05.03.2015 0:23:00
The Football Industry
In Pakistan
Challenges and Opportunities
March 2015
What can Pakistan do to regain leadership in the global
football industry?
Seizing
opportunities
Pakistan has the capacity to regain leadership power in the football
industry, but it needs to respond to changing markets. This report
highlights some key trends and points to several areas of potential growth.
Inflatable Balls
Figure 1. World’s Biggest Importers
The demand for inflatable balls(1) has been
Of Inflatable Balls (2013)
growing steadily in the last years (see Figure 2):
total exports of inflatable balls have more than
tripled between 2000 and 2010. Even if a small slow
down of the industry has been registered after the
crisis of 2009, the demand seems to be regaining its
former levels of growth.
Europe
Europe is by far dominating the imports market of
inflatable balls (see Figure 3a). However, the
continent never recovered its pre-crisis level.
Germany and France are the two main importers of
the region (see Figure 4). They respectively account
for 18% and 13% of European imports. While
France’s imports were always relatively steady,
Germany’s imports have leveled off after 2009.
Figure 2. Increasing Demand for Inflatable Balls
The United Kingdom is the third European
importer with a share 9% of the region’s imports, yet
its imports have been shrinking since 2010.
Others countries have substantial shares of the
market (Spain, Italy and Belgium), but their imports
have been rather volatile over the years.
(1)
Most of this report’s statistics are based on the United Nations
Commodity Trade Statistics Database, which does not provide data
at the football level but rather at the inflatable ball level. For this
reason, we will refer sometimes at inflatable balls instead of
footballs. However, there are good reasons to think that the market
of footballs follows the same trends than the inflatable balls market.
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February 2015
Figure 3.a Total Imports, by Continent
Europe is also the second worldwide exporter of
Figure 3.b Total Exports, by Continent
North and Central America
inflatable balls (see Figure 3b). In fact a couple
The United States is the biggest importer of footballs
European countries are also producers of inflatable
worldwide (see Figure 1). In 2013, the US accounted
balls (mainly Hungary and Italy
for 78% of North American imports and 22% of global
(2)).
The relatively
low production levels and the high labor costs in
imports.
these countries suggest that the inflatables balls
Unlike Europe, the North And Central American
produced in Europe are not substitutes to Asian
imports have recovered their pre-crisis level. The
balls. Therefore, Europe should not be seen as a
region even continues to experience a high level of
threatening production competitor.
(2)
BTC, Trade for Development (2010) EU Market for fair (and
sustainable) Sports Balls.
Figure 4. European Imports
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February 2015
growth. This growth is mainly led by the United States,
which had the biggest change in imports between 2012
Figure 5. South American Imports
and 2013 (see Table 1).
South America
Europe and North America have a long history of
football imports. On the other hand, South America
became a significant importer in the past years. Its
rising demand for inflatable balls makes it an
interesting emerging market. (See Figure 3.a)
Some countries of South America record a
surprisingly high growth (see Figure 5). Brazil’s
imports have skyrocketed since 2009, barely slowing
down during the crisis. Brazil was officially accepted as
a host for the World Cup of 2014 in 2007. This might
explain the deviation between this country and the rest
of South American countries in that year.
Africa and Oceania
Africa and Oceania have a small role in the market
for inflatable balls. Their imports have also recorded
an increase in the last decade (from 10 mil. US$ in
2000 to 30 mil. US$ in 2013), but their small level of
Other South American countries have experienced
a steady growth of imports in inflatable balls in the last
demand and their geographical isolation do not make
them interesting targets for development.
five years.
Even if the levels of demand are still far behind in
this region compared to Europe or the United States,
their high growth could make them reach significant
levels of imports in the next years. The growing
demand for inflatable balls in this region represents an
Asia
Asia has a substantial level of imports in inflatable
balls, and its proximity makes it an interesting
opportunity for Asian countries. More details on this
region are studied in Section 3 of this report.
interesting opportunity.
Table 1. Changes in Imports
Country
Increase in Imports (mil. US$)
2007 to 2008
2008 to 2009
2009 to 2010
2010 to 2011
2011 to 2012
2012 to 2013
USA
8.5
-40.3
41.3
-7.8
18.7
28.8
Turkey
4.3
-2.5
0.8
3.3
0.9
7.6
Mexico
-2.2
-6.1
12.3
-5.5
3.2
6.4
Argentina
1.6
-2.3
3.1
2.5
-4.3
6.3
Peru
0.9
0.6
3.5
-0.1
-0.6
2.9
Source: United Nations Commodity Trade Statistics Database
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February 2015
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Table 2.a Changes in Imports (2008 – 2013)
Table 2.b Changes in Imports (2010 – 2013)
Increase in Imports
(mil. US$)
Increase in Imports
(mil. US$)
USA
40.6
USA
39.6
Brazil
15.4
Turkey
11.7
Japan
12.5
Russian
7.7
Russia
10.9
Brazil
7.5
Mexico
10.3
Japan
6.8
Turkey
10
Argentina
4.6
Saudi Arabia
9.5
Mexico
4.1
Peru
6.3
Colombia
2.9
Colombia
5.5
Saudi Arabia
2.8
Argentina
5.3
Belgium
2.8
Table 3.a Growth in Imports (2008 – 2013)
Table 3.b Growth in Imports (2010 – 2013)
Growth in Imports
Growth in Imports
Mauritania
34.6
Cambodia
17.2
Albania
31.3
Zambia
8.7
Burundi
5.8
Sao Tome
and Principe
19.8
Qatar
4.4
Zambia
9.8
Malawi
2.3
Vietnam
9.2
Mauritania
2.3
Burundi
8.3
Qatar
7.2
Sao Tome
and Principe
2
Palau
5.3
Viet Nam
1.7
Kazakhstan
3.3
Bermuda
1.4
Rwanda
3.2
Kyrgyzstan
1.3
February 2015
Football Imports in the U.S.
The United States Bureau of the census provides
data on imports of footballs in the United States.
This data enables us to carry a more detailed
analysis of the football industry in this country.
The United States is both the biggest importer, and
the host for the biggest sports brands worldwide.
This makes it an interesting case study.
In 2013, more than 99% of US imports came from
South East Asian countries. While China accounted for
68 % of the imports, Pakistan’s had stabilized at 17%.
Between 1990 and 2003, Pakistan was the main
importer of footballs in the United States. In 2003
China took the first place in US imports while
Pakistani exports continued to decrease.
Other smaller importers have increased their
share of imports in the last years (See Figure 6.b). In
Figure 6.a Main Importers into the US
6
particular, Vietnam and Indonesia have more than
doubled their exports to the US between 2012 and 2013.
While Indonesia’s exports seem to have slowed down in
2014, Vietnam’s exports continue to increase (1).
Korea, which was the main exporter of footballs in
the US in 1989, accounts today for less than 1% of the
football imports in the US (see Figure 6.a).
Labor Costs
Figure 7 shows hourly wages in the Primary Textile
Industry for different Asian countries. Hourly wages for
workers in the football industry are not available in the
literature. However, a Werner international provides
data on workers in the primary textile industry. Workers
in both industries have similar skills and education, which
(1) For 2014, the data was computed with the data from January
to November, expanded to the whole year proportionally to 2013.
Figure 6.b Small Asian Importers into the US
February 2015
makes the wages in both industries comparable.
Both Vietnam and Indonesia have relatively small
average wages for workers in the textile industry. This
Figure 7. Hourly Wages in the Textile Industry
makes their labor force an interesting comparative
advantage. Producers in labor-intensive industries are
seeking for low labor costs. This explains their
increasing share of US imports in the last years.
Labor costs in China have significantly increased in
2007. In 2013, Thailand and China have average
hourly wages as high as four to five times Pakistani
wages in the textile industry. Pakistan has the second
smallest average wage for these workers. This makes
the Pakistani labor force an important asset.
the quantity of footballs imported in the United States,
Quality
China and Pakistan produce two different types of
balls. While Pakistan produces mainly hand-stitched
balls, China produces machine-stitched balls. Handstitched balls have the reputation of being of higher
quality than machine-stitched balls.
The U.S. Bureau of the Census provides data on
which enables us to compute the per unit price of
footballs imported in the US. Figure 8 presents the perunit price of footballs imported in the US by country,
across years.
Balls exported from Pakistan are paid at a higher
price than from China
(2)
, which is consistent with the
difference in quality between these two countries.
The prices of footballs exported from other countries
seem to fluctuate more than Pakistan and China; this
Figure 8. Per Unit Price of Footballs
may be due to the smaller quantities these countries
import.
Overall importers are willing to buy footballs from
Pakistan at a higher price. They believe in the quality of
Pakistan’s soccer balls.
(1)
According to the USA Census Data on imports, in 2014 the
US was paying 2.9 US$ for balls imported from China, while it paid
5.11 US$ for ball imported from Pakistan.
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February 2015
The Football Industry in Asia
Asia plays a key role in the market of footballs.
Since the beginning of the 2000s, Pakistan has kept a
Asia is the continent with the highest exports of
constant production. Yet, Pakistan’s share of global
inflatable balls: it accounts for 73% of global exports.
exports has been shrinking from 23% in 2006 to 11.1 %
It is also the only continent with positive net
in 2013 (see Figure 9.a). According to some authors
exports (it exports more than it imports).
the main reason why Pakistan has not kept its share in
(2)
,
the global market is that in this country the industry has
Asian Exports
been unable to keep up with the new technology. This
On the production side, China is the leading exporter
adds up to Pakistan’s high lending interest rate, which is
of inflatable balls in the world. China’s production is
twice as high as in China (12.0% in 2013).
concentrated on machine-stitched balls. The machine
The management’s unwillingness to adopt new
stitched balls allow a higher productivity than hand-
techniques combined with the high cost of capital in the
stitched balls: while workers produce on average 36
country and the low availability of loans limits the
balls a day with a machine, they can only hand-stitch
incentives for investments.
five to seven footballs during the same amount of
time.(1)
At the same time several other countries in Asia
emerged as competitors on the inflatable balls market.
Pakistan is the second exporter of inflatable balls.
Figure 9.a Main Asian Exporters
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Figure 9.b Other Asian Exporters
February 2015
Figure 10.a Main Asian Importers
Figure 10.b Other Asian Importers
Two countries have seen significant production growth:
Asian Imports
Vietnam and Indonesia. These countries have long been
In addition of being the world’s biggest producer of
inactive in the industry, but their shares of the market
inflatable balls, Asia has also a rising and interesting
have rapidly increased in the last years. In both Vietnam
import market.
and Indonesia, the average wage of a primary textile
Japan and Korea are the two main inflatable balls
worker is among the lowest in the area. These countries
importers in the region. These countries have an
have used this comparative advantage to capture share
important role in the global demand for balls: Japan is
of the markets.
the world’s third biggest importer, while Korea is the 11th.
In 2013, Thailand’s production accounts for 8 % of
Asian production, which is almost half as big as
Demand in these countries has been increasing these last
years, especially in Japan (see Figure 10.a).
Pakistan’s production. However, Thailand’s share of
At smaller levels, other countries have rising imports
production has been slightly declining, while the average
of inflatable balls. In particular, Vietnam and Indonesia
wage in this country seems to be among the highest in
have more than doubled their imports between 2012 and
the region.
2013 (see Figure 10.b).
India is also among the low labor-cost countries, but
Given their proximity, Japan, Korea, Vietnam and
its share of the total exports has remained constant at
Indonesia represent good opportunities for new Asian
2% for the past years. This country does not seem to
markets in the coming years.
arise as a strong competitor on this market.
(1)
UNIDO (2008) Diagnostic Study – Sports Goods Cluster of Sialkot,
Pakistan, Lahore, UNIDO.
(2) Asif
Tanveer, M. (2012) Declining Market Share of Pakistan in
Football Industry. Asian Journal of Business and Management Sciences
Vol. 1 No. 11 [33-42]
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February 2015
The Football Industry in Pakistan
According
to
the
World
Bank,
Figure 12. Pakistan’s Main Export Destinations
Pakistan’s
economic growth is picking up, driven by
industry and service sectors. (1)
Inflatable balls exports reached their peak in 2006
and then fell to their lowest value in 2009 (see
Figure 11). In 2013, exports in inflatable balls
represented 0.2 % of total exports in Pakistan.
During the school year of 2012/2013, the sports
good exports represented 334 million US$. Among
these exports, 43% are footballs exports (143
million US$) and 37% are gloves exports (124
million US$). Footballs play a key role in the
sporting goods industry.
Figure 11. Pakistani Exports of Inflatable Balls
The government seems to have seized the
importance of the market, and considers it a valuable
part of Pakistan’s economy. In 2007, an international
airport was launched in Sialkot, Pakistan’s main hub
for football production. The city is becoming a hub at
the international level.
(1)
10
The World Bank (2014) Pakistan Development Update.
February 2015
Figure 13. Inflatable Balls Importers from Pakistan
Which countries import footballs from Pakistan?
Data on exports show that Germany is the largest
destination for Pakistan’s inflatable balls (see Figure
13). In 2013 Germany imported 12% of Pakistan’s
inflatable balls. Belgium is the second importer and
imports almost 10% of inflatable balls exported from
Pakistan. Exports to Belgium have increased steadily
since 2008. It is hard to know the reason for this
rapid growth, but it has to be noted that Belgium’s
national team went from
54th
on the international
FIFA ranking in 2008, to 11th in 2013. This has
certainly increased the nation’s interest for football.
Belgium’s exports of inflatable balls have also
increased in the same period, which shows the rise of
Altogether, the European countries import more
than 57% of the sports goods from Pakistan.
If the United States and Europe are the main
worldwide importers of inflatable balls, there has also
been an increase in the demand for balls in Southern
America. In particular, the exports to Brazil have highly
increased since 2009. In 2004, Brazil learned it would
be the host of the World Cup 2014, and in 2007 is
officially announced. At the same time, the Brazuca ball
was designed, and Pakistan was chosen over China to
be the producer of the ball. Today, Brazil is the fourth
importer of inflatable balls from Pakistan, and
accounts for 7% of exports in this good.
the industry in the country.
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February 2015
Executive Summary
Overall, Pakistan has lost a significant share of the

Asia also has an interesting rising market. Two
global production of footballs. To keep up with the
countries have substantial levels of imports:
industry, Pakistan producers have to focus on the
Japan and Korea. These countries have seen an
opportunities of the market.
increase in their net imports of inflatable balls

and are a new opportunity for Pakistan’s
Pakistan’s main competitor is China. However,
exports.
China’s labor costs have been increasing these
last years, which may constitute a comparative
reluctant to adopt the new technology and to
higher quality hand-stitched balls while China
provide training to their workers. The industry
produces machine-stitched balls. Pakistan has to
needs to focus more on the technological
promote the quality of its balls and differentiate
changes while keeping the high quality of its
his product from the lower quality machine
products.
Other smaller exporters as Vietnam and
Indonesia have also increased their share of the
market in the last years. Their labor costs are also
among the smallest in Asia. These two countries
are the most threatening competitors.

In Pakistan, managers in the industry have been
advantage for Pakistan. Also, Pakistan produces
stitched balls.


Pakistan exports its footballs to North America
and Europe (Germany and Belgium), but the
demand has been rising in other countries and
will soon form a rising market in need of
producers. These countries are primarily in Latin
America and Brazil is the biggest one.
References:
Data:

Data on exports and imports of inflatable balls come from the United Nations Commodity Trade
Statistics Database. http://comtrade.un.org/data/

Data on sporting goods and Pakistan exports from 2009 to 2013 is available through the Pakistani
Government website. http://www.tdap.gov.pk/tdap-statistics.php

The US Government gives data on US imports (United States International Trade Commission).
http://dataweb.usitc.gov/

Werner International (Management consultant to the world textile, apparel & fashion industry) has data
on labor costs in the primary textiles industry. Surveys on wages are available for 2006, 07, 08, 11 and
2014. http://www.wernerinternational.com/html/hourly_wage_report/register.html
Other:

Asif Tanveer M., Rizvi S. and Riaz W. (2012) Declining Market Share of Pakistan in Football Industry,
Asian Journal of Business and Management Sciences.

UNIDO (2006), Leather Goods Cluster Sialkot – Pakistan, Diagnostic Study.

Arifeen M. (2010) Inflating Pakistan’s Football Industry, The International New York Times, The Express
Tribune.
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February 2015