Investments in sports and fashion: how to convert emotions into money

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YEREVAN, 1 August. /ARKA/. Sports and fashion in the life of most people are associated with the everyday life - hobbies and recreation. We follow our favourite teams and interesting brands, buy clothes and accessories, go to the playground with friends./pp

But what place do sports and fashion have in the world of investing? What is it: a ‘toy’ in the hands of the rich, a business only for experts or a source of income for everyone who is ready to look deeper? We look for answers and share them with you in our story./pp

Sports and fashion, as it seems at first glance, is the choice of a limited, elite circle of investors. Large companies and rich business people buy sport clubs and franchises, create empires, invest in design and sports projects. Obviously, such strategies are beyond the reach of most people. However, in the sports and fashion market, there are tools that are also suitable for the ‘ordinary investor’./pp bSecurities/b/pp

You can invest in sports by investing in shares of publicly traded companies operating in the industry. Their areas of activity are diverse, one of the most common is the production and sale of goods for sports and fitness (clothing, footwear, equipment and special gadgets). Issuers' assets may also include media companies, thematic entertainment centres, infrastructure facilities: fields, arenas, stadiums, sports resorts./pp

In addition, some clubs issue shares on the stock exchange. They earn mainly from match broadcasts, sponsorship fees, ticket and paraphernalia sales. Accordingly, financial success is achieved through media appeal and is highly dependent on results, history and image. In this regard, the share prices issued by clubs are very volatile, which increases the degree of risk.nbsp;/pp

In the fashion market, on the other hand, the largest representatives are well-known luxury goods companies. This segment includes many categories of clothing and jewellery, cars and watches, cosmetics, etc./pp

In the 2020s, fashion stocks have repeatedly demonstrated rapid growth. For example, in 2023, the European STOXX 600 Index approached its highest level in 22 years thanks to the record performance of Louis Vuitton Moët Hennessy (LVMH), the largest luxury company./pp

To mitigate potential risks due to manufacturer-specific problems, you should also invest in mid-segment brands, online shops and physical retailers.nbsp;/pp img width=669 src=/upload/medialibrary/4d8/4d8c275040c7e1d6b3f3d9e8b1fc5296.jpg height=445 title=фридом alt=фридомbr/pp bTechnologies /b/pb /bp

A promising area of investment is technology used in sports and fashion. Pay attention to companies developing media and content platforms and applications for buying goods./pp

Speaking of sports, let us also highlight services for professional analytics. They are used by coaches, medical staff and scouts of clubs, including the biggest ones. Many applications are also designed for non-professional athletes and fitness enthusiasts. They help to create training programmes and diets, and track physical indicators/pp bCollections /b/pb /bp

Sports enthusiasts amass collections of items ranging from cards, balls and autographs to old stadium seats and unique digital images (NFTs). One of the most promising areas is the resale of sneakers. The annual growth of this segment in the market reaches 20%.nbsp;/pp

Fashion collections often consist of luxury goods, such as watches or wines, and limited edition items.nbsp; NFT clothing and accessories from well-known brands are sometimes worth even more than the real thing. For example, the electronic copy of a Gucci Dionysus bag sold in the early 2020sfor $3,400 is worth $4,115./pp

Such an investment tool can indeed bring good profits. However, it is not easy to build a good collection on your own. To find and buy authentic items, you need to be a passionate person, feel that you have value now and will keep it in the future./pp

In addition, collectibles are an asset with low liquidity. It is difficult to calculate the moment for a profitable sale./pp bDigital Assets /b/pb /bp

Tools for investing in sports and fashion through digital assets are at the initial stage of development. For example, it is possible to buy tokens on a special platform that correlate with the market value of clubs and players or the rating of athletes. With the growth of these indicators, the price of assets increases, which means that the investor can make a profit from the sale./pp

There are also digital wearables - things that are in the online space and only visible through a monitor or in VR (virtual reality). People assemble a virtual wardrobe and use special programmes to transfer images to their photos./pp

The investment potential of digital fashion is found due to the fact that the technology is applied in the computer games industry, which is a considerable market. In addition, the trend towards virtual things, to some extent, supports the concept of sustainable consumption./pp

The practicality and investment potential of virtual things is not obvious. But in fact, such technology allows us to maintain the principle of smart consumption. Virtual clothes help to avoid the situation when people buy real things only for the sake of a successful photo shoot./pp

Let us highlight the areas whose development provides potential growth in the future:/pp bSports/b/pp

- Women's sports: many sports are no longer exclusively ‘male’. This has expanded the consumer audience of both professionals (players and teams) and fans./pp

- Specific drugs for professional athletes: the potential of an entire market segment is increasing - promising start-ups are emerging, and major pharmaceutical companies are working on new products./pp - ‘Export’ of sports (popularisation of new sports, formats and tournaments) to developing countries./pp

- Blockchain technology: the ability to acquire assets, such as collectibles in a new form (via tokens)./pp img width=669 src=/upload/medialibrary/554/554b420f57958994fbf05641c583f2ab.jpg height=445 title=фридом alt=фридомbr/pp bFitness/b/pp

Fitness is a related field to sports. International fitness club chains attract a huge number of clients and earn money from the development of several areas at once. They sell cards in different price segments - from budget to premium, open facilities in new locations and produce goods under their own brand./pp

You can invest in fitness by joining a franchise. The investor receives a ready-to-operate club, marketing is handled by the parent company, and the popularity of the brand increases the potential for attracting clients. The franchise option is suitable for entrepreneurs who are prepared to provide significant start-up capital./pp/pp bFashion/b/pp

- Retail and rental market. Second hand platforms are now actively developing as they offer authentic branded clothing at a low price and realise the idea of smart consumption./pp

- Eco-friendly clothing and accessories lines. Customers are increasingly choosing manufacturers that follow the principles of sustainable development: introducing new technologies, incorporating resale into business models. If companies do not adapt to this demand, they may lose consumers and partners/pp

Both industries are striving to develop e-commerce, through which companies can provide goods to consumers around the world. Another common trend is the creation of new supply chains and production points. This will help overcome dependence on specific regions/pp img width=669 src=/upload/medialibrary/cf3/cf34346dcbc695c96708bf30a93fd867.jpg height=445 title=фридом alt=фридомbr/pp bPros of investing in sports and fashion/b/pp

- A wide range of assets: you can buy shares in companies operating in the industry, invest in the development of technology, support social projects and so on./pp

- Popular and promising sectors: sport is linked to health, entertainment and professional careers at the same time. Fashion influences everyday life and media space, trends are constantly updated and spread very quickly./pp

- International reach./pp bCons/b/pp

- Unstable consumer loyalty due to changing trends./pp

- High competition./pp

- High volatility due to strong dependence on external circumstances.nbsp;/pp

Conclusion/pp

Sports and fashion are promising business areas where not only industry representatives can earn money. The specificity of investing in these areas lies in the large role of emotional and random factors. Situations affecting the image of companies and clubs, disagreements of specific people, failures of sportsmen and designers - all this indirectly or directly affects the value of your assets./p iThis article was prepared within the framework of the joint project ‘The Year of Investing in Oneself by ARKA and AMI Novosti-Armenia news agencies and a href=http://ffin.am/en/%20/Freedom Broker Armenia/a./iinbsp;/i