Consumer Behaviour and Trends

GYMSHARK

POLYCIRCULAR NANCY CORKE 209126006 CONSUMER BEHAVIOUR & CONSUMER TRENDS BMM5003M CAROL CLOUGHTON

Context 1.

Introduction - 01 1.2 Sustainability Statement - 02 1.3 The Market - 03 1.4 Consumer Expectations - 04 2. Innovation - 05 3. Conclusion - 06 4. References - 07 - 08 5. Figure References - 08 - 09

1. INTRODUCTION Gymshark is a British Apparel company, established in 2012, it concentrates on the production of performance-enhancing sportswear for the sports community (Davis. et al, n.d). It aims to achieve its goal of producing innovative, effective performance wear, and obtain an ever-expanding social presence and staying true to the company’s vision, “Before there is an action, there is an idea” (Gymshark, 2019). Gymshark has solidified its brand recognition and popularity over the years with its successful marketing campaigns and is now seen as a leader in sleek and comfortable gym wear (Davis. et al, n.d). The brand relies heavily on social media marketing with the use of its influencers to influence consumers behaviour and buying decisions. The influencers influence consumers to buy trendier and more fashionable athletic apparel which are comfortable enough to be leisure apparel as well. Whitney Simmons (@whitneyysimmons) see fig 1- is a major social media influencer for Gymshark, with a following of 3.2million on Instagram alone, she has helped gain a lot of consumers’ trust in the brand, who now feel confident with making purchases with the brand

Figure 1

(Davis. et al, n.d).

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1.2 Sustainability Statement The brand has made a promise to the planet and its people “to help prepare our world for a better tomorrow” (Gymshark, n.d), they have committed to using 100% recyclable packaging by the end of 2021, claiming that “our packaging may change, but the sick products inside it won’t” (Gymshark, n.d). Gymshark is also asking its consumers to do “your personal best” by asking for all products to be washed at 30 degrees and line dried, to help reduce energy and water usage, Gymshark also asks consumers “don’t throw it away, throw it the right way” by this it means once consumers are done with a product seek a local textile recycling bank to dispose of the products responsibly (Gymshark, n.d).

This report will be referring to the macro trend ‘Carbon Crusher’ which was developed from the UN’s 17 goals, goal 12 “ensure sustainable consumption and production patterns (United Nations, 2021). The goal aims to change the way consumers dispose of our goods to help prevent a significant impact of pollution and damage to nature, aiming then for consumption and production of goods to be less damaging to the planet (unstats.un.org. n.d), and was a major driver of change within consumer groups. The trend ‘Carbon Crusher’ is a response to the increased awareness consumers are having of the impact of their own and businesses consumption. The trend is a good place to start for companies to reduce their impact on the environment and to align their values with those of their consumers, because of this the trend is a good investment as both the consumer groups and company will benefit in the long term (Newman, D. N.D).

The ‘Carbon Crusher’ trend also highlights the importance of recycling polyester to reduce carbon emissions, because around 70 million barrels of oil a year are used to make polyester fibres for the clothing industry (Ro. C, 2020: S.S, Muthu, 2020). Brands, like Gymshark, need to improve their recycling of polyester as it’s reported that less than 1% of collected textiles are recycled back, this is why it’s important to close the loop on polyester production and recycle it into a new product for the consumer (World Economic Forum, N.D.). Just asking consumers to recycle their product/packaging after use isn’t enough to make an impact on the environment but also the apparel industry and consumer behaviour.

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1.3 The Market Gymshark’s target market is made up of young millennials and adults ranging from ages 18-34 who are physically active, follow the popular trends and are health conscious. The sports apparel industry is an extremely popular and competitive market that includes Lululemon, Alphalete, MyProtein, Nike, Adidas and discount stores such as Sports Direct, Gymshark can offer a unique product line up with an extremely loyal fan base that is continuously ready to purchase the newest product (Davis. et al, n.d). Between 2017 and 2018 Gymshark tripled its sales with a growth of 21%, allowing them to reach $52.8m,

Figure 2

and forecasted growth of $18.9 for 2019, this growth has allowed Gymshark to fully understand the wants and needs of their consumer by producing trendy yet functional gym-wear (Davis et al, n.d). As stated by Tan (1999), millennials consider their choice of clothing as an important matter because they feel they are being scrutinised by others around them, hence why there has been an increase in

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consumption of branded clothing (Tan, T.W.T., 1999), this is also supported by the claim that young people show commitment to their peers by being loyal to and wearing a “culturally accepted” brand (Schroeder, et al, 2006: Valaei. N, et al, 2017).

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There has been very little done in the sportswear apparel industry to reduce polyester usage, however, Pangaia is an emerging sportswear/leisure brand that uses only sustainable initiatives. The brand collaborates with laboratories and research institutions to find sustainable alternatives to polyester (Close The Loop. N.D). Pangaia is fastly becoming one of Gymshark’s main competitors after the release of their new activewear, Pangaia is meeting the emerging expectations of the sustainable consumer and is using methods in which Gymshark should start moving towards to remain relevant and

Figure 5

innovative.

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1.4 Consumer Expectations Mason et al (2015) Trend-Driven Innovation Book states that to spot new and emerging needs wants and desires, you need to look for expectation gaps between what consumers want, and what they currently have (Mason et al, 2015). Due to consumers and businesses becoming more and more aware of their environmental impact the need for reduced carbon emissions. Today consumers have a basic need for sustainability, 57% in the 18-24 age group have switched to lesser-known brands because they are sustainable. Yet many companies are promising sustainable and environmentally friendly actions will be made but aren’t following through or don’t achieve, companies have to understand that transparency runs alongside sustainability (BV. T, N.D.) The Business Insider (2020) suggests that consumers want guilt-free consumption, Sustainable Source At Scale report said ‘online searched for sustainable fashion tripled between 2016 and 2019’, this data suggests that consumers are making more conscious decisions with what they are buying and are willing to look around for a brand that suits them best (The Business insider, 2020: Ethical Consumer, 2021). Sustainability has been identified as more than a trend, but an expectation.

Brands like Microsoft and Yorkshire Tea are already implementing innovations to meet the emerging expectations of consumers, with both companies aiming towards neutrality in the next few years (Smith, B. 2020: Speciality Food Magazine, N.D). This suggests that consumers don't just expect a change in the sportswear industry but across multiple industries, making sustainability an etic perspective (Mason et al, 2015)

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2. INNOVATION Due to the rapidly changing consumer expectations regarding sustainability and environmental impact, Gymshark needs to react to this to ensure the brand remains an innovative driver of change and at the forefront of the consumers’ minds. By identifying the unmet needs of the new sustainable consumer will present Gymshark with the right innovation opportunities to become that driver of change in the apparel industry (Mason et al, 2015). There is a huge opportunity in the market for Gymshark to repurpose something old into something new, Freitag is a Swiss brand that has been seen to utilise this opportunity by making bags from used truck tarps, discarded bicycle inner tubes and car seat belts -see fig 6 & 7- (Freitag. N.D). With global net sales of US$17.4m FREITAG (ecommercedb.com. N.D) have found a successful niche that connects with the emerging expectations of the sustainability and environmental consumer, proving that it is a good market for Gymshark to move into.

Gymshark should recognise this opportunity and use recycled sportswear to produce products to assist the gym community, starting with duffle bags, backpacks and drawstring bags, following the success Freitag has had.

This innovation called ‘Poly-circular’ will help Gymshark tackle their polyester consumption in response to the trend ‘Carbon Crusher’ and the emerging expectations of the sustainability / environmentally-conscious consumer by repurposing polyester fibres into something new. This innovation will close the loop on the polyester waste of the brand, and the end product will be sustainably made and sourced allowing the consumer to consume the product guilt-free.

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Figure 7

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3. CONCLUSION

For Gymshark to become a driver of change in the apparel industry and to compete with big brands like Nike and Adidas, they need to become more innovative with their ideas and respond innovatively and quickly to the emerging expectations of the sustainable consumer.

They also need to look at the expectation gaps between what the consumer wants and what they currently have (Mason et al, 2015), consumer behaviour is moving towards sustainable products and it is, therefore, a good financial investment for Gymshark.

As stated in this report sustainability is not just a trend but an expectation, companies are now expected to be practising sustainable practices to help reduce their footprint on the environment. Gymshark has started to move towards a more sustainable and environmentally friendly future but it needs to be innovative with what it does. That’s why ‘Poly-Circular’ thinking in the apparel industry is a good investment for the brand to head towards as it will lead to meeting the wants, needs and desires of the sustainable consumption of sportswear apparel. this is because it helps reduce the carbon footprint of the consumer and the brand.

For Gymshark to introduce a product line, like the ‘Poly-Circular’ bags, the brand will meet the emerging expectation of their consumer, because asking consumers to “throw it the right way” isn’t enough, there needs to be production-level change (Gymshark, n.d). By implementing this new product line, Gymshark will become a focal point for sustainable sports accessories and will change the behaviour of consumers consumption of sportswear and will make a rippling effect in the market, with hopefully other brands following suit. Inevitably becoming a market leader, in not only sports apparel but also in sustainable sports accessories.

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4. REFERENCES Business Insider (2020) Sustainability sells: Why consumers and clothing brands alike are turning to sustainability as a guiding light. Available at: https://www.businessinsider.com/sustainability-as-a-value-is-changing-how-consumersshop?r=US&IR=T (3rd January 2022) BV, T. (no date) 21 trends for 2021 | Consumer trends and business opportunities, info.trendwatching.com. Available at: http://info.trendwatching.com/21-trends-for-2021.​ Close The Loop. (n.d.). PANGAIA. [online] Available at: https://www.close-theloop.be/en/case/361/pangaia (Accessed: 8th January 2022) Davis, A. et al. (n.d.). [online] Available at: https://www.juanitamorales.com/uploads/1/3/6/7/136707916/gymshark_marketing_plan_fin al.pdf. (Accessed: 12th December 2021) ecommercedb.com. (n.d.). freitag.ch revenue | ecommerceDB.com. [online] Available at: https://ecommercedb.com/en/store/freitag.ch (Accessed: 7th January 2022) Etical Consumer, (2021) Primark, Available at: https://www.ethicalcomsumer.org/companyprofile/primark (Accessed: 3rd January 2022) FREITAG. (n.d.). OUR MATERIALS. [online] Available at: https://www.freitag.ch/en/materials (Accessed: 7th January 2022) Gymshark (2019). About Gymshark. [online] Gymshark UK. Available at: https://uk.gymshark.com/pages/about-us. (accessed: 12th December 2021) Gymshark (n.d.). Transparency | Gymshark. [online] Available at: https://uk.gymshark.com/pages/transparency#ourPromise. (Accessed: 12th December 2021) Mason, H., Mattin, D., Luthy, M., Dumitrescu, D. and Maria Isabel Reyes (2015). Trend-driven innovation: beat accelerating customer expectations. Hoboken, New Jersey Wiley.

Newman, D. (n.d.). Top 10 Digital Transformation Trends For 2021. [online] Forbes. Available at: https://www.forbes.com/sites/danielnewman/2020/09/21/top-10-digital-transformationtrends-for-2021/ (Accessed: 8th January 2022) Ro, C. (2020). Can fashion ever be sustainable? [online] BBC. Available at: https://www.bbc.com/future/article/20200310-sustainable-fashion-how-to-buy-clothes-goodfor-the-climate. ​(Accessed: 7th January 2022) S. S Muthu (2020). Environmental footprints of recycled polyester. Singapore: Springer.

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4. REFERENCES Schroeder, J.E., Salzer-Mörling, M. and Askegaard, S. (2006), Brand Culture, Taylor & Francis, New York, NY. Smith, B. (2020). Microsoft will be carbon negative by 2030 - The Official Microsoft Blog. [online] The Official Microsoft Blog. Available at: https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/ (Accessed: 8th January 2022) Speciality Food Magazine. (n.d.). Yorkshire Tea announces Carbon Neutral status | News. [online] Available at: https://www.specialityfoodmagazine.com/news/yorkshire-teaannounces-carbon-neutral-status (Accessed: 8th January 2022) Tan, T.W.T. (1999), “An exploration of a global teenage lifestyle in Asian societies”, Journal of Consumer Marketing, Vol. 16 No. 4, pp. 365-375.

United Nations (2021). Goal 12 | Department of Economic and Social Affairs. [online] sdgs.un.org. Available at: https://sdgs.un.org/goals/goal12. (Accessed: 12th December 2021) unstats.un.org. (n.d.). — SDG Indicators. [online] Available at: https://unstats.un.org/sdgs/report/2021/goal-12/. (Accessed: 12th December 2021) ·Valaei, N. and Nikhashemi, S.R. (2017). Generation Y consumers’ buying behaviour in the fashion apparel industry: a moderation analysis. Journal of Fashion Marketing and Management: An International Journal, [online] 21(4), pp.523–543. Available at: https://www.emerald.com/insight/content/doi/10.1108/JFMM-01-2017-0002/full/html.

(Accessed: 12th December 2021) World Economic Forum. (n.d.). This is how the fashion industry can reduce its carbon emissions. [online] Available at: https://www.weforum.org/agenda/2020/11/sustainablefashion-reduce-greenhouse-gas-emissions (Accessed: 7th January 2022)

4. FIGURE REFERENCES Figure 1 - www.instagram.com. (n.d.). Login • Instagram. [online] Available at: https://www.instagram.com/whitneyysimmons/ (Accessed: 8th January 2022) Figure 2 - Nike (2019). Nike. Just Do It. [online] Nike.com. Available at: https://www.nike.com/gb/.

Figure 3 - Wikipedia Contributors (2019). Myprotein. [online] Wikipedia. Available at: https://en.wikipedia.org/wiki/Myprotein (Accessed: 8th January 2022) ‌Figure 4 - Logopedia. (n.d.). Sports Direct. [online] Available at: https://logos.fandom.com/wiki/Sports_Direct (Accessed: 8th January 2022)

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Figure 5 - The Summit Birmingham. (n.d.). 512-5127106_lululemon-emblema-lululemon-logoblack-background. [online] Available at: https://thesummitbirmingham.com/store/lululemonathletica/512-5127106_lululemon-emblema-lululemon-logo-black-background/ [Accessed 8 Jan. 2022].‌ Figure 6 & 7 - FREITAG. (2020). Home. [online] Available at: https://www.freitag.ch/en.

(Accessed: 8th January 2022) Figure 8 & 9 - Gymshark UK. (n.d.). Gym Bags | Backpacks, Duffel & Holdalls | Gymshark. [online] Available at: https://uk.gymshark.com/collections/bags/.

Disclaimer - All banner images and figurines were sourced from the copy right free site: Pexels (2021). Free stock photos · Pexels. [online] Pexels.com. Available at: https://www.pexels.com/.

(Accessed: 8th January 2022)

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