The sport of tomorrow

Future consumer trends impacting sports participation

Prepared for Sports and Recreation Alliance Chair’s Network Meeting | October 2013

Nick Chiarelli, Key Account Director

1 About Future Foundation

2 Levels of sports participation

3 Consumer trends impacting on future sports

participation

4 Summing up

What we’ll cover today

About Future

Foundation

1

The sport of tomorrow

Who are the Future Foundation

A diverse collection of individuals united by our incisive view of

the world, our rigorous but creative thinking, our openness to

new ideas and our dedication to the highest quality work.

We specialise in generating

actionable insights about the future

Our mission is to provide

clarity to our clients, reduce

their risk and inspire creativity

nVision | A cross-category view of consumers

Personal Finances

Consumer Confidence

Technology Behaviours

Advertising

Social Media

Environment and Sustainability

Family & Home

Affluence & Luxury

Health and Wellbeing

Localism

Values & Attitudes

Media Usage

Aspirations

Leisure Behaviours

Shopping

nVision | Perspectives on the changing consumer

Proprietary Quantitative Research

Original online research exclusive to

subscribers.

5 waves per year in the UK

2 waves per year 24 markets globally

Other proprietary research

Trend spotters in 60 global markets

Additional qualitative research

nVoys: expert panels

Third party resources

Access to a wide variety of third party

reputable data sources to expand our

research reach.

Sources & Methodology

Established

Trends

Individual

data charts

Forecasts

Special

analyses

Consultancy

hours

Stimulus!

Brand

manifestation

database

Beyond

2020

reports

Category

reports

Emerging

trends

nVision

Regularly published content

Levels of sports

participation

2

The sport of tomorrow

Sport participation

Source: Taking Part Survey, Department for Culture, Media and Sport/nVision | Base: 9,188 face-to-face respondents aged 16+, England, 2012

% who have done sport/physical activity (excluding utility cycling) in the last 4 weeks | 2012

0%

20%

40%

60%

80%

100%

To

tal

Ma

le

Fe

ma

le

16-2

4

25-4

4

45-6

4

65-7

4

75+

2009 2012 36%

of adults participate in

moderate intensity sport

at least once a week

Household expenditure on recreational services

Source: Consumer Trends, National Statistics/nVision | Base: UK, 2013

£0

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

£8,000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

20

11

2012

2013

Current Constant

In millions, at current and constant* prices | Data for 2013 based on Q1 and Q2

E-commerce, clothes or sports goods

Source: Eurostat Survey on ICT Usage/nVision | Base: All individuals aged 16-74, UK, 2012

0%

20%

40%

60%

80%

100%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

20

11

2012

2013

2014

2015

2016

2017

2018

2019

2020

Observed

Forecast

% who have ordered clothes or sports goods online in the

past 12 months | May 2013 nVision forecast based on latest

available data

This forecast is based on the

assumption that the appeal of

using e-commerce platforms

will continue to grow as they

become still more

established, accepted and

comprehensive in terms of

coverage - as well as

offering prices that very often

cannot be matched by high-

street retailers.

In the next five years, we can

also expect to see a more

diverse demographic profile

for e-commerce shoppers as

well as the rise of online tools

which promise to locate the

best deals on our behalf.

Children’s views on sport and exercise

Source: nVision Research | Base: 1,018 online respondents aged 7-15, GB, 2012

“How important do you think it is to do these things in order to be healthy?

Do lots of exercise/play lots of sport” | nVision Kids Research, 2012

42% 54%

35%

55%

23%

0%

20%

40%

60%

80%

100%

Total Boys 7-11 Boys 12-15 Girls 7-11 Girls 12-15

Not at all important to do to be healthy

Not very important to do this to be healthy

Quite important to do this to be healthy

Very important to do this to be healthy

Consumer trends

impacting on future

sports participation

3

The sport of tomorrow

Many trends have potential impacts on future participation in sport

Many trends have potential impacts on future participation in sport, continued

Play nVision UK Key Trend

While the act of being at play may once

have been considered niche behaviour, it

has long since been transformed into a

mainstream activity with appeal across all

consumer segments.

In turn, ever more products and services

feature playful and game-like mechanics,

ever more brands seek to engage us by

extending invitations to play.

Play: some of the evidence

Source: nVision Research | Base: 1,000 – 5,000 online respondents aged 16+, GB, 2012

35% Own a handheld game

device

23% Use gaming apps at least

once a month

$1 million Revenue from Angry birds

each month

% who have a games console in

their home 2012: 57%

Those interested in a device which alerted them at the instant the online price of a product they wanted had decreased

16-24s: 78%

2012: 69%

16-24s: 84%

% who play computer/video games at least once a week

0%

20%

40%

60%

80%

100%

Total 16-24 25-34 35-44 45-54 55-64 65-74

2010 2011

Play: trend in action

As part of Corona’s

6-pack board game

campaign,

consumers had the

chance to transform

cardboard beer

carriers into game

boards - using beer

bottle caps as game

pieces.

May 2012 saw Wagon Wheels launching a

digital treasure hunt as part of its alien-themed

“The Truth is in There” campaign.

March 2012 saw Domestos

launch a “Flush of Fortune”

roulette game hosted on a

dedicated mini-site.

Carlsberg’s campaign which ran in early 2012

saw drinkers in Israel being challenged to pour

as many virtual pints as they could in a period

of just 60 seconds - using an app which was

only accessible on 20 iPads located across

participating bars in Tel Aviv.

March 2012 saw Tesco launching its first

Facebook game - styled as Delivery

Dash.

Play Implications for sport

Sports can no longer rely solely on their

intrinsic playful nature to satisfy the

needs of their participants.

Instead they should look for possibilities

to add fun and engaging elements to

how their sports are played and

marketed.

Participants should be encouraged to

interact with billboards or scan certain

codes to unlock game-like offers and

elements, in the name of adding fun and

building loyalty.

19

Performative Leisure nVision UK Key Trend

In our increasingly mobile-enriched lives,

broadcasting real-time records of our

leisure activities as a way to earn status

becomes ever easier.

59%

“I like it when people acknowledge my

posts/photos/comments on social networking

sites”

Women 63%

25-34 67%

16-24 75%

Performative Leisure: some of the evidence

0% 20% 40% 60% 80% 100%

Holidays I've been on

Places I've been to (e.g. restaurants,

concerts, sporting …

Films/music I have recently

watched/listened to

My day-to-day life

Clothes I have bought

With friends

With family

With contacts on social networks

“Please tell us which types of information you

like to share details about”

Source: nVision Research | Base: 2,000 online respondents aged 16+, GB, 2012

Performative Leisure: trend in action

Mexican football team los Jaguares de Chiapas

Socialcam Squawka

Walibi Connect

22

Performative Leisure Implications for sport

It’s not enough to play a great game or

smash your personal best anymore –

everything has to be shareable.

Brands can merely sit back while their

users share their experiences of the

brand, or they can proactively

encourage and facilitate the sharing

process.

Will we simply spectate when we can

use real-time services to facilitate a

more pro-active form of participation

23

The Quantified Self nVision UK Key Trend

Smart technology is empowering

consumers to collect and interpret real-

time information about ever more aspects

of their daily lives.

In turn, the results are being harnessed to

find new efficiencies, reduce spend, adopt

a more professional approach to lifestyle

management...

Quantified Self: some of the evidence

Sources: see notes page

% online individuals using

personal health tracking apps

2010: 4%

2012: 7%

16-24s: 13%

Interest in an app

that allows you to

track the number

of calories/

nutritional value of

the food you eat

27%

16-24s:

42%

“All individuals will be given a 'personal health

rating' in the future”

40%

If there were a non-intrusive device which automatically registered the following information, would you be interested in monitoring:

Weight/BMI 57% Calorie/fat intake 54% Calories burnt while exercising 47%

Quantified Self: trend in action

Nike’s Hyperdunk+ iD Basketball Shoe

Under Armour’s E39 shirt

26

The first step to performance

improvement is performance monitoring

and this is becoming available to casual

sportsmen and women.

Technology is enabling at-a-distance

competition with friends and the broader

networked world.

Will we see the emergence of Opta-style

stats and data-based performance

consultancy for the ordinary participant?

The Quantified Self Implications for sport

27

Perfection of the Body nVision Key Trend

In our appearance-conscious society,

individuals are being invited to use all

means at their disposal to banish defects,

remove blemishes and adopt an optimised

approach to aesthetics.

.thng

0%

20%

40%

60%

To

tal

Ma

le

Fe

ma

le

16-2

4

25-3

4

35-4

4

45-5

4

55-6

4

65+

AB

C1

C2

DE

2010 2012

Source: nVision Research | Base: 1000-2000 online respondents aged 16+, GB, 2012

“I would rather

look good than

feel good”

Total: 9%

16-24s: 21%

Perfection of the body: some of the evidence

“I feel under pressure to look as good as I can”

“I would consider having some

form of cosmetic surgery” All: 17% Females: 19% 25-34s: 28%

“I would consider non-invasive

forms of cosmetic surgery” All: 28% Females: 33% 25-34s: 48%

.thng

Perfection of the body: the trend in action Neuro Drinks: Claiming to aid sleep/sexual performance/weight loss/concentration levels

BuildMyBod: Plastic surgery app calculates the cost of your perfect body

30

Today, the motivations for pursuing sport and

exercise are more and more likely to include

some element of vanity and body styling.

Sports bodies may wish to consider

communicating the health and appearance

benefits of their sports.

Innovations in surgery and quick-fix beauty

products have lessened the need for

consumers to invest considerable time and

energy in spending hours on the treadmill and

the sports world needs to have a response in

place.

Perfection of the Body Implications for sport

Some open questions to think about

4

The sport of tomorrow

New Materials will revolutionise our lives (and sport)

Graphene – the new wonder material

Cooling technologies

Wearable

technology

3D printing

Thermal-vision technology

.thng: an ever more connected ”internet of things”

Source: Cisco 2012 The Internet of Things

2003 2010 2015 2020

500 million

connected

devices

6.3 billion people 7.6 billion

people

50 billion

connected devices

By 2008, the number of connected

devices outgrew the number of people.

By 2020, there will be roughly 6 and a

half connected devices per person.

The Power of Novelty

Short attention spans are endemic for today’s easily distracted, grass-is-always-

greener and hard to motivate wannabe sports participant

Bartitsu

is an eclectic martial art and self-defence

method originally developed in England during

the years 1898–1902. Although dormant

throughout most of the 20th century, bartitsu has

been experiencing a revival since 2002,

especially since the Guy Richie Sherlock

Holmes films.

Battle Badminton

takes social badminton to the next level,

letting users find new players (aged 18+) to

play and issue and accept challenges to

‘battle’ it out for pride on court in singles or

doubles matches.

http://www.badmintonengland.co.uk/show_news.asp?section=13&sectionTitle=News&itemid=5702#.UoDFh9BFCM8

Be wary of asking for long-term commitments

Many of today’s consumers don’t want to be tied in to long-term contracts and

commitments, in their personal lives or in their relationships with brands

The Need for Motivation and Reward

It’s so easy to not participate. Find ways to incentivise and reward consumers to

resist the call of the sofa/pub

Nike Fuelband SE LA Fitness

Zamzee Drinking Mirror

The sport of tomorrow

Future consumer trends impacting sports participation

Nick Chiarelli, Key Account Director nickc@futurefoundation.net | 0203 008 5747 @nickchiarelli

Futurefoundation.net | 0203 008 4889 @futurethoughts