But the Chinese market is an exception. From 2015 to 2019, my country's sporting goods market played an important role in the industry's growth with an annual compound growth rate of 16.5%.
Due to the postponement and cancellation of major events, the number of group and indoor events has decreased significantly. People are paying more attention to home training, running, yoga, Pilates, as well as e-sports and virtual racing. In addition, women's sportswear has also begun to emerge.
People have high hopes for 2021, mainly due to the return of major sporting events such as the Olympics and Paralympics and the continued popularity of outdoor sports.
The sporting goods industry research report published by McKinsey in January this year revealed several trends in the sporting goods market. Let’s take a look.
1. Sports and leisure has become a new competitive field. Before the COVID-19 pandemic, sports and leisure had become a big trend and was actively promoted in many media. In the fashion industry, sports fashion has also appeared for a long time. The COVID-19 pandemic has further blurred the boundaries between work and leisure, and wearing comfortable clothes in more formal occasions has become more common. Fashion brands have begun to cooperate with sportswear manufacturers. Even if fashion brands have not replaced the latter, they have created very fierce competition in this field.
2. The COVID-19 pandemic has led to a major change in activity levels. Unfortunately, this is directly related to economic status: the less well-off people are, the less they exercise. The pandemic has deepened this gap. More families have reduced incomes and are forced to reduce or even give up going to the gym or swimming pool.
3.Sustainability is becoming a growing priority for consumers, and many companies have responded by launching more environmentally friendly products. The pandemic has also reinforced this trend. Now, companies have a responsibility to ensure the sustainability of the supply chain. Since recycling is likely to be the weak link, brands need to adopt innovative concepts such as closed-loop approaches to direct-to-consumer. Focus mainly on the production of plastic-free packaging.
Adidas, for example, makes sports shoes from plant materials. Adidas develops artificial leather from mycelium, which is part of a mushroom. They are not pioneers, though. The first "zero-waste" running shoe from pioneering company Pangaia is made from grape skins. In addition to this fruit ingredient, the company uses 100% recycled natural materials.
4. The focus of the fitness and exercise community is shifting to digitalization. Last year, amid social distancing and home isolation, digital fitness saw a dramatic shift. Digital fitness will not completely replace traditional physical exercise, but improve them in a hybrid model. In 2021 and beyond, digital training will continue to be a trend.
5. E-commerce. As physical stores have closed one after another and the sales growth curve has reached a new level, many brands have begun to expand online channels and even direct sales. It is expected that the Internet penetration rate will stabilize at around 25% in 2021, which is 6 times that before the epidemic. Brands and retailers need to quickly adjust their business models. Brands need to focus on e-commerce and ensure smooth integration of multi-channel delivery. In addition, direct-to-consumer sales are difficult and require fundamental changes in the company's structure, thinking, experience and knowledge.
6. Find KOLs. Marketing in the sporting goods industry has traditionally been conducted with clubs, leagues or events. Against the backdrop of the COVID-19 pandemic, the sporting goods industry has a greater need for digital marketing. In addition, in order to increase visibility, trust and engagement, brands need to increasingly collaborate with well-known athletes, whose influence is much greater than that of events or associations.
7. A more flexible supply chain is on the agenda for companies. Shorter demand cycles, e-commerce and closer relationships with consumers will become a major focus in some markets after COVID-19. In an environment full of uncertainty, it makes sense to establish closer supply chain partnerships and explore local alternatives. |
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