Sports & Recreation
Four key trends are shaping the active lifestyle industry in 2023, according to McKinsey: 1. Brand relevance will increase. Consumers who were once motivated first by factors such as functionality, design, and price, are now increasingly driven by brand. Notably, the industry’s high performers in terms of value creation are characterized by high levels of brand equity and loyalty. Sporting goods companies need to build strong and trusted brands that leverage the direct-to-consumer revolution, collaborate with other brands, and engage in community marketing. 2. Sustainability. Brands, retailers, and manufacturers have made bold promises of a more sustainable future, but are they up to the challenge? With self-imposed deadlines on the horizon, it is time to deliver. In an environment where both regulators and consumers are targeting greenwashing, companies should carefully consider how they deliver on their actions and ambitions. 3. Nearshoring. It is important that the nearshore country meets the requirements for raw materials and components and offers the right capabilities and capacity. A detailed business case should take into account a holistic set of variables to determine financial impact and feasibility, as well as potential government incentives. 4. Hot target for private investors. The sporting goods industry has grown strongly over recent years and is likely to continue on that path. In addition, the industry has proven to be more resilient in downturns, bouncing back faster than others. Further, it comprises many smaller but well-differentiated brands that make attractive targets for consolidation or growth plays. These factors have fueled interest among private investors, with the number of annual deals doubling in the past decade. HOW THE LIFESTYLE INDUSTRY STAYS IN SHAPE
AT YOUR ATHLEISURE • The athleisure market (sneakers, leggings, T-shirts, hoodies, sweatshirts) is expected to grow from $4,18,690 million in 2022 to $8,33,199 million by 2030. has an annual growth rate of 8.1% worldwide. • The United States is the largest • Athleisure’s market value market for athleisure products. It accounts for about 30% of worldwide sales. • A growing interest in physical fitness among young people in the Asia-Pacific region and a cultural shift in apparel preferences has that region set to overtake the United States as the world’s largest athleisure buyer in a global market. • Athleisure is the largest product segment among young people worldwide. In some places, it accounts for more than 65% of the clothing purchased by people in their teens and 20s. –Linchpinse
Four Themes Will Guide Sporting Goods Trends in 2023 Brand relevance Becoming a brand super winner Sustainability Time to make it real Nearshoring Balancing acts
Investments in the industry Routes to
profitable growth in private investments
50%
86%
75%
20.3%
of surveyed companies plan to expand nearshoring by 2025
total shareholder returns in 2019-21 for sportswear (vs 4.5% for traditional apparel companies)
of surveyed companies have announced or plan to announce a CO 2 reduction target
of surveyed sporting goods companies expect to increase spending on branding by ≥5% in 2023 (vs. 16% expecting to reduce by ≥5%)
Source: McKinsey
12 Inbound Logistics • August 2023
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