What: The sporting goods industry needs to evolve and adapt to five trends shaping the industry as health awareness increases, channels shift, and concerns rise concerning sustainability.

Why is it important: The sporting-goods industry has managed to reach pre-COVID-19 levels of growth through harsh economic circumstances.

2020 focused on consumer shifts, the digital leap and industry disruptions. In 2021 these trends accelerated and took interesting new turns. Athleisure gained further ground as people were working from home and created new attitudes towards traditional workwear. A new perspective on sports and general fitness developed and e-commerce thrived, as consumers shopped online even when lockdown measures eased. Digital forms of exercise and physical activity became more popular and created an array of possibilities for sporting-goods companies. Sustainability has also become more important than ever, with the COP26 Climate Change Conference emphasizing companies need to increase their efforts to decarbonize as they seek to differentiate their offerings.

In 2022 these trends continue, and other important trends are positioned to shape the sporting goods industry further. Not new to the industry but, five key themes reflect the current state of play.The implication is that many industry players must speedily adapt their business models. Each topic presents strategies that may support them in doing so.

Evolving attitudes and behaviors

Consumers will continue to be active. Younger generations and consumers in China, India, and the United States are generally more optimistic than older generations or consumers in other countries in terms of spending. Sporting goods is one of the categories they plan to splurge in, a positive indication that the 2021 tailwinds will continue in 2022—at least for industry players that stay on top of growing consumer expectations.

From social media to social commerce and digital ecosystems

Social media continues to be an effective platform for influencers and digital communities to create deep connections between consumers and commerce. Companies in 2021 able to streamline this connection between engagement and sales boosted profits significantly and built digital consumer-engagement ecosystems—spanning from the company’s website to its own app and retail stores—using the generated data to inform areas such as product development and demand planning. The social-media space continues to evolve: the use of livestreaming is well-established in Asia and expected to expand worldwide. Early adopters are trying to get a firm position in the “metaverse” arena, and others are expected to follow.

The sustainability imperative

The pandemic and COP26 have helped to accelerate awareness around sustainability, including a demand for more sustainable products. As consumers’ expectations increase, the bar to differentiate themselves is increasing quickly. Leading companies will focus even more on sustainable materials, circular business models, and helping consumers make choices that reflect their values.

The future of channels

Last year reinforced the importance of digital channels, even with physical stores reopening. Players are shifting towards offering direct-to-consumer (DTC) models, creating a stronger online presence, and consolidating their retail-partner model. New players will prioritize DTC and continue to focus on partnering with select retail partners. Meanwhile, retail stores will seek to establish a clear edge for brand names in order to keep them from leaving. Many players will repurpose physical locations as experience and service-driven elements of an omnichannel offering.

Solving the supply chain puzzle

Demand volatility, production bottlenecks, rising raw-material and transport costs, and organization chaos are causing turmoil in global supply chains. All the while, consumers continue to expect fast and convenient delivery. Players will need to review their supply chains strategically, so they are better prepared for an uncertain future.

Sporting goods 2022: The new normal is here