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Les Mills International
Les Mills International
Les Mills International
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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

Changes in consumer spending on online fitness 'here to stay', says McKinsey report

New report from McKinsey looks at consumer expenditure on retail and digital fitness and sport
Report done in partnership with the World Federation Sporting Goods Industry
Gives details of winners and losers as companies pivot during pandemic
Sporting goods sales jumped to levels previously forecast for 2024
Peloton and Lululemon/Mirror were major winners
Identifies eight key trends in three main categories

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.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
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News

Changes in consumer spending on online fitness 'here to stay', says McKinsey report

New report from McKinsey looks at consumer expenditure on retail and digital fitness and sport
Report done in partnership with the World Federation Sporting Goods Industry
Gives details of winners and losers as companies pivot during pandemic
Sporting goods sales jumped to levels previously forecast for 2024
Peloton and Lululemon/Mirror were major winners
Identifies eight key trends in three main categories

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.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Related news

Phillip Mills: Gyms are a cornerstone of global recovery from COVID-19

07 Sep 2020
Gyms and health clubs are a cornerstone of the global recovery from COVID-19 – and ...

After the pandemic: what will the European fitness sector look like?

20 Apr 2020
Club closures, a squeeze on consumer spending and facilitating social distancing within a gym environment ...

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A cross-party DCMS Committee in the UK has called on the government to launch a
Urban Health Club in Ludwigsburg, Germany, has introduced a 24/7 operation. The €2.8m hub for
Nearly half (49 per cent) of health club members in the US who've cancelled their
Industry body ukactive has joined the chorus of organisations across a number of sectors calling
German fitness operator BestFit Group has acquired regional gym chain EuroFit for an undisclosed sum.
The US fitness industry lost around 58 per cent of its revenues during 2020, due
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Speaking exclusive to HCM, Ralph Scholz and Nathalie Smeeman have confirmed that B2B trade show
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Rainer Schaller, founder of budget gym megabrand McFIT, says that the global fitness industry will
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The most high-risk and controversial Olympics of modern times begin today (23 July) in Tokyo,
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Digital fitness content provider, Wexer, is launching a new wellness resource on its connected Web
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Life Fitness (UK) Ltd
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A large health club plays a major role in tech giant Microsoft’s recently opened R&D
KA Leisure has appointed industry veteran Malcolm McPhail as its interim chief executive. McPhail, who
Les Mills
Les Mills
1 - 20 of 11,979
HCM Magazine
Editor's letter
The hospitality industry has been a sleeping giant in terms of its potential to harness the growth of health and fitness
HCM Magazine
Research
A new study claims being physically active for 30 minutes a day, five days a week, is not enough for those who spend the rest of their time being sedentary
HCM Magazine
Sponsored
Empowered Brands has strengthened its leadership team with the appointment of a new chair and CEO following the untimely death of founder, Jan Spaticchia
HCM Magazine
Sponsored
Every gym design project should be designed from the floor up, says Physical Company’s James Anderson. He tells HCM why
HCM Magazine
Training
Six months on from the launch of its Kickstart programme, The Gym Group is hiring the majority of trainees, as Liz Terry reports
HCM Magazine
Supplier showcase
Premier Global NASM is setting personal trainers up for sustainable success with the launch of its online training bundle and app
HCM Magazine
Research
The results from the first Moving Communities Customer Experience survey present a positive picture of overall satisfaction with local authority facilities, explains Mike Hill
HCM Magazine
HCM magazine
GM Active has launched a training programme to create a new generation of transformational leaders, as Liz Terry reports
HCM magazine
“A great atmosphere is just as important to the fitness journey as the right workout routine, says LEDSnaps’ CEO, Ian Kirby
HCM magazine
Our goal is to return to the core values of Gold’s Gym, while also striking a balance between preserving its roots and leaping into the modern age
HCM magazine
I’ve called on all fellow citizens – members and non-members alike – to exercise more and have made free sports and fitness sessions available to everyone
HCM magazine
HCM People

Preston Lewis

Co-founder, Black Box VR
Game designers have figured out how to keep people unhealthily addicted to games. If only you could be the hero in a game that levelled up your life
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Stelian Iacob

Stelian Iacob, CEO and senior VP, Therme Group
We’re seeing a much greater focus on the need to integrate healthy living into daily life and reconnect with nature and each other
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Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
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As gyms begin to reopen, cleanliness and hygiene remain an essential part of ensuring staff and members are confident to return.
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Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
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Company profiles
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Click on a catalogue to view it online
Directory
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Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
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Total Vibration Solutions / TVS Sports Surfaces: Flooring
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Precor: Fitness equipment
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Exercise equipment
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Property & Tenders
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Lilleshall Sports Academy
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Carmarthenshire County Council
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Diary dates
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Messe Stuttgart, Germany
Diary dates
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Online,
Diary dates
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Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
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Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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Les Mills International
Les Mills International