Kaspien Holdings Inc.

04/06/2021 | Press release | Distributed by Public on 04/06/2021 08:46

Selling in the Sports & Outdoors Category on Amazon: COVID-19 Impact and Shopper Psychographics

Category Landscape

The Sports & Outdoors category experienced tremendous growth in 2020. Asthe pandemic forced gymstoclose and social gatherings became smaller and less frequent, consumers invested in home gyms and outdoor recreation. Kaspien'sdata shows Amazon sales in the Sports & Outdoors category grew 80% year-over-year!

While category sales are expected to grow at humbler rates in 2021, consumer buying behavior has permanently shifted. More consumers are comfortable exercising away from the gym, at-home equipment providerslike Peloton are encouraging the shift, and outdoor enthusiasts new and old have taken advantage of Amazon to supply their adventuregear.

This shifting landscape presents immense opportunities for brands in the Sports & Outdoors category. Historically, many of these brands have treated Amazon as a secondary sales channel, and it's under-optimized as a result. 2020 made ecommerce a more important sales channel, and those who optimize their Amazon channel and integrate it into their overall brand strategy first will be best positioned toincrease their market sharein the coming years.

COVID-19's Impact

The Sports & Outdoors category on Amazon saw significant sales growth year-on-year spurred by the global pandemic. When health clubsclosed, consumers brought the gym home. When social gatherings became limited, more consumers spent their leisure time (and money)on outdoor recreation.

As demonstrated by the next three graphs,COVID-19 drove significant sales growth for multiple product types in this category, from sportsto defense to survival gear.

Even outside of Amazon, we saw examples of at-home Sports & Fitness booming, with Peloton taking the spotlight. Peloton's earningsshowtotal revenue reach $1.8 billion in 2020, a 100% increase year-on-year, and their subscription revenue reached $121.2 million, a 99% increase year-on-year.

According to the International Health, Racquet & SportsclubAssociation (IHRSA), the fitnessindustry lost $20 billion in2020. At least 8national gym networks filed for bankruptcy in 2020.

The Outdoor Recreation industry faired far better, with the NPD Groupreporting strong growth in multipleoutdooractivities:

  • Dollar sales of bicycles increased 63% in June 2020 versus the same time the previousyear.
  • Dollar sales of paddle sports increased 56% in June 2020 versus the same time the previousyear.
  • Dollar sales of golf equipment increased 51% in June 2020 versus the same time the previousyear.
  • Dollar sales of camping equipment increased 31% in June 2020 versus the same time the previousyear.

Shopper Psychographics

Three Tiers of Shoppers

Products in the Sports & Outdoorscategory vary greatly in quality and price, which results in multiple, distinct audiences. As such, it's helpful to think of Sports & Outdoors shoppers asthree tiers: Entry level, middle, and luxury.

Entry level shoppers are those trying out a new activity for the first time and have not yet established brand loyalty. They seek the best deal, as they need to validate their interest beforespending more dollars.

Middle level shoppers have an established interest in the Sports & Outdoors category. They've found brands and products they like, butbalance that interest with a fixed budget. They are knowledgeable about some technical details for their given product interest.

Luxury level shoppers have a strong interest in the Sports & Outdoors category and demonstrate a mixture of brand loyalty and experimentation. They have preferred brands, but if an innovative new product is released, they may be willing to try it. These shoppers tend to be (or think they are) very knowledgeable about their area of interest and are willing to pay for premium products.

For brands selling in this space, it's important to identify which tier your products aim to appease. These tiers are very basicand shoppers can fluctuate between them over time and for different products.However, they can be expanded upon to build marketing personasfor your brand, making them even more actionable.

Improvement & Recreation

While shoppers in thiscategory vary greatly in theirproduct knowledge and budget, they do share an important commonality: an interest in competition, self-improvement, and recreation.

The products in this category, whether it's dumbbells, basketballs, or tents,all relate to at least one of the threeinterestsand oftentimes all three. Shoppers want to get better at something and enjoy that task (or the results of it!). The brands that speak to all three interests in their marketing and branding will be best positioned to engage their target audience.

Loyalty Increases with Technicality

Brand loyalty in this space will differ due to a number offactors, including the shopper tiers, but one of the most telling factors is product technicality. Shoppers are more likely to patronize the same brand for products that are complex or require compatibility. Simple, more generic products like elastic bands or weights, tend to have lower brand loyaltyas the differentiating factors are more limited.

That said, shoppers will readily depart from a brand if an innovative new product breaks into the market or the brand has a limited product catalog.

Community Engagement

Both Sports & Fitness brands and Outdoor Recreation brands have a history of cultivating engaged communities.In some aspects, this can be traced back to category shoppers' interest in competition, self-improvement, and recreation.

Ambitionsaround sports, fitness, hiking, climbing, etc. are readily fueled by a sense of community, motivating each other through camaraderie and rivalry.Many of these activities also require dedicated practice and skill, which leads to specialized knowledge that is shared through tips and training.

Brands in this space can and should actively contribute to community building to earn brand loyalty and support growth.

Download the Full Guide

Want theunabridged guide? Download the free eBookto learn even more about selling in the Sports & Outdoors category, including marketplace regulations, tailored marketing strategies, example marketing budgets, and case studies.

Content Marketing Managerat Kaspien, Inc.
Matthew Boardman is the lead writer and editor for Kaspien's ecommerce blog. Matthew collaborates closely with leading industry experts throughout Kaspien to write informative content on ecommerce strategies and news.