Speedo Innovation Coursework

C o n s u l t a n c y R e p o r t

P e n t l a n d G r o u p

E x e c u t i v e S u m m a r y

"Speedo® the world's leading swimwear brand is passionate about life in and around the water. From learn to swim through to swimming for fitness our mission is to inspire people to swim and we aim to do that by encouraging healthy activity of swimming" (Speedo, 2022). Speedo aims to inspire people, through their innovative nature and sense of community They have a clear target market, which can be broken down into categories, they are an inclusive brand that aims to get people from all walks of life involved in swimming They aim to be more sustainable by going carbon neutral by 2030 and aiming to use more sustainable textile in their products (Swim Swam, 2022)

This report aims to provide recommendations to solve Speedo's pain points, these being a lack of online presence, lack of focus on innovative technology and their outdated women's sizing system, that doesn't consider the whole torso. This report proposes the introduction of a Speedo app, which will include a virtual innovation lab, which demonstrates how Speedo's performance enhancing technology is developed and how it works. The app will also feature body scanning technology, which will help to determine a perfect fit for consumers, this will create a more personalised shopping experience as well as helping to reduce returns, which in turn creates a more sustainable product process An additional recommendation is that Speedo, have a live, in person innovation lab available for a live experience at the Paris 2024 Olympics This will help to inspire people to participate in swimming. The experience will allow them to become inspired by Speedo's performance enhancing technologies that underpin the success of the brand, this also creates a sense of community which is an important part of Speedo's ethos.

A b o u t S p e e d o

MISSION STATEMENT:

"Speedo® the world's leading swimwear brand is passionate about life in and around the water. From learn to swim through to swimming for fitness our mission is to inspire people to swim and we aim to do that by encouraging healthy activity of swimming" (Speedo, 2022)

Speedo was first established on Bondi Beach in Australia in 1928 and eventually joined Pentland Group in 1991 (Speedo, 2022). The brand values Inclusivity, community, innovation, sustainability, and inspiration.

K e y G o a l s a n d V a l u e s o f t h e B r a n d

Speedo values the importance of creating a sense of community and inspiring people of all shapes sizes and age to swim, by providing them with the gear to make every moment in the water better (Speedo, 2022) As apert of Pentland Group, Speedo also values sustainability and ethical trade, which is in-line with the values of the organisation.

Speedo has already made attempts to be more sustainable through the transparency of their website and they have promised that 'by the Olympic year Speedo’s global swimwear range will be made with 100% sustainable textile, on its way to becoming Carbon Neutral by 2030' (Swim Swam, 2022).

T a r g e t M a r k e t

Speedo's mission is to provide the best experience in the water for everyone, whether they are swimming for learning, fitness or leisure (Speedo, 2022). Therefore they aim to target a wide range of consumers within their product ranges, which can be divided into three key categories.

Children's swimwear

Swimwear for those who are learning to swim either through school or external swimming lesson providers within the community, beachwear, and swimming for pleasure or leisure purposes. Boys and Girls ranges Sized by age (0-16 years)

Athletic swimwear

Swimming for fitness purposes, looking for swimwear that enhances performance in the water. All genders considered

Variety of designs and levels of modesty with consideration to religion and religious dress, while still providing an innovative performance enhancing garment

For all ages 16+

Leisure swimwear

Swimming for leisure purposes, looking for comfort, good fit and a nice design For all genders

Variety of designs and levels of modesty with consideration to religion. For all ages 16+

Information found at: www speedo com

C o m p e t i t o r b r a n d s

FIgure 1 : Perceptual Map (Authours own, 2022)

Figure 1 is a perceptual map that illustrates how Speedo is positioned against its competitors in terms of sustainability and online presence. As shown on the map, Speedo has a poor online presence in comparison to many of its large competitors such as Nike and Adidas. In addition to this although speedo highly values sustainability within its ethos (Speedo, 2022) competitor O'Neill has a more sustainable supply chain.

S W O T A n a l y s i s

S t r e n g t h s

Innovative product technology

High levels of exposure through the Olympics and other international sporting events, this means that more athletes have won gold medals in Speedo than any other swimwear brands (Speedo, 2022)

Concession stores in local leisure centres are common in the UK

O p p o r t u n i t i e s

Paris 2024 Olympics will provide huge exposure for the brand – they should capitalise off this Sizing systems that consider various body types that competitors might use (see appendix 1).

W e a k n e s s e s

Pain points:

Lack of online presenceparticularly on social media in comparison to competitors Women's sizes are calculated through bust size only and the rest of the torso is not considered; this can result in ill-fitting products. Lack of focus on innovation behind the performance enhancing technology

T h r e a t s

COVID-19 made many people reconsider the hygiene aspects of using public swimming pools Cost of living crisisconsumers have a lower disposable income so are less likely to be paying gym membership fees for swimming baths as well as being less likely to buy new swimwear

I n t e r n a l A n a l y s i s S u m m a r y

Figure 1 visually demonstrates how Speedo compares against its competitors in terms of Sustainability and online presence.

Findings from figure 1 suggest that Speedo needs to improve its online presence in order to compete with huge market share holders such as Nike and Adidas.

In terms of sustainability, although the brand is already quite sustainable in comparison to its competitors, the importance of sustainable production means that the brand could benefit from improving on this.

Figure 2 demonstrates an internal analysis of Speedo, this identifies two key pain points:

Speedo has a small online presence and has little to no social media presence, which is the future of marketing and advertisements.

Getting the correct size is very challenging, particularly for women. This is because women's sizing is based on the bust size, which does not consider the rest of the torso. This is quite a serious pain point to be addressed, as the body positivity movement is ever growing, there is increasing demand for inclusive sizing that considers various different body shapes and sizes

Additional findings

Speedo has a clear target market and has inclusive product ranges. They also have clear values and goals that underpin their brand ethos.

P E S T L E A n a l y s i s S t r a t e g i c C o n t e x t

COVID-19 forced the sporting industry amongst many others into ‘continuing large portions of their operations remotely, on technology ecosystems which have not been prepared for such levels use’ (Jones, 2020).

Political

Particularly for swimming it is incredibly difficult to train remotely, most athletes and swimming enthusiasts do not have swimming facilities of their own and rely on local swimming baths to continue their training The pandemic initially caused these facilities to close causing many athletes to pursue other passions.

As restrictions have eased in the UK many are much more cautious of the risks involved in mixing with large volumes of people in public places, such as local swimming baths or leisure centres

Economic

Social

‘Around 9 in 10 (87%) adults reported an increase in their cost of living over the previous month in March 2022’ (ONS, 2022) This has resulted in many people having much less disposable income to spend on leisure activities, hobbies and other non-essentials. This has resulted in consumers spending less on sportswear and garments in general. Many have also had to switch to more affordable budget gyms, ‘the average monthly gym membership fee dipped by 0.1% to £35.03, and it's thought that the expansion of a number of budget gym brands could be behind the falling expenditure’ (Jones, 2018)

Olympic 2024 games is due to be located in Paris, which will gain a lot of attention and exposure for speedo as their products are widely used by Olympic athletes. This should be seized as a marketing opportunity and the brand should capitalised off this In addition to this 'there have been big strides made by fashion retailers and brands over the last few years to become more inclusive and diverse, but more still needs to be done to embrace consumers of all sizes, ages, ethnicities, body abilities, genders and sexualities' (Sender Ceron, 2022) Therefore as a brand that embraces diversity and inclusivity, Speedo's products and services should reflect this.

Technological

As more and more consumers are choosing to shop online, particularly after COVID-19, it is becoming increasingly more important for brands to have an accessible website that allows for ease of use and creates a positive consumer experience. In addition to this, many consumers are seeking virtual online experiences within brands online retail environment via social media. this is particularly important as the amount of social media users is at an all time high and set to increase 9% year on year (Boardman et al, 2020)

Legal

H&M have been recently criticised for greenwashing 'H&M was using a scorecard system to inform customers about the environmental soundness of each product, but a report by Quartz claims that more than half of the scorecards portrayed products as being better for the environment than they actually were (Stern, 2022) As a result of this H&M faces a Law suit, as well as having lost many consumers who feel misled by the brands unfulfilled promises In light of this Speedo can learn that their transparency with their consumers is paramount and highly valued by their consumer

Environmental

Increasingly, protecting the environment is becoming more and more of a priority for consumers when purchasing products (Sender Ceron, 2021) this makes being sustainable and transparent a very important factor for brands to consider in the delivery of their products and services Speedo has a sustainability pledge and prides itself on being a sustainable and transparent brand, which is a contributing factor as to why it is such a popular swimwear brand

FIgure 3 : PESTLE analysis (Authours own, 2022)

T h e F u t u r e o f A p p a r e l

Digitalisation

As technology continues to advance in the digital world, retailers have been able to revolutionise their products and services. Social media is becoming a very important tool for the fashion industry as a means for advertising, marketing and ecommerce as 'the number of social media users worldwide reached 3.484 billion in 2019, which is an increase of 9 per cent year-on-year' (Boardman et al, 2020)

Digitalisation allows for a more personalised and positive shopping experience.

Sustainability

As the fashion industry was named as one of the biggest contributors to the climate crisis '48% of UK clothing consumers are preferring to shop with retailers that are trying to reduce their impact on the environment, with this rising to 60% of Gen Z consumers, highlighting how this has become a priority for young people' (Sender Ceron, 2019).

As more and more brands are making sustainability pledges and implementing sustainability into their mission statements, there is more pressure for all brands to become more sustainable and it is becoming more of a consumer expectation than a benefit.

R e c o m m e n d a t i o n s

The following recommendations are based on findings from the internal and external analysis of the brand.

Main recommendations

Pop-up Innovation Lab in or close by to the Olympic Swimming Pool, which demonstrates the innovative technology and features used to create the world's leading swimwear.

Mobile app to improve online presence, this will act as a virtual innovation lab, demonstrating and advertising Speedo's latest innovations, as well as allowing consumers to shop with added benefits and exclusive offers only available when purchasing via the Speedo app. The added feature to the website and app, which uses artificial intelligence to determine consumer's perfect size garments.

D e t a i l s o f m o b i l e a p p

The mobile app is a way for Speedo to improve its online presence. As well as embracing the rapid changes to the fashion industry that are being driven by digitalisation. The key idea behind the speedo app is to create a positive virtual experience for customers that will ultimately result in them following through with a purchase.

Key Features

Speedo

FIgure 4 : App Icon prototype (Authors own, 2022)

Virtual innovation lab My Speedo sizing system Exclusive offers and rewards

The virtual innovation lab is designed specifically to target consumers looking for athletic swimwear. this will be achieved my demonstrating how Speedo's innovative technologies can provide an enhanced athletic performance. The virtual innovation lab should be a visual experience, which could include videos of visual demonstrations, created using modern infographics and transitions.

Figures 4 and 5 demonstrate how the app might look visually with the features it offers. In addition to the main recommendations for the app, features that should also be included is the element of online shopping, a personal profile, and an area to save favourite items as illustrated in figure 5.

The 'My Perfect Speedo' feature on the app, will use artificial intelligence to determine consumer's perfect size. The Speedo ranges currently only consider bust size for women so a more sophisticated sizing system is desired particularly for female consumers. The system will utilise body scanning to determine a persons perfect size. Research 'shows that 62% of fashion buyers have used or are interested in using a sizing tool when buying clothes or footwear' (Mintel, 2021), this technology would need to be developed in collaboration with an external company that specialises in providing state of the art body scanning technology. A potential candidate for this collaboration is 3DLOOK, which is a USA based, private company founded in 2016 that provides, body measuring technology to assist in sizing solutions and virtual try-ons (Venture Radar, 2022).

Figure 5 : Speedo App prototype (Authors own, 2022)

D e t a i l s o f I n n o v a t i o n L a b a t

O l y m p i c s

As previously mentioned, Speedo highly values creating a sense of community and inspiring people to take part in sports by getting in the water (Speedo, 2022). While at the Olympics, tourists will be seeking to experiences relating to sports they have just watched. Therefore by having a live Innovation Lab close by to the Olympic pool. There should also be consideration for a possibility of a permanency of the lab, based off of its success during the Olympic games. It can be expected that the Olympic Village will remain a tourism spot after the games are over, as was seen in the Olympic park of Montreal, where 'over 40 years after the Olympics, the old venues, converted into museums, recreational areas and observation tower, welcome more than one million visitors every year' (Sauvestre, 2017). The Lab should be hosted by 'expert' staff who are trained to explain how Speedo's products work, in addition to this there should be opportunity for visitors to purchase products after this experience As well as there being QR codes available throughout the venue, with links to download the Speedo App.

B e n e f i t s a n d B r a n d S u i t a b i l i t y

There are many benefits to gaining a stronger online presence, the first being exposure. By creating and publishing online content, consumers will automatically view the brand as being more modern, due to them embracing the changes occurring within the fashion industry.

In addition to this, 'research shows that consumers perceive social media sites to be more trustworthy sources of information than traditional advertising channels' (Boardman et al, 2020). This means that consumers will be more inclined to follow through with purchasing the advertised product or from the advertised brand. Speedo values accessibility and inclusivity, therefore the addition of the 'My Speedo' technology would be an incredible contribution to the brand as it is directly in line with their ethos. As illustrated in appendix 1, this technology will result in a reduced number of returns and waste, which in turn creates a more sustainable production process.

One of Speedo's core values is innovation, this is why the 'Speedo App' would be highly suited to the brand as it allows for the innovative technologies to be translated and demonstrated in digital format, which will allow consumers to have a more personalised and educational shopping experience.

With the importance of inspiration at the heart of Speedo's operations, therefore having an interactive experience available at the Olympics, it will help inspire young people, children and many others to start swimming. 'The London Olympic Games in 2012 gave a boost to the number of adults participating in sport at least once a week' (Carroll, 2015) and by having the Speedo Lab experience available, these new athletes will be more inclined to start swimming.

An in person innovation lab, creates a refreshing, new retail experience, particularly after the isolating nature of the COVID-19 pandemic. An in person interactive experience, is a refreshing return to normal life, which has been greatly missed by many.

Speedo App Innovation Lab at 2024 Olympic games in Paris

I m p l e m e n t a t i o n

ACCESS

In order to be used at its full potential the app will need to be downloaded on a smartphone. It is important that the app is easy to use as it will need to add significant benefit to consumers in order for them to be inclined to switch to using the app. Speedo values inclusivity (Speedo, 2022), so it is recommended that they include audio descriptions and subtitles so that the online content can be enjoyed by a wide range of different people.

NAVIGATION OF ONLINE TRAFFIC

To create a successful online platform with the new Speedo app, it must be advertised via the brands website as well as through social media To persuade users to use the app, there should also be advertisements for all the exclusive offers and benefits offered within the app These should be eye catching and should sell the app as a personalised shopping experience. Most importantly the advertisements must contain a link to navigate the online traffic towards the App Store where consumers can download the app easily.

COMMUNITY

The Speedo App provides the perfect advertising platform for the in person innovation lab at the 2024 Paris Olympics In order for the Lab to be a success, news of its offerings and activities should be at the forefront of advertisements, as well as the importance of inspiring young people to take part in sport. A huge part of Speedo's brand ethos is the importance of community, so having an in person experience aimed to inspire young people and children is a perfect fit for the brand.

P o t e n t i a l i m p l i c a t i o n s

Cost

The cost of setting up an Innovation Lab in a high profile area such as the Olympic Village will be very costly, however the benefits of creating a sense of community and inspiring people to participate in sports, is perfectly in line with Speedo's brand ethos. The Speedo app will require large amounts of data storage and it is a well known fact that data storage can be very costly 'estimating cloud storage pricing can be extraordinarily complex', (Harvey, 2018) making it difficult to determine the exact cost of this new business model In addition to this a collaboration with an external provider such as 3DLOOK could also be quite costly for Speedo as well, as the technology used is very advanced and innovative. However, in despite of this, the potential return on this investment, will make this a beneficial addition to Speedo's business model.

Data Protection

Particularly, with the use of the 'My Perfect Speedo' body scanning technology, the brand must consider consumer privacy, particularly as consumers will need to wear tight fitting clothing to ensure accurate body scanning results In order to make consumers feel more at ease, the Speedo App should have a security system in place to ensure the data stored within the app is protected In addition to this there should be a clear data protection policy within the app, which pops up when users try to access the body scanning technology, and they should not be granted use of the software without agreeing. This will help to protect Speedo from any legal implications regarding data usage

COVID-19

Post-pandemic, many of us are wary of the possibility of another wave of serious illness that could send us into lockdown again Although this is a factor beyond the brands control, it should still have safety measures in place This is in reference to the live innovation lab, which should be built in a way in which it can be adapted to be in line with COVID restrictions. Examples include, glass screens, PPE, social distancing markers and hand sanitization points.

Figure 6 : Table of Potential Implications (Authors own, 2022)

C o n c l u s i o n

To summarise everything that has been stated so far the Speedo app will rectify the two main pain points the brand are facing, their sizing system particularly for women and the lack of online presence. Particularly in modern society and the rapid growth of digitalisation within the fashion industry, online presence is essential for retail success. Many consumers are now choosing to shop online, particularly since the pandemic resulted in the closure of so many shops.

In terms of sizing, body positive movements have transformed the fashion industry, so the outdated sizing system Speedo uses could be considered to be non inclusive.

The introduction of a Live Innovation Lab will help to create inspiration amongst young people and encourage them to participate in sports, which is a huge part of the brands mission.

R e f e r e n c e s

Bain, M (2022) Zalando Co-CEO on Bringing Data Science to Fashion Retail, The Business of Fashion Available at: https://www businessoffashion com/articles/technology/state-of-fashion-technologyreport-zalando-robert-gentz-interview-retail/ (Accessed: 12 November 2022) Boardman, R., Parker-Strak, R. and Henninger, C.E. (2020) Fashion buying and merchandising : the fashion buyer in a digital society. New York: Routledge. Carroll, N. (2015) ‘Sports Goods Retailing - UK - July 2015’, Mintel.com. Harvey, C (2018) ‘Cloud Storage Pricing of 2022: Compare Cloud Storage Providers’, Enterprise Storage Forum Jones, D (2020) Understanding the impact of COVID-19 on the sports industry, Deloitte United Kingdom Available at: https://www2 deloitte com/uk/en/pages/sports-businessgroup/articles/understanding-the-impact-of-covid-19-on-the-sports-industry html

Jones, L (2018) ‘Saving pounds: The rise of the budget gym’, BBC News, 16 July Available at: https://www bbc co uk/news/business-44766250

Mintel (2021) Fashion Technology and Innovation - UK - 2021, Mintel com Available at: https://reports-mintel-com.manchester.idm.oclc.org/display/1088013/? fromSearch=%3Ffilters.category%3D124%26freetext%3Dapps%2520%26last filter%3Dcategory%26 resultPosition%3D6 (Accessed: 2 December 2022).

ONS (2022) The rising cost of living and its impact on individuals in Great Britain - Office for National Statistics, www ons gov uk Available at: https://www ons gov uk/peoplepopulationandcommunity/personalandhouseholdfinances/expendit ure/articles/therisingcostoflivinganditsimpactonindividualsingreatbritain/november2021tomarch2 022

Sauvestre, M (2017) Olympic Games and tourism | Interface Tourism France, Interface Tourism France Available at: https://interfacetourism fr/en/2017/09/14/olympics and tourism/#:~:text=The%20impacts%20of% 20the%20Olympics%20on%20a%20tourist (Accessed: 6 November 2022).

Sender Ceron, T. (2019) ‘Fashion retailers take a stand on climate change - 26th September 2019’, Mintel.com.

Sender Ceron, T. (2021) ‘Fashion & Sustainability - UK - 2021’, Mintel.com. Sender Ceron, T (2022) ‘Fashion - Inclusivity and Diversity - UK - 2022’, Mintel com Speedo (2022) Speedo UK, Speedo UK Available at: https://www speedo com/about-us list? utm medium=cpc&utm source=bing&utm campaign=UK EN Google Speedo Brand Exact&gclsrc=a w ds (Accessed: 21 November 2022)

Stern, M (2022) H&M Case Shows How Greenwashing Breaks Brand Promise, Forbes Available at: https://www forbes com/sites/retailwire/2022/07/13/hm-case-shows-how-greenwashing-breaksbrand-promise/?sh=da49c5a1171a

Stevens, B (2019) Zalando trialling AI-powered 3D sizing tech to reduce returns, Latest Retail Technology News From Across The Globe - Charged. Available at: https://www.chargedretail.co.uk/2019/09/09/zalando-trialling-ai-powered-3d-sizing-tech-toreduce-returns/ (Accessed: 5 November 2022).

Swim Swam (2022) Music Star Cody Simpson Joins Team Speedo As He Sets His Sights On Paris Olympics, SwimSwam Available at: https://swimswam com/music-star-cody-simpson-joins-teamspeedo-as-he-sets-his-sights-on-paris-olympics/ (Accessed: 24 November 2022)

Venture Radar (2022) 3DLOOK | VentureRadar, www ventureradar com Available at: https://www ventureradar com/organisation/3DLOOK/850e6c85-6213-4684-b2cd-29fa7269c526

C a s e S t u d y : Z a l a n d o P e r f e c t F i t A p p e n d i x 1

Online-only retailer Zalando has made a pioneering advancement in sizing through the use of artificial intelligence. This allows for consumers to find their perfect fit.

To achieve this AI-powered 3D scanning technology is used to accurately measure the size of its items, it will also scan fit models wearing the clothes and produce a 3D avatar giving an accurate representation of where the clothing will be tight or loose on different body shapes (Stevens, 2019).

This was set up in order to help reduce returns in an effort to create a more sustainable market and increase overall consumer satisfaction. It has been reported that ‘the approach has worked: in its 2021 fiscal year, total merchandise volume on its platform rose 34 percent year on year to €14.3 billion, bringing in a revenue of €10.4 billion’ (Bain, 2022)

This shows that the investment in third party technology for sizing resulted in substantial financial success for Zalando, as well as allowing them to reduce their returns, thus making the organisation more sustainable.