Abstract
Sporting goods retailers may benefit from the ever increasing purchasing power in developing countries, especially in BRICs (Brazil, Russia, India and Russia). It is not established yet that these developing countries are dedicating more of their budget to sport purchases but it is well-known that, in average, when income increases, the percentage of the budget allocated to primaries goods (food…) tends to slump. Still, should we consider sporting goods as leisure expenditures or as clothes expenditures (which are primary goods)?
However, during hard times, such as the ones we seem to go through, rational customers arbitrate between what is essential to life and secondary purchases. The so-called recession all developed countries are now facing might force customers to slow down or even reduce their expenditures for leisure goods, sporting goods included.
As we see know that more and more customers are reluctant to buy new cars( as the situation of carmakers(GM, Renault) shows it), to acquire new real estate, and simply to consume, the current global pattern of events is far from being brilliant. So, sporting goods retailers, whether they like or not, are likely to suffer from the current recession, just as other industries and activities do.
