In 2021 thesporting goods industry recorded a wide Recovery. Globally, the market has almost fully recovered pre-Covid-19 sales, thanks to consumption in China (23% growth compared to 2020) and in the United States (15%). Overall, the 14% annual growth for 2021 will be more than double the segment’s average annual growth rate (CAGR) between 2015 and 2019 (equal to 5%). Say it’s the report McKinsey “Sporting goods 2022: the new normal is here“, which emphasizes that the world market for sportswear it is expected to grow 8-10% per year until 2025from €295 billion in 2021 to €395 billion in 2025.
For 2022, McKinsey expects a continuation of last year’s favorable environment, despite uncertainties caused by new Covid variants and tighter restrictions. In terms of future spending, the study authors note that younger consumers and those living in China, India and the United States are generally more optimistic than older generations and consumers in other geographies. Sporting goods is one of the categories they plan to spend in, a positive indication that the tailwinds of 2021 will continue into 2022, at least for industry players who will be able to keep up with rising consumer expectations.
At the same time, the report notes that I social media remain one effective platform for influencers and digital communities to foster a closer connection between consumers and commerce, and major players in the industry are capitalizing on this trend. Companies in 2021 that have been able to optimize this connection between engagement and sales they have been able to significantly increase profits and build digital ecosystems to engage consumers, extending from the company’s website to their own app and retail stores, using the data generated to inform areas such as business development, product and product planning. the demand. And the social media space continues to evolve: the use of live broadcast, both as a promotional tool and a shopping channel, is now well established in Asia and is expected to expand throughout the world. Brands are looking to enter the new arena of “Metaverse”and others are expected to do the same.
There pandemic and the COP26 summit have helped accelerate public awareness of sustainability issues, resulting in demand for more sustainable products. As consumer expectations rise in this area, the bar for companies to differentiate themselves is rising rapidly. Leading companies will focus even more onuse of sustainable materialsup circular business modelsi, help consumers to choose according to their values.
In addition, 2021 consolidated theimportance of digital channels, despite the reopening of physical stores. Players in the sector have moved towardsoffering direct-to-consumer models (DTC), creating a stronger online presence and consolidating its retail partner model. In 2022, companies will need to make the most of their strengths. New players will prioritize DTC and continue to focus on collaborating with select retail partners. Retail stores will try to offer a clear advantage to brands to prevent them from leaving. Many players will return to brick-and-mortar stores as elements of a multi-channel offering focused on services and experiences.
Finally, demand volatility, manufacturing bottlenecks, rising raw material and transportation costs, and logistics chaos are wreaking havoc on global supply chains. At the same time, consumers continue to expect fast and convenient delivery. The players of the sector will have to review theirs strategic supply chainsto be prepared for an uncertain future.