Certain footwear such as espadrilles, slippers, dancing shoes, beach sandals, footwear for skiing, snowboarding, and sporting activities are excluded from the measure. 2. On-going 3. Investigation concerns : (i) footwear classified under NCM headings 6402-6405 exported from Indonesia and Viet Nam ; and (ii) footwear parts and components exported from China classified in NCM codes 6406.10.00, 6406.20.00 and 6406.99.00.

Targeted countries of origin All Type of measure

Tariff increase

Stage and date

1 June 2010

Effect

Mixed duty : 10% ad valorem plus $6 per pair fixed duty

AD measures Safeguard measures Other non-tariff measures Tariff measures

* Non-exhaustive list. Latest updates at our website : www.wfsgi.org

WFSGI Handbook 2012

1 January 2011

Effect

Footwear covered under HS headings 6401, 6402, 6403, 6404, and 6405. Temporary measure to be terminated on 31 December 2012.

Targeted countries of origin China Type of measure

Negotiated transitional measure

Stage and date

1. Ad valorem duty. Phased reduction in duty implemented in 2008. Duties will terminate on 11 December 2011. However based on rumors, there seems to be a threat of a possible new measure. 2. Import licensing applicable for certain footwear classified under HS headings 6402, and 6405

Effect

1. Negotiated phasing out of the negotiated AD duty 2008 › 100% ; 2009 › 95% ; 2010 › 90% ; 2011 › 70%. The footwear covered by the measure are classifiable under HS codes 6402.19, 6402.22, 6402.29, 6403.19, 6403.40, 6403.59, 6403.91, 6403.99, 6404.11, and 6404.19

Targeted countries of origin China

Type of measure

Stage and date

Effect

Chinese Taipei

Viet Nam

Anti-Dumping Flip-flops/thongs, Anti-Dumping sandals, slippers Footwear with Anti-Dumping uppers of leather, and mules, 1. Sandals and flip-flops rubber or plastics, espadrilles and 2. Footwear with uppers of leather, rubber or textiles and of any clog-style shoes plastics, and of any other materials excluding with uppers of other materials footwear with textile uppers excluding sandals textile materials and flip-flops and outer soles of various materials. 1. Investigation initiated on 11 February 1999. Investigation Investigation Definitive measure imposed on 31 January initiated on initiated on 2000. Changed circumstances review initiated 11 February 1999. 23 May 2006. on 18 September 2008 and revised duty rate Definitive measure Definitive measure implemented on 8 November 2009 imposed on imposed on 2. Investigation initiated on 11 February 1999. 31 January 2000. 7 November 2009 Definitive measure imposed on 31 January 2000. Review initiated on Review initiated on 14 October 2010 28 October 2010 Outcome pending. Fixed duty : 1. Duty rate: - Sandals with uppers of rubber or plastic -$0.62/pair Duty rate : 11.11% US$0.80/pair. - Sandals with uppers of leather - $2.83/pair to 900% Trainers and other - Flip-flops with uppers of rubber or plastics Footwear covered athletic footwear $1.64/pair is classifiable with uppers of - Flip-flops with uppers of leather $4.55/pair under HS codes textile materials are Sandals and flip flops classifiable under HS 6402.19, 6402.20, excluded from the codes 6402.19, 6402.20, 6402.91, 6402.99, 6402.91, 6402.99, measure. 6403.91, 6403.99, 6404.11, 6404.19, 6403.91, 6403.99, 6404.20, 6405.10, 6405.90. 6404.19, 6404.20, 2. Outcome pending. Current duty rate : 11.11% 6405.10, 6405.90 to 900% Footwear covered is classifiable under HS codes 6402.19, 6402.20, 6402.91, 6402.99, 6403.91, 6403.99, 6405.10, 6405.90

Importing Country European Union

Stage and date

Importing Country Russian Federation

Non-automatic import licensing

Targeted countries of origin All countries

Importing Country Chinese Taipei

Type of measure

Targeted countries of origin China

Importing Country Turkey

Importing Country INDONESIA Importing Country MEXICO Importing Country PERU

Targeted countries of origin All

Targeted countries of origin All excluding some developing countries accounting for less than 3% of Turkish imports

Viet Nam

Type of measure

Anti-Dumping – footwear with leather uppers (excludingSTAF)

Stage and date

16.5% AD duty expired on 1 April 2011

Effect

Footwear imports from China and Viet Nam are subject tomonitoring

10% AD duty expired on 1 April 2011

Type of measure

Reference Price Mechanism (customs internal measure to secure a minimum customs value)

Stage and date

Used increasingly

Effect

1. Footwear with leather uppers (HS heading 6403) minimum reference price based on origin : - Footwear from Indonesia : $24/pair ; - Footwear from China, Vietnam, Thailand : $21/pair 2. Increased customs duty since 1 January 2010. Current customs duty is 10% ad valorem but cannot be less than $1.8

Type of measure

Anti-Dumping

Stage and date

Since 16 March 2007 for a period of 5 years

Effect

43.46% ad valorem duty ; price undertaking accepted from certain Chinese exporting producers

Type of measure

Safeguard

Stage and date

Investigation initiated on 5 January 2006. Definitive safeguards measure imposed on 10 August 2006. Review initiated on 4 June 2009 and measure extended for additional 3 years, i.e. until 11 August 2012. Fixed duty : HS heading 6402 6403 6404

Effect

11 Aug 2010 -11 Aug 2011 1.65 2.50 1.65

11 Aug 2011 -11 Aug 2012 1.60 2.45 1.60

- For the products under following subheadings, the duty is $1.20/pair ; 6402.99.50, 6402.99.91, 6403.51.11, 6403.51.91, 6403.59.31, 6403.59.50.00.11, 6403.59.50.00.12, 6403.59.50.00.13, 6403.59.91, 6403.91.11, 6403.91.91, 6403.99.31, 6403.99.50, 6403.99.91, 6404.19.10.00.11, 6404.19.10.00.12, 6404.19.10.00.13, 6404.19.90.00.13, and 6404.20.10 - Footwear classified under HS codes 6402.19, 6403.12, 6403.19, and 6404.11 are excluded from the measure

Latest updates at our website : www.wfsgi.org

AD measures Safeguard measures Other non-tariff measures Tariff measures

Latest updates at our website : www.wfsgi.org

WFSGI Handbook 2012

IT FLICKS A TOWEL ON SEXISM'S ASS AND KICKS SAND IN THE FACE OF DISCRIMINATION.

KNOWN ,

AND TO ALL THE CYNICS AND NAYSAYERS, WE'RE GOING TO MAKE THE WORLD BETTER FOR YOU ANYWAY.

BECAUSE LIKE SPORT, WE DON'T DISCRIMINATE.

Raw Materials & Fabrics Importing Country Argentina

SPORT INSPIRES HOPE, INSTILLS DISCIPLINE, REDUCES DEPRESSION,AND DISEASE. IT RAISES SELF-CONFIDENCE, RAISES AWARENESS, RALLIES COMMUNITIES, DEFINES NATIONS, DEFIES GRAVITY AND DENIES PREJUDICE.

Updated December 2011

Targeted countries of origin All

Importing Country INDIA

PASSION

Overview of global trade restrictive measures textiles sector of relevance to the sporting goods industry *

Targeted countries of origin -

Type of measure

Non-automatic import licensing

Stage and date

Effective 7 March 2011

Effect

Product : Argentina recently extended the non-automatic licensing requirement to cotton and other textile materials classified in the Mercosur Combined Nomenclature codes : 5208.22.00, 5208.39.00, 5208.59.90, 5209.12.00, 5211.43.00, 5407.20.00, 5407.72.00, 5407.91.00, 5407.92.00, 5407.93.00, 5407.94.00, 5509.41.00, 5509.42.00, 5509.59.00, 5509.62.00, 5513.12.00, 5515.11.00, 5515.12.00, 5515.19.00, 5516.22.00, 6005.33.00, 6005.34.00, 6005.41.00, 6005.42.00, 6005.43.00, 6005.44.00, 6006.24.00 and 6006.44.00 Several other types of yarns and fabrics classified under chapters 52, 54, 55, and 59 have been subject to non-automatic licensing requirements since December 2008.

Type of measure

Export quotas

Export quota

Stage and date

1. On 2 August 2011 the export quota of 6.5 million bales for raw cotton was terminated. 2. Export contracts have to be registered with the Indian Directorate General for Foreign Trade prior to the shipments.

1. On 1 April 2011, the export quota for cotton yarn was terminated. 2. Export contracts have to be registered with the Indian Directorate General for Foreign Trade prior to the shipments.

Effect

Product : Raw cotton classified under HS heading 52.01. Previous restrictions & Export quota : On 19 April 2010 India imposed an export ban which was officially lifted in on 21 May 2010. On the same day an export licensing system was introduced. On 30 September 2010, the export licensing system was withdrawn and an export quota of 5.5 million bales based on the export surplus was introduced. On 1 October 2010 the export duty of Rs. 2,500/tonne on raw cotton was terminated. The export quota for the season ending on 30 September 2011 was increased from 5.5 million bales (approximately 935,000 tonnes) to 6.5 million bales (approximately 1,105,000 tons) on 8 June 2011, before being terminated on 2 August 2011.

AD measures Safeguard measures Other non-tariff measures Tariff measures

Product : Cotton yarn classified in HS headings 52.02, 52.06 and 52.07. Previous restrictions & Export quota : On 1 December 2010, India established an export quota of 720 million kgs for the year 2010-2011. Additionally, the exports were permitted under an export license. These restrictions were terminated on 1 April 2011.

* Non-exhaustive list. Latest updates at our website : www.wfsgi.org

WFSGI Handbook 2012

Stage and date

Investigation initiated on 25 June 2010. Definitive measures imposed on 23 March 2011 for a period of 3 years Product : Woven cotton fabric classified in tariff lines 5208.11.00.00, 5208.12.00.00, 5208.13.00.00, 5208.19.00.00, 5208.23.00.00, 5208.29.00.00, 5208.11.00.00, 5208.12.00.00, 5208.13.00.00, 5208.19.00.00, 5208.23.00.00, and 5208.29.00.00.

Effect

Duty rate : Fixed duty 23.03.2011/ 22.03.2012 Rp. 116,800/Kg

23.03.2012/22.03.2013 23.03.2013/22.03.2014 Rp. 109,500/Kg Rp. 102,200/Kg

Targeted countries of origin All Type of measure

Tariff increase

Stage and date

Investigation initiated on 13 January 2011. Provisional tariff increase came into effect on 22 July 2011. Definitive additional tariffs effectuated on 15 September 2011.

Targeted countries of origin All Type of measure

Tariff increase

Stage and date

1 June 2010

Effect

Provisional duty : - 11% for the least developed countries and GSP countries (min $0.75/kg – max $3.75/kg). - 18% for the developing countries and (min $1/kg – max $4/kg). - 20% for other countries (min $1.25/kg – max $4.25/kg).

Targeted countries of origin All excluding some developing countries Type of measure

Safeguards

Stage and date

Initial measure imposed on 15 July 2008 for three years. Review investigation initiated on 11 June 2011. Provisional measures in force.

Type of measure

Negotiated transitional measure - Anti-Dumping

Stage and date

1. Ad valorem duty. Phased reduction in duty implemented in 2008. 2. Import licensing applicable for apparel items Product : Apparel items classified in HS headings 61.10,61.11, 61.12, 61.15, 62.01, 62.02, 62.03, 62.04, 62.05, 62.06, 62.06, 62.07. 62.08, 62.09, 62.10, 62.11, 62.12, 63.01, 63.02, 63.04, and 63.05

Effect

Type of measure

Tariff increase

Stage and date

Investigation initiated on 13 January 2011. Provisional tariff increase came into effect on 22 July 2011. Definitive additional tariffs effectuated on 15 September 2011 Product : Apparel items classified under HS headings 61.01, 61.02, 61.03, 61.04, 61.05, 61.06, 61.07, 61.08, 61.09, 61.10, 61.12, 62.01, 62.02, 62.03, 62.04, 62.05, 62.06, 62.07, 62.08, 62.09, 62.11, 62.12, 62.15.

Effect

Proposed provisional duty : - 12% (min $0.29/Kg- max $0.85/Kg) for goods classified under codes 5205.12, 5205.22, 5205.32 and 5205.42. - 17% (min $0.29/Kg- max $0.85/Kg) for goods classified under other subheadings of 52.05.

Targeted countries of origin All Type of measure

Non-automatic import licensing

Stage and date

Since September 2007

Effect

Product : Apparel items classified in chapters 61, 62, and 63. Chapter 61 goods - Since September 2007 ; items added in December 2008, September and November 2009. Chapter 62 goods - Since December 2008, items added in December 2008, September and November 2009. Chapter 63 goods - Since March 2009 Latest updates at our website : www.wfsgi.org

Duty rate : Negotiated phasing out of the AD duty - 2008 : 140% › 2009 : 130% › 2010 : 120% › 2011 : 80%.

Targeted countries of origin All

Product : Cotton yarn (other than sewing) classified under HS heading 52.05. Effect

Mixed duty : $5.5/Kg plus 10% ad valorem duty.

Import licensing : Applicable to goods classified in HS headings 61.06, 61.09, 61.15, 62.01, 62.03, 62.04, 62.05, 62.06, and 62.15. Importing Country Turkey

Effect

Product : Apparel and apparel items covered in chapters 61, 62, and 63.

Targeted countries of origin China

Product : Fabrics classified under HS headings 51.11, 51.12, 52.08, 52.09, 52.10, 52.11, 52.12, 54.07, 54.08, 55.12, 55.13, 55.14, 55.15, 55.16, 56.03, 58.01, 58.02, 60.01, 60.02, 60.03, 60.04, 60.05, 60.06.

Apparel Importing Country ARGENTINA

Importing Country ECUADOR

Safeguards

Importing Country MEXICO

Type of measure

Additional tariffs : - 17% for least developed countries and GSP countries (min $3.5/kg – max $16/kg) ; - 27% for the developing countries (min $4.5/kg – max $18/kg) ; - 30% for other countries (min $5.5/kg – max $20/kg).

Accessories Importing Country Turkey

Importing Country INDONESIA Importing Country TURKEY Importing Country TURKEY

Targeted countries of origin All

Targeted countries of origin All excluding some developing countries Type of measure

Safeguards

Stage and date

Initial measure imposed on 8 April 2008 for three years. Review investigation initiated on 24 March 2011. Measure extended on 25 October 2011 for three years

Effect

AD measures Safeguard measures Other non-tariff measures Tariff measures

Product : Travel goods, handbags, suitcases etc. classified under HS heading 42.02. Textile or plastic bags classified under codes 4202.12.11, 4202.12.19, 4202.12.91, 4202.22.10, 4202.22.90, 4202.32.10, 4202.32.90, 4202.92.11, and 4202.92.91 are included. Provisional duty : 04.2011 -04.2012 $2.70/Kg - max $4.25/Piece HS chapter 42 52 54 58, 59, 60 61, 62, 63

04.2012 -04.2013 $2.60/Kg-max $4.00/Piece

Description Travel goods, handbags and similar containers Cotton Man-made filaments ; strip and the like of man-made textile materials Fabrics Apparel and clothing accessories

04.2013 -04.2014 $2.50/Kg-max $3.75/Piece Latest updates at our website : www.wfsgi.org

WFSGI Handbook 2012

Trade – Challenging barriers

asics.com

MOVE is born as the most important representative for the Brazilian Sporting Goods sector In September 2010, nine of the biggest producers of sporting goods present in Brazil gathered in São Paulo to create an organization of institutional representation. Its main mission is to represent the sporting goods industry, promote its social-environmental development and defend its interest towards the government and all society stakeholders related directly or indirectly to sports. Above all, MOVE wants to fight for the Brazilian sports strengthening. By Gumercindo Moraes Neto, Executive Director of MOVE

The association was born as a coalition of national and international manufacturers and distributors of shoes, clothes, accessories, apparel and sports’ equipments. Current members are Nike, Puma, adidas, Asics, Alpargatas, Cambuci, Sketchers, Reebok International and New Balance. Strongly consolidated in Brazil, these brands are responsible for a very significant business in the local economy, which is vastly growing. It is estimated that MOVE associates generate an annual income of USD 3 billion and over 62 thousand direct and indirect jobs.

dent’s / general managers in Brazil are counselors for MOVE, sharing experiences and advices for the entity’s best interest.

running releases more than just sweat

All efforts are focused on Brazil’s economic and industrial development, ensuring professional athletes and the Brazilian consumer access to the best sports technology available.

MOVE comes to lead the development of the Brazilian sporting goods sector through a strategic and consistent institutional project. By promoting a transparent dialogue and exchange of ideas and information with all stakeholders related to the sporting goods network, MOVE’s long term project is based on technologic development, value aggregation and quality to the local production, diffusion of sustainable practices and promotion of qualified and valued workforce.

As a group, MOVE has already conquered a solid relationship with the Brazilian government. The association council has participated in discussions involving antidumping, circumvention and industrial policy for the sector’s development.

The association is organized through an Advisory Board, lead by Guilherme Athia, and an executive management, headed by Gumercindo Neto, an experienced and well-acknowledged professional of the industry. All brands presi-

All efforts are focused on Brazil’s economic and industrial development, ensuring professional athletes and the Brazilian consumer access to the best sports technology available. This is especially relevant for Brazil during this moment of preparation to its strongest sportive agenda, with the upcoming mega-events : the 2014 World Cup and 2016 Olympic Games. MOVE was born to have a powerful voice. ■

ASICS comes from the Latin phrase Anima Sana In Corpore Sano, meaning “a sound mind in a sound body”

health

& Corporate Social Responsibility

The importance of Physical Activity for Health By Tim Armstrong, Coordinator of the Surveillance and Population-based Prevention Unit Chronic Diseases and Health Promotion at WHO

The World Health Organization (WHO) is the United Nations lead agency for health and is governed by its 193 Member States through the World Health Assembly, which is its policy forming body. WHO is primarily responsible for providing leadership on global health matters, shaping the health research agenda, setting norms and standards, articulating evidence-based policy options, providing technical support to countries and monitoring and assessing health trends. The objective of WHO is the attainment by all peoples of the highest possible level of health. The link between regular physical activity and health is well established, notwithstanding that lack of physical activity is the fourth leading risk factor for deaths around the world. Approximately 3.2 million deaths each year are attributable to people not doing sufficient physical activity.

In 2008, globally, 31% of adults aged 15 years or older were physically inactive (men 28% and women 34%). The proportion of physically inactive people in high-income countries was more than double that of those in low-income countries. These data may be explained by increased work and transport-related physical activity for both men and women in low -and lower-middle-income countries. A recent 34 cross-country comparison study of school children aged 13 to 15 years, showed that only 23.8% of boys and 15.4% of girls met physical activity recommendations. However, given a supportive environment, increasing levels of physical activity can be achieved by all with the potential of bringing health benefits.

In May 2004, the 57th World Health Assembly endorsed Resolution WHA57.17 on the Global Strategy on Diet, Physical Activity and Health. It urges Member States to develop national physical activity action plans and policies to increase physical activity levels in their populations. Furthermore, in May 2008, the 61st World Health Assembly endorsed Resolution WHA61.14 on Prevention and Control of Noncommunicable Diseases : Implementation of the Global Strategy, which urges Member States to promote physical activity through the implementation of school-based interventions, and the provision of physical environments that support safe active commuting, safe transport, and the creation of space for recreational activity.

People who are physically inactive have a 20–30% increased risk of death compared to those who engage in at least 150 minutes of moderately intense physical activity a week. This level of physical activity each week reduces the risk of ischaemic heart disease by approximately 30%, the risk of diabetes by 27%, and the risk of breast and colon cancer by 21–25%.

The Global Recommendations address three age groups : 5-17 years old ; 18-64 years old ; and 65 years old and above. In order to improve cardiorespiratory and muscular fitness, bone health, and cardiovascular and metabolic health biomarkers children and youth aged 5-17 years should accumulate at least 60 minutes of moderate- to vigorous-intensity physical activity daily. This includes play, games, sports, transportation, chores, recreation,

The link between regular physical activity and health is well established.

The limited existence of national guidelines on physical activity for health, the public health significance of physical activity and the global mandates for the work of WHO related to the promotion of physical activity and NCD prevention, made evident the need for the development of global recommendations that address the links between the frequency, duration, intensity, type and total amount of physical activity needed for health promotion. In 2010, WHO published the " Global Recommendations on Physical Activity for Health ".

physical education, or planned exercise, in the context of family, school, and community activities. Most of the daily physical activity should be aerobic. Vigorous-intensity activities should be incorporated, including those that strengthen muscle and bone, at least 3 times per week. More than 60 minutes of physical activity provide additional health benefits. Evidence shows that physical activity for adults includes leisure time physical activity, transportation (e.g. cycling and walking), occupational, household chores, play, games, sports and planned exercise in the context of daily family and community activities. This

WFSGI Handbook 2012

HEALTH & Corporate Social Responsibility

improves cardiorespiratory and muscular fitness, bone health and reduces the risk of noncommunicable diseases, depression and cognitive decline in adults older than 65 years. Adults should do at least 150 minutes of moderate-intensity aerobic physical activity throughout the week in bouts of at least 10 minutes durations. Muscle-strengthening activities should be done, involving major muscle groups, on two or more days a week. Older adults, with poor mobility, should perform physical activity, to enhance balance and prevent falls, on 3 or more days per week. Physical activity patterns are influenced by policies and practices in sectors such as transport, sport, education, environment, urban design and by external forces such as industry and media. All evidence on changing physical activity habits show that creating an enabling environment, providing appropriate information and ensuring wide accessibility to active lifestyles are critical to influencing behaviour change, regardless of the setting. Therefore, all sectors and all levels within governments, international partners, civil society, nongovernmental organizations and the private sector have vital roles to play in shaping healthy environments and contributing to the promotion of physical activity. The Global Strategy on Diet, Physical Activity and Health has specific responsibilities for action for the private sector and recognizes that the private sector is a significant player in promoting physical

HEALTH & Corporate Social Responsibility

activity, not only as an advocate for healthy lifestyles but also as a responsible employer. It encourages the private sector to promote physical activity in accordance with national standards, and encourages it to assist in developing and implementing physical activity programmes. The sporting goods industry needs to continue promoting the importance of physical activity not only as a leisure time activity but also as part of daily living through active transport (e.g. walking and cycling). Actions speak louder than words and as leaders in the field of sporting goods, the industry should set an example by being a proactive employer that provides an enabling environment for its employees to be physically active, both at the workplace as well as on route to the workplace and during their leisure time. Getting more people to become and continue to be physically active in their daily lives is a goal which the health sector and the sporting goods industry have in common. Working in synergy and looking for new and innovative opportunities for collaboration and cooperation can achieve this common goal. ■

Leveraging the power of sport to improve health In mid-July 2011 more than 80,000 people filled FedEx Field in Washington, D.C., to watch Manchester United take on FC Barcelona. Millions of people watch sports, just look at attendance of major sporting events over the past decade : the World Cup, the Olympics, the cricket World Cup, and the regular attendance figures of clubs such as Manchester United, FC Barcelona, and Real Madrid. Take into account expanding access to the internet, television, mobile phones, and other technology, and sports viewership becomes considerably larger. What can this mean for health ? By Craig Moscetti, Senior Manager/Chair, NCD Roundtable, Global Health Council

As World Federation for the Sporting Goods Industry Secretary General Robbert de Kock highlighted during the United Nations Interactive Hearing on NCDs (non-communicable diseases) on June 16, 2011, the global reach of sport and the sporting goods industry is unprecedented and presents an enormous opportunity. It encourages physical activity, healthy lifestyles, and promotes mental health among vast segments of populations, and particularly among children and adolescents, a key age when behavioral habits are first being formed. The sporting goods industry can play a unique part in the growing movement of sport for development, where sport is being used to raise awareness and educate people about health, particularly around the increasing need to address obesity, physical inactivity, and unhealthy

lifestyles. But such opportunities must also come alongside efforts to address safe recreational spaces, transportation, and gender disparities in inclusiveness, which help create the environment where the full benefits of sport and physical activity can be realized. Recently FC Barcelona and the Bill& Melinda Gates Foundation launched a global awareness and advocacy campaign to eradicate polio, " More than a Goal. End Polio ". Using tools such as social media, the visibility of FC Barcelona footballers, and high-level advocacy by Bill Gates, the campaign attempts to leverage sport to mobilize for a health and development cause. The opportunity for similar campaigns to address the growing burden of NCDs (non-communicable diseases) is endless. The sporting goods industry is also a major employer globally, and particularly in developing countries. In 2009 Nike Inc. employed nearly 33,000 people. Including contracted factories, the total workforce number is well over 800,000 people, and this is one company. Workplace wellness, occupational health and safety are all critical to overall health and well-being. Major corporations have already come together under the Workplace Wellness Alliance to help ensure a stable and productive workforce – the backbone for any employer – but many more can join this movement. NCDs alone could cost the global economy upwards of $30 trillion in forgone economic output over the next decade, a strong incentive for companies to secure the long-term health of employees. The sporting goods industry and those involved in the recreation sector can help make significant strides in prevention NCDs. By promoting physical activity, and helping to ensure workplaces incentivize healthy lifestyles and choices, the sporting goods industry can use the power of sport to improve health globally. The UN High Level Meeting on NCDs put the issue on the global landscape, paving the way for future commitments to address diseases that kill more than 36 million people annually. And when it comes to supporting these efforts, the sporting goods industry should " just do it ". ■

WFSGI Handbook 2012

HEALTH & Corporate Social Responsibility

The Great Outdoors is the sports arena of the future

The Sporting Goods Industry and NCDs

By Lars Wiskum, CEO of SportVenture and NaturStadion International Senior Adviser

Industry has been trying for years to find ways to satisfy society’s needs while boosting profits. Although civil society and government sometimes resist private sector involvement in what they consider their " turf ", the good news is there seems to be more appreciation now of what the private sector can do in global health. The sporting goods industry can play an important role in health improvement around the world, especially in the area of non-communicable diseases, or NCDs.

An increasing number of people want to be outdoors for leisure time activities, physical activities and sports in Europe. Running, biking, swimming, walking and outdoor fitness activities are listed as the most popular sports today. The need for more physical activity as a part of our daily routines is presenting new business opportunities and new players are entering our industry. According to statistics, 200 million are doing sports and physical activity on a frequent basis in the EU. 70 million from this group are engaged in sports activities through clubs and 130 million prefer to be physically active without a membership. They want to get new inspiration while they do sports outdoors, join a fitness club with flexible opening hours or be part of self-organized running, biking or fitness communities for outdoor activities. According to Eurobarometer, 48% of EU citizens prefer outdoor exercise to using indoor facilities, when they do sports. Borders between training routines for sport at all levels and for everyday physical activities are blurring. Grassroot sports are becoming main stream and frequent physical training for a good health and life can combine traditions within sports with new trends of cultural and social habits. Trampolines and bouncy castles for kids, new GPS and tracking devices, motivation enhancing programs for outdoors, inspirational running and biking routes, challenges from social media and many other new areas open new product and business opportunities. The running industry has experienced tremendous growth in the last decades. Now, the biking industry is expected to move forward as more and more people will be jumping on the bike – whether it may be for transportation, environmental or health reasons. The outdoor industry has benefited from increasing interest and search for experiences in nature. Youth-related activities such as skateboarding,

" Today 40 % of the European Union citizens say they are regularly active. However, in some countries the level is more than 60%. We should have as common goal to close this gap by having 100 million more active in 2020. Such target should be a common goal and including various sectors such as ; sport, health, education, urban and outdoor planning, transportation and not least the sporting goods industry, " says ISCA President Mogens Kirkeby.

By Dr. Téa Collins, Executive Director, The NCD Alliance

parkour, BMX and trial action and street soccer are becoming more visible in urban spaces in cities. Public institutions, research and education centers, user organizations and commercial partners are forming new partnerships to find inspiration for new ways of promoting and supporting innovative and sustainable development through physical activity. Sports facilities and sports halls have been the traditional center for sports clubs and a frame around sports activities. Today, physical activity is no longer limited by the availability of facilities with walls and ceilings. Nature trails and theme routes, mixed with virtual gaming and technology based products and events offer new outdoor opportunities combining exercise and experiences. We are facing a worldwide epidemic obesity situation ; due to lack of physical activity all stakeholders must find new ways and new products motivating more citizens to a healthy lifestyle and more sports and physical activity. The sporting goods industry can initiate and support initiatives locally and worldwide to build platforms together with sport- and health organizations, NGO's, local communities and others. ■

In September 2011 the United Nations held a Summit on the prevention and control of NCDs, the second time in history that governments have discussed a global health issue at such a high level. It was a sign that NCDs are becoming an important topic in the world, but the challenge is too big to be tackled by governments alone. More than 63 percent of the 57 million global deaths each year are attributable to the major NCDs, such as cancer, cardiovascular diseases, chronic respiratory diseases and diabetes. NCD deaths are expected to rise in the coming years. The good news is that these diseases can be prevented by addressing their common risk factors, such as unhealthy diets rich in sugar and transfats, tobacco use, an excessive consumption of alcoholic beverages and sedentary lifestyles. The sporting goods industry has an especially important role to play here. According to the World Health Organization, 3.2 million people die each year because of conditions caused by physical inactivity, and at least 2.8 million people die because they are overweight and obese. The obesity epidemic is spreading, with some countries having more than 50 percent of their population obese. At least 60 percent of the world’s population fails to complete the recommended amount of physical activity of 30 minutes per day for five days a week. This presents sporting goods companies with a major opportunity, particularly in the rich

The sporting goods industry has an opportunity to create real shared value throughout society. market of children and adolescents. There is no doubt that positive lifestyle changes are beneficial at any age, but exposure to exercise and healthy ways of living at younger ages offers the greatest protection from NCDs. Improving physical activity among children, and creating healthy environments through early childhood physical activity programs, will have a tremendously positive impact. Apart from the goods and services it provides to consumers, the sporting goods industry can contribute major value as an employer. Creating a healthy working environment through workplace wellness initiatives, such as screening for diseases, tobacco cessation programs, flu shots and lifestyle improvement programs for employees, not only prevents diseases and improves productivity, it also generates a substantial return on investment at US$3.27 per US$1 spent. The sporting goods industry has an opportunity to create real shared value throughout society. As Michael Porter defined it in a recent article in the Harvard Business Review, shared value is " policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which [the company] operates. " Shared value is more than corporate social responsibility, where the goal is just to do good. Creating shared value is a true win-win for everyone. For companies, it is an opportunity to better connect their success with society, opening up many ways to improve efficiency, meet needs and expand markets. ■

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Integrating the Sporting Goods Industry into Systemic Approaches to Health Physical activity levels of a population will be a critical and leading indicator of the NCD story for current and future generations. By Caitlin Morris, Strategic Initiatives Director, Access to Sport, Nike The sporting goods sector can contribute much to reversing the global trend of inactivity. Over the past year, WFSGI and Nike have advocated for the importance of physical activity in tackling NCD’s and addressing one of the largest global drains facing the world economy.

and political advocates to advance the level of investment given to our field. US CDC head Dr. Thomas Frieden characterized the state of the debate during the UN civil society consultation last summer : " We know physical activity is the wonder drug, we just don’t have the proven interventions that we can scale. " The right interventions exist, and many of us in the industry have seen them, but initiatives and programs today live in a highly fragmented landscape, with isolated impact. For the sporting goods sector to accelerate the large systems change required to reverse the physical inactivity trend worldwide, we collectively must demonstrate that tackling a global health threat is a pre-competitive issue. Finding common purpose and opportunities to align to other stakeholders in our sector as a whole should come to us fairly easily. For example, the American College of Sports Medicine recently brought together academics, NGO’s, educators, athletes and Ministers of Health to discuss the value of sport and phy-

We know from experience that this systemic issue requires a global platform for multi-stakeholder dialogue to identify the most robust and significant indicators, funding for measurement, and development of institutional capacity at the global and national levels for effective implementation. Well-designed, scaled investments in sport and broad based physical activity are economically efficient, environmentally sound and socially high return mechanisms for addressing both the health and economic threats presented by NCD’s and a whole host of broader international economic & social development goals. One example from Nike’s investment portfolio is Let Me Play, a Chinese program providing teacher training, curriculum and sports equipment for physical education classes, while also developing migrant kids’ self-esteem and life skills. Since its launch in November 2006, the program has reached more than 435,000 youth in 360 schools in seven cities.

For the sporting goods sector to accelerate the large systems change required to reverse the physical inactivity trend worldwide, we collectively must demonstrate that tackling a global health threat is a pre-competitive issue. sical activity. This event catalyzed opportunities to engage national governments in the development of robust physical activity policies and plans across the " whole of government " and " whole of society ". Future success depends on our ability to join together as an industry and with others to develop coordinated approaches. We welcome WFSGI’s decision to create a committee on Health and look forward to the opportunity for the industry to discuss collaborative approaches to advancing " best buys " in physical activity. ■

We know physical activity is the wonder drug, we just don’t have the proven interventions that we can scale. In the broader political context of addressing NCD’s, our industry has some distinct advantages and disadvantages. We represent a positive, economically efficient action that can be utilized in both the treatment and prevention of multiple significant diseases lumped together under the vague banner of " non-communicable ". As such, the shape and form of participation of our industry in multistakeholder dialogue seems to generate significantly less contention than that of some other sectors.

For all the goodwill and enthusiasm by governments and UN institutions, however, we must still take significant action in collaboration with academics, NGO’s, health organizations

WFSGI Handbook 2012

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FAIR PLAY for BALL MAKERS As part of its battle against child labour around the world as well as its efforts to improve working conditions, FIFA has increased the requirements to be met by licensees in the FIFA Quality Concept for Footballs. By FIFA

It is not easy to judge the quality of footballs with the naked eye. Without guidance and assistance, people who buy footballs would have to choose from a wide range of products, and hope that the ball would still be as good at the end of the match as it was at kick-off. Therefore, to help guide customers and to guarantee that footballs are of the highest quality, FIFA launched the FIFA Quality Concept for Footballs in 1996 so that manufacturers could have their products tested and certified. To obtain such a licence, manufacturers were already obliged to confirm that no child labour had been used in their production processes. This requirement has been extended further, however, with licensees now having to comply fully with the code of conduct of the World Federation of the Sporting Goods Industry (WFSGI). Rather than focusing purely on the issue of child labour, this code also lays down internationally recognised guidelines for hours of work, health and safety and forced labour. The WFSGI will approve a pledge once they received the confirmation of the compliance with the WFSGI Code of Conduct, and licensees must now provide FIFA with a copy of this confirmation every year and no longer just every four years. This ensures that only companies that meet international minimum standards can become FIFA licensees.

" When FIFA issues seals of approval as part of the Quality Concept for Footballs, we cannot simply concentrate on the quality of the end product. We

must also check the quality of the manufacturing process and ensure that people are treated properly, " says FIFA Secretary General Jérôme Valcke. Federico Addiechi, FIFA’s Head of Corporate Social Responsibility, is delighted with this latest development : " For FIFA, social responsibility is firstly about promoting social development through and with football, but it is also about trying to eradicate social problems wherever we can. Guaranteeing minimum social standards in the production process of footballs that bear FIFA’s seal of approval is a key part of this concept. " In the same spirit, Addiechi also pointed out that FIFA has been making substantial investments ever since 1997 to support the ILO/IPEC (International Labour Organization/International Programme for the Elimination of Child Labour)programme " Elimination of Child Labour in the Soccer Ball Industry ". If a licensee no longer meets the stipulated requirements and fails to obtain the necessary confirmation from the WFGSI, FIFA can immediately withdraw the company’s licence. All licence fees from this project are donated to social projects as part of the Football for Hope movement. By purchasing a football with either the " FIFA INSPECTED " or " FIFA APPROVED " quality mark, buyers are therefore automatically supporting FIFA’s efforts to promote social development through football, safe in the knowledge that the working conditions during the manufacturing process also meet internationally recognised standards. For more on the FIFA Quality Concept for Footballs, please see www.fifa.com/theball ■

HEALTH & Corporate Social Responsibility

CSDO Sialkot–Pakistan There hardly exists any example where the Business Community has set-up an independent NGO within the Chambers to address the social issues of the industry especially child labour and socially responsible entrepreneurship. With the mutual harmony of the key partners of the Atlanta Agreement i.e. SCCI, UNICEF and ILO, CSDO was established on 22 July 2002 as an independent body to address the issues of Child Labour, CSR and social development in Sialkot. By Dr. Nouman Idris Butt, Representative of Sialkot Chamber of Commerce & Industry (SCCI)

The membership of CSDO (Child and Social Development Organization) is mandatory for all Soccer ball manufacturers participating in the Child Labour Elimination Programme (CLEP). It is important to mention that the business community of Sialkot especially the CLEP members have taxed themselves to run CSDO as part of their social responsibility towards the protection of children and social development. Since 2007, CSDO has been playing an important role in promoting the game of Football amongst children and youth of Sialkot with the financial support of FIFA through ILO-IPEC, and the business community of Sialkot. After the phasing out the FIFA and ILO-IPEC from the " FIFA Football Resource Programme " in Sialkot, the business community initiated to set up an independent body namely " Sialkot Soccer Promotion Board " to promote the game at broader spectrum. This initiative supplements the efforts of the business community of Sialkot towards CSR. CSDO is providing overall secretarial support to the Board. CSDO has been implementing " Child & Adolescents Protection Project " in collaboration with United Nations Children’s Fund (UNICEF) since May 2009. The main objective of the project is to create a protective environment for children at risk of abuse and exploitation by taking protective measures through non-formal/formal education, recreation, psycho-social support, awareness raising, skill enhancement for income generation, advocacy, monitoring child rights violations. It is indeed commendable that under this project 4,000 children are getting education in

formal and non-formal schools. It is important to ensure continuity of the project and expand its scope gradually to the entire region. Recently SCCI has taken the initiative to establish " Khud-Kifalat Rozgar Trust Sialkot " with the objective to generate self-employment opportunities by providing interest free microcredit to the deserving persons without gender discrimination. CSDO is providing secretarial support to the Trust. The Sialkot Chamber extends its full support to CSDO. Its patronage is a major source of strength to this organization. It encourages its members to participate in CSDO as part of their social responsibility towards the protection of © CSDO : Creating a protective environment for children. children and social development. Since the establishment of CSDO, WFSGI has been fully supporting the organization for the protection of children and promoting CSR practices in Sialkot. CSDO would prove a useful partner and provide an excellent platform to the potential donors for the proper implementation of their projects in and around Sialkot. It is an effective and credible platform to address the social issues of the industry. Hence, the international brands / buyers, FIFA, WFSGI, UN agencies, Government, SCCI, Business Community, trade bodies, etc. may collaborate with CSDO for the protection of children and address the CSR issues of the industry. ■

JOIN US FOR THE NOBLE CAUSE ! Child and Social Development Organization (CSDO) The Sialkot Chamber of Commerce & Industry building Paris Road, Sialkot-Pakistan Phone +92-52-4274781 Fax +92-52-4290508 Email info@csdopak.org Web www.csdopak.org WFSGI Handbook 2012

HEALTH & Corporate Social Responsibility

GSCP Equivalence Process

Shared Responsibility : Collaborating on Supply Chain Audits Benefits Everyone

Variations in social / environmental compliance standards, audit methodologies and requirements for auditing competence make it difficult for buying companies to trust and recognize each others’ schemes.

Shared responsibility : Globalization, with its volatile mix of economic opportunity and social disruption, has provoked many reports of exploitative working conditions in outsourced supply chain facilities. By Peter Burrows, Executive Director of Fair Factories Clearinghouse

Since the early 90s, companies have audited conditions in their supply chain to monitor worker health and safety, human rights, cargo security, and environmental issues. Developing comprehensive industry-wide compliance processes and tools for sharing audit information is difficult. Uncoordinated auditing of factories in the same locations has led to factory audit fatigue and excessive resources spent identifying not solving the issues. FFC, a non-profit founded in 2004, was created to help those sourcing in the same factories collaborate on improving ethical sourcing, monitoring factory conditions, and establishing clear corrective action plans. FFC offers software that enables its members to share information that ensures costeffective and well-informed ethical business transactions and improved workplaces globally.

From its inception, the FFC board concentrated on the compliance issues not yet tackled. While other organizations address audit harmonization, FCC focuses on the need for a system that offers sole responsibility for verifying conditions throughout supply chains, not a system merely based on factory-authorized audits of facilities. FCC extends this preference by broadening its solution with a multi-company collaboration environment that reduces audit fatigue, helps members increase their supply change coverage, and shifts attention toward factory capacity building. Among some FFC members, anonymity of the company and supplier relationship is important. The choice to associate a company name with a factory is entirely up to a member, who can elect to hide from the FFC community all factory relationships or hide them on a case-by-case basis. Around 40 percent of FCC members avoid public association of their name with their supply sources to protect new product development and contractual obligations or while familiarizing themselves with peer activity. ‘Hidden’ members can view posted audit information marked as open to all members sourcing in that factory, and may message members without disclosing their company name.

Global Social Compliance Programme founding members understood that such incomparability sustains confusion for suppliers and duplication in compliance monitoring, and may hinder collaboration. The GSCP Equivalence Process (EP) was therefore developed to overcome this by allowing organisations to benchmark their tools and processes against best existing practice as described in the GSCP Reference tools. These tools reflect a consensus-based interpretation of working and site-specific environmental requirements aiming at the greatest protection of workers and the environment in supply chains, and are available open source as a means to support upward convergence of approaches across sectors. The EP allows users – e.g. buying companies, initiatives, auditing bodies – to see where their

Additionally, FFC strives to help companies that are new to outsourced manufacturing. Many smaller members join simply to interact with more mature organizations. To address any potential anti-trust implications by information sharing, FFC offers one of the only compliance databases that sought and successfully received a US Department of Justice business review letter related to the design of its sharing platform.

Corporate commitment to social responsibility and the negative impact companies face when unacceptable factory conditions become public have pushed outsourced factory standards to its highest level ever. While companies often work together to harmonize audit approaches, the factory compliance landscape remains complex.

Extending data exchange across many organizations will require more harmonized approaches to factory compliance, and new international data exchange technical standards that can facilitate the exchange of audit information at the field-by-field data element level for proper data mapping. The FFC is represented in these multi-organization discussions and is providing the leadership on developing the technical data exchange standards.

Most companies cannot afford to inspect 100 percent of their supply chains and instead opt to focus on the greatest risks. To mitigate risks, factories need management systems and practices that ensure proper self-governance and sustainability.

For more information : www.fairfactories.org request a Go-to-Meeting software demonstration › at information@fairfactories.org, or contact › Peter directly at pburrows@fairfactories.org

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standards and tools stand vis-à-vis this commonly accepted, neutral reference – and, by triangulation, to understand how other organisations’ schemes compare to their own. This will provide the basis for further collaboration, creating the transparency required for organisations to trust others’ systems (e.g. ability to trust an auditing body’s competence by gauging its equivalence to the Auditing Competence Reference tool ; ability to trust and accept an audit report produced against a buying company’s requirements for social performance, etc.). The GSCP EP online platform is now available for use – join the effort towards harmonisation !

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More information on : www.gscpnet.com and www.gscpequivalenceprocess.com

Making retail a success

New strategies

Intersport is involved in all UEFA football events until 2018 Throughout the UEFA Euro 2012 and 2016, Intersport will be the " Official Sports Shop of licensed products " and has the licensing rights to produce its own licensed products.

Intersport is exclusively responsible for the onsite sales in the stadiums and the fan zones of the UEFA Champions League Finals, Europe League and Super Cup Finals until 2018. Furthermore, Intersport will also play a supporting role in other events such as the U21 EURO, the Euro Women and the Futsal European Championship. Adidas assigned Intersport all these rights as a part of a global strategic football partnership. In the last years, Intersport already executed onsite sales at many large sporting events such as the UEFA EURO 2008, Handball World Championships, Basketball World Championships, FIS Alpine and Nordic World Championships. " At the FIFA World Cup 2006 in Germany, we experienced how the event marketing respectively sales in the stadiums and fan zones (public viewing) was booming. For this reason, we set ourselves the goal to play a leading role in this area. In the future, we will more closely combine our worldwide sponsoring activi-

ties at large sporting events with retail activities in stadiums and fan zones, as well as in stores, " says Franz Julen, CEO of Intersport International.

Great challenges especially with onsite sales are timing and logistics. Besides sales at events, Intersport will further promote commercial rights, such as " Official Sponsor " or " Official Sports Shop " in the stores, in order to further differentiate from the competition. " No other sports retailer can offer a pan-European retail execution to large sporting

federations, " adds Franz Julen. In this respect, Intersport will guarantee to UEFA, as for the EURO 2008 tournament, 800 UEFA corners in at least 20 countries in which fans have access to UEFA EURO products during the UEFA EURO 2012 and 2016.

" Sport to the People " – the motto of Intersport’s shops. The picture below shows one of the operated shops at the UEFA Champions-LeagueFinal 2011 at the Wembley Stadium in London. You can call it a " logistic competition " – more than 86,000 pcs of products have been delivered and allocated to more than 20 stores in and around the stadium for the Champions-LeagueFinal 2011 in London.

Adidas is the world's leading football brand and Intersport the world's leading football retailer. Intersport and Adidas have had a successful and profitable co-operation for many years. Adidas entered into a long term partnership with the UEFA. " Transferring different of these rights to Intersport until 2018 is part of a global partnership and therefore the logical result of a long term beneficial co-operation, " states Franz Julen. Great challenges especially with onsite sales are timing and logistics. Bestseller products at all events are the so-called friendship shirts, scarves, caps with club logos, teams, dates and stadium. Since the opposing teams are often only determined on short notice, the ontime production and delivery of these products is a big logistical challenge. " We are well organized in this area, with the necessary know-how and reliable suppliers available and last but not least, our National Organizations in every European country and the corresponding retail network, " concludes Franz Julen. ■

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Making retail a success – New strategies

The European sports market is growing by leaps and bounds – Sport 2000 International is following suit In 2010, nothing was as it had been back in 2000, and in 2020, nothing will be as we experience it today. By Wolfgang Schnellbügel, Managing Director of Sport 2000 International

The European sports market is growing by leaps and bounds, and we at Sport 2000 International are in a leading position in this trend. Our members' strong advisory skills, particularly in the European core countries such as Germany, Austria, the Netherlands, Switzerland and France, and our well-kept tradition of absolute closeness to sports on a regional, national and European dimension creates our excellent starting position for continued growth. At Sport 2000 International, our focus is on the local specialised sports shop just as much as on the link-up of the 27 EU countries' national sub-markets to form one European sporting goods market which we have successfully addressed. And we are always aware : " retail is local " holds true in Europe, too. This is how our commitment to the retail board of the World Federation of the Sporting Goods Industry must be viewed. Our evaluation of the market opportunities for the European sporting goods trade in all 27 EU countries and the candidate countries until 2020 is supported by the latest economic and socio-political findings of the EU government. They are summarised in great detail in a communication by the EU Commission to the European Parliament published on 18 January 2011 which is entitled " Developing the European Dimension in Sport ". This communication reads, " Sport has a strong potential to contribute to smart, sustainable and inclusive growth and new jobs through its positive effects on social inclusion, education and training, and public health. It helps limit the rise in social security and health expenditure by improving the health and productivity of the population and by ensuring a higher quality of life through old age. Sport represents a large and fast-growing sector of the economy

and makes an important contribution to growth and jobs, with value added and employment effects exceeding average growth rates. " Against this background, our objective for 2020 is that our offers to the partners of Sport 2000 International will strengthen their role as specialised sports shops, known all over Europe for their advisory skills and their focus on innovation and service in sports, with an authentic and passionate entrepreneurial-minded person working locally. In this competition for influence and revenue in the future of Europe, we are particularly faced with well-organised sporting goods chains in the central, eastern and southern European countries on the one hand and also with the continuously increasing commercial offer of our large international brand partners on the

part of the industry. The changing communication and buying habits of the new generation of consumers will require us to provide hybrid models which link the local business presence with virtual information and buying incentives in the next few years. In the coming years of increasingly fierce European competition for the sports and leisuretime budgets of more than 500 million consumers, we at Sport 2000 International will drive our continued and close cooperation with the A-brands of our industry : most importantly, cooperation with the adidas Group (adidas, Reebok and Taylormade), followed by the Amer Group (Atomic, Salomon, Wilson, Suunto) and Asics and Puma. On the basis of the general promotion of sports in the EU described above, we will jointly work to develop new, interactive ways of selling in which virtual offers and active offers on-site will be linked to boost revenues and brands. As an informal platform for discussion, we use the opportunities created by our involvement in the relevant task forces of the World Federation of the Sporting Goods Industry.

In national and international competition, we also rely on our sustainability initiative " Green and Fair ", the seal of quality for products, arrangements and campaigns made or conducted under the aspect of sustainability. They contribute to keeping our surroundings and environment a good place to live in and assume ecological and social responsibility. Green & Fair informs and raises awareness. The Green & Fair label is not a new, additional certificate. Rather, it collectively comprises the existing credible, registered national and international certificates. Sport 2000 will focus on working with national and international suppliers who position themselves to use Green & Fair products. Currently, their share is below five per cent, but we intend to raise it significantly in the next few years. Suppliers who refuse to address this issue will not be listed by us any longer in the medium term. This is another reason for us to actively participate in the boards of the World Federation of the Sporting Goods Industry.

Changing communication and buying habits of consumers will require us to provide hybrid models which link the local business presence with virtual information and buying incentives. In the competition of the major brands in the European market, which is increasingly influenced by tightly managed premium brands of multinational chain stores, we rely on the strengths of our successful premium brands. The emphasis is on the " High Colorado " outdoor brand and the "stuf " trend brand. This means that we will continue to stay on the cutting edge of the European market, whose growth reserves are located in the complete outdoor range as well as the young trend sports segment.

Sport 2000 International is aware of its significant role in the European market as one of the leading confederations of retailers. For this reason, we are developing strategic concepts for our partners' day-to-day work on site, which will have a positive impact on the entire European market over the next few years. They include the targeted advancement of our brand concepts, ranging from the visibility of Sport 2000 as a retail brand, cooperation with A-brands and the expansion of our E-brands to our ecological footprint. As a European confederation, we feel connected to our local partners, also as part of the EU project of HEPA – Health-Enhancing Physical Activity. The EU Commission believes that physical exercise could be promoted even more, starting in the national educational systems. All European sporting goods dealers will benefit from the EU activities. And of course we, Sport 2000 International, will play a leading role. ■

WFSGI Handbook 2012

Making retail a success – New strategies

The State of Sporting Goods Retailing in America Sporting goods retailing in America has a number of trends that define its current state and future potential. By Bruce Hammond, Director of Marketing & Communications National Sporting Goods Association The first trend is cautious optimism reflected by stability and moderate growth of the sporting goods industry as a whole in America during 2010. According to the Sporting Goods Market in 2011 report produced annually by the National Sporting Goods Association, the sporting goods industry saw modest growth in terms of consumer purchases of athletic & sport clothing, footwear and equipment during 2010, rising 5% to $53.7 billion.

Moderate growth - increased technological usage - continued consolidation. The exercise equipment segment of the industry is the largest segment, with $5.4 billion in sales. Walking shoe sales dominated the footwear category, with $4.3 billion in sales, and exercise walking clothing led the clothing category with $1.6 billion. The second trend that can be identified in the sporting goods industry in America, relative to retailers specifically, is the ever growing use and adoption of technology both by the companies and by consumers today. The Internet is being used across the industry in many ways, including to sell merchandise to consumers through ecommerce sites. Many retailers have decided that selling online is a benefit to them due to their increased exposure and potential for additional sales, while others have decided to utilize the Internet to showcase the features of their products and push people into the stores for purchases. In addition, Sporting Goods retailers in America understand that the growth and variety of technology that consumers are utilizing today provides more personalized experiences in the store, while also allowing for more access to, and desire for, customer service.

Retailers are utilizing tools like Facebook and Twitter to engage with their customers more regularly and in the places they are interested in connecting, while also utilizing online coupon tools to offer consumers discounts in their stores. All of these efforts are meant to drive more traffic, engagement and sales with today’s technologically savvy customers. In addition to the market growth and increased technological usage, the continued consolidation in the sporting goods industry is another trend worth mentioning.

What do you think about... …your market situation ? Intersport, market leader in multi-sport retailing in Korea By Kyu Sik Oh, Executive Vice President & CFO, LG Fashion Corp., Korea

… Status of the Korean sports retail market With the 1988 Olympic Games in Seoul and the 2002 FIFA World Cup the interest in sports in general and in doing sport in particular was increased in Korea. Ever since these two events, the Korean sporting goods market has been growing. The IAAF World Championships in Daegu in 2011 as well as the 2018 Winter Olympic Games ensure that this growth will continue also in the future.

…Intersport Korea In April 2009, LG Fashion Corporation entered a Master Franchise Agreement with IIC-Intersport International Corp. for the Territory of Korea. In February 2010, the first Intersport store was launched in Seoul. Two more store openings followed the same year in April and September. With Intersport Korea’s offensive expansion plan, another 3 stores have been launched during the first half of 2011. Currently Intersport Korea is running six stores (with an average sales surface of more than 2,000 square meters) in Seoul, Busan, Daegu, Jeonju and Chungju and it is planning to open five more stores in major cities in 2011. In order to

build an Intersport network all over Korea, Intersport Korea is planning to open further big stores in the years to come.

...The influence of Intersport Korea on the Korean sports industry During the past years, the Korean customer more and more moved from spectator to participator. However, with the Korean sports retail industry being marginally developed, the customer only had access to limited sports categories in mono-brand stores. With Intersport entering the market, the customer can encounter more than 15 sports categories with 150 brands and running trial zones under one roof. Intersport Korea has therefore positively influenced the Korean sporting goods market. It is Intersport Korea’s aim to further increase the awareness of sports in their customer’s minds in order that sport becomes part of the everyday life of each Korean. ■

As of the latest U.S. Census of Retail report in 2007, the top 8 full-line sporting goods retailers increased their number of stores by 66.9% between 2002 and 2007. This increase happened while the percentage change for all full-line sporting goods stores overall declined 6%.

The National Sporting Goods Association (NSGA) consists of retailers/dealers/ wholesalers, manufacturers/sales agents and industry associates in the sporting goods industry. NSGA retail members operate more than 22,000 retail and Internet outlets that sell sports, fitness and recreational equipment, footwear and sportswear. NSGA provides advocacy, education, publications, research & information and a Sporting Goods Industry Hall of Fame. www.nsga.org WFSGI Handbook 2012

more than a sport – Mobility for the future

BICYCLE

New York City recently announced that in the summer of 2012, the city will unveil 600 bike share rental stations with 10,000 bicycles, and in preparation, the mayor has opened up 250 miles of bike lanes. San Francisco, California and Chicago, Illinois also have programs in the works.

Local Leaders Embrace the Answer to Urban Congestion : The Bicycle By Patrick Cunnane, President and CEO of Advanced Sports International. He serves on the boards of Bikes Belong, the National Foundation on Fitness, Sports and Nutrition, and the Bicycle Product Suppliers Association.

Every year, I ride the 4-mile Philadelphia Commuter Race course through the crowded streets of downtown Philadelphia. And every year, I beat my transit competitors : a car, a subway train, and a bus – who inevitably get lost in the sea of beeping taxis, halted buses, motionless cars, and streaming pedestrians.

Patrick Cunnane

While I’d like to attribute the victories to my skill and speed, the truth is that a bicycle is simply the most efficient machine for tackling urban congestion.

The average American commuter was delayed approximately 34 hours in 2009, according to the Texas Transportation Institute (TTI). That same year, reported TTI, the total amount of fuel used amounted to a whopping 3.9 billion gallons in the U.S., costing the average commuter $808 – in total, nationwide : $115 billion. While overall traffic congestion declined during the years of the recession – with 2008 marking the best year for commuter transit in a decade (TTI) – as the economy begins to recover, so to does the traffic. In the current economy, national and federal governments don’t seem to appreciate the value of

the bicycle as a problem-solving tool for many of the issues our world faces – namely obesity, global warming, and urban congestion. And we can’t wait for them to come on board – the good news is that we may not have to.

emergence of the " Go Green " movement – bike share programs began springing up across the nation. Washington, D.C. adopted " Capital Bikeshare ", Denver, Colorado " B-Cycle ", Minneapolis, Minnesota " Twin Cities Bike Share ", and college campuses like Emory University in Atlanta got in on the action with " Bike Emory ".

Local leaders in towns and cities across the globe have embraced the bicycle as a new, superior mode of public transportation. Bike sharing programs have popped up in cities all across the world, including Paris, France ; Medellín, Colombia ; Montreal, Canada ; Melbourne, Australia ; and Hangzhou, China – the largest bike share program in the world with 50,000 bicycles.

How do we combat the impending congestion surge? With two wheels.

While each city’s program varies, a bike share program traditionally makes bikes available to the public for sharing via a terminal or checkout station. The bike is unlocked from the station after a cash or credit card deposit or the swipe of a membership card. Stations are then placed throughout the city, allowing users to board their bike at Point A and drop it off at Point B, all the while avoiding the clutter of traffic-snarled city streets. While the U.S. seemed at first hesitant to adopt the two-wheeled international phenomenon, in 2008 – with gas prices on the rise and the

Bikes Belong, an organization devoted to advocating for bike safety, lobbying for federal funding for bike lanes and paths, and awarding grants to municipalities for bicycle-friendly communities, hopes to inspire more bike share programs in the U.S. through its program " Best Practices ", which brings mayors from U.S. cities to Europe to discuss how efficient and livable cycling makes cities. But it appears they no longer need much convincing. Local leaders understand that increased use of bicycles for transportation makes their cities better. Not only does it make their citizens healthier, reduce carbon emissions, and save money ; it decreases the number of vehicles on the road, thereby reducing urban congestion. Two wheels are the answer to urban congestion, and I applaud our local leaders for realizing it. ■

WFSGI Handbook 2012

Bicycle – more than a sport – Mobility for the future

THE MORE EFFECTIVE " THERAPY " TO CURE INFRINGEMENTS By Marco Mario Locatelli, Italian lawyer at Studio Legale Prof. Massimo Cartella, Milan, Italy

For manufacturers (owner of IP rights – trademark, design or patent–) the damage consists in the loss of profit and the trademark reputation damage. For the consumer the main damage is of course the physical damage in case the fake product crashes. In Europe, the most effective way of protecting of IP rights is the Council Regulation (EC) No 1383/2003 of 22 July 2003 concerning customs action against goods suspected of infringing certain intellectual property rights. This procedure having effect in the EU allows the IP owner to ask the national customs officers for free, to stop the importation of suspected products. After the stop of the suspected products, the owner of the IP rights shall decide to : waive the action ; start a criminal proceeding ; start a civil proceeding. In Italy, there are three ways of protecting of IP rights : extra judicial (cease and desist letters) ; judicial ; third, judicial, in front of the criminal court. Whatever way of protection is chosen, in order to obtain prompt protection of IP rights in Italy, it is very important that the shape and/or the technology, and/or the brand on the products, have been duly registered. The trademark registration is the easiest way to entitle the owner to ask for immediate intervention of the public authorities in case of commercialization of similar or identical infringing products. As a matter of fact, the brand is the first sign that is copied by the infringer in order to attract the consumer to buy the fake product. In case of exact copy of the original product – same shape and brands, the most effective and cheaper way of protection is the criminal proceeding. This allows the owner of the IP right to obtain within one month a seizure of the infringing products by the public authority. To obtain the criminal seizure it is necessary to recover all evidences of the infringement and provide them duly organized to the

competent authority. For instance, in case of sales of fake products on the internet, it is recommended to : buy the fake product ; keep any document referring to the expendi ture of the product and receipt of payment ; get information referring to the place of expenditure ; write a technical expertise that shows the diffe rences between original and fake ; file a declaration in which the owner of the IP right describes the infringement and informs the Criminal Public Authority that manages IP cases. Within about two weeks, the officers of the " Guardia di Finanza ", seize the fake products and inform the Criminal Court. The owner of the IP right has, thus, achieved the most important task : the interruption of sales of the fake products. After the start of the criminal proceeding there is a greater chance to start negotiations with the infringer – also for reimbursement. The criminal way of the protection of IP rights in Italy, in case of fake products, is faster and cheaper compared to the civil way.

In 2010-2011 the described way of IP right protection has entiteld a wellknown company in the bicycle industry the seizure of fake seat posts, handlebars, stems and wheels. In all cases, the start of the criminal action has granted the seizure of the products in a few days. In two cases the infringer has reimbursed the suffered damages. In two cases the IP owner ascertained the infringement, after the consumer activated the warranty and showed the fake product to the IP owner.

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Bicycle – more than a sport – Mobility for the future

We are the professional and passionate companion that enhances the individual capabilities of every athlete by understanding their personality and needs.

Young & BIKe : What the Italian Cycling Federation is doing for… The Italian Cycling Federation (Federazione Ciclista Italiana – F.C.I.) has the task to provide for the development, promotion, discipline, organization and protection of the cycling sport throughout the country. By Renato Di Rocco, President of the Italian Cycling Federation

INTERNATIONAL EXPERTS COMMUNITY RETHINKING BOUNDARIES

EXPERTISE THROUGH PASSION PERSONALLY CARING FOR OUR CUSTOMERS

In doing so, the I.C.F. has always had a heightened sensitivity for the younger generation to whom it dedicates specific initiatives. With the special consideration of the game, movement and health of young bikers, a natural attention of the promotion of cycle sport is given. The activities for youth cycling are open to boys and girls from 7 to 12 years old (junior category) and are managed by a specific unit – the F.C.I. youth sector. The most important event in the youth sector is the National Meeting for youngsters, established in 1984. The meeting of young people highlights the game more than the competitive spirit. Therefore, the technical approach to cycling has been more toward the sportsgame with a focus on educational aspects that takes into account the different stages of physical and mental growth of children.

The National Meeting Day for the young riders includes more than 1,600 events per year and is carried across the country thanks to the presence of more than 950 teams. At the peripheral level it is coordinated by 103 Provincial Committees and by 21 Regional Committees. In Italy there are about 14,000 children and young people involved. One of the most important aims of this activity is to promote a constant and structural relationship between the sport team of the local area and the world of school.

For this purpose, in 2007 the F.C.I. the project called " Pinocchio in bicicletta " (Pinocchio on bike) was born. The project aims at the promotion of the correct use of the bicycle of boys and girls from 7 to 12 years and the development of cycling skills with a specific attention to road safety education and environmental education. However, the promotion of cycling, particularly for young people, is not possible without a fundamental prerequisite : safe cycling. Therefore F.C.I. has developed a cooperation agreement with the Italian National Road Safety (organism of the National Committee of Economy and Labor), from which the project TANDEM has been stemmed. TANDEM led to the creation of a forum with the aim of developing actions to educate road safety and promoting infrastructure and regulations.

www.sport2000international.com

MORE THAN 3.500 RETAIL STORES IN 25 COUNTRIES

Specific pilot projects stimulate the strategic development of bicycle mobility in the everyday movement like " home school path routes " that have been developed throughout Europe. ■

WFSGI Handbook 2012

Bicycle – more than a sport – Mobility for the future

How can cycling be made safer ?

Trek bicycle corporation, John Burke gave a talk at the Taipei bicycle trade show in 2007, where he revealed that for every $100 of sales, bike companies typically spend $3.90 on marketing, $1.60 on R&D but just 10 cents on advocacy.

Ask a person why they don’t cycle, and they’re likely to answer : " it’s just not safe ". Research conducted by the UK Department of Transport in 2010 revealed that six in ten people living in the UK won’t cycle to work because " it’s too dangerous ". By Manfred Neun, President European Cyclists’ Federation (ECF) with assistance from Martti Tulenheimo and Julian Ferguson © ECF : Women would feel better if there were more products aimed at them.

Getting more people on bicycles is not only in the interests of cycling advocacy groups but it’s also in the sporting good industry’s best interests. More people cycling will mean more products being sold. So how can the industry make sure that cycling is safe and durable for the everyday consumer ? In terms of product, quality is the key. Poor quality bicycles are often heavy, the wrong size, components are not of workable quality and the bike is often uncomfortable to ride. The national cycling advocacy group in the UK, CTC, coined these machines " Bicycle Shaped Objects " or BSOs. They may look like bicycles, but they’re not useable as a bike and often lack some of the essential supporting accessories for daily use, such as locks, lights and mudguards. To put it bluntly, shortcuts on quality are likely to leave the consumer feeling unsafe and unlikely to get back on a bicycle in the near future. Integrating lights onto a bicycle, instead of putting the burden on the consumer is also a good safety option. In the same way a car driver wouldn’t purchase his lights, cyclists may feel that little bit safer having lights as a built-in feature of their bicycle.

Safety in Numbers 936

105

80 600

Cycle fatality

Italy

Austria

136

322 41

400

12 Denmark

Cycle use

75 France

75 UK

251 154

271 20

300

Belgium

Finland

Germany

Netherlands

Sweden

200 0

Km cycled per person per year

800

Let’s be honest, cycling is not the risky activity that some would have you believe. There is one death per 33 million km of cycling ; it would take the average cyclist 21,000 years to cycle this distance. Even in countries such as the UK and Spain, which are different from the cycling havens of the Netherlands and Denmark, cycling also gets safer the more cyclists there are on the road. So the question remains for the industry, how cycling products can make the consumer overcome this perceived danger. Are Helmets and vests the answer ? Our response would be a firm no. Encouraging cyclists to wear helmets and jackets adds to the perceived danger of cycling and is something that we strongly oppose. For people to stop fretting about the " dangers " of cycling, it needs to become a normal activity.

It’s all about perception : normalizing cycling

1000

848

100

Spain

Cycle fatalities per per bn-Km cycled

120

Is cycling really that dangerous ?

It’s worth considering producing products that make cycling appear to be a normal, everyday activity. Indeed, it is often said of the Danish that they have " the same relationship with their bicycle as they do with their vacuum cleaner ". In Amsterdam, cycling is like breathing – everyone does it without a second thought. In other words, riding a bike is normal and it’s safe. The growing " Cycle Chic " culture has shown that cycling, if marketed properly, can be seen as something which is safe and trendy. While there is definitely a market for the sporty cyclist, consider making products which appeal to utility cyclists and non-cycling urban commuters.

Perhaps one of the real losers when it comes to cycling products is women. The current market is dominated by men, and on several occasions we’ve heard ECF members say that women would feel better cycling if there were more products aimed at them. In other words, being able to go shopping in a summer dress should be an option, and the design of a bicycle definitely has a role to play.

Burke was quick to highlight that " it doesn’t make sense. As an industry we need to look at how we spend money. Why do we spend the amount of money on marketing and product and little on advocacy ? "

At the end of the day, more money on advocacy and more spending on infrastructure is the only sure-fire way of making cycling safe. And it’s likely that if cyclists feel safe, then they’re likely to spend more money on cycling products, especially when it’s their main mode of transport. ■

Having bikes which allow people to take their bike with them on public transport is also good. For some living outside urban areas, the everyday trip to the shops is not usually catered for, with the result that would-be cyclists are discouraged by journeys that are too long, too steep, too bumpy or too scary. The option of putting a bike on a bus for part of a trip can solve these problems. There’s a growing range of bicycle products which can help this intermodality. It’s worth considering for example the weight of a bicycle, and how difficult it is for somebody to carry it onto a train or bus.

At the end of the day, it’s all about Infrastructure No matter how far one goes with product, and no matter how safe a bicycle is, better cycling infrastructure is on the only way to truly make cyclists feel safe. A recent study from Lancaster University entitled Understanding Walking and Cycling, noted that " most non-cyclists and recreational cyclists will only consider cycling regularly if they are segregated from traffic ". This means that if the cycling industry is serious about cycling and safety, and if they want to get more people on bicycles, then they need to invest a little more in bicycle advocacy.

ECF President Manfred Neun is a German Entrepreneur and a key figure in the world of cycling advocacy in both Europe and abroad. Neun is regularly invited to transport and cycling related conferences around the globe to advocate for procycling policies and uses his business background to bridge the gap between cycling advocates, industry, politicians and experts. A regular on the conference circuit, Neun also has extensive connections within the cycling Industry, often being referred to as the " father of the trekking bike ", a model which he pioneered in the 80’s in Germany. Mr Neun has been the President of ECF since 2005 and represents ECF worldwide.

WFSGI Handbook 2012

Bicycle – more than a sport – Mobility for the future

The rider’s physical qualities must remain at the core of performance " The UCI is delighted to be working with the cycle industry. We are perfectly aware of the efforts made by the manufacturers, who work very hard and professionally to develop high performance level, innovative products which adhere to strict safety standards. We are very satisfied with our cooperation in the affixing of the " UCI Approved " label, which guarantees access to approved equipment for all categories of riders involved in competition, " says Pat McQuaid.

frames with the label are now arriving in the field. It’s a very efficient system.

in domains such as safety, checks made during the races and analysis of textiles for example.

How are you working with the Laboratory of Polymer and Composite Technology of the Ecole Polytechnique Fédérale de Lausanne (EPFL) ? Professor Manson, and his team, provide advice and support UCI’s research by conducting studies

Finally, what are your goals for the future ? We plan to develop several kinds of labels. Wheels, saddles, handlebars and clothing – including textiles – will in the long run carry a label in order show compliance with the core values of cycling : performance, equal opportunity and fairness in competition. ■

Interview with Pat McQuaid, UCI President

What is the focus of UCI interest in the development of equipment ? To guarantee fairness in competitions, equal access to technology, and rider safety, the UCI has strengthened its regulations and increased its cooperation with the cycling industry, to implement an approval procedure for all frames and forks used in competition.

The label guarantees competing riders of all categories have access to compliant equipment for every race carried out under UCI rules.

In 1996, during the Olympic Games in Atlanta, we had noticed a lack of uniformity in the equipment. The UCI thus began a study which resulted in the " Lugano Charter ", written by the cycling community in consultation with manufacturers. The charter states that the physical qualities of the rider must remain at the core of the sporting performance and take precedence over the machine. The first regulations relating to the equipment were established with this in mind, and took effect from 1st January 2000. What has changed over the last few years ? The UCI has moved closer to the cycling industry in 2009, after the 2008 Beijing Olympics. The aim of this cooperation was to establish an " Approval of Frames and Forks " procedure in order to reduce the number of problems encountered in the field. With the introduction of the " UCI approved " label, we can be more proactive in working with the manufacturers prior to the development of the equipment. Our regulations must guarantee both fair competition and safe equip-

ment. Therefore we systematically consult the manufacturers during each regulatory change, and establish a good contact with them. The approval procedures are a part of that process. What are the advantages of having a label ? The UCI owes this service to the users and to all the members of the cycling community, as well as to the manufacturers : a product with a " UCI approved " label is a compliant product. The label guarantees competing riders of all categories have access to compliant equipment for every race carried out under UCI rules. For example, when a cyclist buys a frame bearing the label, the parents of a young rider can be confident that they are investing in equipment which should be problem-free during a competition. In the field, the work of the UCI Commissaires is simplified, he or she simply needs to check whether the label is in place. Currently, over fifty forks and frames have been given the " UCI approved " label, with fifty others in the process of getting approval, and the first

Bicycle – more than a sport – Mobility for the future

ISPO BIKe : A new member of the ispo family BIKE EXPO was renamed ISPO BIKE in order to integrate the event into the international sports business network ISPO. For more than 40 years ISPO has been renowned for global competence and is considered the trendsetter for the world of sports. ISPO’s innovative services and extensive contacts will also benefit the participants of ISPO BIKE. Each individual exhibitor will be able to increase exposure and thus profitability. In order to provide an even higher degree of professional support of all participants, ISPO BIKE now has its own dedicated project management team with a long-term experience in the trade show business and access to a highly qualified network of colleagues all over the world. ISPO BIKE recognizes its role as partner and service provider for the entire cycling industry ; therefore the management reacted to the industry’s prevalent wish to move the event to a date later in the year. ISPO BIKE 2012 will therefore be held from August 16th to 19th. On one hand, this date meets the production cycles of the industry ; on the other hand, retailers will have a better overview of the current sales season and will be able to plan their orders more efficiently. ISPO BIKE provides the ideal blend of the commercial aspects of the bike business with the emotional aspects of cycling sports by combining an information-filled trade show with an experience-oriented side event program. The segments are designed specifically to take the requirements of both the professional and public target groups into account. The days reserved for industry professionals guarantee a pleasant working atmosphere and offer retailers the opportunity to partake in targeted training classes and retail seminars, as well as intensify their new knowledge with the help of hands-on demonstrations on the available test tracks. Finally, on the days open to the public the exciting event program invites consumers to participate and enjoy.

The topics Electro, Urban, Mountain and Road will continue to have their dedicated sections at ISPO BIKE including authentic side events complementing the individual segments, such as MTB contests or E-Bike

test tracks. The segment-specific concept of ISPO BIKE will provide an easy-to-navigate and homogeneous structure, offering a comprehensive representation of the entire cycling market at the same time. All this allows an optimum orientation as well as an effective and efficient visit to the fair participants. The excellent infrastructure of the New Munich Trade Fair Centre – from 16 generously designed exhibition halls to an easy-to access traffic network and plenty of hotels in the vicinity – offers the ideal environment for future growth for all exhibitors, segments and the entire market. The global range of ISPO’s communications services as well as the high degree of media presence at ISPO BIKE increases the exposure of all trade show participants and also supports their growth. Of course, ISPO BIKE will remain true to its motto " Bike Business Meets Bike Passion ". The unique combination of a communicationrich working atmosphere and an experienceoriented side event program will continue to provide exhibitors, visiting industry professionals and consumers with an all-encompassing trade show experience.

Tested. Certified. Played. Not only the teams have to qualify. Even match balls have to perform at the top level to be awarded the FIFA INSPECTED and FIFA APPROVED Quality labels. The rigorous testing ensures quality for your game – no matter how many

■

fans are cheering. Tested by professionals, played by stars, made for you.

Quality for your Game

no excuses.

www.fifa.com/theball

WFSGI presentation

Sustaining members The sustaining membership is a complimentary membership. Companies that choose to be a sustaining member demonstrate a strong identification with the WFSGI and its objectives.

The WFSGI thanks all sustaining members for their confidence and support !

WFSGI Board of Directors

discover the wfsgi The WFSGI is an independent association formed by sporting goods brands, manufacturers, suppliers, retailers, national and regional federations and other sporting goods industry related businesses. As a Nonprofit organization without any objective of economic character for its own gains, it is the world authoritative body for the sporting goods industry recognized as the global voice of the sporting goods industry.The WFSGi is officially recognized by the IOC as the industry representative within the Olympic family.

What is the role of the WFSGI?

Support and promote the sporting goods industry world-wide by providing the platform where our members forge the tools of their cooperation to promote fair trade in order to increase the sport participation in the world and improve the well-being of mankind through the practice of sports.

Keep our members updated on im portant laws and regulations like on product safety, on standard ization and on working conditions.

How does the WFSGI work ?

Act as the voice of the sporting goods industry toward international organizations (ILO, WTO, UN, etc.) and international sport organizations (IOC-International Olympic Committee and IFs-International Sports Federations). ■

The WFSGI is composed of seven committees that exchange information on various issues and topics:

President

Brands

Executive Committee

Manufacturers WFSGI Secretariat

Members Retailers

Board Committee

Associations

Committees

CSR

CISO

Bicycle

Legal (IPR)

Trade

Federations

Manufacturers

APACHE WFSGI Handbook 2012

WFSGI PRESENTATION

Wish to become a WFSGI member ? Apply Now ! WFSGI Membership fees are defined according to company turnover (if you are a company) or association size (if you are an association). If you wish to become a WFSGI member and to know your 2012 fee, fill in this form and send it back with your company profile by fax to +41 31 939 60 69 or by e-mail to rdekock@wfsgi.org. We will immediately contact you and inform you on the next steps.

You are

(Tick your category and turnover):

Industry Supplier / Industry Supporter Turnover in USD

Fees in CHF

>5 bln

30’000

2.5 bln > 5 bln

25’000

1 bln > 2.5 bln

20’000

500 mln > 1 bln

15’000

100 mln > 500 mln

10’000

50 mln > 100 mln

7’750

30 mln > 50 mln

5’000

Company Turnover

National / Regional Organization Evaluation Scale Regional

Single Member Country member from the regional organization

National

Fees in CHF

Association Category

12’000 Plus 4’000 per country

Large

12’000

Medium

8’000

Small

4’000

You would like to be also a Sustaining member

10 mln > 30 mln

3’750

5 mln > 10 mln

2’500

2.5 mln > 5 mln

2’250

Gold (20’000 CHF)

1 mln > 2.5 mln

2’000

Silver (10’000 CHF)

<1 mln

1’500

Bronze (5’000 CHF)

(see www.wfsgi.org for your benefits) :

Details about your Company or Organization Name : Address : Zip Code / City : Country : Phone : Fax : E-mail : Website : If you are an Industry Supplier or Supporter, specify your type of activitiy : Brand Retailer

Manufacturer Other:

Importer / distributor

Products / Trademarks / Services : Name of President / CEO / Owner :

With more than 5'300 associated retailers in 40 countries, INTERSPORT has the worldwide leading position in the sporting goods retail market. Visit us at www.intersport.com

We hereby confirm that we have read and understood the WFSGI By-Laws and Code of Conduct and we agree to become a WFSGI Member : Place and Date : Name and Signature :

WFSGI Handbook 2012

WFSGI PRESENTATION

Board of Directors

(WFSGI Board 2011 - 2014)

Motoi Oyama

Asics / Japan

New Balance Athletic Shoe, Inc. / USA

Representing America Tom Cove Hirotaka Miyaji JASPO / Japan

ex-officio Robbert de Kock

Secretary General WFSGI

Representing Europe frank Dassler

Peter Bragdon

John Larsen

CSGF / China

SGMA / USA

Representing America

Past president

Ma Jilong

Vice-Presidents

President

Representing Asia

adidas Group / Germany

Columbia Sportswear / USA

Nouman Butt SCCI / Pakistan

Klaus Uhl

Uhl Sport / WFSGI Treasurer

Representing Asia Kevin Plank

rajan mayor SGEPC / India

Under Armour / USA

George Wood TSMA / Taiwan

Jochen Schaefer WFSGI Legal Counsel

Representing Europe / africa Executive Nomination Fernando Beer Alpargatas / Brazil

Martin Kuenzi

Intersport International / Switzerland

Jeroen Snijder-Blok

Honorary President

Accell Group /NL (Bicycle)

Stephen Rubin

Pentland Brands / England

Lindsay Stewart Nike Inc. / USA

Killick Datta

International Brand Partners LLC / USA

Alberto Zanatta

Technica Group / Italy

Jay Li

Li-Ning / China

Christian Voigt PUMA / Germany

Klaus Dittrich

andrew rubin

Michel Perraudin

Pentland Brands / England

Messe Munich / Germany

MP Consulting / Germany

THE WFSGI EXECUTIVE COMMITTEE IS COMPOSED BY THE PERSONS WHOSE NAME IS HIGHLIGHTED ABOVE.

WFSGI Handbook 2012

WFSGI PRESENTATION

Bicycle Committee Chair WFSGI Bicycle Steering Committee Jeroen Snijders Blok

COO, Accell Group Steering & Technical Committee

Members Bicycle Steering & Technical Committee

Chair WFSGI Bicycle Technical Committee

Mariolino Corso

Jordan Roessingh

Pascal Ducrot

Martin Schuttert

Bill Duehring

Martin Walthert

President, Felt Bicycles Steering & Technical Committee

Head of Staff R&D, DT Swiss Steering & Technical Committee

Ignacio Estelles

Phil White

Cicli Esperia Steering & Technical Committee

Dirk Bruynseraede

Chief Information Officer, Ridley Bikes Steering & Technical Committee

VP Bike and Winter Sports, Scott Steering & Technical Committee

Bicycle Committee Activity Report During the first full year of the bicycle group within the WFSGI we had various activities that contributed to a more positive result in the young period of the brands joining WFSGI. It started off with a meeting in January 2011 where about 30 members of the Technical Committee were received at the UCI Headquarters in Aigle (Switzerland) to discuss the new Approval Protocol on frames and forks that was published by the UCI in October 2010. During a preliminary meeting all members of the Technical Committee agreed on a joint point of view on this matter and presented this to the UCI officials. As a result UCI revised its protocol for frame and fork approval and lowered the fees for the approval process which created a saving of several millions of dollars per year for the industry. During the Technical Committee meeting, held at the Taipei Cycle Show in March 2011, members were informed on the positive result of the UCI meeting in January. During the same meeting, members agreed also that the Technical Committee will report at each meeting on the development of new standards for ISO and CEN, as these are to be revised in the next 2 to 3 years. At the Taipei Cycle show, the WFSGI Bicycle Steering Group also organized a presentation open to press and non-members to inform them on progress of the work of the Bicycle Steering Group and Technical Committee but also to further explain the WFSGI view on the UCI rules and the progress. Several meetings and conference calls have taken place with the group and the UCI to discuss open issues such as security. During the Eurobike Show, the Technical Committee agreed to support any request of the UCI to improve the security of cycling. A follow up meeting took place end of November 2011 to further discuss with the UCI on these matters.

Team Liason Manager, Trek Bicycle Steering & Technical Committee

Koga Steering & Technical Committee

Vice-Chairs WFSGI Bicycle Technical Committee Claudio Marra

Managing Director, FSA Steering & Technical Committee

Mark Schroeder

Director of Engineering, Specialized Technical Committee

CEO, Rotor Bikes Components Steering & Technical Committee

Co-founder, Cervelo Steering & Technical Committee

Denis Kelleher At the same show, the WFSGI organized a presention on CSR in the cycling industry (Social and Environmental). It is inevitable that also the bicycle industry has to take this part serious and has to work on sustainable solutions. All members agreed that the expertise of the WFSGI, through the sporting goods industry, will be very helpful and shall contribute to move forward in these matters. The Cycling Steering Group will organize more meetings in the future to move ahead in this domain.

VP of European Operations, SRAM Steering & Technical Committee

Morgan Nicol

AeroDesign Steering & Technical Committee

Chris Peck

The Bicycle Committee gathers the major leading brands and allows them to have a global representation on all levels (Sport, Trade, Social and Environmental issues).

Vice President of Research and Development, Cannondale Bicycle Corp. Steering & Technical Committee

Gervais Rioux

The sub-group WFSGI Bicycle Technical Committee deals with UCI (Union Cycliste Internationale International Cycling Union) issues.

President, Argon 18 Steering & Technical Committee

WFSGI Handbook 2012

WFSGI PRESENTATION

TITRE DE CHAPITRE

Members Bicycle Steering Committee only

Members Bicycle Technical Committee only

Armin van Hoogstraten

Mike Gann

Roman Arnold

James Hu

John Koo

Michael Kaiser

Tony Lo

Hennie Stamsnijder

Robert Margevicius

David Zurcher

General Manager/President VP ASI Europe, Advanced Sports Steering Committee

Advanced Sports Technical Committee

CEO, Canyon Bicycles Steering Committee

Vice President Giant Brand Business Office Corporate Headquarters, Giant Technical Committee

Vice President & Chief Staff Officer GGG Office Corporate Headquarters, Giant Steering Committee

Head of Research and Development / Quality Management, Canyon Bicycles Technical Committee

President, Giant Steering Committee

Marketing Manager, Shimano Europe Holding BV Technical Committee

Specialized Steering Committee

Takeshi Oi

Senior Executive President & Head of Bicycle Components Division, Shimano Inc. Steering Committee

Marc van Rooij

President, Shimano Europe Holding BV Steering Committee

Bike R&D, Specialized Technical Committee

Ex Officio Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General Jochen Schaefer WFSGI Legal Counsel

WFSGI PRESENTATION

CISO COMMITTEE

CISO Committee Activity Report

Chairman Wolfgang Schnellbügel

Michael Riehl

Senior VP Global Brand & Sports Relations, adidas Group

Chairman, SPORT 2000 International

Vice-Chairwoman

Reto Rindlisbacher

Managing Director Sales & Marketing Nordica, Tecnica Group

Celia Muir

Worldwide Head of Sports Marketing, Sponsorship & PR, Speedo International

Yutaka Sasai

General Manager Marketing, Asics

members Franck Horter

General Manager for EMEA, TYR

Hamish Stewart

SVP International and Apparel, Brooks Sports Inc.

John Larsen

Blair Tripodi

President Emeritus, New Balance Athletic Shoe, Inc. & Director, New Balance UK & WFSGI Past President

Director International Marketing, Under Armour

Jay Li

Christian Voigt

GM international marketing division & Chief Representative of the US Creativity Centre, Li-Ning

Senior Head of Global Sports Marketing & Sports Law, PUMA International Division

Craig Masback

Tomi Wüthrich

Director of Business Affairs, Global Sports Marketing, Nike Inc.

Jean-Pierre Morand

Secretary General, SRS Ski Racing Suppliers Association

Head of Sports Marketing, Odlo International

Ex Officio Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General Jochen Schaefer WFSGI Legal Counsel

1) IOC With the London Olympic Games coming up in 2012, Rule 40 (former 41) and 50 (former 51) are still high on the agenda. The CISO Committee is since over a year in discussion and negotiation to see how we can draft a new MOU. The actual new information around Rule 40 gives hope and space that an agreement can be found. On May 25, 2011 we received a letter from the IOC concerning the Rule 40 and unfortunately the IOC is passing the responsibility concerning the implementation of Rule 40 back to their national Olympic committees. The majority of these NOC’s are not set up to evaluate Rule 40, which complicates the authorisation of international campaigns.

The WFSGI addressed a letter to the UKGovernment Olympic Executive responding within the consultation period to the draft regulations on advertising and trading at the Olympic Games time in London. Herein, WFSGI and its members applauded the concrete efforts to combat the sales of counterfeit merchandise during the Olympic Games and emphazised that they agree with the three prime policy objectives - ensure that all Olympic and Paralympic events have a consistent celebratory look and feel to them, prevent ambush marketing within the vicinity of venues and ensure that people can easily access the venues. Nevertheless, the Industry expressed its concern regarding the public consultation document taking into account the nature of the sporting goods business - mainly retail business. The comments and suggestions put forward by the WFSGI drew the attention to the fact that its members invest multi-billions of US-Dollars and are engaged on a daily basis to promote active sports participation and a healthy life style. These companies also invest heavily in research and development activities to allow athletes to perform better and provide substantial financial support directly to young athletes, National Olympic Committees, and International and National sports federations all over the world.

A positive sign came from the London Organising Committee LOCOG who for the first time in history has described what Rule 40 means at the Olympic Games and for the UK territory. Rule 40 will apply from 18 July 2012 until three days after the Closing Ceremony (15 August 2012). The guidelines explain what type of advertisement is possible or prohibited in the UK territory (only). As per 2012 the nature of the sporting goods industry is recognized in the key principles : " Some deemed consents are more relaxed for sports clothing or sports equipment manufacturers and sports specialist retailers. This recognizes the role of such companies and their natural tendency to use athletes in advertising (page 9, Rule 40 Guidelines). " This was very helpful and supports the direction that the CISO Committee has defended since many years. The details can be found on the WFSGI website. In Rule 50 (product guidelines) we made again a step forward, both from an implementation as well as a timing perspective. We are convinced that this results in less problems and more products complying with the IOC rules in London2012. We wish to thank the IOC Sports department for their support. With regards to signing a Memorandum of Understanding (MoU) we are still in negotiations due to the fact that the MoU proposed by IOC does not meet many of our requests. Therefore a meeting has been scheduled for 30 November 2011 in Lausanne where we hope to make the next step towards a substantial MoU. We hope that when you read this we have made further progress. 2) International Federations We are pleased to see the integration of the bicycle industry (UCI) within the WFSGI moving forward and the number of suppliers, joining our organization is increasing. A positive contribution was the massif saving that was reached with the collective negotiations towards the UCI in the frame testing fees. This saves annually several millions of dollars. With Rugby we are confronted with rules on studs that are made by the BSI and which are incomplete. Further discussions are taking place to modify this and to make the Norm viable. In swimming (FINA) the situation has stabilized for material questions but further discussions shall take place with the suppliers to understand the next steps. In Field Hockey (IHF) we have been supportive to find solutions for the stick problems and protective gear for field players in short corner situations. Here further solutions have to be tested and evaluated. ■

WFSGI Handbook 2012

WFSGI PRESENTATION

CSR COMMITTEE

CSR Committee Activity Report

Chairman Michael Levine

Senior Director of Corporate Social Responsibility and Senior Counsel, Under Armour

Frank Henke

Global Director Social & Environmental Affairs, adidas Group

Christine Madigan

members

Vice President Responsible Leadership, New Balance

Brigitte Amherd CSR Manager, Odlo

Reidar Magnus

Senior Manager CSR / Supply Chain, Intersport International

In 2011 the CSR Committee continued to work towards the following work streams : Enhance services to members by providing guidance and direction for managing CR issues Develop and support collective approaches that drive harmonization and synergies and build critical mass in the industry Support engagement with civil societies. These work streams reflect and address the challenge within our industry that many topics related corporate responsibility and sustainable development can be tackled but not fully solved by individual company approaches. Accordingly, the CSR committee strategy is designed to support and facilitate concerted measures, collective approaches to successfully tackling global challenges, driving change in the industry and enhancing companies’ performance. Key activities within the work streams are summarized below. Enhance services to members by providing guidance and direction for managing CR issues

Norman Cook

Executive Vice-President, Kamik

Toshiaki Mizuno

Senior Manager, Presidential General Affairs Office, Mizuno

Gilles Dana

Corporate Social Responsibility Officer, Switcher SA

Caitlin Morris

Director of Integration and Collaboration CR Compliance, Nike

Helen Ashton Ford

Ron Pietersen

CR Director, Pentland Brands

Vice-President & CFO, Asics Europe

Frequently asked questions from the SRI Community Publicly listed companies frequently are becoming subject of specific assessments conducted by SRI analysts. These assessments include a wide range of questions to check, if and how companies operate in accordance with high ethical standards and have established effective governance and management systems. To provide members with general the CSR Committee posted frequently asked questions from SRI analysts and investors. They have been taken from rating tools as used by major SRI rating agencies and consumer organizations. Question sets are to serve as orientation and guidance for WFSGI members to benchmark their actual environmental, social and governance performance (ESG). Develop and support collective approaches that drive harmonisation and synergies and build critical mass in the industry

Dai Forterre

Hans van Vliet

CSR Coordinator, Asics

Reiner Hengstmann

Global Head Environmental & Social Affairs, Puma

Corporate Communications, Shimano Inc.

Ex Officio Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General Jochen Schaefer WFSGI Legal Counsel Marc Magnus WFSGI Trade and Corporate Responsibility Manager

WFSGI joins the FFC To further drive and support collaboration among brands and manufacturers in supply chain monitoring and compliance management The World Federation of the Sporting Goods Industry (WFSGI) signed a membership agreement with the New York-based non-for-profit organization Fair Factories Clearinghouse (FFC). This action was taken in line with a project around audit harmonization and sharing targeting of providing an audit sharing platform for all players in the sporting goods industry in order to avoid costly duplication of factory auditing and audit fatigue.

The FFC provides software to help companies in collaborating on improving ethical sourcing and conditions in outsourced manufacturing. FFC’s goal is to optimize factory compliance by providing a common platform for collaboration and increased transparency. The CSR Committee and FFC organized a range of webinars and presentations for its members to further explain the details of the tools. Support engagement with civil societies Protocol on Freedom of Association practices / Indonesia After 3 years of discussion in June 2011 several sport brands representatives, local unions, NGOs and the WFSGI met in Jakarta, Indonesia in order to work out and finalize a protocol regulating the freedom of association (AO) in Indonesian manufacturing companies. The Protocol calls for brands to support and promote the adoption of practices by suppliers which will strengthen the application of FOA in the workplace in Indonesia. The protocol follows closely Indonesian law, but in addition provides for specific infrastructure (such as notice boards, work space, etc.) and work time release for trade union officials to enable them to represent worker interests and conduct trade unions activities. To support the protocol and the signing process among members, the WFSGI has published the protocol on its website to make it available to all companies sourcing from Indonesia. Besides bringing the protocol to the attention of the sporting goods industry, the WFSGI has administrated and acted as a clearinghouse. The WFSGI will provide the necessary documents and information to companies that wish to sign and keeps an updated list of the signing process. ■

Industry Collaboration First joint WFSGI – FESI meeting The WFSGI organized for the first time a joint meeting together with the Federation of the European Sporting Goods Industry (FESI). Participants from the WFSGI CSR Committee as well as from the FESI Environment Committee attended this two-day meeting where also the European Outdoor Group (EOG) was present. The purpose of this meeting was to inform one another about the activities conducted in the field of CSR by the different working groups. Furthermore the federations evaluated the possibilities of cooperation and alignment in the range of CSR. WFSGI Handbook 2012

WFSGI PRESENTATION

legal (IPR) COMMITTEE Chairman

Legal Committee Activity Report Jochen Schaefer WFSGI Legal Counsel

members Frank Dassler

General Counsel, adidas Group

Mark Granger

Head of Legal Task Force, SGMA - Sports Goods Manufacturers Association - USA

Edward J. Haddad

Vice-President - Intellectual Property and Licensed Products, New Balance Athletic Shoe Inc.

Kingson Lai

Legal Counsel, TSMA - Taiwan Sporting Goods Manufacturers Association

The Legal Committee work started with a major WFSGI bylaw revision and included legal subjects relating to new rules and policies of international sports federations. Legal advice and information has been continuously provided at WFSGI federation work and committee level. The WFSGI meetings in Munich included on February 4, 2011 a presentation on " Directives, Laws and Market Surveillance - Challenges for the Sporting Goods Industry ", provided by Dr. Jens Butenandt, Head of Marketing TUEV SUED Product Services, Munich. His lecture dealt with international product safety related issues and regulations same as the video presentation of Mark Granger, Vice Chair of the Legal Committee, who informed the WFSGI members on the new online reporting system on unsafe products introduced by the American Consumer Product Safety Commission (CPSC), which provides new challenges for the sporting goods industry and trade. In the context of the Manufacturer Forum panel discussion, the global head of compliance of the industry giant Siemens AG, Mrs. Susanne Gropp-Stadler shared best practice policies and rules of Siemens and provided further insights how a major corporation manages and controls compliance issues in particular with their suppliers. The pending Committee project ‘Best Practice Document Retention’ has progressed thanks to the work and efforts made by Mark Granger, further results and information will be provided to the WFSGI members. WFSGI members have also received specific legal information in multiple law areas and covering numerous jurisdictions through the WFSGI’s Legal News Service 2011. This service will be continued. ■

Hirotaka Miyaji

Director General, JASPO - Association of Japan Sporting Goods Industries

Gumercindo Moraes Neto

Owner, GMN Marketing Consulting

Ex Officio Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General

Concrete planning and intended activities for 2012 include a strong focus on international product safety regulations and standards and to establish a continuously updated online information system for the WFSGI members. In order to realize this ambitious objective, the active contribution and input of in-house industry experts (and external experts such as Mark Granger) is mandatory and it remains to be seen whether these topics can be best handled within the current existing structure of the Legal Committee, or whether the creation of a new Committee is a preferred option. Such decision will be presented to our members in Munich by the end of January 2012.

WFSGI Handbook 2012

WFSGI PRESENTATION

Manufacturers COMMITTEE Chairman George Wood

Chairman, TBS Group & Honorary President TSMA, Taiwan Sporting Goods Manufacturers Association Taiwan

members Nouman Butt

Director Marketing & Development Capital Sports & SCCI The Sialkot Chambeer of Commerce & Industry Pakistan

To be recruited

Advisor Tom Cove

President & CEO, SGMA - Sporting Goods Manufacturers Association USA

Ex Officio Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General Jochen Schaefer WFSGI Legal Counsel

Munich in 2008 and in Taipei (Taiwan) in 2009, 2010 and 2011. With the strong development of the Manufacturers Forum and to avoid confusion it has been decided at 2011 September Board Meeting, to rename the Manufacturers Forum to Manufacturers Committee. It shall be obvious that the Manufacturers Committee will remain responsible for the organization of Manufacturers Forum which can be held in any place in the world. One has to announce the wish to organize a Forum where after we can provide the supporting element. Role To strengthen the relationship and cooperation of the manufacturers with brands and retailers. To give the brands a better understanding of the credibi lity and problematic of the manufacturers ; To circulate the requirements from the brands among the manufacturers and visa versa ; To cooperate with the CSR and Trade committee and draw closer the relationship between the brands and the manufacturers. Future Directions Facing globalization, it is important to produce and to distribute sustainable and responsible products. Therefore, " Cooperation " between the Brand and the Manufacturer are extremely important for the translation of consumer needs and government requirements. In the past years, the manufacturers have been largely working in the shadow of the brands but we shall reach out to more and new manufacturers to join WFSGI and the Manufacturers Committee and convince them to actively participate in our duty of producing sustainable and responsible products. ■

Manufacturers Committee Activity Report Objectives Establishing a platform of communication between the Manufacturers and the Brand to create mutual understandings to clear the hurdles which our sporting goods industries have in common. In this means, the Manufacturers Committee is a " Bridge " between Manufacturer and Brand dealing with all matters (CSR, Trade, Manufacturer issues, etc.) where support, cultural translation and understanding is needed and required.

We will intensify the discussions within the Manufacturers Committee and work closely with other WFSGI committees for a better understanding and the way forward. The Manufacturers Forum is to be continued and can be held in any country around the world. The next Manufacturers Forum will be in March 2012 in Taipei.

History The Manufacturers Forum was established in 2008 upon request of the manufacturers. It organized a forum in

WFSGI Handbook 2012

WFSGI PRESENTATION

trade COMMITTEE

Hideaki Kitahara

Hamish Stewart

Director Corporate Strategy, Asics

SVP International and Apparel, Brooks Sports Inc.

Chairman John Larsen Jeff Whalen

Government Affairs South America, Nike Inc.

Leonid Strakhov

President Emeritus, New Balance Athletic Shoe, Inc. & Director New Balance UK & WFSGI Past President

Vice-President, RASIE - Russian Association of Sports Industry Enterprises

Jay Li

Jeff Tooze

GM international marketing division & Chief Representative of the US Creativity Centre, Li-Ning

Vice Chairman

Director Global Customs & Trade, Columbia

to sport. With this project the WFSGI intended to promote the industry’s point of view on a new platform and get a better hearing for the trade concerns of the sporting goods industry’s voice.

With regard to exisiting Brazilian anti-dumping measures the WFSGI collaborated with Chinese manufacturers and their respective trade associations in China. In this context also an important exchange takes place with local governmental authorities.

A footwear manufacturer stakeholder meeting was organized in Hong Kong in November 2010 to join forces in order to reply to the challenges around trade restrictions. A further meeting including government authorities took place Guangzhou in November 2011.

In view of anti-circumvention investigations further efforts were required to assure action from local companies in the targeted countries like Indonesia and Vietnam. In order to align efforts the WFSGI also reached out to the respective authorities.

The Trade Committee conducted visits of several WTO missions in Geneva in order to present the industry’s concerns and standpoint. Beside this the channel of communication to the WTO was of course appropriately maintained. Different local lawyers were engaged in China and Brazil in order to ensure a duly operation.

Peter Bragdon

VP & General Counsel, Columbia

Hirotaka Miyaji

George Wood

Director General, JASPO- Association of Japan Sporting Goods Industries

Chairman, TBS Group & Honorary President TSMA, Taiwan Sporting Goods Manufacturers Association

Karl Sedlmeyer

VP Global Government Affairs, adidas Group

Toshiaki Mizuno

Senior Manager, Presidential General Affairs Office, Mizuno

Members Alberto Bichi

Secretary General, FESI Fédération Européenne du Sports et de l'industrie

Owner, GMN Marketing Consulting

Richard Newcombe

Wilfired Hauenstein

Patrisia Reyes de Gottschall

Director Global Logistic Distribution, Puma

Ma Jilong

Vice-President, CSGF-China Sporting Goods Federations

Motoi Oyama WFSGI President Robbert de Kock WFSGI Secretary General Edwin Vermulst WFSGI Trade Counsel Marc Magnus WFSGI Trade and Corporate Responsibility Manager

Gumercindo Moraes Neto

Frank Dassler

General Counsel, adidas Group

Ex Officio

CEO Pentland Asia, President Ellesse

Head of Legal and Government Relations adidas Group Latin America

trade Committee Activity Report 2011 was a quite active year for the Trade Committee. Beside reacting on global trade challenges targeting among others the sporting goods industry, the committee was also engaged in a project of a new type and last but not least a new chairperson was assigned. Among other the following actions were undertaken to defend the interests of the sporting goods industry in the field of global trade : 2011 was a quite active year for the Trade Committee. Besides reacting on global trade challenges targeting among others the sporting goods industry, the committee was also engaged in a project of a new type and last but not least a new chairperson was assigned. Among other the following actions were undertaken to defend the interests of the sporting goods industry in the field of global trade :

The WFSGI registered as an interested party to the Turkish safeguard investigations. The WFSGI requested the exclusion of certain product types from the Turkish safeguard measures.

The WFSGI Trade Committee met twice in 2011. Beside the annual meeting at ISPO a further meeting took place in September 2011 in Switzerland where updates on several projects were given and next steps were discussed. Furthermore a remarkable number of conference calls were set up in order to organize the work of the committee and the actions taken by its members.

Jeff Whalen from Nike has been elected the new chairman taking over this position from his former colleague Rory MacMillan. ■

In 2011 the WFSGI hosted for the first time a session at the WTO Public Forum under the theme " Made in the World and Value-Added Trade ". The objective of this session was to show the importance of open markets for sporting goods in order to increase the public access

WFSGI Handbook 2012

TRADE SHOW CALENDAR 2012 The WFSGI is partner with Messe München, the ISPO Shows, Sports Source Europe & Asia and Golf Europe. COUNTRY

CITY

EVENT

DATES

WEBSITE

COUNTRY

CITY

EVENT

DATES

WEBSITE

Italy

Florence

Pitti Uomo

January 10-13

www.pittimmagine.com

Bulgaria

Sofia

Sport Expo/Hunting, Fishing, Sport

April 05-08

www.bulgarreklama.com

USA

Orlando

Surf Expo

January 12-14

www.surfexpo.com

USA

Santa Monica

Sacred Craft Surfboard Expo

April 14-15

www.asrbiz.com

United Kingdom

London

The Outdoors Show

January 12-15

www.theoutdoorsshow.co.uk

Italy

Bolzano

Prowinter

April 18-20

www.fierabolzano.it/prowinter2010

Italy

Riva del Garda

Expo Riva Schuh

January 14-17

www.exporivaschuh.it

Brazil

Sao Paulo

Adventure Sports Fair

April 18-21

www.adventurefair.com.br

Canada

Montreal

NSIA Snow Show

January 15-17

www.nsia.ca

Germany

Essen

FIBO

April 19-22

www.fibo.de

France

La Clusaz

Snow Avant Première

January 15-17

www.sportair.fr

Kazakhstan

Almaty

Sport Expo Central Asia

April 25-27

www.sportexpo.kz/en

Brazil

Sao Paulo

Couromoda

January 16-19

www.couromoda.com

Italy

Rimini

Riminiwellness

May 10-13

www.riminiwellness.com

Germany

Berlin

Bread & Butter (Streetwear & Urbanwear)

January 18-20

www.breadandbutter.com

China

Beijing

China Sport Show

May 17-20

www.sportshow.com.cn

USA

Salt Lake City

Outdoor Retailer Winter Market

January 19-22

www.outdoorretailer.com

Spain

Valencia

Sportsunlimited

May 22-24

www.sportsunlimited.es

Germany

Stuttgart

Golf und Wellnessreisen

January 19-22

http://cms.messe-stuttgart.de

Germany

Berlin

You

June 08-10

www.messe-berlin.de

Italy

Verona

Motor Bike Expo

January 20-22

www.motorbikeexpo.it

France

Paris

Who's next

June 30 - July 03

www.whosnext.com

Germany

Düsseldorf

Boot

January 21-29

www.boot.de

Germany

Berlin

Bread & Butter (Streetwear & Urbanwear)

July 04-06

www.breadandbutter.com

Norway

Oslo

Norspomessen

January 22-24

www.sportsbransjen.no

Germany

Friedrichshafen

Outdoor

July 12-15

www.outdoor-show.de

Sweden

Stockholm

Swesport

January 22-23

www.kistamassan.com

China

Nanjing

Asia Outdoor

July 26-29

www.asian-outdoor.com

Canada

Ontario

PGA Golf Merchandise Show

January 25-28

www.ontariopgashow.ca

USA

Salt Lake City

Outdoor Retailer Summer Market

August 02-05

www.outdoorretailer.com

USA

Orlando

PGA Merchandise Show

January 25-28

www.pgashow.com

USA

Las Vegas

WSA Show

August 07-09

www.wsashow.com

USA

Denver

SIA Snow Show

January 26-29

www.siasnowshow.snowsports.org

Germany

Munich

ISPO Bike

August 16-19

www.ispo.com/bike

Switzerland

Zurich

FESPO

January 26-29

www.fespo.ch

Denmark

Vejle

Sportex

August 18-21

www.nord-fair.dk

Denmark

Vejle

Sportex

January 27-30

www.nord-fair.dk

Germany

Friedrichshafen

Eurobike

August 29 - September 01 www.eurobike-exhibition.com

Germany

Munich

ISPO Munich

January 29 - February 01

www.ispo.com

Austria

Salzburg

OSFA Sport fair

August

www.brandboxx.eu

Germany

Munich

Sports Source Europe

January 29 - February 01

www.sports-source-europe.com

Germany

Munich

Golf Europe

September 02-04

www.golf-europe.com

USA

Harrisburg

Eastern Sports & Outdoor Show

February 04-12

www.easternsportshow.com

Germany

Cologne

Spoga + Gafa

September 02-04

www.spoga-koeln.com

USA

Las Vegas

WSA Show

February 06-08

www.wsashow.com

Germany

Düsseldorf

GDS - International Shoe and Leather Goods Events

September 05-07

www.gds-online.com

Czech Republic

Prague

Golf World Prague

February 09-12

www.golfworldprague.cz

United Kingdom

Stoneleigh Park

Outdoor Trade Show

September 10-13

www.outdoortradeshow.com

USA

Las Vegas

Magic Marketplace

February 13-15

www.magiconline.com

Italy

Milan

MICAM

September 16-19

www.micamonline.com

Germany

Hambourg

Hanse Golf

February 17-19

www.hansegolf.com

USA

Las Vegas

Interbike

September 19-21

www.interbike.com

Japan

Tokyo

Japan Golf Fair

February 17-19

www.japangolffair.com

Austria

Salzburg

Bike and Trimm

September

www.brandboxx.eu

China

Beijing

ISPO Beijing

February 22-25

www.ispochina.com

Sweden

Jonkoping

Elmia Park & Golf

September

www.elmia.se

Croatia

Zagreb

Zagreb Sport and Boat Show

February 22-26

www.zv.hr

Belarus

Minsk

Sportexpo

September

www.belexpo.by/en

Korea

Seoul

SPOEX Seoul International Sports & Leisure Industry Show February 23-26

www.spoex.com

Czech Republic

Brno

Sport Life

October 04-07

www.sport-life.cz

Germany

Essen

Fahrrad Essen

February 24-26

www.fahrrad-essen.de

France

Paris

Silmo

October 04-07

www.silmo.fr

Russia

Moscow

Velo-Park

February 24-26

http://en.velo-park.ru

Denmark

Vejle

PGA Golfmesse

October 23-25

www.pga.dk

Italy

Verona

Golf Town

February 24-27

www.golftown.it

China

Hongkong

Sports Source Asia

October

www.hktdc.com

Austria

Salzburg

OSFA

February 26-28

www.mgc.at

Spain

Irun

Mendiexpo

October

http://mendiexpo.ficoba.org

Germany

Cologne

Rheingolf

March 02-04

www.rheingolf-messe.de

India

New dehli

Sports Goods & Physical Fitness

October

www.sportsgoodsexhibitionindia.com

Finland

Helsinki

Go Expo

March 02-04

www.finnexpo.fi

Greece

Athens

Sports Show & Fashion

October

www.actionway.gr

Italy

Milan

MICAM

March 04-07

www.micamonline.com

Brazil

Sao Paulo

Salao Duas Rodas

October

www.salaoduasrodas.com.br

Taiwan

Taipei

TAISPO Taipei International Sporting Goods Show

March 06-09

www.taispo.com.tw

Uzbekistan

Tashkent

World of Sport

October

www.ieguzexpo.com

Taiwan

Taipei

Taipei Cycle Show

March 07-10

www.taipeitradeshows.com.tw

United Kingdom

Metro Ski and Snowboard Show

October

www.metrosnow.co.uk

USA

Saint Paul

Let's play hockey int'l expo

March 09-10

www.letsplayhockey.com

Finland

Helsinki

Skiexpo/Boardexpo

November 02-04

www.boardexpo.fi

France

Paris

Paris Golf Show

March 09-11

www.expodience.fr

Hungary

Budapest

Snow - Show

November 11-13

www.hoshow.hu

Germany

Nürnberg

IWA

March 09-12

www.iwa.info

Spain

Madrid

Naturiva (Outdoor Sports & Activities Show)

November 16-18

www.ifema.es

Italy

Milan

MIDO

March 11-13

www.mido.it

Spain

Madrid

Madridgolf

November 23-25

www.madridgolf.es

France

Lyon

Sport-Achat

March 12-14

www.sportair.fr

Italy

Milan

Eicma-Bicycle exhibition

November

www.eicma.it

Germany

Düsseldorf

GDS - International Shoe and Leather Goods Events

March 14-16

www.gds-online.com

India

New Dehli

Asia Golf Industry Show

November

http://asiagolfindustryshow.com

France

Paris

Mondial Body Fitness

March 16-18

www.vivelaforme.com

United Arab Emirates Dubai

Sportex Middle East

December

www.sportexmiddleeast.com

Latvia

Riga

Recreation and Sport

March 30 - April 01

www.rigaexpo.lv

Moldova

Chisinau

Sports Show

April 01

http://en.sports.moldexpo.md

Date not published for 2012

WFSGI Handbook 2012

WFSGI PRESENTATION

WFSGI members directory

(as of December 2011)

FULL MEMBERS – INDUSTRY SUPPLIERS

J K

WFSGI PRESENTATION

Nippon Takkyu Co., Ltd. | 1-2-8 Chiyoda-Ku | KandaIzunisho 101-0024 | Japan / www.nittaku.com | +81 338620911 Nishi Athletic Goods Co., Ltd. See Asics

Behold the NB Minimus. Get closer to the ground and a thousand miles from the everyday, in the insanely simple, excessively excellent NB Minimus Trail.

com/nbminimus

WFSGI PRESENTATION

PERFORMANCE IS WHY MORE PGA AND EUROPEAN TOUR PROFESSIONALS PLAY TAYLORMADE DRIVERS THAN ANY OTHER.

taylormadegolf.eu

@TaylorMadeTour

TaylorMadeEU

© 2011 Taylor Made Golf Limited. #1 Driver in Golf claim based on combined 2010 wins and usage on the PGA, European, Japan Golf, Nationwide, Champions and LPGA Tours, as reported by the Darrell Survey Co. and Sports Marketing Surveys, Inc. Driver claim based on Darrell Survey brand count for the 2010 PGA Tour.

WFSGI PRESENTATION

U V W

X Y

WFSGI Handbook 2012

WFSGI PRESENTATION

ASSOCIATE MEMBERS FIFA - Federation Internationale de Football Association FIFA-Strasse 20 P.O. Box | 8044 Zurich | Switzerland | www.fifa.org | +41 43-222 7777

For More information visit www.wfsgi.org A digital Member's Directory is available in the Members Area.

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we make all athletes better. www.underarmour.coM

ÂŠ Oakley Icon Ltd, 2011

Design your own sunglasses in your favourite colour in your favourite shape with your favourite lenses. Oakley Custom Program JAWBONEâ&#x201E;˘ http://de.oakley.com/custom