Sports Fashion: Inc Impact of COVID-19 - UK - December 2020

OVERVIEW
What you need to know
Key issues covered in this Report
COVID-19: Market context
Impact of the January lockdown and the vaccination rollout
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 on sports fashion 
Figure 1: Short, medium and long-term impact of COVID-19 on sports fashion, December 2020
The market
Initial COVID-19 outbreak causes disruption in sales
Figure 2: Market size for sports fashion, by value, 2015-25 (prepared on 16 December 2020)
Although sports participation declined there has been an increase in outdoor exercise 
Figure 3: Active adults taking part in sports or physical activity at least twice over a 28-day period, millions of people, mid-March-mid-May 2019 and 2020
Footfall across stores declined due to store closures 
Figure 4: Year-on-year footfall change, by location, January 2015-November 2020
Uncertainty around Brexit could impact the market 
Figure 5: Economic outlook towards Brexit, November 2020
Companies and brands
JD Sports overtakes Sports Direct and expands further abroad
Figure 6: Market share of sports specialists, 2018 and 2019
Advertising spend set to grow in 2020
Figure 7: Total above-the-line, online display and direct mail advertising expenditure on sports and outdoor fashion, 2016-20 (January-September)
Nike and adidas are the clear favourites for consumers
Figure 8: Attitudes towards and usage of selected brands, December 2020
The consumer 
More people across age groups are exercising at home since COVID-19
Figure 9: Rates of people exercising at home in comparison with the first lockdown, by age, 8-16 December 2020
More people have bought sports items in the last year
Figure 10: Sportswear and outdoorwear categories purchased, 2018 and 2020
More people are now buying online than in-store
Figure 11: Channel used for buying sports and outdoor fashion, September 2020
Most people bought sports fashion for wearing in the home
Figure 12: Reasons for buying sports fashion items, September 2020
Branded sportswear remains popular
Figure 13: Factors that would encourage purchasing of sports fashion items, September 2020
Innovations in online shopping are needed
Figure 14: Sports fashion shoppers’ interest in innovations in the sector, September 2020
ISSUES AND INSIGHTS
The move to online for sports fashion…
…but the in-store experience should not be neglected
Figure 15: Basketball court in Foot Locker’s new Singapore store, 2020
Opportunities for sports fashion brands to branch out
THE MARKET – KEY TAKEAWAYS
Initial COVID-19 outbreak causes disruption in sales
A year of missed sporting opportunities
Footfall across stores declined due to store closures
Worries around the Brexit deal continue
MARKET SIZE AND FORECAST
Figure 16: Short, medium and long-term impact of COVID-19 on sports fashion, December 2020
COVID-19 causes market to decline by 7%
Initial outbreak caused decline in sales
Figure 17: Market size for sports fashion, by value, 2015-25 (prepared on 16 December 2020)
Figure 18: Consumer spending on sports fashion, at current prices, 2015-25
Sector benefited from casualisation 
Recovery is expected to be swift
Brexit could lead to increased red tape for fashion businesses
Market drivers and assumptions
Forecast methodology
MARKET DRIVERS
Further lockdowns are unlikely to have a big impact on the sector
Figure 19: Purchasing of fashion items, June 2019-20
Missed sporting opportunities
Figure 20: Spectator sport-related activities done in the absence of live events during the COVID-19 restrictions, August 2020
More people have been walking for leisure…
Figure 21: Active adults taking part in sports or physical activity at least twice over a 28-day period, millions of people, 2017-20
…but participation in other forms of sport has declined
Figure 22: Active adults taking part in sports or physical activity at least twice over a 28-day period, millions of people, mid-March-mid-May 2019 and 2020
Footfall across stores declined due to store closures
Figure 23: Year-on-year footfall change, by location, January 2015-November 2020
Uncertainty around Brexit likely to lead to further slowdown
Figure 24: Economic outlook towards Brexit, November 2020
Wages dive after COVID-19 triggers economic downturn
Figure 25: Average weekly earnings, by consumer price index, January 2016-October 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS
An agile approach has been essential this year
JD Sports is now the top sports fashion retailer
Brands leverage digital channels to stay connected with consumers
Nike unveils more adverts that push boundaries
MARKET SHARE
JD Sports overtakes Sports Direct and expands further abroad
Figure 26: Market share of sports specialists, 2018 and 2019
Gymshark’s success contributes to growth in sports brands
LAUNCH ACTIVITY AND INNOVATION
Brands innovate to stay connected with consumers
The North Face invites customers for a virtual summer camp programme
adidas teams up with Snapchat for shoppable mobile game
Outdoors and sport brands maximise in-store experiential retailing 
New Balance rewards New York Marathon runners with free pizza
Figure 27: New balance pizza pop-up, 2020
Canada Goose gives customers an immersive journey at its new concept store
Figure 28: Canada Goose The Journey experience store, 2019
Nike and ASOS invite customers for a wellness experience
Reebok and ASOS launch music and fashion party
adidas launched its biggest shoes drop event ‘Creators Club Week’
Figure 29: adidas UltraBOOST DNA LOOP sneaker revealed at its digital Creators Club Week event, 2020
Non-specialists step into activewear
Cos launches women’s activewear range made from sustainable materials
M&amp;S reveals its first activewear range ‘Goodmove’
Figure 30: M&S’ Go seam-free leggings and Good Move sports top from the Goodmove collection, 2020
Topshop launches first activewear range 
Mango launches activewear
Figure 31: Mango Active range, 2020
Kenzo launches sportswear-inspired range
Collaborations and launches
adidas and Lego build a new sneaker
The North Face teams up with Gucci and Liberty
Nike launches first maternity sportswear range
Figure 32: Nike (M) maternity range, 2020
ADVERTISING AND MARKETING ACTIVITY
Advertising spend set to grow in 2020
Figure 33: Total above-the-line, online display and direct mail advertising expenditure on sports and outdoor fashion, 2016-20 (January-September)
adidas takes the lead as top ad spender in 2019
Nike surpasses Converse in 2019
Figure 34: Nike’s ‘Just Do It-Dream Crazy’ campaign, 2019
Sports Direct launches first Christmas advert in 2020
Figure 35: Total above-the-line, online display and direct mail advertising expenditure on sports clothing and footwear, top 15 spenders, 2016-20 (January-September)
Digital now vital for brands wanting to stay connected with consumers
Figure 36: Total above-the-line, online display and direct mail advertising expenditure on sports and outdoor fashion, by media type, 2019 and 2020 (January-September)
Figure 37: Total above-the-line, online display and direct mail advertising expenditure on sportswear, by media type, 2019
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 38: Attitudes towards and usage of selected brands, December 2020
Key brand metrics
Figure 39: Key metrics for selected brands, December 2020
Brand attitudes: consumers feel that adidas is a brand that gives them confidence
Figure 40: Attitudes, by brand, December 2020
Brand personality: Reebok seen as accessible
Figure 41: Brand personality – macro image, December 2020
Lululemon perceived as aspirational
Figure 42: Brand personality – micro image, December 2020
Brand analysis
adidas a favourite and most trusted brand
Nike seen as diverse and a trendsetter
Reebok needs to do more to stand out
Gymshark offers value for money
Changing consumer habits present Asics with new opportunities 
Fila needs to be more diverse to stand out
Ellesse can increase usage by standing out
Lululemon perceived as exclusive and fun
Sweaty Betty puts plans in place to reach more customers as stores close
THE CONSUMER – KEY TAKEAWAYS
Opportunities in at-home exercise options
The rise in online shopping has made Amazon even more of a threat
Branded sportswear continues to dominate, particularly among men
IMPACT OF COVID-19 ON CONSUMER BEHAVIOURS
Worries about the economy have created financial uncertainty…
Figure 43: Thoughts around the effect COVID-19 will have on the economy, 18-24 June 2020
…and male shoppers are more likely to want to put money into savings
Figure 44: Changes in people’s lifestyles due to COVID-19, by gender, 10-19 November 2020
Fewer people are buying fashion items
Figure 45: Consumer spending expectations due to COVID-19, 8-16 December 2020
People have become accustomed to shopping online
Figure 46: People shopping more online since COVID-19, 16 April-16 December 2020
More people across age groups are exercising at home
Figure 47: Rates of people exercising at home in comparison with the first lockdown, by age, 8-16 December 2020
ITEMS BOUGHT
More people have bought sports items in the last year
Figure 48: Sportswear and outdoorwear categories purchased, 2018 and 2020
Sports fashion items almost as popular among women 
Figure 49: Sportswear and outdoorwear categories purchased, by gender, September 2020
Young shoppers are keenest buyers of sports fashion 
Figure 50: Repertoire of numbers of sports fashion items bought, by age, September 2020
RETAILERS AND CHANNELS USED
More people are now buying online than in-store…
Figure 51: Channel used for buying sports and outdoor fashion, September 2020
…making Amazon the most popular sports fashion retailer
Figure 52: Retailers where consumers have bought sports or outdoor fashion in the last 12 months, 2018 and 2020
Women are more likely to buy from fashion retailers
Figure 53: Types of retailers used for buying sports fashion in the last 12 months, by gender, September 2020
Sports Direct appeals to a wider age group than JD Sports
Figure 54: People buying sports fashion from Sports Direct or JD Sports in the last 12 months, by age, September 2020
Young male shoppers are least loyal
Figure 55: Repertoire of retailers used to buy sportswear, by age and gender, September 2020
REASONS FOR PURCHASING
Most people bought sports fashion for non-sports use
Figure 56: Reasons for buying sports fashion items, September 2020
FACTORS THAT INFLUENCE PURCHASING
Branded sportswear dominates…
Figure 57: Factors that would encourage purchasing of sports fashion items, September 2020
…with men particularly swayed by familiar names
Figure 58: Factors that would encourage purchasing of sports fashion items, by gender, September 2020
A combination of features appeals to 70% of people
Figure 59: Factors offered in sports fashion to influence purchasing, TURF analysis, September 2020
INTEREST IN INNOVATIONS
Innovations in online shopping becoming more necessary
Figure 60: Sports fashion shoppers’ interest in innovations in the sector, September 2020
Youngest shoppers want to wear sportswear for formal occasions
Figure 61: Sports fashion shoppers wanting items that can be worn on formal occasions, by age, September 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
TURF analysis methodology
Figure 62: Table – TURF Analysis – sports fashion, September 2020
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology