 |
|
|
 |
11 Mar 2021
Changes in consumer spending on online fitness 'here to stay', says McKinsey report
BY
Tom Walker
|
The impact of the pandemic will influence the sector for years to come
photo: Shutterstock/Drazen Zigic
A new report shows how the pandemic is shifting consumer behaviours in fitness, sport and physical activity – and how those changes are likely to be permanent when it comes to the consumption of goods and digital services. The Sporting Goods 2021 – The Next Normal for an Industry in Flux report, from McKinsey & Company and The World Federation Sporting Goods Industry (WFSGI), outlines how the impact of the pandemic will require strategic planning from retail companies hoping to survive in the sector.
Offering insight into how physical activity products and services are consumed, the report shows how 2020 resulted in "winners and losers", as companies strived to react quickly to the changes.
According to the report, the shift to digital and online was perhaps even bigger than at first thought – and is likely to become a permanent feature for the sector.
Online share of sporting goods sales, for example, jumped in 2020 to a level previously forecast for 2024.
Among the biggest winners of this shift was athletics wear specialist Lululemon, which was quick to expand its services during the pandemic. It acquired at-home fitness tech firm Mirror in a deal worth around US$500m (€446m, £407m) and saw its Q3 sales jump to US$1.1bn – up 22 per cent from 2019.
Meanwhile, the well-documented "pivot to digital" in fitness is perhaps best seen in the way Peloton saw its quarterly workouts more than quadruple during 2020 – from 19 million in Q1 2020 to 77 million in Q4.
The successes of Peloton and Lululemon are, according to the report, a sign of the "new normal" that will influence the retail sector for years to come.
"The impact of the pandemic goes beyond temporary performance," the report states.
"It has also accelerated changes that will have long-lasting impacts on companies throughout the sporting goods value chain.
"Indeed, COVID-19 has ushered in the next normal for the industry, defined by factors including digital commerce, rising demand for sustainable products and increasing participation in individual forms of sport and exercise.
"To win in the new environment, the industry needs to adapt both its customer proposition and its operational capabilities."
As well as presenting a review of 2020 and a preview of 2021, the report also analyses eight key themes likely to define the evolution of these markets.
The eight trends are divided into three main categories:
Consumer Shifts
Athleisure — the new default and a competitive battleground
Physical activity gap — an opportunity to put healthy lifestyles within reach of all
Sustainability — the COVID-19-accelerated next normal
Digital Leap
Digital-enabled fitness and exercise communities take centre stage
Leap forward in online — an accelerating business model shift to DTC
Marketing shift from assets to influencers — an opportunity to make digital pay
Industry disruption
Retail under pressure — but a critical part of the future channel mix
Supply chains —the flexibility imperative and a raised bar on agility
• To download and read the full report, click here.
 |
|
|
|
|
|
|
|
|
|
Connect with
Sport Parks Leisure |
|
|
|
|
|
|
|
|
|
|
|
|
|
| News headlines |
|
|
 |
 |
|
08 May 2024
HoloBike, a holographic training bike that simulates trail rides in lifelike 3D, is aiming to push indoor cycling technology up a gear. A
.... more>> |
|
|
|
 |
|
02 May 2024
Active Oxfordshire has received £1.3 million to tackle inactivity and inequality and launch a new programme for children. The funding has come from
.... more>> |
|
|
|
 |
|
02 May 2024
Consultancy and change architects, Miova, have welcomed industry veteran Mark Tweedie on board. Tweedie had most recently headed up Brimham’s
.... more>> |
|
|
|
 |
|
26 Apr 2024
While British adults are the most active they’ve been in a decade, health inequalities remain with the same groups missing out, according to Sport
.... more>> |
|
|
|
 |
|
24 Apr 2024
Short-term incentives to exercise, such as using daily reminders, rewards or games, can lead to sustained increases in activity, according to new
.... more>> |
|
|
|
|
|
 |
|
| Company profile |
|
![]()
FIBO Global Fitness
FIBO Global Fitness is the international platform for fitness, wellness and health. During four days, FIBO connects more than 860 exhibitors from 51 nations with more than 106,000 visitors from 116 nations in ten halls in Cologne.
View full profile>> |
|
| Catalogue gallery |
|
|
| Featured Supplier |
|
 |
|
|
|
in this issue
• Virgin gets right to wipe out rent arrears
• Fitness industry mourns passing of Jan Spaticchia
• STA offers mindfulness resources
|
|
|
|
|
|
|
 |
| Latest jobs |
 |
|
| Diary dates |
|
| Powered
by leisurediary.com |
 |
|
13-16 May 2024
W3Spa EMEA
Conrad Chia Laguna Sardinia ,
Italy
|
|
|
|
|
