DATA DAY BRITAIN 2017 CLEAN LIVING

DATA DAY BRITAIN 2017 CLEAN LIVING

INTRODUCTION 1 EAT»» The difference between fads and trends»» Tracking the rise of superfoods»» Which supermarkets are attracting health-conscious consumers 2 MOVE»» How fitness became personalised»» Why challenges have become mainstream»» Which brands are capitalising on the health movement 3 WEAR»» Understanding the growth of activewear and fitness technology»» Snapshot: Sweaty Betty - A marriage between fashion and fitness»» Snapshot: Fitbit - Revolutionising trackable health and fitness

INTRODUCTION Have you noticed the recent transformation occuring in your area? First, your local pub started offering gluten-free and vegan meals. Next, a fairtrade gift shop popped up down the road. Now within a single postcode there are multiple gyms, a boutique studio and an outdoor club offers something called yoga-lates. Even the way people dress has changed. Workout clothes are worn for more than working out, and Fitbits have replaced regular watches. This transformation encompasses more than a few health-crazed, diet-driven or green consumers. The changes you see are part of a lifestyle movement. The clean living trend has grown consistently in recent years, and has entered mainstream British culture.

A growing lifestyle change Clean Living has many meanings. To some, it is a conscious effort to eat healthily and exercise. To others, it s driven by an ethical approach to how we consume and what we wear. However people define it, Clean Living is a multi-million-pound industry. Organic food sales in the UK grew by 4.9% to reach almost 2 billion pounds in 2015, according to the Soil Association. The fitness and health club industry has more members than ever, with a record 9.2 million in 2015. Sporting goods are also set to grow by 6% to reach 7 billion in 2016, according to Mintel. *The following areas have shown the largest growth in Clean Living habits since 2015: EAT MOVE WEAR 61 % increase Diet and food trends such as veganism, vegetarianism, organic or foods free from gluten, dairy etc. 52% increase Fitness competitions or holistic movements such as yoga, Tough Mudders, Soul Cycle or CrossFit. 72% increase Popular activewear apparel like Sweaty Betty and wearable fitness trackers like Fitbits. In this report, we use Hitwise data to analyse the most significant trend in recent years, and review how retailers and companies have evolved with this lifestyle change. * Audiences based on search behaviour across a 12-week period from 11-Sep to 3-Dec, compared to the equivalent 12-week period in 2015. Clean Living 5

1 EAT Online searches for nutrition have risen by a significant 20% from 2014 to 2016. As our interest in food grows, how has our behaviour changed? In this chapter, we highlight foods and diets that are becoming increasingly mainstream, and explore how food retailers and supermarkets are adapting to the trend of clean eating.

Fads vs. trends Declining Diet Searches Over 2 years, searches for detox dropped by 9% and searches for paleo dropped by 22%. The diet world has always undergone many short-lived fads (Atkins, anyone?). Despite their peak in January after the silly season, detox related searches have declined overall, with a 9% drop from 2015 to 2016. The paleo diet also saw its hey-day at the start of 2015, but never returned to that level since. From 2015 to 2016, searches for paleo declined by 22%. Variations of detox Variations of paleo 2014 average 2015 average 2016 average Instead, we have seen a steady rise in people searching for whole and real food diets. The top diets growing consistently each year include: vegan, gluten free and dairy free. Compared to fads and crash diets, these steadily growing food trends reflect people s desire for long-term change in their consumption habits. Rising Diet Searches Over 3 years, vegan searches have risen by 221%, gluten free by 69% and dairy free by 91%. Variations of vegan Variations of gluten free Variations of dairy free 2014 average 2015 average 2016 average Clean Living 8

Superfood-mania The term superfood has created a lot of buzz over the past few years. Just look at Jamie Oliver s television programmes. The growing popularity of superfoods points to consumers growing concern around the nutritional value of their food, whether it s more anti-oxidants or Omega 3 s. This is exemplified by the increases in superfood searches over the past three years, such as a 68% rise in chia seeds. Pret a Manger used 5 million avocados in 2015, a trend we also see more broadly amongst UK consumers. Searches for avocados have increased by 103% since 2014. Healthy home cooking made easy * Healthy cooking has become more accessible with the rise of subscription food boxes and the inspiration driven by social media influencers such as, Madeleine Shaw. +31 % YouTube also acts as a source of cooking inspiration, with searches on healthy vegan and vegetarian recipes growing by 31% in the last 6 months**. * Search figures are calculated as the relative difference between 2014 average to 2016 year-to-date (to 3-Dec-2016). ** YouTube internal searches from June to November 2016. Clean Living 9

How are supermarkets capitalising on healthy eating? With searches for nutritious diets rising, supermarkets are competing to attract the growing group of health-conscious consumers. Top supermarkets have reaped the benefits of these efforts, with clicks from healthy food searches increasing greatly year-on-year. Supermarkets have approached this goal in various ways from releasing exclusive product ranges (such as Healthy Living by Tesco and Be Good to Yourself by Sainsbury s), to providing healthy recipes, diet advice and meal plans (such as Waitrose s Healthy Eating and Love Life range). In particular, Tesco has been well-placed to attract this growing consumer segment, experiencing over 200% growth in the volume of health food search clicks from 2015 to 2016. As the first UK retailer to launch a free from range (in 2003), Tesco currently sells over 200 million free from products annually. Search clicks for Tesco increased by 213% from 2015 to 2016, thanks to Tesco s popular free from range. Top Supermarkets for healthy food searches * 2014 2015 2016 * Downstream websites from a portfolio of health-food related search terms (e.g. vegan, vegetarian, gluten free, dairy free, organic food). Clean Living 11

2 MOVE The fitness industry has undergone a makeover - and it worked. Searches for gyms and exercise have increased by over 30% in the past three years. This is driven by two key factors: the number of people wanting to get in shape, and consumer views towards fitness itself - seeing it less as a chore and more as a way of life. In this chapter, we look at how exercises like yoga and CrossFit are changing the way consumers view and practice fitness.

More interest, more options Nowadays, exercise options are endless we can join boutique gyms, team sports or set a marathon goal with a single click. Gyms are in constant evolution to make exercise more interesting, with everything from piloxing (a fusion of pilates-boxing) to HIIT bootcamps (high intensity interval training). A key example of this is the continued rise of yoga. This ancient art form has seen searches increase by 25% from 2014 through to 2016. Yoga and its many disciplines continues to attract a broad following, with a diverse offering of mind, body and soul practices. Searches among males have grown by 97%, now attracting an even split between females (51%) and males (49%). Ages have diversified, with the largest growth exhibited among those older. Currently, 21% of yoga searches come from 18-24 age group, through to 22% from 55+ age group. Searches for Yoga Yoga Audience - Gender Split * 14% 9% Searches for Yoga increased by 25% from 2014 through to 2016 97% rise in men searching for yoga 34% rise in women searching for yoga 2014 Average 2015 Average 2016 Average Male Female 2015 Audience Size 2016 Audience Size * The above audiences are based on search behaviour across a 12-week period from 11-Sep to 3-Dec, compared to the equivalent 12-week period in 2015. Clean Living 14

Exercise challenges go mainstream Challenge sports are no longer for the fitness elite. Although the goal to push yourself to the limit is common across challenges, the different sports draw different audiences. Clean Living 15

* TOUGH MUDDER CROSSFIT MARATHON IRONMAN 68% 65% 17% 40% WHO ARE THEY? - Attracts a younger profile, with 41% under 34 years old - Attracts the youngest profile, with 47% under 34 years old - Attracts a diverse range of ages, from 18 to 54 - Attracts an older profile, with the highest proportion at 35-44 (22%) - Even mix between females and males - Highest ratio of males at 55% - Slightly higher ratio of males at 53% - Slightly higher ratio of males at 54% WHERE DO THEY GO ONLINE? - Visits Facebook the most, with high share of visits to social media sites (10%) - Visits YouTube and Instagram the most, with highest share of visits to social media sites (12%) - Visits Daily Mail and Guardian most, with highest share of visits to News & Media sites (14%) - Visits BBC the most, with high share of visits to News & Media sites (13%) - Visits Sports Direct, Nike and Fitbit the most, within sports retail sites - Visits Adidas, Under Armour and Reebok the most, within sports retail sites - Visits Wiggle, Sport Shoes and Halfords the most, within sports retail sites - Visits Wiggle, Chain Reaction Cycles and Evans Cycles the most, within sports retail sites ** Audience figures (demographics and digital behaviour) are based on searches and website visitations over a 12-week period from 11-Sep to 3-Dec-2016. * Number of visits to website from 2014 to 2016: Tough Mudder website, Custom Industry of Crossfit Gym websites, Custom Industry of UK Marathon websites and Ironman EU website. Clean Living 16

How brands have capitalised on the fitness movement Several retailers have been highly successful in aligning their brand with growing fitness movements. Reebok s popularity was revitalised after teaming up with CrossFit in 2011. Riding off the success of Tough Mudders, Virgin Active became its official health club and partner offering specialised Mudder training classes. Retail brands have also developed tailored products for sporting challenges, such as Timex s full collection of Ironman watches (which recently celebrated their 30-year anniversary). Clean Living 17

3 WEAR In this chapter, we spotlight brands that have propelled the concept of a fashionably fit lifestyle into the mainstream. These brands create products and wearables that help people integrate fitness into their everyday life.

Online visits to the sports clothing industry have grown by an incredible 22% from 2014 to 2016. Sporting products were also among the largest growing industries in 2016 s Black Friday sales. This rise is, in part, powered by long-standing sports retailer brands, such as Nike and Adidas. But another key driver to the industry s rise comes from the growing popularity of activewear (or athleisure), and fitness wearables. The audiences for people searching for these two industries have grown substantially over the past year: 74 % increase in the number of people searching for activewear 72 % increase in the number of people searching for fitness trackers In only a handful of years, yoga pants have become a fashion statement, and Fitbits have evolved into the most popular Christmas present several years running. * Based on search behaviour across a 12-week period from 11-Sep to 3-Dec, compared to equivalent 12-week period in 2015 Clean Living 20

Atheleisure Atheleisure has dominated the growth of sports retail. Brands such as Nike and JD Sports have expanded their activewear ranges, and almost all high street retailers have introduced exclusive lines - from H&M and Topshop, to Tesco. Specialist brands, such as Lululemon and Fabletics, find success by focusing on the fashionably fit consumer. A marriage between fashion and fitness 1. About the brand Founded in London in 1998, Sweaty Betty was one of the first brands to seize the activewear market. The brand now has over 50 stores from London to Los Angeles, which offers everything from fashionable studio, running, swimming to ski attire. 2. The key to Sweaty Betty s success Sweaty Betty has evolved from pure retail into a lifestyle brand, using digital channels, such as social media, to drive this change. Clicks from social media to Sweaty Betty s website were 24% greater than the sports retail industry average, over the past year. 3. Sweaty Betty s audience Yummy Mummies and female business professionals constitute the largest portion of Sweaty Betty s audience. The brand is also in a good position for the future, attracting a large following among young Millennials looking for fashion outside of the gym. Clean Living 21

Wearable Technology From a term that was almost non-existent a decade ago, fitness trackers have become a household product. From specialist brands like Garmin and Misfit to smartwatches by Apple and Samsung, there are options for every consumer. Even high-end labels, like Michael Kors and Tory Burch, have released their version of smart jewellery. Revolutionising trackable health and fitness 1. About the brand Founded in 2007, Fitbit revolutionised the wearable industry. Over the years, it evolved from a step and calorie counter to a multi-feature device with guided breathing, fitness plans and sleep quality monitoring. 2. The key to Fitbit s success Fitbit has been able to sustain its appeal year on year, despite growing competition. Searches for fitbit or fit bit have increased by 193% from 2014-2015 and 90% from 2015-2016, thanks to its strong brand name and user community. 3. The Fitbit audience Fitbits attracts a diverse set of customers - from all ages (with only 55+ age group under-indexed compared to the general online population) and a variety of UK regions (with only London under-indexed compared to other regions). Clean Living 22

Key Takeaways This movement offers incredible opportunities for brands willing to understand the needs of the Clean Living consumer. Here are some tips based on our findings: 1. Market to trends over fads Consumers are less interested in crash diets and detoxes. They crave real, lasting solutions for bettering their lives. Brands should focus on identifying short-lived fads vs. consistent trends, and align themselves with stable trends for long-term success. 2. Feed consumer desire for clarity and information Modern consumers care more deeply than ever about real food, effective workouts and making authentic choices that are better for them and the planet. Support their discovery and growth by providing helpful and trustworthy information. 3. Tap into the movement with smart partnerships Meet consumers where they are. Social media and influencer engagement can help you connect with passionate health-driven communities. Consider partnering with brands who are already reaching this audience, in a way that will be beneficial to everyone. Clean Living is a multi-million-pound industry. Some brands have capitalised on this growing fitness movement, while others are struggling to catch up. The key lies in the ability to identify target audiences and understand what makes them tick. These insights can help shape sales and marketing initiatives, in order to capture and retain this growing segment. Clean Living 23

For more information visit us at: www.hitwise.co.uk