Like many other industries, the sports industry is also affected by the changes caused by digitization. In the coming years, the smaller sporting goods stores will be the main ones to close, while the market itself will focus on e-commerce and some really big sports groups. That's what the spokespersons for Sport 2000 and Intersport said at the Ispo sporting goods trade fair in Munich in early 2020. But what else is in store for the industry in the next few years - and what should you as an online retailer be prepared for? The study by McKinsey & Company and the World Federation Sporting Goods Industry (WFSGI) summarizes the changes, challenges and adjustments very well - you will get an insight in the following points.
Change in consumer behavior
The biggest challenge for the sporting goods industry is and remains consumer behavior, because this is what determines the success of every company. The pandemic, the current crisis and the desire for more sustainability have had the greatest impact here.
#1 It's getting looser
Even before the pandemic, athleisure was a mega trend. Behind this lies the trend that sportswear and everyday clothing are merging more and more. COVID-19 has now contributed to the blurring of the boundaries between work and leisure, and the acceptance of comfortable clothing in previously more formal contexts. As fashion brands increasingly penetrate this segment, sporting goods manufacturers must use their innovative skills and market knowledge to win in this increasingly competitive market.
What does that mean for you?
As a company in the sports industry, it is important that you are present in all segments. Be there - whether in the classic "sports department" or with casual wear in the "women's department". Presence creates the basis for success here.
#2 Physical activity is falling
The pandemic has also left its mark on physical activity. According to one study, around 40% of people are less active, while around 30% of people are more active. Unfortunately, there is already a gap between physical activity and income levels, with the less affluent households tending to exercise less. The current crisis is expected to push even more households into the lower income brackets, further widening the physical activity gap. For the sporting goods industry, this means adopting a multi-stakeholder approach to reduce sedentary lifestyles among the previously inactive population.
What does that mean for you?
Stay tuned! Keep your customers! You can do this with a direct-to-customer approach in which you stay close to your customers. Implement loyalty programs, personalized offers, write personal newsletters. Your payment options also help to meet the wishes of your customers. With Mollie, for example, you can easily purchase or purchase on account and thus help your customers through difficult times.
#3 Sustainability is becoming more and more important
Sustainability is becoming more and more important - also in the sporting goods industry. Many companies have now responded by introducing more sustainable products - a trend that has been accelerated by the pandemic. It is now up to companies to ensure sustainable supply chains. With recycling likely to be a bottleneck, brands need to look at innovative concepts such as B. the circular economy directly to the consumer.
What does that mean for you?
Keep nature in mind and create products that are sustainable. And present them publiclyby communicating your CSR concepts on your website. Sustainable campaigns, support for NGOs or our own social projects also create a reputation that lasts. In addition, the topic of sustainability is becoming an increasingly important decision-making criterion for an increasing number of customers.
Sport is becoming more and more digital
The pandemic has already shown it: Sport at home, in the living room at home, is getting cooler and cooler. Many sports companies have already recognized this and digitized their products. However, not only the range of digital sports options has an impact on the sporting goods industry, but also the increasing trust of customers in influencers, who now function perfectly as brand ambassadors - and in most cases address the absolutely right target group.
#1 Digital training is becoming increasingly popular
Peloton, Zwift, numerous apps or YouTube channels - the range of digital fitness is constantly expanding and growing. Driven by a desire for physical fulfillment and a desire to stay at home, digital fitness will not completely replace traditional sports and exercise, but will complement them in a “bionic” hybrid model. The majority of sports brands have to adjust to this – and of course adapt or expand the range.
What does that mean for you?
Build your online presence where it will be seen. Your target group loves Peloton? Then advertise there. Your customers are active YouTube athletes? Then you have found your channel. You should know your customers and your sports behavior. Use analysis tools, newsletter campaigns or simple surveys on your social channels.
#2 E-commerce is becoming increasingly important
The pandemic has also left its mark here. With the closure of numerous stores from 2020 to 2021 or even 2022, many brands were forced to shift their offer to an online shop. According to one study, the market share of purchases made online is now 25%, which is about six times higher than before the pandemic - and will remain so for the time being. For this reason alone, brands need to put e-commerce front and center and accelerate direct-to-consumer sales.
What does that mean for you?
Quite simply: online first! Of course you can expand your stationary presence, but now it's about reaching your target group online. With an online shop that gets stuck. And a buying experience that is fun and represents your brand. We at Mollie are the partner at your side. Our payment experts will help you to optimize your checkout and offer exactly the payment methods that your customers want.
#3 Marketing is migrating from big clubs to individual brand ambassadors
While the sports industry's advertising measures were mostly focused on the really big clubs and events, marketing in the industry works differently today. Due to the large number of cancellations of major events in recent years, individual brand ambassadors have increasingly come to the fore. Today, not only athletes themselves convince, but also influencers who address exactly the right target groups on their channels.
What does that mean for you?
Work with influencers, athletes, brand ambassadors who fit you, your target group and your products. This allows you to reach the right people and keep your marketing budget low - appropriate at a time when budgeting is everything.
The industry is shifting enormously
With ever-changing consumer behavior and increasing digitization, the sporting goods industry is changing significantly. Retailers see changes in the area of traditional points of sale and supply chains in particular.
#1 A new shop experience is needed
Long before the pandemic, brick-and-mortar retail was shaky. The many closures due to the lockdown only promoted this development. During this time, consumers have learned above all that many things also work relatively easily online. This is exactly why many companies are now starting to turn shopping into a real experience.
What does that mean for you?
To lure consumers back into stores, retail must find a new purpose, new experiences and new levels of convenience that digital cannot offer. It is also important that you make online shopping easy - with optimized payment processing that runs stress-free and reliably. A payment service provider like Mollie offers you a complete package of numerous integrations and plugins for your online shop, with which you can optimize your online shop while at the same time keeping an even better overview of your transactions.
#2 More Flexibility in Supply Chains
Flexible supply chains have become an integral part of the corporate agenda. In a post-COVID-19 world characterized by shorter demand cycles, e-commerce and closer relationships with consumers, they will become standard in some markets. Given the ongoing uncertainty, it will make sense to both build stronger supply chain partnerships and explore alternatives such as nearshoring.
What does that mean for you?
Keep the overview! And create partnerships that last and, above all, help you to be more successful in e-commerce.
