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Dmitry Molchanov/Shutterstock
Four people hiking on a mountain
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Dmitry Molchanov/Shutterstock
Sports Business/10/25/2024

Where is the outdoor industry heading?

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The current situation is complex: the Green Deal and discussions about sustainable design and duty of care are in full swing. For outdoor retailers, this means waiting to see the status quo while setting the course for the future.

Between the pressure to innovate and the survival trends of today, it is above all the customer experience and the skills of the sales staff will be decisive. If you want to be successful in the outdoor market tomorrow, you should take a look into the future now.

What factors will influence success in outdoor retail in the future? What new service concepts could emerge? And how can Gen Z be satisfied while at the same time winning over Gen Alpha? Is the classic loyalty program with financial incentives still the recipe for success?

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Salespeople as brand ambassadors

Salespeople are the first interface between the brand and the customer - and can significantly influence the purchase decision through their expertise and enthusiasm. In the future, training in corporate social responsibility (CSR) and the introduction of the digital product passport (DPP) will be the focus. In future, salespeople will not only have to know the products, but also understand their social and environmental impact.

The most important requirements:

  • Knowledge of the entire production value chain
  • Understanding the tools for measuring the impact on the environment and society
  • Interpret and explain data on environmental and social impacts in an understandable way
  • Simple communication of regulatory requirements
  • Understanding of post-consumer processes such as Recycling, reuse and repair

Christophe Cordonnier, co-founder of Lagoped™explains: "We have introduced an internal system to analyze the lifespan of our products in order to store all the data on our garments and accessories. This information ends up on an external computer that calculates the results. Our Eco-Scores are available on all sales channels - online, in the catalog and on hangtags. The Eco-Score is also an important training tool for our sales staff and retail partners."

Over the next few years, consumers will become better and better informed, which will fundamentally change their purchasing habits. This is also likely to lead to new types of customers - including the underconsumption core. It is estimated that Generation Alpha will have a purchasing power of around 5.5 trillion US dollars by 2030 (sources 1 and 2).

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Lagoped™ revolutionizes the outdoor industry with eco-scores
Image credit:
Aude Penouty

Ecodesign: longevity as a game changer

As part of the Green Deal and the new CSRD-guidelines, the measurement of product lifespan and performance will play a central role. The longer a product is used, the smaller its ecological footprint - a challenge for marketing, product development and customer communication. But how can this longevity be measured and communicated credibly?

One solution could be special workshops where consumers learn how to repair or upgrade their equipment themselves - supported by partners such as About a Worker or The Good Loop. Another approach is to collect customer reviews and feedback a year after purchase in order to gather valuable data on product usage.

Another exciting idea: smaller, specialized outdoor stores, for example in train stations on the way to ski resorts or coastal towns. These could focus on the essentials, offer rental equipment and serve as a return station for rented equipment - less bells and whistles, more service.

Physical longevity and emotional connection

The extended producer responsibility (EPR) and new services for Circular Economy-products and packaging will profoundly change the retail sector. This is where the product life cycle plays a decisive role. In the future, QR codes on products could provide information about shelf life, care and recycling. RFID chips to indicate signs of wear and tear are also conceivable.

Cooperation with fitness apps that display the remaining lifespan of your running shoes and suggest the nearest repair service could also be a forward-looking service extension. Such offers will give classic customer loyalty programs a whole new meaning. Instead of financial incentives, the focus could be on training, events and promoting the outdoor community. Customers would become ambassadors for sustainability and cost efficiency.

Focus on the experience

Digital information, products or services: While Gen Z prefers prefers sharing consumptionGen Alpha lives the phygital concept - the fusion of physical and digital experiences. For them, the transition between e-commerce and physical stores is fluid; the key lies in the customer experience (CX).

This new target group, which will number over two billion adults by 2025, could have the greatest purchasing power in history. And a clear trend is emerging in the outdoor sector: from pure "ownership" to "experience". This means less focus on ownership and more on use. Renting instead of buying - even for personal equipment. Brands like Rip Curl already offer wetsuits for rent, Vaude rents out sleeping bags and sleeping mats, and Millet offers customized outdoor packages for hiking and skiing adventures.

Grégory Pouy, an expert in digital marketing strategies, says: "Gen Z and Gen Alpha are not opposed to each other. In times of major changes in values and beliefs, it's less about generations and more about awareness and the formation of new communities. Brands need to tailor their messages to the respective target group and take their customers by the hand to shape a new era together."

Junge Dame im Wald mit Smartphone
Phygital concept - the fusion of physical and digital experiences
Image credit:
Luke Porter/Unsplash

Education first

Some large retailers are diversifying their range and offering innovative B2B services. Brands such as Etam™ with the program Wedarelab or Decathlon™ with Pulse as start-up incubators. These programs offer not only a space for innovation development, but also a long-term investment strategy. Decathlon has invested around invested around 400 million euros in partnerships since 2018 - from collaborations with small companies to majority stakes in pure players such as Alltricks™ and Bergfreunde™.

But education also means sharing experiences in order to advance the social and ecological goals of the fashion industry. Thus Veja™ offers free events in its flagship stores - from book presentations to discussion panels on topics such as sustainability and fashion. Also Salomon™ is also committed to transparency and regularly publishes impact reports (sources 3). With a clear focus on recycling and repair, the brand has the UN's Sustainable Development Goals firmly in its sights.

The outdoor industry - ready for the future

Inclusion, sustainability, data-driven decisions and a culture of continuous learning: the outdoor industry has the potential to master the challenges of the future. As in sport, it depends on clarity of purpose, mental strength and long-term discipline to be successful. Sport and business often share the same principles. The outdoor world has all the prerequisites to establish a modern, resilient business model that meets the expectations of both customers and employees.