Dominican Republic - Sporting GoodsD.R. - Sporting Goods

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

This section should give a basic, broad overview of the sector.
 

	2016	2017	2018 (estimated)
Total Market Size	17.45	18.5	18.87
Total Local Production	0.25	0.15	0.17
Total Exports	0	0	0
Total Imports	17.25	18.35	18.7
Imports from the U.S.	15.6	16.3	16.8

Unit: (Millions of U.S. Dollars)
Exchange rate: RD$49.75 – US$1
Source: U.S. Census Bureau, Economic Indicators Division
 
The Dominican market for sporting goods and recreational equipment reached an estimated US$18.5 million in 2017. Sporting goods imports from the U. S. in 2017 were US$18.35 million, representing 90% of the import market.  Major U.S. products were athletic footwear, fitness equipment, water sports and baseball equipment. It is expected that the sporting goods market will grow approximately 1-2% in 2017, reaching a projected US$18.87 million.

The market for sporting goods and recreational equipment in the Dominican Republic has experienced continuous growth over the past years. Local distributors have imported a wide variety of equipment and goods originating in Southeast Asia, North America and Europe. Over the last five years, the number of stores specializing in sporting goods has grown, and all major department stores now offer a wide selection of sporting goods.   Local distributors supply more than 80 percent of the total market demand.

Baseball has always been the dominant sporting activity in the Dominican Republic, followed by sports such as basketball, volleyball, and tennis.  In the recent years physical fitness equipment and accessories, running, cross-fit and soccer have rapidly taken a leading position in the market.

Leading Sub-Sectors

The most promising sub-sectors within this sector are:
 
Athletic Footwear
The market for athletic footwear can be divided into two categories:
 
1) Inexpensive to medium prices commodities, which is limited to low quality sneakers and in many cases labeled with poorly produced copies of international brands.
 
2) Expensive items:  This category includes internationally recognized brands: Nike, Reebok, New Balance, Asics, Saucony (USA), Adidas, Puma (Germany), among others. These items are purchased by medium to high-income consumers. Amateur and professional athletes regularly buy expensive athletic footwear.
 
Fitness Equipment
The U.S. is the number one supplier of professional gym equipment, which is considered to be of the best quality by importers.  In the case of home fitness equipment, Asian products dominate the market by copying U.S. technology and manufacturing products with low-quality components.
 
Another potential market segment, which U.S. firms should not ignore are franchised gyms, currently Gold’s Gym, Planet Fitness and Smart Fit are successfully operating in the country.  Presently, they offer the most sophisticated equipment.  Hotels and Resorts also operate their own fitness centers.  Fitness equipment is channeled through specialized fitness equipment stores, sporting goods stores, and large department stores.
 
There is great export potential for U.S. companies in the area of home cardiovascular equipment such as treadmills, exercise bikes, stair steppers and climbers.  Active U.S. brands in this sub-sector are: Bollinger, Athletic Way, Life Fitness, Wieder, and Universal.
 
Baseball Articles and Equipment
Baseball, the “King Sport” as it is called by Dominicans and has always been the traditional sporting activity in the country.  It is part of the Dominican culture and it is expected to maintain its popularity among Dominicans of all ages.
 
Water sports Equipment
This sub-category would include: boating & sailing, diving, fishing, kayaking & canoeing, snorkeling and the development of new marinas.
 
It is important to mention the tourism sector, one of the three pillars of the Dominican economy.  Hotels and Beach Resorts in the Dominican Republic have the highest growth potential within the water sports equipment market.   Currently, there are more than 75,000 hotel rooms in the country, and 6.2 million tourists visited the country on 2017, which create a large demand for water sports products that include: windsurfing, snorkeling, watercrafts and jet skis.  This type of equipment is used mostly by tourists.
 

Opportunities

There are opportunities for U.S. exporters of sporting goods in a number of sub-sectors of the economy. In recent years, Dominicans have become more conscious about health and exercise, making it part of their daily routines. In addition, there are good sales potential for apparel and equipment related to soccer, Zumba, yoga, Pilates, cross fit and running, which have become the areas of most growth. 

Also, the Dominican Republic has seen an increase in both boutique and franchise gyms, so the demand for fitness equipment has increased.

 

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