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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 marketing partnership between fitness marketplace Hussle and fast-food giant McDonald's resulted in a significant
The UK government should encourage – and make it easier – for doctors and other
Mark Sesnan, co-founder and CEO of GLL, has been awarded an OBE in the New
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The Cleveland Clinic’s chief wellness officer Michael Roizen predicts longevity will become the next major
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FIBO Exhibition
FIBO Exhibition
1 - 20 of 12,122
HCM Magazine
Sponsored
Life Fitness has launched a new mobile app, called Life Fitness Connect, to provide the ultimate workout experience
HCM Magazine
Sponsored
Fitronics’ new member journey software is supporting the University of Oxford in improving its services for users
HCM Magazine
Statistics
New research from tech firm Mindbody gives insights into the state of the US health and fitness market, as Lauren McAlister reports
HCM Magazine
Supplier showcase
TVS Group installs a new world class facilities at the University of Kent in partnership with Robbins
HCM Magazine
Sponsored
Leisure operators should embrace activity to engage members says Jenny Patrickson, managing director of Active IQ
HCM Magazine
Everyone’s talking about
Despite the renewed interest in health, a proportion of people remain nervous about going back to health clubs because of infection levels in the wider community. Would making adjustments to pricing help overcome these barriers? Kath Hudson investigates
HCM Magazine
Opinion
Florence Nightingale played an important role in the fitness industry and if she were still with us, she’d certainly be campaigning for fitness trainers to be fully involved in combating the effects of lockdown, says Muir Gray
HCM Magazine
HCM magazine
EuropeActive and the European Committee for Standardisation are launching new standards for a wide range of health club operations, as Cliff Collins explains
HCM magazine
Members are coming back faster than we’ve ever seen. Normally about 20% of the people we sign up are re-joining. Right now, it’s 30%
HCM magazine
We’ve never wanted to be the biggest, just the best
HCM magazine
HCM People

Randy Hetrick

Founder of TRX and OutFit
I don’t want to compete with gyms, I want to complement them. We’re going to places where they’re not – parks, schools and cul-de-sacs
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Catalogue Gallery
Click on a catalogue to view it online
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Spa software
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Total Vibration Solutions / TVS Sports Surfaces: Flooring
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Lockers/interior design
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Property & Tenders
Bilborough, Nottingham
Bilborough College
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
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Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
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