WHY WE BUY A consumer research study that analyzes the reasons consumers buy performance apparel.
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- Esmond Blankenship
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1 A consumer research study that analyzes the reasons consumers buy performance apparel. Sponsored by // Conducted exclusively for Formula4 Media by Leisure Trends Group THE LEVEL OF TECHNOLOGICAL p e rf o rmance off e red in the fibers and fabrics used in athletic apparel today has been advancing at an incredible rate, and the I n t e rnet continues to exert its influence on the way America shops. The need to better understand and quantify the ro l e that fiber, fabric and the Internet play in athletic apparel purchase decisions provided the impetus for this in-depth consumer re s e a rch study. The ultimate success or failure of an athletic apparel brand depends upon how well each player in the supply chain understands the influence and importance of their contributions to the consumer s purc h a s e decision. As a leading producer of perf o rmance yarns and long time p roponent of downstream marketing, Unifi collaborated with Formula 4 Media to develop a study designed to create a collective source of knowledge for the athletic apparel supply chain. The study, conducted exclusively for SGI Media by The Leisure Trends Group, Boulder, CO, measured the responses of nearly 800 active Americans who have bought perf o rmance apparel in the past y e a r. Among the major findings of the re s e a rc h : Consumer re s e a rch on the Internet influences nearly 70 percent of athletic apparel purchase decisions, making it the most influential driver of purchases. Internet re s e a rch is also the most influential s o u rce of information for active consumers ages 55+, indicating that the Internet is no longer a generational thing. M o re than half (52.6 percent) of active consumers typically purc h a s e athletic apparel online or through catalogs, which is equivalent to s p o rting goods stores but twice the level of mass merc h a n d i s e r s. While conventional wisdom says major brands rule among sport s The Promise of Perf o r m a n c e W hen it comes to athletic apparel, one thing is clear the promise of performance is stronger than the promise of the brand. Nearly half of active sports participants say that performance features have a strong influence on their athletic apparel purchase decision, a figure that is ten times the 5 percent of active consumers that say the garment brand has a strong influence on their purchase decision. And more than half of active consumers say they will try a new brand of athletic apparel if they think it will perform b e t t e r, which is more than three times the number that say they will always buy a brand of athletic apparel that they know and trust. Advances in fiber, fabric and garment technology have resulted in athletic apparel that offers multiple performance features. Active sports participants appear to understand that you get what you pay for, with nearly two-thirds indicating that they will pay a higher price for more performance features. The challenge, however, is to identify which sets of performance features generate the most interest and potential return. This study provides insights into unique combinations of performance features and their importance to the purchase decision, including: The combination of breathablity, wicking sweat and keeping you dry is important to 82 percent of active consumers. Breathability, wicking sweat and stretch is important to 60 percent. Wicking sweat, stretch and providing sun protection is important to 36 percent. Wicking sweat, stretch and odor control is important to 27 percent. The data also supports the trend toward green products, with half of all active females and 38 percent of active males saying that they like to purchase garments that are eco-friendly. Nine out of ten of these eco-centric consumers say that performance features have a strong or very strong influence on their apparel purchase decisions, indicating that eco-friendly fibers and fabrics are not just for tree huggers they re now just as important to active sports participants. When it comes to brand, slightly less than 30 percent of specialty shoppers and sporting goods store shoppers can be considered brand loyalists, and only 20 percent of mass merchandise shoppers can be considered as such. Regardless of the usual outlet shopped, the majority of brand switchers are more interested in trying new brands of apparel that they think will perform better (75 percent) than switching to get a lower price (25 percent), indicating that the promise of performance is even stronger than the promise of price. This is not to say that brand is meaningless. The research shows that consumers do subscribe to the theory of brand differentiation, with seven out of ten active consumers disagreeing with the idea that all brands of athletic apparel are pretty much the same. However, only one-third of active consumers agree that national brands of athletic apparel are higher quality than store brands, a figure that demonstrates the strength, appeal and consumer acceptance of today s store brands. Methodology The research in this report was conducted in June 2006 among a sample of active Americans age 18 and older. Respondents were sourced from the Leisure Trends Most Active American Panel (MAAP) among Americans who have classified themselves as active participants in sports and leisure activities. Participating respondents were screened to assure their age (18 and older), their active participation in sports or physical activities (78.6% participate several times a week) and that they had purchased a sport garment in the past 12 months. The study was conducted over the Internet and all respondents were informed that completion of the study would enter them into a random drawing that included free outdoor gear as prizes. A total of 758 active Americans completed the study providing an accuracy for the study of +/- 3.6% at a 95% confidence level. August 2006 ~ SGI The Magazine
2 consumers, the re s e a rch says otherw i s e. P e rf o rmance features exert a level of influence that is 10 times larger than garm e n t brand, and only one-third of active consumers agree that national brands of athletic apparel are higher quality than store brands, indicating the high level of consumer acceptance of today s store brands. T h ree out of four consumers usually shop s p o rt specialty stores, making it the prim a ry channel for athletic apparel. The level of crossover between sport specialty store s and mass merchandisers is negligible, with only 14 percent of active consumers shopping for athletic apparel in both channels. Technical perf o rmance is more closely linked to benefits derived from creating or maintaining a more comfortable human e n v i ronment rather than enhancing physical perf o rmance. Active consumers are m o re likely to agree that wearing the right athletic apparel makes their activity more enjoyable (82 percent) rather than it helping them perf o rm better (58 perc e n t ). While 53 percent of consumers say it s e x t remely important to describe feature s and benefits on garment hang tags, only 27 p e rcent say that the information on curre n t hang tags is extremely useful. This would indicate an opportunity for manufacture r s throughout the supply chain to work together to improve the technical inform a- tion on hang tags to help make the shopping process easier and more satisfying. Nearly two-thirds of active consumers indicate that they will pay a higher price for m o re perf o rmance features. While moisture management has become a must have in athletic apparel, stretch, sun protection and being made eco-friendly continue to emerg e in import a n c e. C o u n t ry of origin plays a minimal role in influencing the purchase of athletic appare l. Asked to rate a variety of factors on the influence in their athletic apparel purc h a s e decisions, consumers ranked this dead last (2.35 on a scale of 1 to 5), well behind comf o rt and fit (4.81), perf o rmance feature s (4.30), price (3.92) and ease of care (3.75). A majority of respondents (51 percent) indicated they know what they are looking for and buy it. This correlates well with the idea that Internet re s e a rch is supplying a bulk of the product information. About 43 perc e n t of those surveyed said they make comparisons at the store prior to buying, while only six percent seek the help of sales staff. Performance Characteristics The majority of active consumers have purchased athletic garments with Moisture management for the sports in which they currently participate (see chart below). More than one-third of consumers have purchased garments with stretch for all activities except golf and team sports, and more than 25 percent of exercise walkers and golfers have purchased garments with sun protection. Q. Please indicate if you have purchased a garment with any of the properties listed below for the sports or physical activities in which you currently participate. Recent Garment Purchases by Sport/Activity Participation Total Male Female Exercise Walking: (n=215) Moisture/Sweat Management 82.3% 87.5% 75.8% 71.4% 75.0% 89.5% 81.7% 81.3% Odor control 10.7% 12.5% 8.4% 0.0% 3.1% 14.0% 11.3% 12.5% Stretch 36.3% 25.0% 50.5% 57.1% 43.8% 33.3% 43.7% 20.8% Sun protection 26.5% 30.8% 21.1% 0.0% 25.0% 33.3% 22.5% 29.2% Running and Jogging: (n=258) Moisture/Sweat Management 93.8% 96.5% 88.6% 90.0% 93.0% 94.9% 92.6% 100.0% Odor control 17.1% 18.8% 13.6% 6.7% 21.1% 17.7% 18.5% 12.5% Stretch 41.1% 33.5% 55.7% 46.7% 50.7% 39.2% 35.2% 25.0% Sun protection 13.6% 17.6% 5.7% 13.3% 14.1% 12.7% 13.0% 16.7% Golf: (n=104) Moisture/Sweat Management 72.1% 68.8% 81.5% 100.0% 71.4% 64.3% 76.9% 75.0% Odor control 8.7% 9.1% 7.4% 0.0% 4.8% 10.7% 7.7% 10.7% Stretch 23.1% 18.2% 37.0% 0.0% 28.6% 21.4% 26.9% 17.9% Sun protection 45.2% 49.4% 33.3% 0.0% 57.1% 46.4% 30.8% 50.0% Cycling: (n=303) Moisture/Sweat Management 88.8% 89.8% 85.7% 81.3% 91.4% 85.6% 93.0% 87.0% Odor control 11.2% 12.4% 7.8% 18.8% 10.3% 8.2% 10.5% 17.4% Stretch 53.8% 52.2% 58.4% 68.8% 53.4% 56.7% 50.0% 50.0% Sun protection 19.8% 20.8% 16.9% 25.0% 24.1% 26.8% 9.3% 17.4% Tennis: (n=53) Moisture/Sweat Management 90.6% 92.7% 83.3% 100.0% 100.0% 87.5% 93.3% 71.4% Odor control 9.4% 4.9% 25.0% 0.0% 0.0% 6.3% 26.7% 0.0% Stretch 35.8% 34.1% 41.7% 0.0% 36.4% 43.8% 33.3% 42.9% Sun protection 18.9% 22.0% 8.3% 0.0% 18.2% 25.0% 13.3% 28.6% Team Sports: (n=94) Moisture/Sweat Management 97.9% 100.0% 88.9% 91.7% 100.0% 96.7% 100.0% 100.0% Odor control 13.8% 13.2% 16.7% 0.0% 17.4% 20.0% 13.0% 0.0% Stretch 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Sun protection 20.2% 18.4% 27.8% 41.7% 17.4% 23.3% 13.0% 0.0% Aerobic/Cardio Workouts: (n=200) Moisture/Sweat Management 88.5% 96.9% 80.8% 92.9% 94.1% 88.7% 81.8% 88.9% Odor control 13.0% 14.6% 11.5% 21.4% 17.6% 11.3% 7.3% 14.8% Stretch 49.5% 29.2% 68.3% 28.6% 54.9% 54.7% 52.7% 33.3% Sun protection 3.0% 2.1% 3.8% 0.0% 2.0% 7.5% 0.0% 3.7% Winter Sports: (n=276) Moisture/Sweat Management 90.6% 94.3% 81.7% 77.8% 94.8% 89.7% 93.6% 86.4% Odor control 12.0% 11.9% 12.2% 27.8% 6.9% 11.5% 12.8% 11.4% Stretch 34.8% 30.9% 43.9% 27.8% 43.1% 35.9% 32.1% 29.5% Sun protection 14.9% 15.5% 13.4% 27.8% 17.2% 16.7% 7.7% 15.9% Yoga/Pilates: (n=89) Moisture/Sweat Management 38.2% 52.6% 34.3% 28.6% 36.7% 46.4% 33.3% 33.3% Odor control 6.7% 21.1% 2.9% 14.3% 3.3% 7.1% 5.6% 16.7% Stretch 88.8% 84.2% 90.0% 85.7% 90.0% 85.7% 88.9% 100.0% Sun protection 1.1% 0.0% 1.4% 0.0% 0.0% 3.6% 0.0% 0.0% Other: (n=204) Moisture/Sweat Management 79.9% 82.6% 75.0% 68.8% 90.5% 82.5% 78.5% 66.7% Odor control 17.2% 21.2% 9.7% 12.5% 23.8% 14.0% 13.8% 25.0% Stretch 44.6% 37.9% 56.9% 37.5% 52.4% 45.6% 46.2% 29.2% Sun protection 40.2% 43.2% 34.7% 43.8% 40.5% 40.4% 41.5% 33.3%
3 Influential Factors Consumers are doing their homework online before entering the store and plunking down their cash. In terms of in-store influencers, garment hang tags are more influential than recommendations from sales people, store displays and in-store signage Level of Influence on Purchasing Decisions (On a Scale of 1-5) To t a l M F Your own Internet research Recommendations from friends Tags hanging from garment Sales person recommendation Store displays of the garments Advertising Signs found throughout the store Brand sponsorship of events Celebrity or team endorsements Consumer Behavior Could Leave Little Opport u n i ty for Add-on Sales The re s e a rch indicates that the majority of consumers are entering the store knowing exactly what they want, and buying only that,. M o re than two-thirds of males (68.1 percent) and half of females (50.4 p e rcent) usually buy exactly what they intended to, leaving little o p p o rtunity for retailers to upsell them. However, nearly 40 perc e n t of women admit to buying more than they intended to, making them m o re prone to impulse shopping than males (25 percent). Yo u n g e r consumers are the most impulsive (41.2 percent of usually buy m o re than they intended to), while 69.2 percent of 55-plus consumers stick strictly to their planned purc h a s e s. Typical Shopping Result I usually buy exactly what I intended to I usually buy more than I intended to I usually buy less than I intended to The Shopping Experience H e re again, the study rebukes conventional wisdom that says u p w a rds of half of the consumer buying decisions are made at the p o i n t - o f - p u rchase. The Leisure Trends study says more than half the consumers go into the store with a good idea of what they want. Typical Manner of Shopping for Sports Apparel I usually know what I want and merely go to the store to buy it. I make comparisons at the store which help me decide what I want I ask for advice from the sales staff to help me decide. The Hang Tag Jungle The running joke in the industry is that the latest technical outerwear weighs less than two pounds, and less than one pound without the hang tags. However, the re s e a rch indicates hang tags are pulling their weight. More than 40 p e rc e n t of all active consumers in the study read the hang tags all the time, a result that cuts across all age g roups. And while 53 p e rc e n t of consumers say it s extremely important to describe features and benefits on hang tags, only 27 p e rc e n t say that the information on current hang tags is extremely useful. This would indicate an opportunity for manufacturers thro u g h o u t the supply chain to work together to improve the technical inform a- tion included on hang tags to help make the shopping process easier and more satisfying. Usefulness of Hang Tags Read hang tags all the time Extremely important to describe features and benefits on hang tags Extremely useful information on current hang tags
4 Brand Attitudes Although the re s e a rch predictably shows a pre f e rence for national brands, it also shows that more than half of all consumers are willing to t ry a new brand of athletic apparel if they believe it will yield superior p e rf o rmance, indicating the promise of perf o rmance is more influential than the promise of the brand. This would seem to indicate that a brand could ride a fiber or fabric perf o rmance technology story to fast gro w t h in much the manner that Under Armour has. The consumer behavior in the diff e rent sales channels do vary however; consumers who shop at mass merchants are much more likely to switch brands to get a lower price (30.7 percent) than those who shop in s p o rt specialty stores (14.0 percent) on the Internet and in catalogs (14.7 p e rcent) and sporting goods stores (17.8 percent). Also, mass merc h a n t shoppers are less perf o rmance oriented, with only 44.8 percent saying that they will try a new brand if they think it will perf o rm better versus 54.8 percent for those who shop at sport specialty stores, 51.8 percent for I n t e rnet and catalog shoppers and 51.4 percent at sporting goods store s. Why Did You Buy It? Consumers in the study were asked to rate a variety of factors on a scale of 1 to 5 (with five being the highest) on their level of influence on their activewear purchases. Not surprisingly, comfort and fit ranked first, with country of origin last. Ease-of-care has as much influence as price, while fiber content has a similar level of influence as garment style and design. Influence of Garment Features on Buying Sports Apparel Buying Approach I will try a new brand of athletic apparel if I think it will perform better I will switch brands of athletic apparel to get a lower price. I will always buy a brand of athletic apparel that I know & trust I will pay a little bit more for my favorite brand of atletic apparel I will try a new brand of athletic apparel if I think it will be more stylish and contemporary The Female Factor Not surprisingly, females are more particular shoppers, with comfort and fit, price, ease-of-care, fashion and fiber content all being more influential to them than to their male counterparts. Relative to women, men are more influenced by performance features and the garment brand. Brand Preference Influence of Garment Features on Buying ( p e rc e n t ) To t a l M F National Brands Store Brands The lowest priced brands available (ON A SCALE OF 1-5) To t a l M F Comfort & Fit P e rformance features Price Ease of care Fashion Fiber content The garment brand Where the garment was made
5 Technically Speaking On a scale of 1 to 5 (with five being the highest) consumers were asked to rank the importance of key technical features of perf o rmance apparel. Technical features that create a more comfort a b l e human environment bre a t h a b i l i t y, moisture management, keeps me dry or cool are the most important, re g a rdless of gender. Other i m p o rtant technical features include stretch (67 p e rc e n t rated it as s o m e w h a t / e x t remely important) and sun protection (47 p e rc e n t rated it as somewhat/extremely important). Making the Point The moisture management point is underscored when consumers are asked to divide 100 points among a range of technical features to indicate how important diff e rent perf o rmance characteristics are to their p e rf o rmance apparel. Among men, moisture management is nearly t h ree times more important than stretch or UV protection, and nearly four times more important than odor control or being made ecof r i e n d l y. Stretch and being made eco-friendly are significantly more i m p o rtant to women, who are likely to allocate a greater number of points to these features by taking them from moisture management. Importance of Garment Technical Features Sports Apparel Attribute Importance Ranking A Look at Their Activities Top 20 Sports and Physical Activities Participation Total Male Female Cycling 51.5% 57.4% 39.9% 39.2% 47.9% 57.1% 54.1% 46.6% Winter sports 46.4% 48.6% 42.2% 45.1% 51.4% 47.6% 45.0% 42.1% Exercise walking 42.3% 36.0% 54.7% 19.6% 35.4% 35.8% 46.3% 62.4% Running/Jogging 39.6% 40.6% 37.6% 66.7% 60.4% 42.9% 27.5% 21.1% Aerobic/cardio workouts 36.4% 27.2% 54.3% 29.4% 45.8% 32.5% 37.2% 33.8% Golf 23.6% 27.8% 15.5% 11.8% 20.8% 23.1% 21.6% 35.3% Team sports 18.7% 23.0% 10.5% 33.3% 24.3% 23.1% 15.6% 5.3% Yoga/Pilates 16.1% 6.6% 34.5% 19.6% 27.8% 14.6% 14.2% 7.5% Tennis 10.9% 13.0% 7.0% 11.8% 10.4% 11.8% 12.4% 7.5% Hiking 7.1% 7.4% 6.6% 5.9% 12.5% 7.5% 6.0% 3.0% Swimming 4.2% 3.0% 6.6% 0.0% 2.8% 6.1% 4.1% 4.5% Kayaking 4.1% 2.4% 7.4% 2.0% 4.9% 4.7% 5.0% 1.5% Backpacking 2.9% 2.8% 3.1% 0.0% 4.9% 2.8% 3.7% 0.8% Rock Climbing 2.5% 2.6% 2.3% 9.8% 4.2% 0.5% 3.2% 0.0% Rowing 0.9% 1.0% 0.8% 0.0% 0.7% 0.5% 1.8% 0.8% Fishing 0.8% 0.8% 0.8% 0.0% 0.0% 0.9% 1.4% 0.8% Martial Arts 0.8% 0.6% 1.2% 3.9% 2.1% 0.5% 0.0% 0.0% Mountaineering 0.8% 1.2% 0.0% 5.9% 0.0% 0.9% 0.0% 0.8% Sailing 0.8% 0.6% 1.2% 2.0% 0.7% 0.5% 0.9% 0.8% Surfing 0.7% 0.8% 0.4% 0.0% 0.0% 0.9% 0.9% 0.8% Demographics of the Study: A look at the Participants >>> The respondents to this survey included 758 active Americans over the age of 18. >>> The average age was >>> The final study included 66 percent male/34 percent female re s p o n d e n t s. >>> B reakout by age // 18-24: 6.7 percent // 25-34: 19.0 percent // 35-44: 28 percent // 45-54: 8.8 percent // 55 and older: 17.5 perc e n t.
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