2023 was a year of ups and downs. Despite facing challenges, WFSGI and McKinsey’s new Sporting Goods Report argue that it’s not all headwinds; there are signs that perhaps the worst is behind us.
One reason for a more positive outlook, according to McKinsey & Company and WFSGI, is the evolving preferences of consumers. More people are interested in sports, and more are willing to try activities that don’t require a significant time or equipment investment. According to the new report, interest in both pickleball and running has grown. On the other hand, golf has also seen a significant increase in engagement and interest. This trend is likely due to the growing interest in social sports.
Another segment experiencing increased participation is among older demographics, opening up a market where participation is as important as performance for participants.
WFSGI and McKinsey also note in their report that operational priorities are changing. Following the imbalance in supply and demand caused by the pandemic, companies have turned to integrated business planning and advanced analytics to navigate uncertain times.
Need for innovation in the sporting goods industry
Another point highlighted by WFSGI and McKinsey is the ongoing need for innovation in sporting ecosystems and sustainability to make the entire industry more sustainable. They also take into account alarming figures from the World Health Organization (WHO), stating that 28 percent of adults and 81 percent of adolescents globally fail to meet the organization’s recommended activity levels.
Join McKinsey and WFSGI on their webinar about the report:
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McKinsey’s and WFSGI: “Chances to grow”
Alexander Thiel, a partner at McKinsey & Company, also suggests that 2024 will offer opportunities. “As the global population continues to expand, and more people adopt healthier and more active lifestyles, brands, retailers, and manufacturers have chances to grow. But this potential should be contrasted with continuing political and economic unpredictability, which is playing out in almost every region globally.”
In their report, WFSGI and McKinsey highlight several key themes. Notably, they emphasize the need to offer more than just a single idea in the future. Customers want to add value to their purchases, such as the opportunity to meet like-minded people or the convenience of buying everything they need in one place. Another standout point is that companies will need to find a winning formula and the right channel strategy, as the world’s largest markets are growing at different rates and experiencing increasingly polarized performance.
Racquet sports thrive
The report also provides several interesting figures, such as 90 percent of survey respondents to the McKinsey & WFSGI Sporting Goods Industry Survey 2023 expecting revenues to hold steady or grow in 2024 compared to 2023. However, demand dynamics are likely to vary across markets and segments, suggesting that companies may need to tailor their strategies to local conditions. Another clear figure is that racket sports have a bright future ahead, with participation in pickleball/padel increasing by a whopping 159 percent during the year.
Join the report webinars
If you want to know more, McKinsey and WFSGI are providing a webinar. The webcasts will be held on Wednesday, Feb. 21, 2024, in two slots:
Click Here to Register for Slot #1 9am-10am CET / 4pm-5pm HKG / 3am-4am ET
Click Here to Register for Slot #2 5pm-6pm CET / 12pm-1pm HKG / 11am-12am ET
You can read the full report here.
