In this edition of the ASGA Update you’ll find articles about:
- Sports companies need to know about these megatrends
- People cycle more when it is safe and easy to do
- Technology drives value in ranking of top international brands
- China loses share in world footwear production
- Generation Z more influenced by social media than by deals
- Prolonged sitting could lead to an early death
- Outdoor – a growing global market facing some challenges
- Launch of US Project Play 2020 by Aspen Institute
- Reports of the ‘Retail Apocalypse’ over-rated
- The fashion impact of Instagram
A recent article on ISPO.com asks how do sports companies head towards a successful future? Digitization and the digital transformation are changing business. So-called megatrends are determining societal and technological development. Sports and outdoor companies are facing the challenge of interpreting and classifying these megatrends and what they mean for their business models.
“There are five megatrends,” says Phillip P. Prechtl, qualified expert on the sports business and the sporting goods industry, “that are relevant for the sports market.” Every sports company should know about these megatrends in order to draw the right conclusions for themselves. Then it’s necessary to find and make use of the trends that fit the brand, the company consultant says.
Prechtl has already helped several sports companies with this. His experience: “This is where several companies spread themselves too thin.” This often increases the complexity of the product range, as well as distribution and production costs. But revenue per item usually sinks. The business insider has compiled the five relevant megatrends for ISPO.com:
- New work / Sports outside
- True Heroes
To read more about the five megatrends please visit ISPO.com.
A recent article in The Conversation discusses how the latest national cycling participation data, released in June this year, show the proportion of Australians cycling has fallen significantly since 2011. This is bad news for health and wellbeing, and for the economy as well.
However, research by the authors shows some exceptions to this trend, in places where safe cycleways have been built.
While many of the world’s cities are investing in cycling, Australian cities are pedalling backwards. Cycling targets may appear in planning documents, but federal and state governments have clearly failed to commit adequate resources to achieving these goals.
Governments tend to see cycling as sport, recreation or a children’s activity, rather than as an essential part of a modern multi-modal transport system.
To read more about improving the uptake of cycling as transport, please read the article on The Conversation.
The BrandZ Top 100 Most Valuable Global Brands list, as published by brand consultancy Kantar Millward Brown and WPP, notes that technology continues to rule and fuel the top ranked companies this year, and it plays a major part in boosting some of the fastest growing businesses as well.
An article on Sourcing News, note that technology is having other effects on the overall brand ranking. Companies are getting younger, and it allows businesses to be global from day one, which is greatly impacting speed and scale, the report noted.
Activewear and fast fashion claimed the majority of the top 10 apparel slots again this year. Nike, Zara and H&M held onto the top positions.
This year, activewear companies represented 49 percent of overall apparel value, up from 36 percent since 2006. Fourth ranked brand, Adidas, stands out for making the biggest leap up the chart. The activewear company increased its brand value by 58 percent to $8.3 billion in 2017. The report says the brand’s performance exemplifies how important technology is even for companies that are not tech pure-plays. In the case of Adidas, that includes innovations like 3-D printing.
To read more about the top brand ranking, please see the article on Sourcing News.
According to the 7th edition of the World Footwear Yearbook, the worldwide footwear production stalled at 23 billion pairs in the last two years, after climbing 15% between 2010 and 2014.
At continental level, the geographical structure of the industry remains broadly unchanged. In 2016 Asia’s share of the world production was 86.7%, only marginally lower than in previous years. However, at country level, China’s share in the world production, which has increased in a sustained way in the last few decades, peaked in 2013 (62.9%), and since then has declined steady to a 57.0% quota in 2016.
The last decade has seen strong growth of footwear exports worldwide with volume increasing by 25% to 13.9 billion pairs and value by 78%, to 122 billion dollars. However, over the last two years exports have fallen by 6% in volume and by 8% in value. This suggests that a new phase in the development of the industry may have arrived.
Even if it is the powerhouse of the footwear industry and will remain for the foreseeable future, Asia has lost 2 percentage points in its share of world exports since 2010. Moving in the opposite direction, Europe has gained 3 percentage points over the same period, reversing the trend observed in earlier years. China continues to be the leader in terms of worldwide exports, with a 67.3% quota in 2016, following at some distance by Vietnam.
To read more about the World Footwear Yearbook please visit the website.
An article on Retail Dive quotes research saying that Generation Z is two to three times more likely to be influenced by social media than by sales or discounts — the only generation to value social media over price when it comes to making purchase decisions., according to a study by IRI emailed to Retail Dive
However, the study by IRI suggests Gen Z is just as influenced by low prices as by products that are easy to find, with 26% of Gen Z choosing a retailer because of low product pricing and 23% based on how easy it is to find products, according to IRI.
Most of the younger generation seem to agree that brick and mortar retailers offer many of the same qualities as online retailers, with 79% saying that both platforms equally offer the brands they want, low pricing (70%), an enjoyable shopping experience (66%), a large product selection (56%), great rewards/loyalty programs (55%) and products that are easy to find (55%), per the study.
To read more about the study, please see the article on Retail Dive.
An alarming new study, quoted in an article on psnews.com.au, has revealed sitting for too long can increase the risk of an early death, irrespective of how much exercise you do.
The research, published in Annals of Internal Medicine, found a direct relationship between a person’s total sedentary time and sitting for prolonged, uninterrupted periods, and the risk of early mortality of any cause.
And according to the study’s lead author, Dr Keith Diaz, the longer you sit the greater risk you are at of an early grave.
“We were surprised at just how strong a risk factor sedentary behaviour was for risk of death, particularly even after we accounted for exercise levels,” Dr Diaz, a Columbia University Department of Medicine research scientist, told The New Daily.
“We were also surprised to find that the link between sedentary behaviour and death is even stronger when you sit for long, uninterrupted periods,” he said.
To find out more about the study, please visit psnews.com.au.
A ‘deep dive’ report into the Outdoor category by Fung Global Retail and Tech discusses the growth opportunities and challenges for brands and retailers in that space. The outdoor goods market has registered dynamic growth in countries such as China and the US, where it has benefited from increasing consumer participation in outdoor leisure activities and winter sports. Nevertheless, the market remains challenging for some brick-and-mortar specialist retailers, which face competition from the online channel as well as other challenges.
We consider the outdoor apparel and footwear category to include all clothing and footwear items—such as jackets, coats, trousers, tops, gloves, scarves, shoes and boots—that are specifically designed for outdoor sports and recreational activities, including trekking, hiking and skiing. Outdoor goods specialist retailers typically also sell non-apparel items for outdoor activities—such as tents, sleeping bags, backpacks and, in some cases, guns.
The global outdoor apparel and footwear market was worth $43.6 billion in 2016, according to Euromonitor International. Among the largest regional markets, China and the US saw the fastest growth in the outdoor goods category last year. In Europe, the UK’s outdoor goods market outperformed those of Germany and France in recent years, growing a CAGR of 3.6% from 2011 through 2016.
To find out more about the growth and challenges of the outdoor category, please visit the Fung Global website.
The Aspen Institute today announced a multi-year effort by more than a dozen leading sport, health, media and other organizations to grow national sport participation rates and related metrics among youth. The initiative, Project Play 2020, represents the first time that industry and non-profit groups have come together to develop shared goals around making sport accessible to all kids, regardless of zip code or ability.
The Aspen Institute will help guide the efforts of Project Play 2020, an outgrowth of Project Play, which since 2013 has provided a venue for stakeholders to build healthy communities through sports. The members will develop mutually reinforcing actions over the next three years consistent with the framework of the Project Play report, Sport for All, Play for Life: A Playbook to Get Every Kid in the Game. Other organizations will be invited to join a broader coalition that offers benefits for aligning efforts.
The effort was launched at the 2017 Project Play Summit, the nation’s premier gathering of leaders at the intersection of youth, sports and health. More than 400 leaders are attending the event at the Newseum, where the Institute released new data showing that only 36.9 percent of children ages 6-to-12 played team sports regularly in 2016 – down from 38.6 percent last year and 41.4 percent in 2012.
Two of the Project Play report’s eight strategies – Encourage Sport Sampling and Train All Coaches – will be an initial focus of Project Play 2020. Through work groups, members will develop opportunities to introduce kids to more sports, and to grow the quality and quantity of coaches. The average child today plays fewer than two sports, and less than one-third of youth coaches are trained in competencies such as safety and sport instruction, according to data provided by the Sports & Fitness Industry Association.
To read the full media release please click here.
An article on Business Wire reports that U.S. retailers are opening 4,080 more stores in 2017 than they are closing, and plan to open over 5,500 more in 2018, according to new research from IHL Group. The report, Debunking the Retail Apocalypse, was released today and is available here.
New research study debunks retail apocalypse: retailers opening 4,000+ more stores than they’re closing in 2017
The research reviewed over 1,800 retail chains with more than 50 U.S. stores in 10 retail vertical segments. It found that for every chain with a net closing of stores, 2.7 companies showed a net increase in store locations for 2017.
“The negative narrative that has been out there about the death of retail is patently false,” said Greg Buzek, president of IHL Group. “The so-called ‘retail apocalypse’ makes for a great headline, but it’s simply not true. Over 4,000 more stores are opening than closing among big chains, and when smaller retailers are included, the net gain is well over 10,000 new stores.”
“Without question, retail is undergoing some fundamental changes. The days of ‘build it and they will come’ are over,” added Buzek. “However, retailers that are focusing on the customer experience, investing in better training of associates and integrating IT systems across channels will continue to succeed.”
To read more about the report, please visit the Business Wire website.
Dana Rebecca Designs surveyed 2,000 Instagram users to understand how the popular platform influences style and fashion decisions. They’ve produced a fascinating infographic about their research.
Each social media platform—Facebook, Instagram, Pinterest, Twitter, Snapchat, etc.—are designed to connect users but some channels are better formatted than others for specific purposes. For sharing fashion, which is so reliant on visual presentation, platforms like Instagram and Pinterest are the leaders in connecting the latest trends and hot looks with the masses.
Anytime there is an abundance of something, the best versions rise to the top. Of the 2,000 responders, a whopping 85% follow accounts that are style-, fashion- or lifestyle-focused on Instagram. Of those, 90% are female while male followers make up 81%. It’s safe to say that Instagram is the favorite of fashion-forward fans, regardless of gender.
Considering the high volume of users, it stands to reason that all the posts being shared will have an effect on the viewers. After seeing something on Instagram, 72% of respondents have made a fashion-, style- or beauty-related purchase. One in 3 respondents stated they have used Instagram inside a retail store to help their purchase decision. For companies, brands, designers, and marketers, that is product exposure you cannot ignore!
When asked which social media platform has the most influence on their shopping habits, half the respondents said Instagram, followed by mostly Facebook and Pinterest nearly splitting the other half (23% and 22%, respectively). However, 82% of those surveyed said they don’t use Instagram’s SHOP NOW feature. Considering how much visibility fashion has on Instagram, and how likely followers are to make purchase, it’s surprising that this natural next step hasn’t caught on. Perhaps the SHOP NOW feature is too new and users are waiting for it to become more mainstream, but until then, Instagram certainly still has more influence than other social media platforms.
Instagram launched in 2010 so it’s not surprising that 89% of Instagram users are Millennials themselves. Having grown up in the digital age, Millennials are quick to adopt new technology and more open to sharing it via social media. Gen-Xers using Instagram are close behind with 82%, and Baby Boomers hover around 65%, proving that social sharing is now simply a ubiquitous part of modern life for any age.
To read more about the research please visit the Dana Rebecca Designs website.