What : McKinsey report about the trends shaping the sport’s industry.

Why is it important : Sportswear only decreased by 7,3% from 2019 to 2020.

Eight trends are shaping the sporting goods industry.

1. Athleisure, the new default and a competitive battleground.

Pandemic has served to blur the lines between work and free time, and there is a rising acceptance of comfortable wear in previously more formal contexts. With fashion brands entering this segment, sporting goods players need to leverage their innovation abilities and market knowledge.

1. Physical-activity gap, an opportunity to put healthy lifestyles within reach of all.

COVID-19 has triggered significant shifts in physical-activity levels. Around 40% of people are less active, while around 30% are more active. The sporting goods industry should embrace a multistakeholder approach to tackle physical inertia, particularly in the communities left behind.

1. Sustainability, the COVID-19-accelerated next normal.

The onus is on companies to secure sustainable supply chains. Since recycling is likely to be a bottleneck, brands need to engage with innovative concepts, such as direct-to-consumer circularity.

1. Digital-enabled fitness and exercise communities take centre stage.

Digital fitness won’t fully replace traditional sports and exercise but rather will enhance them in a “bionic” hybrid model. Digital workouts will continue to be a hot trend particularly when they offer an engaging and inspiring element and allow remote exercising in a simulated community setting.

1. Leap forward in online, an accelerating business-model shift to direct to consumer.

With online penetration expected to stabilize at around 25% in 2021, brands need to put digital commerce at the centre and accelerate direct to consumer, and retailers need to deliver seamless and integrated omnichannel experiences.

1. Marketing shift from assets to influencers, an opportunity to make digital pay.

To build awareness, credibility, and engagement, brands need to increasingly work directly with individual athletes as influencers, who have a much longer reach than events or associations.

1. Retail under pressure, but a critical part of the future channel mix.

To attract consumers back to stores, retail needs to find new purpose, new experiences, and new levels of convenience that cannot be offered digitally.

1. Supply chains, the flexibility imperative and a raised bar on agility.

In a post-COVID-19 world characterized by shorter demand cycles, e-commerce, and closer direct-to-consumer relationships, they will be table stakes in some markets. Amid persistent uncertainty, it will make sense to both build stronger supply-chain partnerships and explore alternatives such as near-shoring.

State of the sporting goods 2021 summary

State of the sporting goods 2021 full report