This assignment discusses the impact of international sports events on the fitness industry of the United Kingdom. It explores how these events act as a motivational factor for the industry, leading to increased sales of sports equipment, uniforms, and food supplements.
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Motivation to the Fitness Industry of UK 1
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Table of Contents Part – A......................................................................................................................................3 Part – B.......................................................................................................................................5 Overview of the fitness facilities in the United Kingdom..........................................................5 Increased sales of the sports equipment, sports uniforms along with sports shoes....................8 Food supplements in the Fitness industry of the UK...............................................................10 Reference list............................................................................................................................13 2
Part – A The research question is synthesized in order to address the research problem of this assignment. The research question in this context is mentioned below: Investigate if international sports events acts as a motivation factor for the fitness industry in the UK The purpose of this assignment is to discuss that whether the international sports events impacts the industry (fitness) of the United Kingdom. After analysing various research papers and literature, a gap has been observed. It could be said that the fitness industry of the United Kingdom has many motivational factors impacting it, including celebrity fitness regime and social media fitness programmes but the international sports events also impact the fitness industry of United Kingdom. The assignment aims to serve this literature gap that how the international sports events acts as the motivational factor to the health and fitness segment of the United Kingdom. The rationale of the research is thoroughly discussed in this section which states the reasons for conducting the particular research.The sectorial (fitness) market size in theUnited Kingdomhas been expanding continuously and by the end of 2019 it is expected to reach 23 billion pounds. The fitness and sports activities have become an industry in theUnited Kingdomwhich contributes to the economy of theUnited Kingdomwith 5.7 billion USD in the terms of total earnings. The benefits of the physical activities are clear to the general public of theUnited Kingdom but the lack of the physical activities leads to the significant health issues. There are motivational factors that are utilized by the fitness sector of the United Kingdom like sharing videos in social media, sharing the fitness regimes of the celebrities and many more. Though these motivational factors worked well and as a result of that there is an effective sectorial development but the international sports events motivates 3
the public of the United Kingdom to enrol them in the physical activities and it is evident that during these events, the sales margin of the fitness industry enhances. In short, it can be said that over the years the definition of fitness has changed. Traditionally, the motivation for fitness was maintenance of a good physique in order to have a healthy lifestyle but as time flared, the motivation for fitness has become event oriented. The research will discuss this emerging motivational factor of the fitness industry. The research will be interesting because it will explain how the traditional motivation factors that impacted the UK fitness industry has transformed into an event oriented motivational factors. The research method of this assignment will be the pure research that is various literatures will be studied in order to critically analyse how international sports events impact the fitness industry of the United Kingdom which will shed light to the practical relevance of the issue along with the creative insight. However the research methods that are to be followed in this particular research includes the following: 1.Gathering information from the existing research papers and literatures. 2.Accumulating factual data from the market report and the industrial report of the UK Fitness industry. 4
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Part – B Overview of the fitness facilities in the United Kingdom As per the industrial report of the UK fitness industry, 2018 the fitness industry includes the gyms along with the fitness and health clubs wherein the revenue is mainly generated at the time of international sports events through membership fees. The statistics of the industry reveals that the annual revenue earned by the sector in the financial year of 2018 was£ 1.9 billion with an estimated annual growth of more five percent. The threat to the industry as revealed by the report is the intensified competition and the opportunities of the industry is the increased sports vents because this is considered as a motivational factor towards “Fitspiration” which inspire people to remain fit and fight with obesity(IBISWorld, 2018). The industrial report of the UK fitness industry sheds light on the fact that at the end of the financial year of 2017-2018 the fitness facilities increased by 4.6 percent but the growth rate was considerably lower in the year of 2017. In other words it can be said as that in the year of 2018 there were international sports events like Hockey World Cup, FIFA World Cup, Winter Olympics, Commonwealth Games and many more which motivated the individuals to remain fit as they desire their favourite sports person. This has increased the membership in the fitness clubs and gyms. The state report of the UK fitness industry, 2019 revealed some facts like(Quesnel, 2019): The membership in the fitness industry grew by 2 percent that is to 9.9 billion. The fitness facilities in the year of 2019 in the UK increased to more than seven thousand from six thousand. The market value of the fitness industry of the UK increased to£ 4.9 billion that in other words it can be said that it enhanced by 2.9 percent. 5
The penetration rate in the UK remained the same in the year of 2019 as it was in the year of 2018. Several new fitness facilities opened up in last few years. Figure 1: Overview of the fitness segment of the United Kingdom Source: Quesnel, 2019 The international sports events impact the industry of fitness in the United Kingdom because it acts as a motivational factor which motivates individuals for further enrolment in the fitness clubs and gyms. However it is evident that during the international sports events like FIFA World cup 2018 UK performed well and hence the young people of the UK admire their sportsperson and enrol them in the fitness activities which is added as a revenue to the industry (Bernalet al.,2014). Apart from that when the national team of the UK is performing well at an international level the fitness industry attracts more investors. In short it can be said that the investors during the international sports events invest more in this particular industry of the UK on order to grab the opportunity of the increased rate of return from the investment (Hall and Pesenti, 2017). The fitness industry report of the UK, 2018 revealed that there is increased number of fitness facilities along with the increased numbers of members which indicates that the international sports events not only motivates the individuals but along with that also motivates the investors to invest more in the industry and 6
hence it increase the employment opportunity in the industry. The fitness trainers are more employed by the gyms and fitness clubs apart from that the trainers provides freelancing training services to the fitness freaks who are motivated from the international sports events like Hockey World cup 2018, FIFA World Cup 2018 and many more (Solheimet al.,2017). However as opined by scholars, the international sports events have impact on the individuals but they are more attracted towards the good physique of the sports person and this is what motivates them to enrol in a fitness program (Macintosh and Doherty, 2007). This is considered as an indirect impact of international sports event. This is often seen that the poor performance of the national team on the international events demotivates the individuals and hence they discontinue with the fitness facilities which is considered as a threat to this particular industry(Polyakova and Mirza, 2016). Figure 2: Increased membership in the fitness industry Source: Quesnel, 2019 7
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Increased sales of the sports equipment, sports uniforms along with sports shoes The industrial report (fitness) of the United Kingdom, 2018 revealed the growth of the industry in this particular year. There were list of international sports events in this particular year ranging from FIFA world cup, Hockey World Cup to Commonwealth Games and Winter Olympic Games wherein the sport persons of the UK are actively involved. On an international level the performance of the team motivates the individuals of the UK which can be reflected on the sales margin of the sports equipment, uniforms and shoes. The operators or the retailers of the sports equipment market of the United Kingdom includes the sale of products for outdoor activities, sporting goods, bicycles and clothing. The sports items or equipment that are stocked by these operators are considered as the discretionary products or items. The improvement of the economic condition along with the increased numbersofsportseventsincludinginternationaleventsandtheenhanceddisposable household income supported the growth of the market in last five years in the terms of revenue. However in the year of 2017 the growth of this market slowed down due to the weak disposable income and lessened international sports events (Shank and Lyberger, 2014). Again the growth accelerated in the year of 2018 due to the involvement of the nation in the international sports events and indeed due to the performance of the national team. The anticipated growth rate in the year of 2019 is 6.2 percent which would reach to euro nine billion due to the most awaited international sports events of Cricket World Cup. The opportunity to the industry is enhanced due to the international sports event of 2019 that is Cricket World Cup and the threats to the sports equipment market of the UK is from the external competitors (Ibisworld.co.uk, 2019). As opinedby a critique, the increase in the salesofthesportsequipmentareduetothecelebrityendorsementsofthebrands (Timchenko, Kaisheva and Timchenko, 2017). In other words it can be said that more than 8
the international sports events the individuals are motivated by the celebrities or the sports person and hence the sport equipment brands that are endorsed by them tends to have more sales rather than those brands that are not endorsed by the sports persons (Andreasson and Johansson, 2014). The market report of the UK sportswear reveals that the market is estimated to grow by twenty percent in next five years and hence will reach £6.7 billion because the customers desire to wear the sportswear as the casual wear due to the increased international sports events (Globaldata.com, 2019). This market includes sports footwear as well. The report also revealed a fact that in the individuals are more motivated to purchase the sports footwear because their favourite sports person endorse the brand. However it is evident that the growth of the revenue in the market of sports equipment and uniform and shoes are due to the international sports events because through this purchase the individuals encourage their teams to perform well on the international level. Henceforth, it can be said that the fitness industry is motivated from the international sports event (Giulianotti and Numerato, 2018). Figure 3: The growth in the sports footwear in the UK Source:Globaldata.com, 2019 9
Food supplements in the Fitness industry Fitness and nutrition supplements are considered as a market leader in this particular industry of the UK for a longer period of time and hence the increased level of sales during the international sports events motivates the fitness industry of the UK. According to the sales report of this sector 2018, this segment of fitness industry held 65 per cent share in terms of revenue of the UK fitness industry. The ready to drink fitness and nutrition supplements are considered as the growing segment in the market of supplements as this had contributed 18 per cent to the revenue of this market in the year of 2018. According to noted scholars, it is evident that the athletes during the sports events includes nutritional and dietary supplements as a part of their fitness regime that is 85 percent of the elite athletes including field athletes prefers food supplements (Solheimet al.,2017). For athletes several food intakes are restricted that is in other words it can be said that these supplements provides supports to the athletic activities by supporting the sports person with vitamins, minerals, proteins and carbohydrates. However the sales report of the food supplement segment of the UK states that during the international sports events the sales margin in this sector are doubled due to the increased usage of the supplements by the athletes and the individuals also consume these supplements following their favourite sports person. The athlete and sports person who are performing at an international level chooses their foods very effectively because it will affect their performance and hence will have through impact on the health and fitness. The good choice of the food and nutrition supplements will motivate an athlete to perform well and therefore the food supplements have a through impact on the performance of the athletes. Several studies revealed that the in some circumstances the food supplements are impactful for some athletes for whom the energy intake is restricted (Maughan, Depiesse and Geyer, 2007). The anti -doping and medical commission of IAAF conducted a survey at an 10
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international event of International Championships from 2005 to 2007 in order to undermine the reasons of using the food supplements by the sportsperson especially at an international sports events. The study revealed that 71 percent of the respondents use supplements because it provides an aid to recovery from the training, 52 percent of the respondents identified the reason of the health improvement behind the usage of food supplements, 46 percent of the response identified the reason of improvement of the performance, 40 percent for the prevention of the illness and 29 percent served the reason of a balance diet (Andreasson and Johansson, 2015). However anotherview is shared by noted scholars, though the food supplements sector had witnessed growth at the time of international events due to the expectation of the sports person in terms of enhanced performance but the same supplements can have negative consequences which can cause acute illness or harm to the health along with the decreased performance level (Maughan, Depiesse and Geyer, 2007). In addition to that the usage of supplements sometimes provides positive doping results which can lead to the suspension or permanent banning of the athletes or the sports person and hence this can have negative impact on the growth of the food and nutrition supplement sector of the UK. 11
Figure 4: Market size of food supplements of the UK Source:Globaldata.com. 2019 The global sales report of food and nutrition supplements reveals that in the year of 2015- 2016 the total sales of the sports nutrition supplements amounted to $ 5.60 billion indicating that the international sports events like Cricket World Cup of 2015 enhanced the sales level. This also indicates that the rise in the sales revenues of the food supplements in the UK is seasonal that is only at the time of international sports events. According to a noted scholar, the excessive usage of the food and sports nutrition supplements leads to the acute and chronic heart and kidney diseases (Du, 2015). The individuals of the UK are health conscious and hence this negative impact of the food supplements will demotivate them as well as the athletes to use this irrespective of any sports events. However in this context the international sports events will not motivate this sector because the ultimate aim of the fitness industry is to serve people a healthy lifestyle (Taeymans, Clarys and Barel, 2014). 12
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IBISWorld.(2018).[online]Availableat: https://www.ibisworld.co.uk/industry-trends/market-research-reports/arts- entertainment-recreation/gyms-fitness-centres.html [Accessed 22 May 2019]. Ibisworld.co.uk. (2019). Sporting and Outdoor Equipment Retailers (UK) – Industry Report. [online] Available at: https://www.ibisworld.co.uk/industry-trends/market-research- reports/wholesale-retail-trade/except-of-motor-vehicles-motorcycles/sporting- outdoor-equipment-retailers.html [Accessed 22 May 2019]. Macintosh, E. and Doherty, A., 2007. Reframing the service environment in the fitness industry. Managing Leisure, 12(4), pp.273-289. Maughan, R.J., Depiesse, F. and Geyer, H., 2007. The use of dietary supplements by athletes. Journal of sports sciences, 25(S1), pp.S103-S113. Polyakova, O. and Mirza, M.T., 2016. Service quality models in the context of the fitness industry.Sport, Business and Management: An International Journal,6(3), pp.360- 382. Quesnel, C. (2019). 2018 STATE OF THE UK FITNESS INDUSTRY REPORT - OUT NOW.[online]TheLeisureDatabaseCompany.Availableat: http://www.leisuredb.com/blog/2018/5/16/2018-state-of-the-uk-fitness-industry- report-out-now [Accessed 22 May 2019]. Shank,M.D.andLyberger,M.R.,2014.Sportsmarketing:Astrategicperspective. Routledge. Solheim, S.A., Nordsborg, N.B., Ritz, C., Berget, J., Kristensen, A.H. and Mørkeberg, J., 2017.UseofnutritionalsupplementsbyDanisheliteathletesandfitness customers.Scandinavian journal of medicine & science in sports,27(8), pp.801-808. 14
Taeymans,J.,Clarys,P.andBarel,A.O.,2014.55UseofFoodSupplementsas Nutricosmetics in Health and Fitness. Timchenko, V., Kaisheva, K. and Timchenko, V., 2017. The Russian Sport Industry. InSport Business in Leading Economies(pp. 239-276). Emerald Publishing Limited. 15