August 13, 2013
LifeApps And Sports Apparel – It’s All About the Gear
Almost 30 years ago, an up and coming shoe manufacturer took a chance by creating a new line of basketball shoes labeled and branded after one specific athlete. By all accounts, this forward-thinking step was a blockbuster for the company, Nike (NYSE – NKE) and the athlete, Michael Jordan. This revolutionary move also changed sports apparel marketing and sales forever.
In addition to its success wildly successful digital publishing business, LifeApps Digital Media, Inc. (OTCQB – LFAP - $0.07 – Spec Buy) markets and sells promotional and personalized team athletic apparel products via its subsidiary the Sports One Group. Sports One specializes in the delivery of uniforms, decorating services, and gear and apparel. The represented brands cover the entire sports universe including soccer, football, baseball, yoga, golf, tennis, volleyball, and lacrosse to name a few.
The sports apparel market in the U.S. alone was $84 billion in 2012 and the worldwide market is expected to reach $266 billion by 2017 according to a marketing study by the market research firm Lucintel. The relative high sale price to production costs for some of the apparel these firms sell indicate that the average consumer is willing to pay a premium for quality or a trendy brand. After all, when it comes to sports and representing one’s favorite teams, it is all about the gear. The niche distribution network of the LifeApps Sports One Group taps into this market offering top brands of personalized athletic apparel for wholesale distribution for a variety of sports.
Many of the top brands in the LifeApps Sports One line-up are aligned strategically with the world’s most popular or fastest growing sports and the Company ensures it has exposure to all age groups. For example, Diadora is a high-end Italian merchandiser with a strong presence in Europe particularly in soccer, and holds the number three spot in market share for the sport in regard to footwear and other apparel. The Company also offers top brands for fans of lacrosse, one of the fastest growing youth sports in the U.S., along with high-end golf apparel such as Augusta, targeting baby boomers.
LifeApps’ unique brand awareness and apparel product sales proposition ensures that major athletic brands will not only broadly reach their fan base through digital publishing but through the sale of sport apparel as well. For LifeApps, Sports One aids in its overall marketing efforts, and also serves as a catalyst for big time revenue growth this year.
You Might Also Like
Senior Analyst: Robert Goldman
This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information. The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report, update, article, or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.