Sport and leisure brands: How to activate an inactive market?

Growth in the global sport and leisure market might be slowing down – according to a new McKinsey report – but it is still valued at $433bn. The report also highlights some significant opportunities for brands to take advantage of.

The biggest opportunity: there are around 1.8bn people who are not meeting the WHO-recommended levels of activity. This is a virtually untapped market for sports brands.

As it stands, 31% of adults are not exercising with more women (34%) being inactive versus men (29%). The numbers are expected to rise, with the number of inactive adults reaching 35% in the next five years – again, with more women (38%).

These numbers are cause for concern for global governments who are tackling issues related to inactivity, such as obesity, diabetes and heart disease, not just in adults but across their populations.

People are incentivised to exercise more – in the UK for example, Walk to School Week encourages parents and children to ditch the car and get those arms pumping by walking to school each day. The UK government has a cycle to work scheme in place which encourages both a rise in physical activity and a decrease in pollution.

Countries like China also encourage the population (from children through to the elderly) to become more active through its National Fitness Plan instituted in 2021 – the aim of which is to get 38.5% of the population exercising on a regular basis by this year. This includes increasing the number of fitness facilities across the country, carrying out activities such as competitions, promoting fitness activities for key groups, and promoting the development of the overall sports industry. 

From a brand point of view, exploring this untapped market is not only good for the industry in terms of stimulating growth, but also has wider health benefits. Having identified this opportunity, what’s next? Perhaps it’s the same approach as charities and governments are taking?

Tapping into the untapped; from sedentary to out and about

Getting people back into a sport or interested in a new one isn’t easy, but can be moved along by three key factors – make it accessible, make it fun and show them what it looks like. This ties in with the classic marketing purchasing behaviour framework: attention, interest, desire and action.

Make it easy

Initiatives like the Couch to 5K or Walking Football make it easy for people to get into regular physical activity. For sports brands, getting involved in existing or creating new programmes is one of the ways to create opportunity. For example, Spain’s biggest sports brand JOMA is sponsoring all Walking Football teams across the country.

Make it fun

The rise of new sports like pickleball can have a dramatic impact on activity levels and as a result, sportswear and equipment sales. More than that, spending time in the gym, going on a run or joining a local netball league doesn’t have to be a drudge. The advent of new technologies like fitness trackers, wearables and apps adds a new dimension to physical activity – not just tracking what you’re doing but bringing in an element of gamification into the mix. Like a virtual league or racking up steps to outdo your colleagues, family or friends. In the same vein, new sport equipment or purpose designed clothing also adds to motivation and enjoyment.

Endorsement – show how it’s done

The role of influencers in marketing shouldn’t be underestimated, especially when it comes to sport and leisure. The appetite for trying new sports is there – according to McKinsey’s research. And it’s amplified by social media. Just over one-quarter (26%) of adults started a new sport in the last 12 months, with 16% trying it after seeing it on social media. That figure rose to 27% for Millennials and GenZ.

Now marry the power of social media with large sporting events like Wimbledon or the EUFA European Women’s Championship and there is a massive opportunity for brands to get noticed and engage with potential customers. Just think about how the interest in football rose from girls following the Lionesses’ tournament win – 129,000 more girls got involved in football at school across cities that hosted the women’s Euros in 2022. While this isn’t necessarily the dormant target sports brands are after, it’s an excellent example of stimulating interest in sport.

Conclusion

Capturing the vast, untapped market of inactive individuals presents a significant opportunity for sport and leisure brands. By adopting a strategic approach focused on accessibility, enjoyment, and effective demonstration, brands can play a pivotal role in encouraging greater physical activity and supporting healthier populations. Just as governments and other organisations are implementing initiatives to get people moving, brands can leverage similar tactics – from supporting beginner-friendly or re-entry programmes to embracing innovative technologies and the power of social media to showcase the fun and benefits of an active lifestyle. Ultimately, by making sport and leisure appealing and attainable for everyone, brands can not only drive substantial growth within the industry but also contribute meaningfully to the well-being of communities.

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