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1、 499May 2023RXSSG23RPGlobal Sports Sector RetailXIn partnership with:20232|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|INTRODUCTIONHeres what we foundKEY FINDINGSThe sports goods sector accounts for just 1.1%of total global ecommerce,but is worth
2、 in excess of$77bn even in a downturn.The sector grew by almost a third in 2020,powered by lockdown,but has since dropped back to a more modest 4%growth rate in 2022.The slowdown has been caused by waning interest in exercise as the world returns to normal,as well as global economic headwinds stymie
3、ing consumer discretionary spending.China leads the way in consumer spending on sports goods,accounting for$36bn in 2022,way above that of the US($22bn).Much of this Asian spend has been on connected fitness and through fitness apps.Why this mattersContentsIncreasing state investment in sport has tr
4、ansformed the Middle East into a market ripe for exploitation by international and local brands.Across the world,sports is very much a young mans game,with Gen Z accounting for 33%of sales,Millennials 32%and Gen X 21%;sales of sports goods is also split two to one male to female in much of the world
5、.70%of sports goods are typically purchased instore,with just 30%online.This is down to many items being a high-value and highly personal considered purchase.Of those that do shop online,mobile takes almost half in all markets 75%in Asia.Apparel is the biggest segment of the sports goods sector by s
6、ales and,as a result,has borne the brunt of the market contraction in 2022,slumping from 17%growth in 2021 to just 2.2%in 2022.5%of sports and leisure purchases were made on sustainable grounds(4.1%for men,5%for women)in 2021,up considerably on the 3.8 and 4.6%seen in 2019,pre-pandemic.This values t
7、he sustainable portion of the sports market in Europe alone at around 600mn in 2021 and likely to hit 800mn in 2023.Perhaps unsurprisingly,Nike is the most trafficked brand in Sports Goods,but a close second is fitness tracker company Garmin indicative of how sports tech is gaining ground in the sec
8、tor.The global sports sector is a$77bn industry,attracting users at all levels of sporting prowess.The pandemic boosted its fortunes as,with everything shut,people took to sports and exercise to fill their days.Now,with the world going back to normal,sales are slowing but the sector still has much t
9、o give.Market overview 3Market segments 8Regional overview 15Consumer habits 19Sustainability 24The Largest 50 29Partner perspective 34PROFILE Asics 36PROFILE Bike24 X 37PROFILE Camping world 38PROFILE Diadora 39PROFILE Garmin 40PROFILE Gymshark 41PROFILE Intersport 42PROFILE MyProtein 43PROFILE New
10、 Balance 44PROFILE Puma 45PROFILE The North Face 46CASE STUDY Adidas 47CASE STUDY Decathlon 48CASE STUDY SportsS 49The road ahead 50Figures 54End matter 56Knowledge partners 573|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET OVERVIEWAccountin
11、g for just 1.1%of global ecommerce,sports goods globally generated around$77.6bn in online sales in 2022,marking it out as a highly lucrative sector within retail(Figures 1 and 2).Yet the scope of what constitutes sportswear and sporting goods is in flux.Typically and for the sake of this report it
12、covers primarily sports apparel,footwear and equipment,along with swimwear.This can also be viewed in a more granular way to also encompass winter and summer sports goods,outdoor apparel,footwear and equipment,along with fishing paraphernalia.Each of these segments within the sports sector is a sign
13、ificant revenue generator and all have,as consumer habits have changed,become increasingly more prevalent in the ecommerce mix.Alongside this is the growing prevalence of sports fashion wear and athleisurewear,both strong categories in their own right and both showing strong growth.These are driven
14、more by fashion trends than by the uptake of sports and both are increasingly significant to sports brands as their mainstream sports markets become stressed.While global sports goods saw a boost during the pandemic,its growth has stagnated,kept afloat largely by fashion and athleisurewear Market ov
15、erview Athletic footwear0.3%Summer sports equipment0.1%Fishing articles&equipment0.1%Winter sports equipment0.1%Sports&swimwear0.3%Other sports&outdoor0.2%Source:Statista Digital Market InsightsRetailX 202336.943.848.662.775.177.62002020212022Source:Statista Digital Market InsightsRetailX
16、 2023Sporting goods ecommerce revenue worldwide($bn),2017-20224|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET OVERVIEW2.2%14.3%31.3%15.3%4.1%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 2023Source:Statista Di
17、gital Market InsightsRetailX 2023SLOWDOWN IN SPORTSWhile the sports sector saw a temporary slowdown at the start of the pandemic due to a cessation of communal and team sports in lockdown,it soon bounced back(Figure 3).Growth was strong in 2020,at 31.7%,as consumers invested in athleisurewear to com
18、bine home working and solo exercise.A re-emergence of team sports in 2021 helped maintain some of this pronounced growth,at a rate of 15.3%.However,as sports use has settled back to its pre-pandemic level in most markets,growth in the sports sector globally has stagnated,to just 4.1%in 2022.This is
19、way below its pre-pandemic level of 18%and has been driven down by waning interest in sporting activity coinciding with a cost-of-living crisis dampening consumer spending in all retail sectors.Many consumers have returned to a more normal life commuting to work more often and returning to other eve
20、ryday tasks.This has seen many of those consumers who embraced exercise and sport early on in the pandemic hanging up their yoga pants and running shoes before returning to breaking a sweat mowing the lawn.Combined with the rising cost of living and pinch-points around discretionary spending,the rea
21、djustment of the sports goods market is likely to continue for some time to come.This stagnation has been seen across both on-and offline sales(Figure 4).While the share of online sales has grown dramatically during and post-pandemic,5|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIO
22、NGLOBAL SPORTS SECTOR REPORT 2023|MARKET OVERVIEWATHLEISUREWEAR AND FASHION SPORTS SAVE THE SECTORThe rise of athleisurewear during the pandemic has been one of the most marked changes to reshape both the sports and fashion sectors in recent years.A combination of sportswear and leisurewear,athleisu
23、rewear was already a key trend pre-pandemic but the blurring of the work-home life balance saw its sales increase during 2020 and 2021.Similarly,the propensity for sportswear to be seen as fashion wear has also played a role in driving sales of the sports segments.Indeed,this sub-sub-segment has bee
24、n a key driver of the sports sector and,arguably,has been what has kept it growing,however slowly.It has also increased the competition between key sportswear brands and fashion brands and retailers,with each seeing the other as a threat to their already stagnating growth.There are several key drive
25、rs of athleisurewear and sports fashions popularity.Firstly,the blurring of the work-home life continues to make it an acceptable form of dress for informal work from home activities.This has seen it move from being purely the preserve of the sportswear brands to being something targeted by all fash
26、ion brands and retailers.Secondly,consumers continue to put a healthy lifestyle ahead of other pursuits,setting exercise up as part of their lives and as something that is worked into their daily routine.It is now acceptable to arrive for a Zoom meeting in sportswear fresh from a workout or a bike r
27、ide.The sportswear industry has been quick to combine this and the increasingly fashion-forwardness of its clothes to create garments that satisfy both needs.The rise of digital fitness apps and services over the pandemic has driven more consumers to embrace sportswear in their everyday life as they
28、 factor home digital workouts into their working days.Other factors have shifted the fashion emphasis towards athleisurewear,with increasing direct-to-consumer online sales from sports brands taking off in 2020 and continuing to rise,a growing use by the same of social media and social media influen
29、cers and a shift to marketing wares more digitally.Even the return of live sports events has prompted increased sales of both sportswear and athleisurewear.The current leaders in the athleisurewear market are Nike and Adidas,with the former dominating the space.Relatively new entrant Under Armour ha
30、s grown a strong presence in the market,as has Lululemon,both of which occupy significant niches in the pantheon of sports brand fashion sales.A crop of ethical athleisurewear brands has also started to emerge,with names such as Organic Basics,Tripulse,Adrenna and Sundried starting to attract growin
31、g consumer interest in their low-carbon and organic ranges of clothing.that growth is slowing and does nothing to offset falling sales in all categories.Interestingly,the rise in sales of sports fashion targeted at younger shoppers is less prone to inflationary pressures.Many sports brands see Gen X
32、,Y and Z as key fashion sports consumers since they are more likely to buy what they want to be on trend regardless of the price.They are often also using their parents money,mitigating the impact of rising prices.Shifting to sell more sports fashion as well as embracing athleisurewear(see panel)is
33、therefore one tactic that sports goods brands and retailers alike can channel.For sports brands,the challenge will be to keep brand interest alive,investing in marketing as much as new products and services.Nikes kids shoes rental scheme is one such service that plays to consumers wallets,as well as
34、 giving Nike something to shout about on social media.For sports goods retailers,shedding excess inventory in 2023 is the key challenge,along with managing purchase costs in the future.This is a delicate balancing act between supply and demand,the latter of which might pick up at any point across th
35、e year,or could collapse still further.For sports goods retailers,having offerings that make them appealing offers new ways to both manage costs and attract new customers.Examples of this include Decathlons equipment rental scheme and Cotswold Outdoors repair service.6|RetailX|May 2023RXSSG23RP 2023
36、 SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET OVERVIEWINFLATIONARY PRESSURESThe reason for this stalling growth in sports can be firmly placed at the door of high inflation leading to falling consumer confidence.Inflation has grown significantly across the world,fuelled
37、by the impact of rising energy costs as a direct result of the Russia-Ukraine war.This rise has been most pronounced in Europe(Figure 5),largely due to many of its economies being reliant on Russian oil and gas.Asia,too,has seen surges in inflation,with levels hitting ten-year highs in 2022.This has
38、 led to an unprecedented fall in consumer confidence,which has impacted spending across all retail sectors.The UK and China have seen the largest falls here,both dropping way below the global average(Figure 6).Consumer spending confidence has dropped significantly across all regions.Coupled with a r
39、eturn to a more normal level of time spent by consumers on sports,the sports sector has seen significant falls in sales.It isnt,though,the worst hit sector:household goods,homewares and DIY have all been harder hit,as has the wider fashion apparel market(Figure 7).This has largely been down to a con
40、tinued interest in sports fashion and athleisurewear propping up the wider sports goods market,partly at the expense of the mainstream and fast fashion sectors1.SUPPLY CHAIN ISSUESThe global sports goods market has long been an internationally supplied business,with many sports 8556773459
41、22532536320002020212022AfricaAsiaEuropeNorth AmericaOceaniaSouth AmericaSource:RetailX drawing on data from various national institutes of statisticsRetailX 202323-----122021-01202
42、1------------12GlobalUnited KingdomUnited StatesChinaEuropeSource:OECDRetailX 20237|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINA
43、BILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET OVERVIEWbrands turning to manufacturers in Asia and Africa for the manufacture of their internationally sold goods.The global rise in inflation,growing energy prices,raised awareness of sustainability and rising costs of materials hav
44、e all conspired to bring this model into doubt.Supply chains of raw materials,as well as the shipping of the finished goods from afar have felt growing pressure since the pandemic,but these macro-economic and geopolitical issues have exacerbated them post-pandemic.This sees the global sports goods i
45、ndustry increasingly looking to change production and supply methods to a more near-shore model.This shift is slow and is dictated by the products in question,yet it is a distinct trend brewing in the sector.Data shows that 75%of sports goods companies are considering near-shoring for at least some
46、of their products2.Non-time sensitive goods that are produced at volume are likely to continue to be made globally,while those that are market specific,time-sensitive(typically in a fashion cycle sense)and low volume could well be produced more locally.These items tend to be higher value at a higher
47、 price point,so can carry the additional costs of being produced in more expensive manufacturing markets closer to home.Some of these additional costs can indeed be offset as a sustainability premium since the goods are no longer shipped half way round the world.References 1 https:/ of Labor Statist
48、icsRetailX 2023Figure 7:Sporting goods was not the sector most affected by inflation but shopper wallets take a big hit all the same 8|RetailX|May 2023RXSSG23RP 2023 APPARELApparel is the biggest segment of the sports goods sector by sales and,as a result,has borne the brunt of the market contractio
49、n in 2022,slumping from 17%in 2021 to just 2.2%in 2022(Figure 8).What growth there is has been driven by the rise in sports fashion,as discussed in the previous chapter.These growing sales are also predominantly occurring in China and the US across both 2021 and 2022(Figure 9).The boom is Chinese sa
50、les is showing signs of slowing,possibly a result of the end of protracted lockdowns seeing a switch back to consumers buying workwear rather than sports and athleisurewear as they return to more normal working practices.In the US,the growth of sports fashion as a trend has continued to drive up sal
51、es in the sector for apparel.There is also continuing interest among Millennials,Gen X,Y and Z in health and fitness.Again,a result of the pandemic,a greater focus on sport,exercise and health has continued in certain social groups.A recent study of US consumers finds that the number of people who i
52、dentify as health conscious has doubled in the past five years,with While the sports market as a whole has seen flat growth,apparel,swimwear,fishing and outdoor see strong salesMarket segments1.4%13.2%25.6%17.1%2.2%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 20230.1
53、0.10.10.10.10.25.37.07.89.710.811.80.11.41.41.51.82.11.96.37.07.912.114.020020202120220.05.010.015.020.0BrazilChinaNigeriaUnited KingdomUnited StatesSource:Statista Digital Market InsightsRetailX 2023SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR
54、REPORT 2023|MARKET SEGMENTS9|RetailX|May 2023RXSSG23RP 2023 93%of them saying they increasingly feel compelled to eat healthily.This figure is 51%among Millennials and 45%of Gen X1.This translates into a growing interest in sport and fitness uptake.Between 2022 and 2028,the US is expecting to see th
55、e fitness industry grow by 172%,with gym memberships rising to close to 45%.By 2030,the US fitness industry will have 230mn members,while online and digital fitness is expected to grow by a third2.This increasing number of exercising consumers is driving growth of sports apparel,albeit slowly,with g
56、ym members and home exercisers alike buying appropriate garments for workouts.The US leads the way in growth of online sales of sports apparel,generating$455 per consumer each year,up from$421 in 2021.This compares to flat markets in China and Brazil,at$88 and$18 per person,and is in marked contrast
57、 to a significant decline in sales of online sports apparel in the UK(Figure 10).Sports is still a slow-burn sector in emerging markets,but there is potential for more growth in the industry from these regions.An increasingly affluent middle class with more disposable income is likely to drive incre
58、ased uptake of both sports fashion and sports apparel in a range of market across Asia,India and South America.The rise in the number of women taking part in sports and fitness is also set to be a significant growth factor for the sector in established and emerging markets.364423455244227
59、2963655664200202020United StatesUnited KingdomChinaBrazilNigeriaSource:Statista Digital Market InsightsRetailX 2023Growing this segment of the sports apparel market relies on brands and retailers looking closely at how women buy.Increased availa
60、bility of sports brands in supermarkets,as well as online in stores other than own-brand sites,is key to getting in front of the right people at the right time.The use of social media influencers is something that has an increasing impact on women shoppers and its likely that sports brands and retai
61、lers targeting this section of the market will look to use these more to engage women.Indeed,influencers and celebrity tie-ups are going to be key across the sector in shifting sports apparel,with the line between fashion and sports blurring and an increasingly online shopper base looking for inspir
62、ation as much as bargain.SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET SEGMENTS10|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET SEGMENTS2.0%14.6%
63、39.1%10.2%1.3%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 20233.3%15.9%44.4%21.0%2.2%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 2023SUMMER AND WINTER SPORTSAnyone who follows the Summer and Winter Olympics will know that there are
64、distinct sports that fall into each category.What constitutes each covers a lengthy list but key Summer sports are:archery,athletics,badminton,basketball,boxing,canoeing,cricket,gymnastics,judo,shooting,softball and trampolining.These are all sports that are also popular among the general populace a
65、nd their fortunes across the past five years recognise this popularity(Figure 11).These sports saw exceptional growth of 39%in 2020 as the lockdown was lifted in the summer,then again peaked at 10%growth in 2021 when winter 2020-21 restrictions were again lifted.Flat growth in 2022 was then a result
66、 of consumers seeing their lives return to normal and work taking over leisure time once again.Yet these sports continue to remain popular globally,with many of them key to driving sales of sports goods across the world.The regular appearance of these sports as local and international tournaments co
67、ntinues to drive ongoing growth.Winter sports,as defined by the Olympics,include skiing,skating,ice hockey and snowboarding.While popular,all are seasonal and dependent on weather and,hence,location.Regionally,winter sports are often confined to Canada,Russia,the US,Scandinavia and northern Europe.H
68、owever,these sports also continue to see strong growth.2020 saw a peak of 44%growth,2021 had 21%growth and only in 2022 did a slowdown happen,down to 2.2%(Figure 12).11|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023
69、|MARKET SEGMENTS2.8%14.7%26.8%12.4%10.2%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 2023This growth has two drivers.Firstly,many of the country markets where these sports are popular are well developed economies with high standards of living,with these equipment-int
70、ense sports affordable only to those of a higher income.Secondly,this high cost of entry especially around equipment costs means that average spend per user is also high,so even with a lower number of users,sales growth can be generated relatively easily of moderate sales.However,the winter sports m
71、arket continues to be one to watch.SWIMWEARThe swimwear subsector stands alone as one that straddles all age groups and fitness types,since it is enjoyed both as sport and leisure activity.Swimming is one of the most popular fitness activities worldwide,with 28.4mn Americans alone going swimming at
72、least once in 20213,while 4.7mn Britons went swimming twice or more a month in the same year4.Many consumers buy swimwear and swimming related goods for holidays,days out at the seaside and other purely leisure-based activities,a segment that has re-emerged post-pandemic with travel restrictions lif
73、ted and consumers returning to beach and seafront holidays worldwide.This leads to both domestic and local sales in all markets.Together,this sees the swimwear sector generating significant revenues for retailers on and offline,with growth of 10.2%well above the wider sportswear sector in 2022(Figur
74、e 13).The swimwear market globally is slightly skewed to womens swimwear,which accounts for 52.4%of the market and is set to grow to 57.6%by 2028.This rise is driven by growing demand for smart swimwear that incorporates UV-blocking fabrics5 along with menstruation-proof suits and tie ups with fashi
75、on and lifestyle brands6.Geographically,the market is dominated by sales in the US,a market split evenly between both leisure/holiday swimming and health and fitness swimming.The second-largest is China,where leisure swimming has returned to being a popular pastime post-pandemic,especially in summer
76、.The UK is,by spend per person,the third-largest swimwear market in the world.12|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET SEGMENTS2.6%15.1%42.0%15.0%0.5%2002120220.020.040.0Source:Statista Di
77、gital Market InsightsRetailX 2023SPORT AND LEISURE FISHING Fishing is a surprisingly popular sport and leisure activity worldwide and,for the sake of this report,we focus on products such as fishing rods,fish hooks,lines,baits,lures and sinkers that are used for recreational fishing and competitions
78、,rather than anything akin to commercial fishing that involves trapping,trawling and netting fish in bulk.A study in 2014 found that,on average,around 10%of the global population fished for recreation across the industrialised world,amounting to an estimated 118mn people in North America,Europe and
79、Oceania7.More recently,it was found that some 55mn Americans fished for fun in 20208.Sports fishing saw a spike in growth in 2020 as lockdown restrictions eased enough for outdoor,solo sports became more accessible.This 42%growth has been more tempered since,culminating in flat growth in 2022 as upt
80、ake of the sport dropped back to more traditional levels(Figure 14).Growth,however,is likely to resume across 2023 and beyond because,driven by the cost-of-living crisis,some are looking at more cost-effective ways to source food.The growth in online sales of fishing equipment in conjunction with th
81、e rise in digital tech to track fish is also starting to drive renewed interest in the sport.The growing interest in outdoor sports and activities as a part of a protracted back to nature response to the pandemic is also likely to create further uplift in fishing sales.HUNTING AND SHOOTING The hunti
82、ng and shooting side of sports is a strong market,although confined to select geographical areas with the necessary firearm and wildlife laws.The global hunting and shooting ammunition market was worth around$1.18bn in 2019 and is expected to rise to in excess of$1.73bn by 2027.This growth is driven
83、,to some extent,by increased interest in hunting,but more it is in leisure shooting where the gains are being made.Shooting range use and shooting games are driving the market,with the fastest growth seen in China and Asia.Hunting in the US,which has always been popular,saw a marked increase during
84、the pandemic,with a number of hunters using the sport not just for recreation but also for food.With meat processors closed due to staff sickness because of Covid-19,a looming meat shortage saw some people turn their hobby into something useful.There is some conjecture that,with rising food prices d
85、ue to rampant inflation,this could see a resurgence in 2023 and beyond,yet there is currently no data to back this up.13|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET SEGMENTSOUTDOOR WEAR AND CYCLINGOutdoor
86、pursuits have continued to grow in popularity post-pandemic,with consumers embracing the great outdoors as place to exercise and to relax.Months of lockdown years in the case of China have seen a spring back towards enjoying outdoor activities such as hiking,camping,cycling and even dog walking.As a
87、 result,the market for outdoor sports goods has seen very strong growth in 2020 and 2021 and continued to see healthy 4%growth during 2022(Figure 15).As with sports-inspired apparel,outdoor wear is increasingly seen as both a lifestyle choice and as fashion clothing,with brands such as The North Fac
88、e and Jack Wolfskin becoming as much about fashion as they are about outdoor pursuits.While for many,these are serious pursuits,for a growing number of consumers,they are hobbies and pastimes.The surge is dog ownership across Europe during lockdowns has seen growth in outdoor wear sales,although wit
89、h a market that is becoming saturated and which has passed its peak,some of this growth in 2020 and 2021 is likely to fall away as the decade progresses.Cycling,too,has seen a surge in demand across 2019,2020 and 2021.The European bicycle market grew by an astonishing 40%in 2020,to hit 18bn9.Off the
90、 back of this,the European cycling wear market is set to rise by 6%between 2020 and 202610.Part of this has been inspired by the lockdown but there has been a growing mood in Europe towards cycling for everyday transport,particularly with rising fuel prices and growing interest in living a sustainab
91、le lifestyle.Future growth of these outdoor and cycling segments is very much up in the air,however.While there is consistent cohort of performance users of apparel and equipment,much of the growth seen in the outdoor wear market has come from the lockdown.Similarly,for many of those who have purcha
92、sed outdoor wear be it for walking,hiking,dog walking or in taking up new adventurous hobbies such as mountaineering,canoeing and even cycling it has been a transient pastime to fill the gaps in social living caused by the pandemic.As these constrictions fall away,so too may much of this growth in t
93、hese niche parts of the sporting goods sector.2.2%14.2%31.1%15.1%4.3%2002120220.020.040.0Source:Statista Digital Market InsightsRetailX 2023Other sports and outdoor sub-sector ecommerce revenue annual growth,|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUST
94、AINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|MARKET SEGMENTSSPORTS EQUIPMENTThe equipment needed to play sports balls,racquets,bats,gym equipment,skis,goals,hoops,fishing rods and even skateboards makes up a sizeable chunk of the sports goods market.Figures are hard to come by for
95、equipment as a whole,yet this segment of the sector has followed a similar trajectory to that of apparel,footwear and swimwear,in that it has seen a lockdown-induced dip in 2020,then a surge in 2021 and is expected to level off from 2022 onwards.A look at a breakdown by some of the items demonstrate
96、s this.Tennis offers a good indicator.Europe has 52%of the worlds tennis clubs,so its racquet market is expected to grow from 103.6mn in 2021 to 114.1mn by 2028 a CAGR of 1.4%.This is being driven by increasing interest in personal health,as well as by technological innovations in racquet manufactur
97、e that offer better control and more accuracy11.The market for footballs hand stitched,machine stitched and thermally bonded,training ball,match ball and others also demonstrates how sports equipment has performed.Europe and the US dominate this market and while sales plummeted in 2020,they have bou
98、nced back in 2021 and are set for impressive growth.The global football market size was valued at$1.9bn in 2019 and is estimated to reach$3.7bn by 2027.The global market is forecast to grow at a CAGR of 18.3%from 2021 to 202712.Conversely,the European home fitness equipment market has boomed during
99、the lockdown and,while set to continue to grow,has tailed off more rapidly than other sports equipment types.The home fitness and gym equipment market was valued at 2bn in 2021 and is set to grow by 3.1%annually between 2021 and 203113.This will be driven by lifestyle changes,as well as the rise of
100、health and fitness apps.Technological innovations are also set to play a role,creating new and exciting ways to exercise at home,bringing together fitness equipment with virtual and augmented reality.References 1 www.sportengland.org/research-and-data/research/popular-activities/swimming5 https:/ ww
101、w.conebi.eu/european-bicycle-industry-booming/10 https:/ SPORTING EQUIPMENTThe market for sports equipment is so large and lucrative that it has become a heaven for counterfeiting,with as much as 500mn lost each year in Europe alone.A study by the Office for Harmonization in the Internal Market(OHIM
102、),the EUs largest intellectual property agency,showed that sales lost due to counterfeiting of sports equipment not including sportswear correspond to 6.5%of all sales in this sector across the EU28.Every year,an additional 360mn is lost across the EU due to the indirect effects of counterfeiting of
103、 sports equipment as manufacturers buy fewer goods and services from suppliers,causing knock-on effects in other areas.The study also showed that an estimated 2,800 jobs are absent in the sector throughout the EU,as manufacturers shoulder the cost of counterfeiting.In addition,up to 150mn is lost an
104、nually in government revenue throughout the EU due to sports goods counterfeiting.This includes tax,social contributions and VAT that are not paid by producers and distributors of fakes.15|RetailX|May 2023RXSSG23RP 2023 CHINARegionally,the sports goods sector is currently driven from a revenue persp
105、ective by sales in Asia.These sales lie way above any other region,hitting$39.6bn in 2022,compared to North America,which is worth around half that,at$21.8bn(Figure 16).This Asian boom has been driven by a rise in personal fitness and health across the region,particularly in China,during and post-pa
106、ndemic.The impact of the pandemic had a deep psychological impact on Chinese consumers,seeing many realign their views on personal health and wellness,as well as their impact on the environment.As a consequence,a huge surge in sales of sports goods was seen in the region in 2020 and 2021,which has l
107、ed to massive revenues.There has also been an increase in the use of fitness apps for indoor workouts in the region,with some 67mn Chinese consumers using such apps as of April 20221.While similar trends have emerged in other regions notably the US they are dwarfed by those seen in China.With Asia l
108、eading the way,the sports goods sector is seeing a resurgence in growth after an post-pandemic slowdownRegional OverviewSource:Statista Consumer Market InsightsFigure 16:Asia significantly ahead in revenue while Europe declines slightly Sporting goods ecommerce revenue worldwide($bn),by region,2017-
109、2022RetailX 2023AfricaAsiaAustralia&OceaniaEuropeNorth AmericaSouth America0.20.20.30.50.60.617.422.625.232.237.839.60.30.40.40.60.70.77.88.39.012.014.413.410.611.713.016.320.121.80.50.60.70.91.21.220020202120220.010.020.030.040.0Source:Statista Consumer Market InsightsFigure 17:There are
110、 more online sporting goods buyers in Asia than in all of the other global regions togetherRetailX 202320020202120220.0200.0400.0600.0AfricaAsiaAustralia&OceaniaEuropeNorth AmericaSouth AmericaSporting goods online users(in millions),by region,2017-2022 SUSTAINABILITY REPORT|INTRODUCTIONS
111、USTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|REGIONAL OVERVIEW16|RetailX|May 2023RXSSG23RP 2023 Many of these shoppers,being at the younger end of the market,have adopted ecommerce as their primary channel for shopping sports goods,leading to massive growth in the online sports
112、market in the region(Figure 17).Here,Asian online shopper numbers outstrip those of any other region by at least three to one.It is the only region that has seen accelerated growth in online sports goods sales.This is,as said,driven by a much younger audience coming to sports during and post-pandemi
113、c and continuing both the fitness and shopping habits that they adopted during that time.Segment-wise,the Asian market is fairly evenly spread across all parts of the sports goods market,with apparel and outdoor dominant at 22 and 24%,respectively.Yet even footwear and fishing make a strong showing(
114、Figure 19).NORTH AMERICAWhile Asia has seen strong online sales growth and generates huge revenues,sales growth is now happening more rapidly in the North American market(Figure 18).This is again a direct result of many consumer looking at adopting a new,healthy lifestyle after the rigours of the pa
115、ndemic.This is particularly prevalent in younger consumers who came of age across the lockdown and who have continued their embrace of fitness solo and group into the post-pandemic market.As this cohort has matured,they are upping their spend on sports and fitness goods,driving growth in the market.
116、Source:Statista Consumer Market InsightsFigure 18:North America is growing faster while Europe and Africa decline versus the past year Sporting goods ecommerce revenue%change($bn),by region,2018-2022RetailX 202324%27%62%39%-4%30%28%17%5%37%29%0%7%8%34%20%-7%10%1%26%23%8%17%17%42%31%2%2002
117、080AfricaAsiaAustralia&OceaniaEuropeNorth AmericaSouth America10%12%Source:Statista Consumer Market InsightsFigure 19:In North America sportswear and athletic footwear constitute two thirds of the revenue for sporting goods ecommerce Sporting goods ecommerce%share,by region,2022RetailX 20
118、230AfricaAsiaEuropeAustralia&OceaniaNorth AmericaSouth America50100Other Sports&OutdoorWinter Sports EquipmentSummer Sports EquipmentSports&SwimwearFishing Articles&EquipmentAthletic Footwear27%19%23%20%22%19%24%18%20%16%20%20%21%21%21%40%31%20%27%18%SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY
119、REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|REGIONAL OVERVIEW17|RetailX|May 2023RXSSG23RP 2023 Ecommerce has had a strong foothold in the US market for many years and while sports goods ecommerce is growing more rapidly in China,the US market is dominated by sports and swimming apparel,along
120、 with athletic footwear.Outdoorwear is also becoming a significant segment in the region,taking some 20%of the market(Figure 19).EUROPEFollowing the expected spike in sales in 2020,Europe has seen only sluggish performance across 2021 and even slower growth in 2022(Figures 16 and 18).Much of this mo
121、re recent slowdown has been a correction following the surge in sales during the pandemic.This has been compounded by 2022 also seeing increasing inflation and other pressures on consumer spending in Europe due to rising energy prices as a result of the Russian invasion of Ukraine.Discretionary spen
122、ding has fallen in all retail sectors bar grocery,with shoppers becoming much more cautious about their spending.While health and fitness remain the concern of a growing number of consumers in the region,they are tending to delay spending on sports goods and equipment until the financial picture is
123、more clear.The sector in Europe is forecast to return to growth in 2024 and beyond,powered by younger consumers sticking to the more healthy lifestyle adopted during lockdown.Yet there is also a growing obesity epidemic in Europe,with a modern,hectic and pressured lifestyle itself exacerbated by the
124、 rising cost of living driving many to poor eating and relaxation habits.Source:Statista Consumer Market InsightsFigure 20:Less than 10%of the potential buyers currently purchase sports goods online in Africa Sporting goods online market saturation(%),by region,2017-2022RetailX 2023200202
125、02120225.010.015.020.0AfricaAsiaAustralia&OceaniaEuropeNorth AmericaSouth AmericaA correction in this is likely to come through,with millennials and other sectors of the consumer base opting to take more interest in their diet and exercise.This is set to spark strong sector growth in Europe right th
126、rough to the end of the decade2.AFRICAAfrica is the smallest region for sports goods globally and has seen the lowest growth across 2017 to 2022(Figure 16).Growth was,however,very strong in the pandemic,as more people switched to personal fitness and,as with every other region,sportswear and athleis
127、urewear was embraced as a practical fashion choice(Figure 18).Online sales in Africa remain low.Only a very small proportion of African consumers use the web for sports goods shopping,which is the result of very low internet uptake across the continent.Most consumers in Africa dont have a fixed PC c
128、omputer,relying instead on mobile phones.In the more developed South Africa,internet usage sits at 66%while in central Africa,it is as low as 24%3.Even mobile phone adoption sits at just 42%across the region in 2021,but it had doubled since 2020 and growth here continues to be rapid4.Many consumers
129、in the region are unbanked with just 57%of Africans having a bank account,including mobile money accounts such as M-Pesa and so online payments are another drag to progress5.SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|REGIONAL OVERVIEW18|Retai
130、lX|May 2023RXSSG23RP 2023 For these reasons,fewer than 10%of African consumers buy sports goods online currently (Figure 20).However,growth in ecommerce user numbers for sports goods has seen consistent growth between 2017 and 2022 in Africa,growing at a pace similar to all other markets.This growth
131、 has the potential to see Africa grow into a lucrative market for sports goods retailers and brands.User adoption of sports in Africa is set to reach around 14.5%in 2027,up significantly from 9.6%in 2023.However,average revenue per user in the market here sits at just$5.266.SPORTS IN THE MIDDLE EAST
132、The Middle East,while often lumped in with Africa,is a unique and interesting market for sports goods.With global averages showing growth in sporting goods sitting at around 3.3%,in the Middle East,it is tipped to hit nearly 10%7.This trend-bucking growth is being driven by the regional governments
133、across the Middle East actively seeking to use sports as a means to diversify they economies.For example,The Gulf Development Council(GDC),which includes Saudi Arabia and the United Arab Emirates(UAE),has spent upwards of$65bn on sports development across the region.While much of this has gone on la
134、rge infrastructure projects,including a range of stadia and hotels for the 2022 Football World Cup,these governments are also pushing the uptake of sports among the general populace to encourage the economy as well as a platform for social change.Off the back of a growing interest in healthy lifesty
135、les post-Covid,this push is set to see not only investment in big ticket sports events grow hugely,but also to make the Middle East a potential hotspot for sports goods sales.Young people taking up sport are increasingly championing the political and social stance of the sports brands that they love
136、,driving growing interest in inclusion and diversity.Here,sports brands can be a very strong force for good,both with the message that accompanies their goods and the views expressed by their brand ambassador athletes.The Saudi Sports For All Federation is engaged in a nationwide campaign to promote
137、 physical activity and help create more community sports.This,it is hoped,will not only encourage more people to live a healthier,more active life,but will also help germinate local sports leagues,which may at some point compete on the world stage.While human rights groups accuse much of this as spo
138、rtswashing using the spectacle of sports and health as a sop to making no real changes to human rights abuses the general populace is slowly starting to embrace this shift to sports regardless.The region also sees growing internet uptake of around 50%8,with 4G mobile internet and smartphones connect
139、ing around 270mn people.This makes it a mobile phenomenon,leading to this market also being a growing ecommerce market opening up the market to wider sales from those Western brands keen to tap into it.References 7 https:/fincog.nl/blog/36/the-digital-banking-opportunity-in-africa6 REPORT|INTRODUCTI
140、ONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|REGIONAL OVERVIEW19|RetailX|May 2023RXSSG23RP 2023 WHO BUYS SPORTS GOODS?Statistically,sports is clearly a young mans game.Gen Z,aged 18 to 24,account for 33%of sales,along with Millennials(25 to 40)accounting for another third(Fig
141、ure 21).While Gen X(21%)makes a showing,it is clearly a market dominated by youth.It is also one dominated my men,with male sports goods shoppers globally averaging 27%of the market compared to 17%female of those shoppers that identified themselves to researchers a ratio pretty much reflected in eve
142、ry major regional market analysed(Figure 22).There is no denying that the world of sports both professional sports watched by consumers and the market for sportswear and goods is skewed to men.Until recently,the bulk of professional sports were dominated by the male version,particularly those that a
143、ttracted large TV audiences.This has had an impact on the uptake of sports played by amateurs and the market continues to see this bias towards males.There are some schools of thought that sports was predominantly aimed at boys at school between the 1950s and 1990s as part of the general mode of tea
144、ching life skills and teamwork.To sociologists,however,men love playing,watching and talking Sports sales are dominated by young men,who shop for their sports goods in a surprisingly analogue wayConsumer habitsSource:Klarna;NepaFigure 21:Gen Z makes up the largest segment of consumers who bought lei
145、sure,sports,and hobby products online Share of shoppers buying leisure,sport&hobby products online,by generation,worldwide,Q3 2022RetailX 202333%32%21%11%Gen Z(18-24 years)Millennials(25-40 years)Gen X(41-56 years)Baby Boomers(57-75 years)Source:Klarna;NepaFigure 22:More men than women buy leisure,s
146、port&hobby products online Shoppers buying leisure,sport&hobby products online,by gender and country,Q3 2022RetailX 202333%31%23%27%27%27%26%26%20%18%19%14%15%22%Netherlands United States Germany France Australia United Kingdom GlobalMaleFemaleSUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|
147、INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|CONSUMER HABITS20|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|CONSUMER HABITSsports because modern,Western sports dominated as they are by men and by values and behavi
148、ours that are traditionally regarded as masculine provide a unique place for men to think about and develop their masculinity,to make themselves men,or at least one specific kind of man.A 1972 study in the US found that only 7%of high school athletes were girls1,while a 2014 global survey of 37 coun
149、tries found that male participants vastly outnumbered female in all kinds of sport2.However,things are slowly starting to change.Womens sports and womens sporting events are getting increasing coverage on mainstream TV,while the rise of the internet has seen niche sports,of either gender,easily acce
150、ssible to all.The rise of the health and well-being industry has also inspired more women to take up exercise,so there is hope that more women will be buying sporting goods in the years ahead.The dominance of youth(of either gender),meanwhile,is attributed to the simple fact that not enough people o
151、ver the age of 40 are fit enough to regularly engage in sports.Many are also hampered by the time constraints of more gruelling and responsible jobs and the pressures of childcare.Still,with womens sport growing and with more people than ever keen on leading a healthy lifestyle,the scope for growth
152、in consumer sports goods worldwide remains strong.Source:Statista Consumer Market InsightsFigure 23:Sporting goods shoppers in North America are more inclined to spend online Sporting goods ecommerce online revenue%share,by region,2022RetailX 2023100500OfflineOnlineAfricaAsiaEuropeAustralia&OceaniaN
153、orth AmericaSouth America9670303Source:Statista Consumer Digital Market InsightsFigure 24:Over 75%of sporting goods purchases in Asia happen on a mobile phone Sporting goods mobile vs desktop revenue%spilt,by region,2022RetailX 2023DesktopMobileAfricaAsiaEuropeAustralia&OceaniaNorth Ameri
154、caSouth America846474939545351612221|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|CONSUMER HABITSHOW CONSUMERS SHOP:ONLINE VERSUS INSTORERegardless of age and gender,sports goods shoppers are remarkably
155、 analogue in their purchasing habits.Even in the highly tech-savvy markets of North America and Asia,only around 30%of shoppers are buying sports goods online.In Europe,it lies at just one-quarter while in Africa and South America,it is smaller still,sitting at 4%and 12%respectively(Figure 23).This
156、preference for offline shopping is driven by sports goods being a considered purchase.Much of the high-end equipment is expensive and so,after much online research,shoppers tend to head instore to try before they buy.Sports players have to be very picky about the kind of apparel and footwear they us
157、e.If anything generates blisters,chaffing or other problems,its repeated physical exertion.Making sure that the fit of sports apparel and footwear is correct is paramount.For this reason,sports shoppers tend to purchase instore,where they can try on and even move about in the items to check fit and
158、fitness for purpose.This doesnt,however,mean that online doesnt play a significant role in the sports goods purchase journey.Much of the research and planning phase for the purchase is made online,including sourcing a physical store in which to try the goods on.The purchase is therefore often comple
159、ted instore.Source:Statista Consumer Digital Market InsightsFigure 25:Sporting goods shoppers are spending less online Average revenue per user of the sporting good sector($),by region,2017-2022RetailX 20237667867980697270640250320020
160、2020AfricaAsiaAustralia&OceaniaEuropeNorth AmericaSouth AmericaSporting apparel includes sportswear,swimwear and athletic footwareSource:Statista Digital Market InsightsFigure 26:United States keeps growing in sporting apparel online revenue per user Sporting apparel ecommerce average rev
161、enue per user,by country($),2017-2022RetailX 202332734552442272963655664200202020United StatesUnited KingdomChina BrazilNigeria22|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBA
162、L SPORTS SECTOR REPORT 2023|CONSUMER HABITSAdditionally,many sports users often have a particular brand and style that they know works for them and they stick to it.This is particularly true in sports footwear and it leads to a re-ordering mentality,where online channels offer a much more convenient
163、 way to purchase.This,in part,plays a significant role in driving online sports goods sales.HOW CONSUMERS SHOP:MOBILE VERSUS DESKTOPIncreasingly in the markets of Asia,North America and Europe,a growing proportion of this online phase now takes place on smartphones,with as much as 78%of online sport
164、s goods purchases taking place on mobile in Asia.In the US,it stands at 49%and in Europe,47%.Even in the less digital markets of South America and Africa,of those that do shop online,47%and 39%do so on mobile devices(Figure 24).Asian consumers are one of the most mobile-first groups.With a rising mi
165、ddle class,affordable smartphones and increasingly competitive pricing of high-speed mobile data services,the region has seen many consumers push into using mobile as their primary means of accessing the web3.Additionally,Asian consumers especially those in China are much more willing to share their
166、 data with brands and retailers in return for discounts and cheaper mobile services.According to data,38%of Chinese consumers are willing to make a transaction between shared data and brands,rising to 45%across all of Asia.The global average is just 34%4.Africa,too,sees a significant proportion of s
167、ales via mobile,with almost half(47%)using mobile to purchase when they do buy online.Again,this Source:Salesforce ResearchFigure 27:Cart abandonment is higher on mobile phones Cart abandonment rate,by category and device,Q3 2022RetailX 2023Home furnitureLuxury apparelApparelToys and learningFootwea
168、rSporting goodsHealth and beautyElectronics and accessoriesFood and beverageComputerMobileTablet91%84%83%83%77%78%74%75%69%95%90%88%85%84%82%78%75%77%89%80%77%72%73%70%68%61%84%is because mobile is the predominant internet entry point for most Africans.Fixed-line telecoms infrastructure in the regio
169、n has always been lacking and the mobile networks long ago offered a better service.For this reason,African consumers leapfrogged the use of fixed-line internet and went straight from nothing to mobile.The majority of these shoppers,however,are using feature phones and are unbanked,so,while mobile m
170、akes up a significant proportion of ecommerce,overall ecommerce levels are still very low.HOW DO CONSUMERS BEHAVE ONLINE?The overall propensity of sports goods shoppers to shop instore is further revealed in the spending habits data for consumers in all regions(Figure 25).Average online revenue per
171、user(ARPU)levels,while touching$250 per person in North America are lower than most other sectors.According to data,online fashion ARPU globally sits at around$350 and toys and games,as well as food,at nearly$3005.In the US,online fashion ARPU sits at nearly$4006.While the buoyant sports markets in
172、Asia attract a lot of customers and do generate significant revenues,that is off the back of relatively low online ARPU.In Asia,for instance,it stands at just$61,lower than every other region bar Africa.This indicates that there is significant revenue growth potential worldwide in online sports good
173、s sales should retailers and brands be able to capitalise on it.As we have seen,shoppers look to try before they buy and sports goods are often a considered purchase.Integrating a more online feel into the23|RetailX|May 2023RXSSG23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRO
174、DUCTIONGLOBAL SPORTS SECTOR REPORT 2023|CONSUMER HABITSinstore process could well be the first step towards shifting sales online,generating higher ARPU and also cutting overheads.The rise of sports fashion,as opposed to sports apparel for purely sporting use,can also be a driver for growing online
175、spend in the sector.Online ARPU is increasing notably in North America(Figure 26),with much of this growth being generated by the purchase of sports fashion online.There is also the argument that many shoppers,having found what they like for sporting pursuits instore,are now starting to re-order onl
176、ine,growing ARPU.This is a trend not seen across the other regions,however.Online ARPU in sports sales in China went down between 2021 and 2022,while that of Brazil and Nigeria the most developed and prominent markets in South America and Africa respectively remain flat.This indicates there is some
177、way to go in driving increased sales of sports online in most regions.In China,for instance,the late lifting of Covid-19 restrictions in late 2022 prompted a mass return to store buying once it was available.In LatAm and Africa,online sports sales are just not a thing.Yet.CART ABANDONMENTBy contrast
178、,cart abandonment in online sports retail is relatively low(Figure 27).On fixed-line internet,it sits at around 73%,lower than most other major retail sectors such as home furnishings(89%),luxury apparel(84%)and apparel(80%).The level is higher on mobile,where sports sees an 82%cart abandonment rate
179、.Yet this too is much lower than that seen in home furnishings(95%),luxury apparel(90%)and apparel(88%).The standout here is that cart abandonment online across all sectors is very high,with mobile a particular weak spot.For sports goods,the numbers are relatively good because the levels of purchase
180、 made online and on mobile are also relatively low,with shoppers preferring to actually purchase instore.Of those that do go down the online route,it appears that they are more confident in what they are purchasing through these online channels,adding further credence to the notion that many are pot
181、entially re-ordering existing items or that they have already tried them instore and are now buying online for convenience,delivery speed or for a better price.References 1 https:/ www.apa.org/pubs/journals/ebs/3 https:/ 6 2023RXSSG23RP 2023 Across retail,the issue of sustainable production,shipping
182、 and delivery has become a hot topic for many consumers.Much like the fashion sector,which it has considerable overlap with,the sports goods sector is one of the sectors that is attracting the most attention in this regard.Both fashion and sports apparel manufacture have,for many years,been material
183、,energy and resource intensive.The seasonality and trendiness of items in both sports and sports fashion sees a huge turnover in items from month to month,with many goods being wasted and sent to landfill after only a few or even no wears.Combined,this intensity of production and the fact that items
184、 arent worn to destruction make fashion and sports goods particularly environmentally unfriendly.By way of an example,of the 100bn garments produced each year in the fashion sector,92mn tonnes end up in landfill.That is the equivalent of a rubbish truck full of clothes dumped every second.If the tre
185、nd continues,the quantity of fashion apparel waste is expected to reach 134mn tonnes a year by 2030.In addition,if nothing is changed,emissions produced from garment manufacture worldwide will double by 20301.Although sports goods consumers want to be sustainable,they also like high turnover and bra
186、nd new itemsSustainabilityConsumers have become achingly aware of this problem and are starting to shift their buying habits as a result.Globally,this is seeing shoppers look at buying fewer items,buying more sustainably produced items and looking at reselling and buying pre-loved fashion goods.In t
187、he sports goods market,particularly around sports apparel and footwear,there has been a concerted effort to use more recycled materials in garment manufacture,along with looking at the use of new materials that are either lower energy to produce or which are much more biodegradable.Consumers are cha
188、nging their approach to buying,with a growing number looking at how to reuse items or buy second-hand.Drawing parallels again with the fashion sector,42%of Gen Z and millennials say that they are likely to shop second-hand for clothing.This is strongest in Europe and particularly France,Germany and
189、the UK,where more than half of shoppers are open to buying second-hand fashion or are actively doing so.These countries are up there with the US,where the second-hand and vintage market is thriving2.For fashion,second-hand has become a booming new business model,with many brands and retailers active
190、ly now collecting and reselling their own and other brands garments.The global market for second-hand apparel was already worth$28bn in 2019.After a dip at the start of the pandemic though falling by a smaller amount than mainstream fashion the sector has recovered and thrived,hitting$36bn in 2021 a
191、nd set to grow increasingly rapidly to be worth$77bn by 20253.While traditionally this sector has been dominated by charity stores and donated clothes,resale has started to take over,with more consumers starting to see the resale value of the clothes in their wardrobes,especially with luxury and unu
192、sual items that are starting to create a new vintage market.This is yet to spread to sports goods but its time will almost certainly come.A range of marketplaces specialising in second-hand fashion,such as TheRealReal and Vinted,already sell sports fashion.eBay,which has pushed strongly into the vin
193、tage and vintage luxury markets,has rekindled its initial raison dtre as an auction site for used goods by becoming deeply involved in reselling sports goods,particularly iconic sports footwear of yesteryear.SUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REP
194、ORT 2023|SUSTAINABILITY25|RetailX|May 2023RXSSG23RP 2023 GREEN DELIVERYOne of the most obvious environmental impact of the online sale of sports goods is delivery.A diesel van rolling up to a customers front door is a stark illustration of how goods have taken a long and energy intensive journey fro
195、m raw materials and production through to delivery on their doorstep.As a result,consumers globally are increasingly concerned about the environmental impact of their deliveries.This is particularly noticeable among Brazilian consumers,where 96%see it as very important,somewhat important or importan
196、t that deliveries are at least carbon neutral(Figure 28).Globally,there are many markets where more than 90%of consumers see this as a concern,with France,Germany,the UK and Australia all up there.Interestingly,US consumers are far less worried about the environmental impact of their ecommerce habit
197、s,with 14%seeing it as entirely insignificant.In the US market,there is clearly some way to go in raising awareness of the environmental impact of delivery.While there is a strong leaning towards green-ness in the US market,there are swathes of consumers that dont give it any thought and,indeed,many
198、 that dont see human activity as a threat to the environment at all4.That isnt to say that all US consumers are not aware or concerned about green delivery.Rather it shows that a significant number give it no thought,prioritising speed and cost over the environment.Research,however,shows that across
199、 the US and Canada,54%of consumers would accept longer delivery times if it meant more environmentally friendly delivery,while 20%would actually be prepared not only to wait but to pay more for the privilege.Conversely,Denmark,usually seen as a paragon of environmental-friendliness and sustainabilit
200、y,ranked lowest of all countries,with just 27%of respondents saying that they would wait longer and pay more4.This is largely down to the Danish consumer assuming that environmental considerations are baked into every business,so they are already paying for it.Figure 28:Brazilian sports goods online
201、 consumers care the most about retailers providingcarbon neutral home deliveries Source:RetailX Consumer ObservatoryRetailX 2023GLOBAL SPORTS SECTOR REPORT 2023|SUSTAINABILITY26|RetailX|May 2023RXSSG23RP 2023 SUSTAINABLE PACKAGINGAs with delivery,packaging is also becoming an environmental hot-topic
202、 for many consumers.Again,Brazilian online sports goods consumers lead the way in seeing sustainable packaging as important when deciding the purchase sports goods.Here,97%of the consumer base considers eco-friendly packaging to important to some degree(Figure 29).Unlike delivery,however,packaging a
203、ttracts less ire across the world.While shoppers in Brazil,France and the UK do see it as an issue when purchasing,in Germany,the US and Australia,it is less of a problem.Interestingly,in the US which is on average less concerned about the environmental impact of delivery packaging is a much more pr
204、escient issue for consumers,with just 7%here not seeing it as important at all.This sits somewhat at odds with the country having the second-highest level of climate change denial globally behind Indonesia4 and a much less well intentioned attitude to green deliveries.Research suggests that the pand
205、emic has seen a significant shift in US consumers attitude to packaging in particular,with growing use of ecommerce starkly demonstrating how much packaging waste they had to get rid of6.Data also shows that while US consumers dont rank delivery or packaging highly as a purchase driver,they do consi
206、der recycling and recyclable materials,as well as a reduction in the overall amount of packaging,to be something that impacts their purchase decisions.Figure 29:Brazilian sports goods online consumers care the most about retailers providing eco-friendly packagingSource:RetailX Consumer ObservatoryRe
207、tailX 2023Some of this is attributable to not wanting to harm the environment with marine litter of particular concern to US consumers while much of it is likely down to households not wanting to have to personally discard or recycle so much waste.GLOBAL SPORTS SECTOR REPORT 2023|SUSTAINABILITY27|Re
208、tailX|May 2023RXSSG23RP 2023 SPORTS GOODS MANUFACTUREData shows that around 5%of sports and leisure purchases were made on sustainable grounds(4.1%for men,5%for women)in 2021 and,while relatively small,this is up considerably on the 3.8%and 4.6%seen in 2019,pre-pandemic.The trend here is for exponen
209、tial growth,with the proportion of sustainable sports goods likely to hit 4.9%and 5.9%by the end of 20227.This puts the sustainable portion of the sports market in Europe alone at around 600mn in 2021 and likely to hit 800mn this year.Here,the onus is on companies to explore new,sustainable,material
210、s,as well as looking at making their manufacturing,transport,packaging,sales and marketing as sustainable as possible(Figure 30).Suppliers,producers and brands are also set to look more closely at recycling materials and creating their own markets for second-hand equipment and apparel.Both of these
211、markets are reliant on materials,technologies and manufacturing processes that are material and energy-intensive,so the sector faces a big challenge in reducing this.This is already being seen in the sector.Nike,for instance,has seen 99.9%of the waste from its footwear manufacturing business being e
212、ither recycled or converted into energy since 2019.It has also cut fresh water use by 23bn litres a year since 2016.Adidas,meanwhile,states on its website that 60%of its products have been made from sustainable materials since 2020.Figure 30:Depending on labour and energy intensity,nearshoring could
213、 increase costs up to 20%Source:McKinsey&Co.CPG Apparel network model and analysis(June 2022)RetailX 2023Figure 30:Depending on labour and energy intensity,nearshoring could increase costs up to 20%Source:McKinsey&Co.CPG Apparel network model and analysis(June 2022)RetailX 2023Brands such as Patagon
214、ia,itself a long-term environmentally friendly company with ethical products,are seeing a surge in interest from consumers,with sales picking up as a result.A raft of new brands has sprung up putting sustainability front and centre of their ethos and marketing.Organic Basics,Girlfriend Collective an
215、d Wolven have all become more popular since 2020,while SportsS,a specialist running shoe company,has completely rejigged its business to become carbon neutral so that it can leverage sales as“the worlds most sustainable running equipment retailer”by 2025.GLOBAL SPORTS SECTOR REPORT 2023|SUSTAINABILI
216、TY28|RetailX|May 2023RXSSG23RP 2023 References1 https:/earth.org/statistics-about-fast-fashion-waste/2 https:/ https:/ https:/ makes the resale and second-hand market for these goods almost non-existent and sees a lot of worn(but rarely broken or completely worn-out)sports goods end up in landfill.T
217、his prevents the performance end of the sports goods sector from achieving sustainability goals in many markets.SPORTS GOODS AND BUILT-IN OBSOLESCENCEThe sport goods market is one that benefits from having obsolescence built-into its products as an accepted part of its consumer sales strategy.Howeve
218、r,this does make it rather hard to apply sustainability criteria.Many users of performance sports goods are well aware that not only do their items need to fit and feel right,they will only do so for a limited time.A prime example is the road running shoe.While dedicated users will have their prefer
219、red brand and even their preferred model,they are also keenly aware that they have a lifetime of around 500 miles.After this point the supportive foams and the tread start to degrade,reducing the impact resistance afforded by the shoes.For this reason,users of performance running gear are predictabl
220、y loyal repeat purchasers.The same applies to many other sporting items.Wicking clothing,which uses tiny silver threads within the clothing to help remove moisture and sweat so that the clothes stay dry,also have a limited efficacy with time;sports bras lose their vital support with repeated use;and
221、 even tennis balls lose their springiness with use over a limited time.All this is a boon for performance sports goods vendors since they have a reasonably predictable repeat purchase timeline and,if sold using ecommerce,an excellent insight into their customers habits.GLOBAL SPORTS SECTOR REPORT 20
222、23|SUSTAINABILITY29|RetailX|May 2023RXSSG23RP 2023 WHO ARE THE LARGEST 50 AND HOW DO THEY PERFORM?The Largest 50 sports brands and retailers list reads like a veritable whos who of leading brands,showing just how prevalent sports brands are in the modern retail world(Figure 31).88%of the Largest 50
223、retailers and brands sell in more than five countries,revealing the international nature of the sector,with big brands having to rely largely on global reach to generate their high traffic levels.Equally,many of these are internationally recognised brands,with 28%of the Top 50 operating in more than
224、 50 countries and 4%operating in more than 100.While the big guns of Nike,Adidas both named Elite retailers in RetailXs Global Elite 1000 list1 Under Armour and The North Face all appear high up in the list,other brands in the higher echelons come more as a surprise.While the global sports goods mar
225、ket is dominated by enormous,well-known brands,a wealth of localised players also attract a lot of trafficLargest 50 global sports brands and retailersFor example,Garmins showing as the second-most trafficked brand site globally,with a presence in 97 countries,is unexpected.The company,which produce
226、s and sells activity trackers and sports watches,is surprisingly popular and reveals the recent shift in brand power within the sector.Garmin exemplifies how sports tech has become a pivotal and lucrative part of the sports goods sector that drives much of its revenue growth,particularly in the affl
227、uent markets of Asia,North America and Europe.Also gracing the Top 50 by traffic are US-only brands Dicks Sporting Goods and GunBroker.Dicks an omnichannel sporting goods seller that sells apparel,footwear,outdoorwear,fitness equipment and more is the largest sporting goods retailer in the US,but it
228、s largely confined to selling just within the US.Testament to the size of the US market,Dicks attracts the fourth largest amount of retail traffic of any global sports seller from pretty much one country.Similarly,GunBroker,the largest online firearms marketplace and the seventh-largest sports brand
229、 by traffic in our data,exclusively sells firearms and related goods,so again sees the bulk of its traffic(97.6%)coming from the US and a further 1%arriving from Canada2.Again,this is illustrative of how large the US market for sports goods is,particularly in some of these highly niche areas.It show
230、s how hunting and fishing are still highly popular sports in North America and continue to generate significant growth.The US market alone sustains these two sites in the Top 10 by traffic.So prevalent is the sports firearms and hunting market in the US that several retailers and brands that special
231、ise in this equipment and which target only the US feature on this list.Its a big segment,limited to this one,huge market.Russias Sportsmaster has a similar impact.It makes the Top 20 by traffic,despite being limited to selling in just eight countries outside of its core Russian market all satellite
232、s of the former Soviet Union,including Belarus,Poland,Kazakhstan,Kyrgyzstan and Armenia.It also has a limited presence in Denmark,China,Bangladesh and Vietnam.However,the increasing isolation felt by Russia as its war in Ukraine continues may see its ranking in the Top 50 fall during 2023 and beyond
233、 as many of these countries particularly Poland and Denmark are increasingly blacklisting Russian brands and retailers.GLOBAL SPORTS SECTOR REPORT 2023|LARGEST 5030|RetailX|May 2023RXSSG23RP 2023 GLOBAL SPORTS SECTOR REPORT 2023|LARGEST 50Company name Global web traffic Main domain No.of countries w
234、ith web traffic to that domainNike 458,215,425 135Garmin 220,923,440 97REI 149,446,703 66Dicks Sporting Goods 118,937,762 26Netshoes 98394,287 .br 7Adidas 82,016,030 106GunBroker 69,831,557 12Decathlon 65,578,307 decathlon.fr 29Puma 53,452,217 72Cabelas 49,169,684 13SportsD 45,586,056 67Bass Pro Sho
235、ps 40,775,784 10(Sportmaster)39,807,432 sportmaster.ru 9MidwayUSA 39,024,387 6Backcountry 37,915,892 22Patagonia 37,658,200 47Opticsplanet 36,429,139 29Polar 33,758,458 56Asics 33584615 54Under Armour 33,380,691 42F 32,513,354 22Gymshark 30,824,954 60MyProtein 30,102,519 52Centauro 29,854,885 .br 4
236、Figure 31:The Largest 50 sports brands and retailers globally by traffic31|RetailX|May 2023RXSSG23RP 2023 GLOBAL SPORTS SECTOR REPORT 2023|LARGEST 50Company name Global web traffic Main domain No.of countries with web traffic to that domainNew Balance 28,075,998 47 Skechers 27,600,396 33 The North F
237、ace 24,656,766 47 SportChek 24,030,861 sportchek.ca 3 Foot Locker 23,895,601 31 TrekBikes 23,009,002 50 Brownells 22,439,317 14 JD Sports 22,254,966 jdsports.co.uk 19 Columbia Sportswear 22,230,719 38 Bike-Discount 20,300,959 bike-discount.de 44 Camping World 18,847,557 2 Canyon 18,031,703 53 Sportm
238、ans Guide 17,910,093 6 Golf Digest 17,780,571 golfdigest.co.jp 3 Evo 17,519,831 36 Tennis Warehouse 17364423 tennis- 50 Fabletics 16,680,281 7 Bike24 15,353,697 58 Specialized 15,211,987 52 Bike-Components 15,186,390 bike-components.de 41 Classic Firearms 14,965,775 1 Finish Line 14,961,817 11 Salom
239、on 14,895,192 36 MandM Direct 14,868,401 10 Chain Reaction Cycles 14,702,592 45 Intersport 14,596,316 intersport.fr 5 32|RetailX|May 2023RXSSG23RP 2023 GLOBAL SPORTS SECTOR REPORT 2023|LARGEST 50Figure 32:Over half of companies believe brands are becoming more relevant Source:WFSGI&McKinsey Sporting
240、 goods companies survey,September 2022RetailX 2023THE IMPORTANCE OF BRANDSThe importance of brand in retail is a well-understood phenomenon but in the sportswear market,it is particularly prescient.Sportswear both for actual sport and for sports fashion tends to attract very loyal followers,with the
241、 youth market particularly tribal about which sports brands they will wear.To drive growth,sportswear brands have to maintain this loyalty by building on their brand values and image,while also using brand to attract new users and lure others away from their preferred brands.This idea of globally re
242、cognised branding is carried through the sector,with more than half of sports goods companies saying that having a strong brand is vital for growth and revenue generation in the sector(Figure 32).Similarly,more than 50%also expect to increase their investment in brand and brand building(Figure 33).A
243、mong the companies listed in the Largest 50 (Figure 31)are some of the best-known brands in the world:Nike,Adidas,Puma,Decathlon,New Balance and Gymshark.These along with many others in the list have done a massively successful job of creating,building and growing brand which has,in turn,led to enor
244、mous global sales.This itself has continued to grow the brand organically and has helped many of these players expand into new territories,new segments and to attract new,loyal customers.Such reasons are also why the sports goods sector is one of the most international.Figure 33:More than 50%of comp
245、anies expect to increase brand investment Source:WFSGI&McKinsey Sporting goods companies survey,September 2022RetailX 202333|RetailX|May 2023RXSSG23RP 2023 GLOBAL SPORTS SECTOR REPORT 2023|LARGEST 50LOCAL BRANDS DOMINATEThis backdrop of certain uber-brands being internationally recognised is only pa
246、rt of the.When consumers are asked about their preferences around value for money,personalisation,reliability,design and a range of other factors that influence their choice of sports goods,the preference is actually skewed towards local brands(Figure 34).51%prefer local brands to international ones
247、(19%)when it comes to value for money,54%to18%with personalisation and 47%to 23%when asked if it makes them feel like they are living a better life.Even the idea of premium branding is more localised,with 40%preferring local against 31%international.This goes against the conventional wisdom that mos
248、t consumers prefer globally recognised brands,since they are perceived as being higher quality,part of a global culture and independent of country of origin3.In reality,this is only true for some major brands that have truly global and nation-independent reach,such as Nike and Adidas.For many consum
249、ers,the more culturally sensitive nature of local brands,along with much lower price points in markets where living standards are lower,are much preferred.Many international brands work around this by investing in a local presence,opening offices in those markets to tailor products to them.Reference
250、 1 https:/ 2 www.business- Preference*%who prefer local brands%who prefer international brandsFigure 34:Local brands are preferred over international ones in the sports shoes categorySource:2023 McKinsey Sporting Goods Report RetailX 2023Note:net preference of local brands is calculated by the sum o
251、f%responses who think local brands are extremely better/better than foreign brands,minus the sum of%of responses who think foreign brands are extremely better/better than local brands(n=1098)34|RetailX|May 2023RXSSG23RP 2023 Expert insightWhether fans are gearing up for opening day,perfecting their
252、attire for the annual tournament or seeking the look their favourite player wore in the final round,delivering a stellar experience with every order is critical to capturing loyalty and ensuring repeat purchases.To be in it with a chance to win it,sportswear brands must be able to pivot operations t
253、o support both planned and sudden demand spikes.Here are four top tips from PFS sportswear fulfilment experts on how to make this a reality:PFS is the premier ecommerce order fulfilment provider.We facilitate each operational step of an ecommerce order in support of DTC and B2B retail brands.Our sca
254、lable solutions support customised pick/pack/ship services that deliver brand-enhancing experiences with each order.With 25+years as an industry leader,PFS is the BPO of choice for brand-centric omnichannel pfscommerce1.IMPLEMENTING THE RIGHT INFRASTRUCTURE FOR SUCCESS Being set up for success begin
255、s with having the right infrastructure in place.A multi-node fulfilment strategy powered by distributed order management(DOM)technology takes advantage of several distribution points strategically located to ensure faster delivery an essential for time-sensitive sporting events.Alternative fulfilmen
256、t solutions such as a pop-up distribution centre can also be used as temporary,cost-effective solutions to accommodate sudden spikes in demand.Likewise,using physical store location(s)to fulfil online orders and vice versa(order instore,ship from warehouse)can help.2.MAKING SURE STOCK DOESNT RUN DRY
257、 During the sporting season,there is a small window of opportunity for brands to get it right,so ensuring sufficient stock is a must.Brands need to forecast as accurately as possible to ensure they are prepared.Big data obtained from ecommerce platforms,searches and purchase history has become a vit
258、al tool when it comes to trend spotting enabling brands to plan ahead and make the most of every sportswear peak.3.USING PROMOTIONS FOR A COMPETITIVE EDGE Another top tip for success is centred on promotions.A major tennis tournament,for example,often results in an increase of smart attire being pur
259、chased for those in attendance and is easy to forecast due to consistency in dates and formality.Using big data can enable retailers to spot trends within consumer shopping habits and personalise offers and advertisements served to customers on and off the platform.4.BE PREPARED FOR SPORTSWEAR PEAKS
260、!Last but not least,brands must be prepared.While seasonal sporting events can mean huge profit potential,being unprepared can lead to disaster.Brands must ensure they have the right team,partnerships and strategies in place well in advance.By doing so,they can scale up and down as needed throughout
261、 the year,keeping up with current and future spikes as they come.For support on keeping up with sportswear peaks and other seasonal spikes,enlisting a 3PL like PFS can be a major help.Download our latest eBook Its Never Too Early To Prepare For Peak to learn more and contact PFS today to find out ho
262、w we can create a winning fulfilment solution for your brand.Ace sportswear online with a loyalty-inspiring 3PL solutionAs Director of Business Management at PFS,Ben Scherpenbergs helps leading international brands across a range of B2B and DTC industry verticals,including sports goods,develop brand
263、-forward ecommerce programmes that inspire lasting loyalty.GLOBAL SPORTS SECTOR REPORT 2023|PARTNER PERSPECTIVE35|RetailX|May 2023RXSSG23RP 2023 Defining the global eCommerce customer experiencePFS helps brands to meet customer demand on an international scale.We offer technology-driven solutions,pr
264、oven processes and expert knowledge that your business can depend on to deliver brand-enhancing customer experiences.Find out more: premier eCommerce fulfilment provider.36|RetailX|May 2023RXSSG23RP 2023 The company has traditionally been sold through third-parties worldwide,such as sports equipment
265、 and apparel stores.However,online sales had been growing up until the pandemic struck,when online sales shrank nearly 10%as consumer confidence in both Japan and the US withered.Growth online has since returned,with 2021 and 2022 both generating positive online sales(Figure 36).Currently,Asics dire
266、ct to consumer business generates$553.9mn,predominantly in the US and Japan,although online sales are also rising in the UK.Asics is an acronym of the Latin Anima Sana In Corpore Sano,meaning“a sound mind in a sound body”and the company has become one that tries to focus not just on its goods,but al
267、so on wider health and mental wellbeing.It runs its own Freddie Mercury and Bruce Lee popularised them and Nike was established to sell them,yet Japanese sports brand Onitsuka,the precursor to todays Asics,has all but disappeared from popular culture.But Asics formed in 1977 from the merger of Onits
268、uka with fishing and sporting goods company GTO and athletic uniform maker Jelenk has gone on to be something of Japanese sports brand powerhouse.With sales in excess of 484.6bn($3.6bn),the company has seen strong sales growth across 2021 and into 2022(Figure 35),with 58%of the companys income comin
269、g from the sale of performance running shoes,21%from other shoes,10%from apparel and equipment and 11%from Onitsuka Tiger the vintage brand it continues to run.The company is also relatively international,with 26%of sales in 2021 coming from Japan,20%in North America,25%in Europe,12%in China and 17%
270、in other regions.sports science research facility the Research Institute of Sports Science(RISS)where athletes and scientists work on new materials and innovations,as well as studying the movement of the human body.The Institute features its own 350-metre running track and a volleyball court for tes
271、ting.The facility itself employs more than 200 people and active athletes who wear and are sponsors of the Asics brand are flown in at least once a year to see the current research and to give their input on future shoe and apparel designs.The company also runs an ethics hotline,called EthicsPoint,w
272、here employees can anonymously report unethical,unsafe or illegal activity across the company.Asics at a glanceCompany:AsicsHQ:Kobe,JapanFounded:1977Employees:8,900Revenues 2022:$3.6bnSports segments:Apparel,footwearBrands:Asics,AsicsTiger,Onitsuka Tiger and HaglfsNote:Web trafic starts being record
273、ed on the 1st of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWebRetailX 2023-3.4%-2.2%-13.0%23.0%200210.020.0Figure 35:Annual revenue growth of Asics Corp(%),2018-2021Note:Web trafic starts being recorded on the 1st
274、of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWebFigure 36:Annual growth of web traffic to Asics(%),2018-2022RetailX 202314.3%10.3%-9.9%8.7%5.5%20021202210.00.010.020.030.0GLOBAL SPORTS SECTOR REPORT 2023|COMPANY PR
275、OFILE:ASICS37|RetailX|May 2023RXSSG23RP 2023 buoyant in 2020 when cycling came into its own for many locked down Europeans revenue growth has slowed in 2021 and 2022 as the market returns to a more natural level(Figure 37).That said,sales growth continues.Strong online competition along with rising
276、cost-of-living concerns in Europe may have impacted revenue growth but traffic was still perky in 2021,showing double-digit growth.This fell back in 2022 and continues to slide as consumer wariness of high-end purchases grows(Figure 38).Yet rising fuel prices,is driving growing interest in electric
277、bikes as a green and more efficient means of local transport a fact that Bike24 is keen to exploit.Servicing mainly Germany,Austria and Switzerland(69%of sales)but growing in the rest of Europe(23%)and the wider world(8%),Bike24 was an early mover in online sales of high value items,leveraging fledg
278、ling ecommerce in 2002 to start selling bikes.Originally targeting the high-end sports bike market in Germany,founders Andrs Martin-Birner,Falk Herrmann and Lars Witt all keen cyclists have rapidly evolved the company to become one of the leading ecommerce platforms in Europe as well as cementing it
279、s position among the cycling fraternity with its focus on excellent customer service and rapid shipping.Revenues in excess of$275mn in 2022 show just how strong this model has become.However,while sales growth in the company was very The company is maintaining high stock availability of ebikes in it
280、s central Dresden warehouse,as well as upping its logistics support to offer same-day shipping on 90%of the products shown online.Continued investment in warehouse automation is seeing the company gain a further competitive edge in online bike and spares sales.The company is also building further co
281、nsumer trust with the opening of a service and repair centre in downtown Berlin a city of cyclists that gives Bike24 customers a place to see and try bikes and get advice,as well as running workshops,repairs and servicing and a bike wash.Bike24 at a glanceCompany:Bike24HQ:Dresden,GermanyFounded:2002
282、Employees:450Revenues 2022:$275mnSports segments:Bikes,cycling apparel,cycle parts and accessoriesBrands:Sells a wide range of bike brands including,but not limited to,Trek,SRAM,Marin,Brompton,Shimano,Garmin,Fox and AsicsSource:RetailX,drawing on data from Bike24 company presentation documents and C
283、ompanyDBFigure 37:Annual revenue growth ofBike24 Holding(%),2019-2022 RetailX 202315.1%45.3%25.8%4.7%200220.020.040.060.0Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from Simil
284、arWebFigure 38:Annual growth of web traffic to Bike24(%),2018-2022RetailX 2023-12.4%15.1%-21.7%15.1%-4.3%20021202220.00.020.0SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|COMPANY PROFILE:BIKE2438|RetailX|May 2023RXSSG23RP 2023 were unable to travel or gather.However,r
285、ecovery has been very strong,with revenues growing 23%and 17%year-on-year across 2021 and 2022(Figure 39).The companys mail order business has morphed over the years into a strong online presence,largely in the US,but increasingly in the UK,India,Mexico and Canada.Web traffic to the site has fluctua
286、ted wildly across 2021 and 2022,first rising 21%then dropping by 14%(Figure 40).However,the latest data suggests that starting in 2023,traffic is again rising,hitting 6.2mn visitors in March 2023 up 27%in a month.One of Camping Worlds biggest revenue generators in the US market is the sale of recrea
287、tional vehicles(RVs)and their spares.In 2021,the company sold 409,000 new RVs and 312,000 used.The company is also Camping World started as a small supply store on a camp site in Beech Bend,Kentucky in the US dubbed the largest camp ground in the world.With a high throughput of campers,the site was
288、already profitable but the owners son,David Garvin,saw an opportunity.With many campers asking for a store to buy supplies,he took out a loan and started one.Naturally it thrived and,having had the foresight to keep the contact details of all the sites customers,he created an even more successful ma
289、il order business.Garvin sold the business in 1997 to Good Sam Enterprises and Camping World has gone on to become a behemoth in the US outdoor market,eventually extending its reach worldwide.The company has seen strong and continued revenue growth as it has developed and expanded.Lockdowns in 2020
290、saw it take a hit since campers looking to expand through diversification within the sports sector,moving into hunting and fishing gear and accessories with the acquisition of Gander Mountain.This company includes the well-known Gander Outdoors and Overtons brands.Camping World has also partnered wi
291、th electric vehicle maker Lordstown Motors to sell and service electric and hybrid RVs.The company is keen to keep on expanding its demographic reach beyond the 45-65-year-old market which accounts for 42%of its current sales with extensive advertising and sponsorship of college football and motor r
292、acing in the US.Since 2016,it has held naming rights to the Camping World Stadium in Orlando,Florida,and sponsors the Camping World Kickoff college football game.Camping World at a glanceCompany:Camping WorldHQ:Lincolnshire,Illinois,USFounded:1966Employees:12,000+Revenues 2022:$6.97bnSports segments
293、:Camping gear and accessories,recreational vehicles,recreational vehicle parts and servicingBrands:114 brands including,but not limited to,Demetic,Kampa,Easy Camp,Igloo,Regatta,Jack Wolfskin,VW and YetiSource:RetailX,drawing on data from Camping Worldannual reportsFigure 39:Annual revenue growth of
294、Camping World(%),2019-2022RetailX 20237.6%1.0%23.3%17.4%200220.010.020.030.0Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWebFigure 40:Annual growth of web traffic t
295、o Camping World(%),2018-2022RetailX 202313.0%-1.9%-14.2%21.8%-14.2%20021202220.00.020.0SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|COMPANY PROFILE:CAMPING WORLD39|RetailX|May 2023RXSSG23RP 2023 The brand is something of a niche player in the wider sports market and,
296、as such,sales have wavered through the year,with revenue growth trending downward in 2020,2021 and 2022(Figure 41).Web traffic,too,has seen highs and lows,with the pandemic in 2020 seeing online sale plummet 54%,only to recover to 11%growth the following year.2022,however,again saw online traffic dr
297、op by a quarter(Figure 42).In 2008,Diadora signed a joint venture with Win Hanverky Holdings Limited,forming a new company called Winor International Company Limited that operates the trademark Diadora in China,Hong Kong,and Macau to manufacture,design,promote,Like Asics,another sports brand to take
298、 its name from antiquity,this time the Greek dia-dora,means“sharing gifts with honours”.The Italian sportswear brand Diadora came into being as a maker of mountain climbing boots,although soon switched to the then nascent market for football boots and sports shoes in the 1950s as post-war interest i
299、n sports grew.By the mid-1970s,it had launched a push into tennis,signing world champion Bjrn Borg in a lucrative sponsorship deal.But it has been football where the company has truly made its mark.Signing AC Milan striker Marco van Basten as the face of the company in 1980,it has gone on to become
300、the supplier of kit and boots to several top Italian football clubs,including AS Roma,as well as providing kit for the likes of Roberto Baggio,Francesco Totti,Antonio Cassano and Roy Keane.distribute,and sell products bearing the brand in those countries.The company has also sought to diversify,buyi
301、ng the interests of fellow Italian shoemaker Geox in 2009.The Geox brand makes shoes and sports shoes that have patented ventilated soles.These were created by Geox founder,Mario Polegato,who,to cool his hot feet while out jogging,initially cut holes in the soles of his trainers with a Swiss Army kn
302、ife.Geox has since filed for bankruptcy in Canada,although it continues to operate manufacturing plants in China,Indonesia and Vietnam.Diadora at a glanceCompany:DiadoraHQ:Caerano di San Marco,ItalyFounded:1948Revenues 2022:$10.7bnSports segments:Apparel,footwear,accessoriesBrands:Diadora,GeoxSource
303、:RetailX,drawing on data from Company DBFigure 41:Annual revenue growth of Diadora Spa(%),2019-2022RetailX 20236.8%-6.4%-2.7%-2.8%2002210.05.00.05.010.0Figure 42:Annual growth of web traffic to Diadora(%),2018-2022RetailX 202312.9%8.1%-54.1%11.4%-25.4%20021202260.040.020.00.020
304、.0Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWebSUSTAINABILITY REPORT|INTRODUCTIONSUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|COMPANY PROFILE:DIADORA4
305、0|RetailX|May 2023RXSSG23RP 2023 track fitness and exercise,as well as developing more medically inclined products that monitored sleep apnoea and atrial fibrillations.While part of the now multi-billion-dollar company was tasked with developing nav systems for aircraft,the rest of the business expa
306、nded into health and sport through acquisition,buying EME Tech Sat,Digital Cyclone and Dynastream to give it access to a range of foot pods and heart rate monitors.From this existing tech,Garmin has developed a large range of sports and fitness products,along with low power and low cost wireless con
307、nectivity devices.This expansion has seen Garmin cement its position in the sports sector and helped take revenues to Garmin has come to prominence in the sports goods sector through its range of sports watches and activity trackers a business built on its early successes with the Global Position Sy
308、stem(GPS)technology that it help develop for the US military.Founded in 1983 as ProNav by Gary Burrell and Min H Kao with Garmin a portmanteau of their names the company created the first sat nav device.Priced at$2,500,its main taker was the US Army but as the technology became more established and
309、prices fell,ProNav increasingly started to sell to civilians.By 1999,sales had hit three million devices at$232mn.In 2018,sensing the growing consumer interest in wearable tech,the company branched out into selling Connect IQ 3.0 and a series of apps My Swim Pro,Yelp,Trailforks and iHeartRadio to ju
310、st below$5bn in 2022,with revenue growing in double digits across 2019 to 2021(Figure 43).Online traffic growth has been less impressive,but Garmin products are typically high-value and considered purchases,so many consumers choose to buy them through physical retail.Garmins move into the smartwatch
311、 market is likely to see the company generate further revenues,with the segment tipped to be worth over$70bn globally by 2030 and Garmin already taking the top spot in the premium smartwatch category.While Apple may be ahead across the whole smartwatch business,taking 36%of the market,in revenues te
312、rms,Garmin is in the top five as a result of its premium products.Garmin at a glanceCompany:GarminHQ:Olathe,Kansas,USAFounded:1989Employees:19,700+Revenues 2022:$4.86bnSports segments:Activity trackers and sports watchesBrands:Garmin,Aerodata,Navionics,FirstBeat Analytics,Tacx,EasyHunt and AIM Techn
313、ologySource:RetailX,drawing on data from Company DBFigure 43:Annual revenue growth of Garmin(%),2018-2021RetailX 20236.5%15.2%10.5%19.1%2002110.020.030.0Figure 44:Annual growth of web traffic to Garmin(%),2018-2022RetailX 2023Note:Web traffic starts being recorded on the 1st of August of
314、each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWeb-5.0%-12.8%-25.1%-2.2%-3.5%20021202230.020.010.00.0SUSTAINABILITY REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|COMPANY PROFILE:GARMIN41|RetailX|May 2023RXSSG23RP 2023 to cu
315、stomers online in 180 countries via websites in 13 languages.Revenues rocketed by nearly 200%during the lockdowns of 2020,with the company becoming one of a handful of athleisure brands to become de rigueur as zoomwear.While this growth has since slowed,the company still occupies a lofty position as
316、 one of the sectors premium fitness apparel brands(Figure 45).Web traffic globally has also maintained strong growth beyond the lockdown,with clicks growing around 10%each year in both 2021 and 2022 testament to the brands continued pulling power(Figure 46).The company was one of the first to make u
317、se of social media and influencer marketing,with early forays on Facebook followed up by partnerships with YouTube body-building influencers Nikki Blackletter Starting life as humble body-building supplements dropshippers,Gymshark founders Ben Francis and Lewis Morgan took a detour into designing an
318、d manufacturing their own fitness apparel initially by hand and in Francis parents garage.Creating a stir at the Body Power fitness trade show in 2013,the company suddenly found itself the doyen of Facebook.Its Luxe tracksuit became a viral sensation and generated a staggering 30,000 in sales after
319、being available online for just 30 minutes.Four years after being set up,and three since the Luxe tracksuit,the company was named as the fastest-growing UK company on The Sunday Times Fast Track 100 not bad for a business that was financed in its first year by Francis working as a pizza delivery dri
320、ver in his spare time.Today,the company,whose name was picked arbitrarily because it was a cheap domain name,turns over in excess of$600mn and sells directly and Lex Griffin.The company continues to use influencers,with some 125 currently on its books.It now has 5.5mn followers on Instagram.Interest
321、ingly for a company originally set up to target men,by 2020,men made up only one-third of its customer base a fact attributed to the success of its influencer marketing programme.The company,which has never relied on physical sales,opened one permanent store on Londons Regents Street in 2022,with a
322、view to it being more than just a traditional shop,instead combining body conditioning with retail and community,according to Gymshark founder Francis.And former pizza delivery boy Francis?He is,as of 2023,the UKs youngest billionaire.Gymshark at a glanceCompany:GymsharkHQ:Solihull,UKFounded:2012Emp
323、loyees:900+Revenues 2022:$601mnSports segments:Fitness apparel,accessories and athleisurewearBrands:GymsharkSource:RetailX,drawing on data from Company DBFigure 45:Annual revenue growth of Gymshark Ltd(%),2019-2022RetailX 2023-65.5%191.8%-2.1%-3.6%200220.0100.0200.0300.0Figure 46:Annual g
324、rowth of web traffic to Gymshark(%),2018-2022 RetailX 2023Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period Source:RetailX,drawing on data from SimilarWeb91.8%-6.9%-0.8%1.6%9.9%2002120220.050.0100.0SUSTAINABILITY
325、 REPORT|INTRODUCTIONGLOBAL SPORTS SECTOR REPORT 2023|COMPANY PROFILE:GYMSHARK42|RetailX|May 2023RXSSG23RP 2023 as a cooperative of about 750 stores that employ more than 10,000 people.The group,which has just started advertising on French TV again,is the leader for sport apparel sales in the country
326、 in terms of market share.This dominant position in France,along with growing reach in other markets,saw revenues climb strongly in 2020 and remain reasonably level across 2021.The cost of living crisis ushered in on high energy prices has had a dampening affect in 2022,with revenues dropping 6%(Fig
327、ure 47).The retailer,being one of the largest single sports outlets in Europe,has been particularly vulnerable to Europes exposure to rising energy prices as the continent has turned away from Russian gas.This could continue to impact the group in 2023,with prices of goods,raw materials,utilities an
328、d Intersport,a leading European sports goods retailer,was born out of a merger of four independent sports retailers in Germany,France,Belgium and the Netherlands.It has since become one of Europes,if not the worlds,leading large multi-sport retailers.It sells a full range of sports apparel,footwear
329、and equipment from many leading sports brands such as Adidas,Asics,Nike and New Balance.It has also forged a range of exclusive partnerships with some other high-value(though less well known)brands,such as Engertics,McKinley,Nakamura and Firefly,to cover a range of sports,athleisurewear and outdoor
330、pursuits.The company operates 5,800 stores in 43 countries worldwide,the majority of them located in Europe.It also has almost 500 stores in Canada.In France,Intersport International is present operations all rising.Consumers in the region are also likely to continue to watch what they spend as infl
331、ation continues to run hot.That aside,the company is slowly becoming a powerhouse of online sports,selling in both Europe and Canada and with traffic growing strongly across 2019 to 2021(Figure 48).This does not include click-and-collect or ship-from-store revenues,which have also increased markedly
332、 during and post-pandemic.Another strong point for the company is that,as a retailer,it is marked out by having a loyal customer base.A survey in 2020 found that of all the shoppers that had made an online purchase from Intersport,two-thirds of them returned to make another purchase.In Germany,it is
333、 the 80th most visited ecommerce site and is a brand that is well known to 85%of consumers in the country.Intersport at a glanceCompany:IntersportHQ:Bern,SwitzerlandFounded:1968Employees:9,500Revenues 2022:$15.06bnSports segments:Sports apparel,footwear,accessories,athleisurewear and non-sport clothingBrands:Exclusive partnerships with Engertics,McKinley,Nakamura,Firefly and Protouch.Also sells 57