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Colombia

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Political stability remains an issue in Colombia


Ease of Doing Business
Colombia ranked 43rd out of 189 countries in Doing Business 2014, down one
place from its 42nd ranking in Doing Business 2013 out of 185 countries, but
improving significantly from 66th out of 178 countries in Doing Business 2008.
The improvement is a reflection of the reforms and consequent improvement in
its ranking in seven out of the 10 categories that make up the Doing Business
rankings between 2008 and 2014. Among the Latin American countries, this
positions Colombia behind Chile (34th), but way ahead of Brazil (116th) and
Argentina (126th) in Doing Business 2014.
Getting Electricity was its most improved category, as its ranking improved
from 130th in Doing Business 2013 to 101st in Doing Business 2014. The
improvement came on the back of greater efficiency of internal processes at
the electricity board and the setup of an one-stop shop for electricity
connections in the country. Thanks to simplification of the proceedings for
commercial disputes, Colombias ranking for Enforcing Contracts improved
from 157th in Doing Business 2013 to 155th in Doing Business 2014. However,
Enforcing Contracts remained the worst performing category for Colombia, as
it takes 1,288 days to enforce contracts in the country, according to Doing
Business 2014, compared with only 734 days on average in Latin America and
Caribbean.
Protecting Investors, ranked 6th globally, was Colombias best performing
category in Doing Business 2014, as the country introduced stringent
disclosure requirements and strengthened shareholder rights. Dealing with
Construction Permits (24th) and Resolving Insolvency (25th) were other
categories where it performs particularly well, thanks to less time involved in
obtaining construction permits and resolving insolvencies in the country.
Government Finances, Inflation and Credit Availability
Annual inflation in Colombia fell significantly from 7.0% in 2008 to only 2.0% in
2013, on the back of a moderation in food prices, as well as transportation and
housing costs. In 2014, its annual inflation is predicted to move up to 2.7% in
2014, after its central bank raised its benchmark interest rate, to 3.75% in May
2014, to contain inflationary pressures arising from its strong economic growth.
With Colombias annual real GDP growth expected to remain robust at 4.6% in
2014, following a 4.7% increase in 2013, the business confidence in the
country remains high.
The general government net budget deficit of 3.3% of total GDP in 2010
reversed to a general government net budget surplus of 0.1% of total GDP in
2012, as the economy recovered from the global economic downturn that

began in 2008. However, it slipping back into a deficit of 1.0% of total GDP in
2013, owing to lower tax collection. Nevertheless, its stable government
finances helped Colombia lower its public debt level from 36.0% of total GDP in
2009 to 32.1% in 2013, far lower than the Latin American average of 49.2% in
the same year.
Colombia has a strong banking sector, characterised by rigorous regulation;
strong profits; and increased solvency, all of which came on the back of
consolidation and regulations enforced, as a result of its domestic credit crisis
in the 1990s. This made the sector resilient to the global financial crisis which
began in 2008. The proportion of non-performing loans to total gross loans
declined from 4.0% in 2009 to 2.8% in 2013 and is expected to come down
further to 2.7% in 2014. In comparison, Mexico had a non-performing loans
ratio of 3.2%, while Brazils was 2.9% in 2013.
Political Stability and Regulatory Quality
Colombia ranked 187th (out of 203 countries) in the World Banks Political
Stability and Absence of Violence Index 2012 (latest data available), worsening
from its 179th position in 2011 (out of 204 countries), as illegal armed groups,
such as the Revolutionary Armed Forces of Colombia (FARC) and National
Liberation Army (ELN), as well as organised crime groups continue to affect the
political and social stability of Colombia. The country accordingly stood at the
last position among all the Latin American countries in the 2012 rankings, with
Venezuela (167th) and Peru (162nd) being its closest countries.
On the brighter side, Colombian president Juan Manuel Santos has continued
former President Alvaro Uribes (20022010) policy of democratic security and
engaged in peace talks with FARC, which has slightly helped allay securityrelated fears in the country.
Colombias ranking in the World Banks Regulatory Quality Index progressively
improved from 91st (out of 201 economies) in 2009 to 74th (out of 202
countries) in 2012 (latest data available), on the back of improved regulations
towards financial supervision and overhauling of the oil and mining royalties
system (July 2011). At this position, it lagged behind Chile (15th) and Mexico
(67th), but is ahead of Brazil (92nd) in the 2012 rankings.
Global Competitiveness Index
In the Global Competitiveness Index (GCI) 2013 published by the World
Economic Forum, Colombia ranked 69th out of 148 countries, unchanged from
its position in the GCI 2012 rankings out of 144 countries. Market size (31st)
and Macroeconomic environment (33rd) were its best performing categories,
while Institutions (110th) and Goods market efficiency (102nd) were its worst
performing categories in the GCI 2013.
Corruption

Colombia ranked 94th out of 177 countries in Transparency Internationals


Corruption Perceptions Index 2013 worsening significantly from 71st position
out of 180 countries in the 2008, as corruption is widespread in the political,
judicial and even the healthcare sectors in Colombia. Although the new Anticorruption Act was implemented in 2011, it has so far failed to curb corruption.
In the Latin American region, Colombia shares its 94th position with Surinam,
and lagged behind Chile (22nd) and Brazil (72nd) in the 2013 rankings.
GOVERNMENT REGULATION AND TRADING ACROSS BORDERS
Colombias FDI intensity was in line with the Latin American average in 2013
Government Attitude to FDI
The countrys investment law generally gives foreign investors the same
treatment as national investors. However, foreign investment is restricted in
radio broadcasting, movie production, national aviation and shipping. The
increased liberalisation of international trade under the Santos administration,
since 2010, has helped increase FDI inflows in the telecommunications,
accounting, energy, mining and tourism sectors.
Colombia provides export incentives to companies operating in the special or
free trade zones. There are also tax incentives, such as preferential import
tariffs, tax exemption, deduction on income from new investments made in
certain agricultural sectors and those made in employment-generating
activities located in areas affected by natural calamities.
Colombia has been a member of the World Trade Organization (WTO) since
1995 and also has free trade agreements with the European Union (formed in
2010), South Korea (2012) and the USA (2012). Additionally, it has bilateral
investment treaties with Peru, Spain and Switzerland.
Trends in FDI Flows
Colombias FDI inflows declined from COP20.9 trillion (US$10.6 billion) in 2008
to COP12.8 trillion (US$6.8 billion) in 2010, partly owing to the impact of the
global financial crisis of 2008-2009 and partly owing to loss of domestic
business confidence due to insecurity, violence and corruption. Thanks to
improved policy-making under the Santos administration; investments in its oil
and mining sectors; and recovery from the global economic crisis, Colombias
FDI inflows recovered to COP31.4 trillion (US$16.8 billion) in 2013, marking a
total real growth of 29.7% between 2008 and 2013. However, as a proportion
of its total GDP, its FDI intensity fell from 4.3% in 2008 to 2.4% in 2010 and
only grew to 4.4% in 2013 standing in line with the Latin American average of
4.8% in 2013. Brazil, for instance, had a FDI intensity of 2.9%, while Chiles was
7.3% in 2013.
FDI outflows from Colombia increased from COP4.9 trillion (US$2.5 billion) in
2008 to COP15.4 trillion (US$8.3 billion) in 2011, but declined to negative
COP1.1 trillion (US$606 million) in 2012, as business sentiment remained very

cautious due to prolonged recovery from the 2008-2009 global financial crisis.
In 2013, however, its FDI outflows grew to COP14.3 trillion (US$7.7 billion) in
2013, as businesses stepped up their investments in the USA. In real terms,
this marks a growth of 152% between 2008 and 2013 and reflects the
increased liberalisation of international trade in Colombia.
Infrastructure
Colombias poor infrastructure is reflected in its 117th ranking globally (out of
148 countries) in Quality of overall infrastructure of the GCI 2013 report. Its
worst performing categories were Quality of roads (130th) and Quality of
railroad infrastructure (113th), while its best performing categories were
Available airline seat km/week, millions (39th) and Quality of electricity
supply (63rd) in the GCI 2013.
The infrastructure sector is set to receive a boost, as the government is keen
on building 4,970 miles of roads by 2021 with a total investment of COP48.1
trillion (US$25.0 billion). Plans are also underway to spend COP963 trillion
(US$500 billion) towards expanding and upgrading facilities at Barranquilla,
Armenia, Neiva, Popayn and Cartago airports. In total, its transport
infrastructure segment is set to receive investments of close to COP193 trillion
(US$100 billion) by 2021.
TAX ENVIRONMENT
Colombia improves ranking in Paying Taxes in Doing Business 2014
Ease of Paying Taxes
Colombia ranked 104th out of 189 countries in the Paying Taxes category in
Doing Business 2014, improving significantly from its 167th ranking out 178
countries in Doing Business 2008. The improvement is a result of the
establishment of mandatory electronic filing and payment for some of the
major taxes between 2008 and 2012 and the approval of major tax reform
legislation (Law 1607) in December 2012. The reform modified certain tax
rates, simplified some and created new taxes and regulations. A new tax on net
profits Income tax for equality (CREE) was created, which is levied at a
rate of 9.0% in 2014 and 2015, and 8.0% from 2016 onwards.
Despite the improvements, Paying Taxes remained the second worst
performing category for Colombia in Doing Business 2014, after Enforcing
Contracts (155th). Colombia, therefore, fares worse than Chile (38th), but is
way ahead of Brazil (159th) and Argentina (153rd) in Doing Business 2014.
Thanks to the use of electronic tax filing, it takes businesses 203 hours per
year to prepare, file, pay or withhold its taxes and contributions in Colombia,
according to Doing Business 2014, significantly lower than the Latin American
and Caribbean average of 369 hours per year.

The size of the informal economy in Colombia is huge, on the back of high
levels of tax evasion; the prevalence of drug trafficking; and employment in the
informal sector.
With the view to tackling tax evasion, the government is looking to restrict
Colombians access to offshore tax havens and increase the number of tax
auditors in the country.
Tax rates
Domestic and foreign companies based in Colombia pay a corporation tax rate
of 25.0% in 2014, while foreign companies with no physical presence in the
country pay 33.0% corporation tax rate. Meanwhile, a reduced 15.0%
corporation tax rate is applicable on companies located in the free trade zones.
In comparison, Argentina has a standard corporate tax rate of 35.0%, while
Brazils is 25.0% in 2014.
Colombias total tax rate of 76.0 % of total profits, according to Doing Business
2014, is higher than Brazils 68.3% total tax rate, but lower than Argentinas
108%. However, Colombias labour tax of 28.8% of total profits, according to
Doing Business 2014.
The standard rate of value-added tax (VAT) in Colombia is 16.0% in 2014, which
is levied on the sale of goods, imported items and provision of services. A
reduced 5.0% VAT is applicable on certain goods and services, such as property
and food items, while a zero percentage VAT is applicable to export goods. In
comparison, Mexico has a 16.0% VAT rate, while Argentina has a 21.0% VAT
rate in 2014.
INNOVATION AND TECHNOLOGY
Colombia had the second highest mobile telephone penetration rate in Latin
America in 2013
Uptake of Technology
Liberalisation and increased competition in the Colombian ICT sector has
helped the country improve its ICT penetration from 2008 until 2013. In 2013,
its mobile telephone possession rate stood at 94.7% of total households,
compared with 83.8% in 2008 and the third highest mobile telephone
possession rate in Latin American, after Chiles 96.5% and Brazils 95.7% in
2013. The credit for this goes to government initiatives, such as the Vive
Digital plan (first launched for the 2010-2014 period and extended to the
2014-2018 period); the Productive Transformation Programme (2007); and the
revised ICT Law (2009), all of which were primarily aimed at improving telecom
penetration in the country.
The proportion of the total population using the Internet in Colombia reached
52.8% in 2013, improving from only 25.6% in 2008, on the back of the strong
growth of online commerce in the country. The size of the Internet retailing
market in Colombia increased by a real 491% from 2008 until 2013, to COP1.3

trillion (US$700 million) in 2013. Despite the growth, Colombia remained shy of
Chiles 64.5% and Argentinas 59.8% total population Internet usage in 2013.
Meanwhile, the proportion of its total businesses using the Internet was 99.8%
in 2013, the second highest in Latin America, after Argentinas 100% in 2013.
Networked Readiness Index
The improvements in Colombias ICT infrastructure; increased ICT affordability;
and the consequent uptake of ICT by individuals helped Colombia improve its
ranking in the Networked Readiness Index (NRI) from 73rd (out of 142
countries) in 2012 to 63rd out of 148 countries in 2014. This puts it significantly
behind Chile (35th) but slightly ahead of Brazil (69th) and Argentina (100th) in
the NRI 2014 rankings.
Research and Development
Colombias total expenditure on research and development (R&D) increased
from COP864 billion (US$439 million) in 2008 to COP1.4 trillion (US$741 million)
in 2013, registering real growth of 38.2% from 2008 until 2013. However, as a
proportion of total GDP, its total overall R&D expenditure remained stable at
0.2% throughout the period from 2008 until 2013, standing significantly lower
in comparison to the Latin American of 0.8% in 2013.
Colombias R&D activities are focused on software development, science and
technology, as well as development of new medical products. The government
allows companies to deduct their R&D-related expenses incurred during the
year from their total tax income for the same year and also provides R&D tax
credit and grants.
Patent Numbers, Protection and Targets
Colombias increased focus on innovation and technology helped increase its
patent grants by the National Patent Office from 409 in 2008 to 1,804 in 2013.
Meanwhile, its patent grants by the European Patent Office (EPO) increased
from 2.0 patents in 2008 to 3.0 in 2013, while those by the United States
Patent and Trademark Office (USPTO) increased from 6.0 in 2008 to 11.8
patents in 2013. The increase in the number of patent grants by the NPO is due
to a reduction in patent examination times at the NPO, as a result of the patent
law implemented under the Andean Community Decision 486 of 2000, which
are closely in line with the international Agreement on Trade-Related Aspects of
Intellectual Property Rights; the Patent Cooperation Treaty; the Paris
Convention on Industrial Property; and the UPOV Convention. However,
widespread prevalence of piracy continues to pose a significant threat to
legitimate intellectual property in the country.
LABOUR MARKET AND POPULATION SKILL SET
Labour market suffers from acute skills shortage
Government Expenditure on Education / Education Standards

The adult literacy rate in Colombia improved slightly from 93.4% of the adult
population aged 15 and over in 2008 to 93.8% in 2013, as a result of the
Integral School Literacy Programme, which has been in place since 2006 with
the view to improve the level of literacy among adults, particularly women. The
female adult literacy rate improved from 93.4% of the female adult population
aged 15 and over in 2008 to 93.9% in 2013, while the male adult literacy level
improved from 93.3% of the male adult population aged 15 and over in 2008 to
93.7% in 2013.
Higher Education and Skills Shortages
In 2013, only 12.5% of the Colombian population aged 15 and above had a
higher education degree, increasing from 11.5% in 2008 and falling closely in
line with the Latin American average of 12.8% during the same year. This is
partly due to high school dropout rates and partly due to the poor quality of
primary and secondary education in the country, as a result of which students
perform poorly in pre-university exams.
The jobs market faces a shortage of graduates, particularly in sectors requiring
technical skills, such as engineering, accounting and production operations.
Social Sciences, Business and Law had the highest proportion of total
graduates at 49.5% in 2013, due to the higher salaries in these sectors.
Meanwhile, Agriculture attracted the smallest proportion of graduates, at 2.2%
of total graduates, during the same year, owing to low pay scales in the sector.
Country Briefing | 04 Nov 2014
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Emerging market economies (EMEs) are experiencing a change in household
structure, driven by various social, economic and demographic factors. The
share of couple with children households is declining, though it is still the most
popular household type in many EMEs. Meanwhile, single-person, couple
without children and single-parent households are growing fast, thus leading to
changes in consumption and dwelling patterns and creating new opportunities
for consumer businesses in EMEs.
Key points
The household structure in 25 key EMEs is changing, as the proportion of
couple with children households to total households declined from 44.9% in
2007 to 42.9% in 2012;
On the other hand, the shares of single-person, couple without children and
single-parent households are on the rise as a result of population ageing, the
higher rate of female participation in the workforce, rising divorce rates and the
growth of urban single lifestyles. In 2012, the aggregate number of singleperson households accounted for 13.0% of total households in EMEs, up from
11.4% in 2007;

As households become smaller, the demand for apartments will rise across
EMEs, especially in urban areas due to a lack of space and high living costs.
The share of households living in apartments in EMEs increased from 29.8% of
all households in 2007, to 33.4% in 2012, and is forecast to reach 35.5% by
2020. This will create opportunities for the construction, home furniture and
household appliances sectors in EMEs;
The growth of single-person and couple without children households will fuel
discretionary consumption in EMEs as these households tend to have more
available budget for items such as leisure and recreation, eating out and
clothing. By 2020, the share of discretionary spending spending on all
categories except essential items including food and non-alcoholic beverages
and housing is estimated to reach 59.1% of total expenditure in EMEs,
compared to 57.2% in 2012;
Backed by population growth and the rising trend of smaller households, the
number of households in EMEs should reach 1.3 billion by 2020. This will
support consumer expenditure, which is forecast to expand strongly by 47.1%
in fixed US$ constant terms during the 2013-2020 period.
Couples with children remain the largest household group
Despite a declining trend, couples with children continue to be the most
dominant household type in most EMEs. However, there is a noticeable
diversity among these countries:
In 2012, the aggregate number of households in EMEs reached 1.1 billion, up
by 10.1% since 2007. Couple with children households accounted for 42.9% of
EMEs total households in 2012. This, however, represents a decline from a
share of 44.9% seen in 2007, reflecting a change in culture and lifestyles in
these countries;
In ten out of 25 EMEs, couple with children households made up over 50.0% of
their total households in 2012. Within EMEs, the Philippines had the highest
proportion of couple with children households, at 63.6% of all households in
2012, followed by Indonesia (59.1%) and Morocco (56.1%);
Meanwhile, EMEs with a smaller share of couple with children households are
mostly found in Eastern Europe. Ukraine and Russia had the lowest proportion
of couple with children households at 23.4% and 26.3% of total households in
2012 respectively. This is due to the relatively low fertility rates in Eastern
Europe countries, compared to Asian Pacific or the Middle East and African
economies;
Asian countries like China, Indonesia and Thailand witnessed the highest
decrease in the proportion of couple with children households between 2007
and 2012. In China, for example, the share of couple with children households
declined from 42.5% of total households in 2007 to 38.3% in 2012. Birth rates
in China have been low due to the governments one-child policy since 1979.

Also, rising wealth, urbanization and changes in social attitude are factors
leading to the decline of traditional families in these emerging Asian countries.
But other household types are growing
Driven by multiple social, economic and demographic factors, EMEs have seen
an increase in single-person, couple without children and single-parent
households:
In 2012, 13.0% of EMEs total households were single-person households, up
from 11.4% in 2007. Single-person households often include young
professionals, never-marrieds or divorcees and older widows. Population
ageing, increasing divorce rates and growth of urban single lifestyles are the
major factors contributing to the rising trend of single-person households in
EMEs;
Amongst the 25 EMEs, China has experienced the largest increase in the
proportion of single-person households during the period, from 12.5% of all
households in 2007 to 15.7% in 2012, mainly due to the countrys rapid
urbanisation process. Meanwhile, single-person households remained the most
dominant household type in some Eastern European emerging economies such
as Hungary and Ukraine accounting for 33.3% and 33.6% of their total
households respectively;
The proportion of couple without children households in EMEs also increased
from 15.8% of the aggregate total households in 2007 to 17.3% in 2012. In
Turkey, for example, couples without children made up 16.0% of total
households in 2012, up from 15.5% in 2007. As more women in EMEs are
working, there is a growing number of couples who opt for no children or late
childbirth;
The share of single-parent households to the aggregate total households in
EMEs reached 6.2% in 2012, slightly up from 6.0% in 2007. Amongst the 25
EMEs, single-parent households are most common in Latin American emerging
economies such as Mexico and Argentina. Due to a 21.5% increase in the
number of divorces during the period of 2007-2012, the proportion of singleparent households in Mexico rose from 17.8% of all households in 2007 to
18.2% in 2012.
Impacts on dwelling and spending patterns
The growth of smaller households including single-person, couple without
children and single-parent households will drive the demand for smaller
housing units, especially for apartments in cities where it has become
increasingly expensive and crowded. In fact, the number of households living in
apartments in EMEs grew by 23.4% between 2007 and 2012, significantly
higher than a 3.8% increase in the number of households living in houses.
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Esperanza de vida (Hombres):
Colombia

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Esperanza de vida (Mujeres):


Colombia

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untries

CHINA:
With an enormous consumer market, China is an attractive proposition for
foreign investment, but market entry is faced with considerable barriers. A
slowing economy could create challenges for the countrys labour market, but
relatively low wages still hold appeal for businesses. Corruption is widespread
and rankings in this sphere have deteriorated. Nevertheless, a sizeable rise in
patent grants points to an increasingly innovations-focused economy.
Ease of Doing Business
China ranked 90th out of 189 countries in the World Banks Ease of Doing
Business (Doing Business) 2015 report. Its 2015 ranking compared favourably
with that of Indonesia (114th) but was significantly worse that Japans (29th).
Enforcing contracts was Chinas best performing category (35th) in Doing
Business 2015, as the time taken to resolve disputes at 406 days and costs
involved at 15.1% of claim were better than the East Asia & Pacific averages of
554 days and 48.6% respectively. Chinas worst performing category in Doing
Business 2015 was Dealing with Construction Permits, ranking at 179th out of
189 countries. The number of procedures at 22.0; the time taken to build a
warehouse at 274 days and the costs involved at 7.6% of warehouse value
were worse than the regional averages of 14.6, 134 days and 2.1%
respectively.
Starting a Business saw the largest category change, rising from 151st in
Doing Business 2014 to 128th in Doing Business 2015 (both out of 189
countries), given that China eradicated the need to acquire a capital
verification report from an auditing company, as well as scrapping the
minimum capital requirement in both Beijing and Shanghai.
Government Finances, Inflation and Credit Availability
Chinese business confidence dropped markedly in October 2014, as it became
clear that the economy was slowing. Having recovered from the lows

experienced then, business confidence fell again at the start of 2015, owing to
lower orders and a slowdown in output.
Annual inflation in China reduced from 5.5% in 2011 to 2.1% in 2014, owing to
lower manufacturer and food prices. Meanwhile, the general government net
budget deficit equated to only 1.0% of total GDP in 2014, versus 1.8% in 2009,
demonstrating that government finances were very manageable. Public debt
rose from 35.8% of total GDP in 2009 to 40.0% in 2014, as the government
increased its focus on infrastructure spending. However, it is noteworthy that a
considerable amount of activity is off-balance sheet in China, particularly at
the local level, therefore, government finance measures could be higher than
officially indicated.
Nonperforming loans (NPL) remained low throughout the 2009-2014 period,
starting at 1.6% of total gross loans in 2009 and falling to 1.1% in 2014.
Nevertheless, a sizeable shadow-banking sector could mask the true extent of
credit availability and loan defaults, but increased regulation of this sector
could result in higher NPL ratios in the future, as could the inability of local
governments to repay considerable debts accumulated since the global
financial crisis of 2008-2009.
Global Competitiveness Index
In the World Economic Forums Global Competitiveness Index (GCI) 2014, China
ranked 28th out of 144 economies, versus 29th out of 148 economies in the
previous year.
Its best ranking was achieved for Market size (2nd), given that it is the worlds
largest country by population, whilst its worst ranking was in Technological
readiness (83rd) in the GCI 2014.
Political Stability and Regulatory Quality
Although China is characterised by the one-party Communist system, with
stringent controls over the populace, the rapid rise in economic freedom has
created discontent amongst Chinas rural communities that are increasingly
being left behind their urban counterparts.
In the World Banks Political Stability and Absence of Violence Index, China
ranked 147th out of 203 countries in 2013 (latest data available), falling from
139th out of 202 countries in 2009, as social dissatisfaction amongst rural
communities and strained relations with some of its regional neighbours, such
as Japan over territorial disputes, added to instability. Its 2013 ranking
compared unfavourably with Japans (34th) and South Koreas (85th).
In the World Banks Regulatory Quality Index, China ranked 117th out of 202
countries in 2013 (latest data available), with its ranking deteriorating from
111th out of 201 countries in 2009, as the growth in shadow banking after the
onset of the global financial crisis of 2008-2009 negatively affected the

countrys regulatory backdrop. Its 2013 ranking was below both Japans (34th)
and South Koreas (41st).
Corruption
Corruption is a growing problem in China, as demonstrated by its relatively low
ranking of 100th out of 175 countries in Transparency Internationals Corruption
Perceptions Index (CPI) 2014, comparing badly with Japans (15th) and South
Koreas (43rd). Its ranking deteriorated markedly from 80th out of 177
countries in the CPI 2013, the biggest decline of any country globally, owing to
a lack of transparency in its judiciary and government apparatus, as well as
limited regulation for its private sector. Additionally, public executives have
been hiding profits in offshore jurisdictions.
Since coming to power in 2013, President Xi Jinping has launched a massive
campaign against corruption that gained momentum in 2014, targeting both
private and public individuals, irrespective of their rank. By October 2014, the
anti-corruption drive had snared over 13,000 officials, whilst over CNY200
million (US$32.0 million) was uncovered at the residence of an official in May
2014.
TRADE ENVIRONMENT, REGULATIONS AND INFRASTRUCTURE
Considerable barriers exist to foreign investment
Government Attitude to Foreign Direct Investment (FDI)
With Chinas vast market and economic potential, it is one
attractive countries for foreign investment globally. However,
restrictions apply for FDI, whilst human capital costs are on
transparency gaps and corruption continue to hamper investment

of the most
considerable
the rise and
prospects.

Although China is keen to attract FDI to its shores, the government will only
open up industries that it considers suitable for FDI promotion and can bar
foreign entities from investing in sectors of strategic national importance or
those that are in direct competition with national monopolies or other domestic
companies. Furthermore, as FDI is under state scrutiny, its regulation and laws
are subject to constant change, which can make any investment in China very
volatile. Limits are also placed on foreign shareholdings in certain sectors:
value-added telecoms services are limited to 50.0% ownership, as are life
insurance companies.
After becoming president in 2013, Xi Jinping has attempted to open up China to
foreign businesses and at the Third Plenum of the 18th Party Congress in
November 2013, a set of reforms were outlined that are aimed at making FDI
more accessible, which include the potential for national treatment at all stages
of foreign investment and the prospect of making all sectors open to FDI (with
the exception of those that are overtly outlined for exclusion).
China has free trade agreements (FTAs) with a number of countries and
economic blocs, including Pakistan, Chile, Switzerland and ASEAN (Association

of Southeast Asian Nations). Negotiations are under way for FTAs with Norway,
Australia and South Korea, whilst China is also considering FTAs with India and
Colombia. The country has been a member of the World Trade Organization
(WTO) since 2001.
Trends in FDI Flows
Following the global financial crisis of 2008-2009, Chinese FDI inflows
recovered strongly from CNY649 billion (US$95.0 billion) in 2009 to CNY768
billion (US$124 billion) in 2013 (latest data available), demonstrating the
continuing draw of its large consumer market (the second largest globally in
2014 in US$ terms) and industrial base.
Nonetheless, Chinas FDI intensity equated to only 1.3% in 2013 (latest data
available), down from 1.9% in 2009, which compared poorly with that of
Malaysia at 3.9% and the Asia Pacific average of 1.8% in 2013, given its volatile
treatment of foreign investors.
Meanwhile, FDI outflows nearly doubled in local currency terms in the 20092013 period (latest data available), rising from CNY386 billion in 2009 (US$56.5
billion) to CNY626 billion (US$101 billion) in 2013, indicative of the increasing
firepower of Chinese companies abroad.
Infrastructure
As a result of Chinas massive urbanisation drive, the country has become a
key market for infrastructure projects. However, the breakneck speed with
which China has implemented this development has placed its infrastructure at
risk of excess capacity and poor quality. These issues are coupled with the
burgeoning debt that local government bodies have undertaken to fulfil their
infrastructure requirements. Despite these challenges, China ranked relatively
well at 46th out of 144 economies in the GCI 2014.
President Xi Jinping has recognised the need to upgrade the quality of Chinas
infrastructure offering and in November 2014, the government gave the goahead for CNY693 billion (US$113 billion) worth of infrastructure projects,
aimed at addressing this issue as well as giving an injection to Chinas slowing
economy. Railways and the airport sector are set to benefit from this
investment.
TAX ENVIRONMENT
Reforms have somewhat eased a challenging tax environment
Ease of Paying Taxes
In Doing Business 2015, China ranked a lowly 120th out of 189 countries for
Paying Taxes, illustrating that its tax environment is challenging for
businesses. Nevertheless, according to Doing Business 2015, China did simplify
its tax regime by allowing companies to file and pay for their taxes

electronically, whilst it also reduced social security contributions made by


firms. Its 2015 ranking was below South Korea (25th) but above Japan (122nd).
The time taken to prepare, file, pay or withhold taxes and contributions was
261 hours per year, versus the East Asia & Pacific average of 204 hours per
year, according to Doing Business 2015.
The total tax rate equated to 64.5% of commercial profits, nearly double the
rate of the East Asia & Pacific average of 34.4%, according to Doing Business
2015.
The informal sector in China is quite sizeable and accounted for around a third
of non-agricultural employment in 2010 (latest data available), according to the
International Labour Organisation (ILO). Furthermore, the growth in shadow
banking could also have played a part in an increase in the shadow economy
(income and activities that avoid government regulation or taxation).
Tax rates
Chinas corporation tax rate is 25.0% in 2015, unchanged versus the previous
year. It compares favourably with the rate in Japan (25.5%) but is equal to
Indonesias (25.0%) in 2015.
The standard value-added tax (VAT) rate in China was 17.0% in 2014, with a
reduced rate of 13.0% applicable to certain foodstuff, utilities and books. A zero
rate applies to exports. Lower rates of 3.0%, 4.0% and 6.0% also apply to small
businesses; pawnbrokers and some duty-free goods; and construction and
biological supplies respectively. By contrast, South Korea and Indonesia both
had a standard VAT rate of 10.0% in 2014.
INNOVATION AND TECHNOLOGY
Substantial patent grants point to an increased innovation capacity
Uptake of Technology
With one of the largest consumer markets globally, the Chinese information
and communications technology (ICT) market is a burgeoning one that holds
considerable potential for players that are able to break the stranglehold of the
three state companies that dominate this space (China Unicom, China Telecom
and China Mobile). However, any foreign company wishing to enter this market
has to do so through a joint venture arrangement with the state incumbents,
but the Chinese government has prioritised the development of ICT and is
investing heavily in its ICT infrastructure, in order to connect both urban and
rural communities.
In 2014, 93.5% of total households in China possessed a mobile telephone, up
from 87.8% in 2009. Although the 2014 figure was relatively healthy and was
above the Asia Pacific average of 87.4%, it was below that of South Korea at
97.1%.

Internet business usage expanded rapidly in the 2009-2014 period from 68.8%
of total businesses in 2009 to 78.3% in 2014, but the latter figure was below
Japans at 99.3%. Meanwhile, only 49.3% of the total population used the
Internet in 2014 (compared with 85.3% in South Korea), up from 28.9% in
2009, owing to Chinas large rural population that was mostly still unconnected
(46.3% of the total population in 2014).
Networked Readiness Index
In the World Economic Forums Networked Readiness Index (NRI) 2014, China
ranked 62nd out of 148 economies, down from 58th out of 144 economies in
the NRI 2013. The fall in ranking was due to the lack of fulfilment of its ICT
potential and overall progress in this sphere. Its 2014 ranking compared
unfavourably with that of South Korea (10th) and Japan (16th).
Research and Development
Total research and development (R&D) expenditure was CNY1.4 trillion (US$226
billion) in 2014, increasing considerably by 100% in real terms since 2009, as
China attempted to close the gap in its innovations deficit. In 2014, total R&D
expenditure equated to 2.1% of total GDP, rising from 1.7% in 2009. However,
the figure was still below Japans at 3.3% in 2014, demonstrating that China
could significantly improve its R&D intensity.
China has a number of R&D incentives in place to increase company
expenditure in the area of innovation and technology, including a 15.0%
reduced corporation tax rate for qualifying high-technology companies. There is
also a 150% expenses super reduction in 2015 for relevant R&D activities.
Additionally, the government is also focusing on the development of Smart City
technology (where technological innovation is used to cut costs and increase
efficiency for a citys inhabitants).
Patent Numbers, Protection and Targets
In order to plug the gap in the realm of innovation, China has increased its
patent grants significantly. Indeed, the number of patents granted at the
National Patent Office rose dramatically from 128,389 in 2009 to 301,683 in
2014. Total patent grants at the European Patent Office (EPO) also increased
strongly from 361 in 2009 to 1,115 in 2014 (63.5% ICT-related), whilst at the
United States Patent and Trademark Office (USPTO), patent grants also rose
substantially from 1,028 in 2009 to 4,917 in 2014 (61.3% ICT-related). This
demonstrates Chinas success in gradually transforming itself from a
manufacturer to an innovator. The Chinese state has set an ambitious target of
trebling its patent applications by 2020 from its 2013 base, with an aim of filing
14 patents per 10,000 people by 2020 versus a filing of 4 patents per 10,000 in
2013.
Although China has reviewed many of its intellectual property rights
legislations, abuse of these laws is still widespread, as many are still not

effectively implemented. The country has been a member of the World


Intellectual Property Organization (WIPO) since 1980.
LABOUR MARKET AND POPULATION SKILL SET
Wages remain relatively cheap but productivity is low
Government Expenditure on Education/Education Standards
Chinese government expenditure on education equated to 3.6% of total GDP in
2014, up from 3.4% in 2009. In addition to this rise as a percentage of total
GDP, government spending on education increased at an average annual real
rate of 11.3% in the 2009-2014 period, versus a real period average annual rise
of 8.5% in total GDP, demonstrating the governments commitment to
education and to improving its quality, particularly in rural areas.
The adult literacy rate in China improved from 94.0% of the adult population
aged 15+ in 2009 to 96.3% in 2014. Much of the improvement in the literacy
rate is due to the governments drive to enhance the basic education on offer
in China.
This has also helped to combat female adult illiteracy in China, where the
female adult literacy rate stood at 94.4% of the female adult population aged
15+ in 2014, versus a male adult literacy rate of 98.1% of the male adult
population aged 15+ in the same year. Government efforts have helped to
narrow the gender adult literacy gap significantly, given that the corresponding
male and female figures were 96.9% and 90.9% respectively in 2009.
Higher Education and Skills Shortages
In 2014, 11.5% of the Chinese population aged 15+ had attained a higher
education degree, compared with 9.9% in 2009, with the 2014 figure
comparing favourably with the Asia Pacific average of 10.4%. Chinese
graduates totalled 8.6 million in 2014, an increase of 28.0% since 2009,
illustrating the thirst for higher education amongst the populace.
Graduates in Engineering, Manufacturing and Construction constituted 38.2%
of total graduates in 2014 due to the higher salaries associated with these
areas of employment.
Agricultural graduates made up only 2.1% of total graduates in the same year
due to low salaries in this field and the declining importance of the sector to
the economy.
Labour Market Landscape
Chinas unemployment rate reduced from 4.3% of the economically active
population in 2009 to 4.1% in 2014, which demonstrates that other sectors of
the economy, as well as construction, are creating jobs. However, it is
noteworthy that the true unemployment rate could be substantially higher than
these figures suggest, as the official rate is only for urban dwellers, and also
excludes migrants. Although official figures on the 2014 youth unemployment

rate in China are unavailable, anecdotal evidence suggests that there is a glut
of graduates in the jobs markets that are unable to find suitable roles, pointing
to rising youth unemployment at this level of educational attainment.
The Construction sector posted the biggest rise in its share of total
employment, rising from 9.6% of the total employed population in 2009 to
15.6% in 2014, as rapid urbanisation continued to create demand for
construction workers and partly fuel economic growth.
Conversely, the Public Administration and Defence; Education; Health;
Community, Social and Personal Service Activities; Other Activities sector saw
the largest decline in its share of employment, falling from 28.9% of the total
employed population in 2009 to 24.7% in 2014, as local governments
attempted to curb rising costs.
The Chinese female employment rate increased slightly from 71.3% of the
working age (15-64) female population in 2009 to 73.3% in 2014. However,
there is a considerable gender gap between the female and male employment
rates, with the latter equating to 88.4% of the working age (15-64) male
population in 2014, owing to Chinas patriarchal society and the emphasis that
it places on the more traditional female roles of homemaking and childcare.
Nevertheless, the female employment rate in China was extremely high by
regional comparisons (59.6% in South Korea in 2014), given the need for
female labour to contribute to the stellar success of the Chinese economy in
recent years, and government prioritisation of increasing female education
standards.
Wages and Productivity
Chinas labour market is relatively flexible, as demonstrated by its ranking of
37th out of 144 economies in the Labor market efficiency category of the GCI
2014. Within this category, there are considerable variations in ranking,
ranging from 15th for Hiring and firing practices, illustrating flexibility, to
120th for Redundancy costs, weeks of salary, which shows substantial rigidity.
Having said that, flexibility is aided, as workers do not have the right to strike;
but despite this rule, employee unrest is a common feature.
The wage per hour in manufacturing in China was CNY20.6 (US$3.4) in China in
2014, whilst the average wage per hour was CNY23.1 (US$3.8) in the same
year. This compared well with the developed economies in the region, such as
Japan (US$20.0 and US$17.5 respectively) in 2014, illustrating that Chinese
wages were still competitive compared with their more advanced counterparts,
but were higher than Indonesias wages at US$1.0 and US$0.9 respectively in
that year.
Meanwhile, Chinas minimum wage per month totalled CNY1,620 (US$264) in
2014, which was considerably below Japans at US$1,250, highlighting that
business costs in China are substantially lower in terms of their wage bills than
their more developed peers in the region. However, competition from
developing countries in the region, such as Indonesia where the monthly

minimum wage was only US$75.1 in 2014, is a growing concern for policy
makers.
Productivity in China (defined as GDP per person employed) stood at
US$13,322 in 2014, up from US$9,322 in 2009. Whilst this has increased
meaningfully in the 2009-2014 period, owing to investment by businesses in
the sectors that were driving Chinese economic growth, namely its labourintensive manufacturing industries (29.0% of the total employed population in
2014), it was still below South Koreas at US$49,870 in 2014. However, these
labour-intensive industries also acted as a drag on productivity, as did the
household registry system known as hukou that was devised to control the
large swathes of migrant workers pouring into the cities, which has had the
effect of supressing workers ability to move to more productive jobs that best
matches their skills.
Country Briefing | 17 Feb 2015
http://www.portal.euromonitor.com.ezproxy.eafit.edu.co/portal/analysis/relatedt
ab
http://acreixell.com/2013/10/21/preguntas-y-dudas-sobre-el-negocio-de-lasbicis-electricas-e-mail-de-un-lector/
http://acreixell.com/2012/12/30/una-empresa-de-excursiones-en-bicicletaelectrica-en-una-ciudad-con-un-centro-historico-interesante/
Household Ownership of Durable Goods by Region | Historic | % of households
nge View

2009

2010

2011

2012

2013

2014

Amazonia

36,5

36,3

35,4

34,5

35,2

35,1

Pacifica

35,5

35,2

34,4

33,5

34,2

34,1

Atlantica

34,5

34,3

33,4

32,6

33,3

33,1

Central

33,7

33,5

32,6

31,8

32,5

32,4

Oriental

32,8

32,6

31,8

31,0

31,7

31,6

Bogota

29,4

29,2

28,5

27,8

28,5

28,4

Total

33,5

33,3

32,5

31,7

32,4

32,3

Colombia
Possession of Bicycle

Household Ownership of Durable Goods by Economic Status of Head of


Household | Historic | % of households

Colombia
Possession of Bicycle
Unemployed

35,7

35,5

34,6

33,8

34,5

34,3

Employee

33,1

32,9

32,1

31,3

32,0

31,9

Employer and self-employed

32,6

32,4

31,6

30,9

31,6

31,4

Other

35,5

35,3

34,5

33,6

34,4

34,2

Total

33,5

33,3

32,5

31,7

32,4

32,3

Working Conditions
Colombias Labour Code states that employees are expected to work a
maximum of 48 hours per week. This is the longest working week in Latin
America. Exceptions to this law include working teenagers between the ages of
15 and 17 years-old who can work up to a maximum of 30 hours per week with
a maximum work load of six hours per day. As well, working teenagers over 17
years-old may work up to 40 hours per week with a maximum work load of
eight hours per day. In 2010, the minimum wage in Colombia was Col$515,000.
The amount is agreed to every year by the government and the various
working associations in the country. All employers are obliged to provide their
employees with a paid holiday period of 15 working days per year.
The days and hours under which employees normally work vary according to
the nature of the job performed. According to Colombias Labour Code, the 48hour week may be distributed from Mondays to Fridays or Mondays to
Saturdays. A typical working day will commence at 7:30am and end around
5:30pm with a 1.5 hour lunch break. Factory workers often work in shifts. A
typical night shift will start at 10pm and finish at 6am. However, employees
working night shifts get paid a night surcharge of an additional 35% of day
wages. In Colombia, hours worked over the number of the regular working
hours are considered overtime, which may not exceed two hours per day and
12 hours per week. Overtime hours are always compensated with an additional
25% surcharge. Overtime charges do not apply to management or
administrative staff or other salaried workers.
According to a recent study published by Regus, 84% of employers in Colombia
offer flexible working hours to their employees. According to the Labour Code,
employees and employers may agree that the 48-hour work week may be
completed in more than six days and the number of working hours may be
distributed within the week with a minimum of four hours per day and a
maximum of ten. Employees with kids often take advantage of flexible working
hours as they are able to spend more time with their families.

Workers are entitled to have contracts of employment. According to Colombias


Labour Code, working contracts may be either written or oral. However, nearly
all organisations use written contracts. Contracts are classified into indefinite
term contracts, definite term contracts and contracts with limited duration
(usually for performing specific tasks). According to Colombias Ministry of
Social Protection, indefinite working contracts are most often used by
companies and they are preferred most employees as they tend to provide
workers with higher levels of security and stability.
The Labour Code also states that all organisations must provide their
employees with a complete social security system. For example, workers are
entitled to healthcare and pension benefits. The pension contribution is equal
to 15% of the employees salary, 75% of which is paid by the employer and
25% by the employee. The healthcare benefit covers any medical issues that
may affect the health of the employee or his family. The healthcare
contribution is 12% of the employees salary, with 8% paid by the employer
and 4% deducted from the employees salary. Other benefits include two
premium payments per year, unemployment aid, provision of clothing for work
and transportation allowance (these last two depending on the employees
salary level). Although not compulsory, Colombian workers can join a syndicate
union or an association of collective bargaining.
Workers receive two premium payments per year, the first on June 30th and
the second on December 20th. These correspond to 15 days of salary worked
during the semester. Workers are also entitled to membership in Cajas de
Compensacin or Compensation Funds which offer employees such benefits as
discounts for gym and recreation centres memberships, holiday resorts and
amusement parks, theatres and art exhibitions and cinemas. According to the
National Association of Family Compensation in Colombia, 6.3 million
employees were members of the 43 Compensation Funds in 2010. Membership
also allows employees from low- and middle-income households to receive
subsidies to help them acquire new homes. In 2010, more than 44,000 house
subsidies worth Col$474 billion were provided to members of Compensation
Funds.
Colombians consider lunch to be the most important meal of their day. Office
workers typically have between one hour and an hour and a half for a lunch
break daily. Most manufacturing organisations are located in large industrial
parks in city suburbs. These companies usually provide employees with
canteens. In other cases, they provide dining facilities where workers can heat
and eat their own lunches. Most industrial parks also provide a restaurant
where office workers can buy meals at very reasonable prices (meals are often
partly subsidised by the employers). Employees who work in shifts inside
factories usually bring their meals to work, as it is often cheaper than to buy it.
Employees working in companies such as banks or insurance companies (which
are usually located in trade centres, malls or city centres) usually bring their
lunch to work or eat in nearby restaurants which sell almuerzos ejecutivos
(executive lunches) at very reasonable prices.

The workplace dress codes vary. Employees working for banks or insurance
companies are required to wear more formal business clothing, although some
companies allow their employees to dress down and wear jeans and casual
clothing on Fridays. Managers in industrial organisations are not required to
dress formally, and they often wear casual pants and shirts to work. Factory
workers and cleaners are usually provided with uniforms that allow them to
perform their jobs in a secure and comfortable manner. However, there has
been a recent trend of companies providing their employees with uniforms at
all hierarchical levels. This trend has been seen most often in the banking and
financial sector as well as in the travel and accommodation sectors. Arturo
Calle, a major apparel company, has estimated that the use of uniforms in the
workplace has grown by 12% per year since 2008. Many employees wear
uniforms because they are subsidised by the employers, allowing them to
spend less for clothing.
Women in the Workplace
There were 6.7 million working women in Colombia in 2010. Women are found
more often working in some sectors rather than others. For example, more
often than not women work as nurses, kindergarten and elementary school
teachers, domestic workers inside family homes, executive secretaries,
physician assistants and receptionists. As well, factory workers in apparel
companies are usually women. In contrast, it is not common for women to work
as bus or taxi drivers, electricians or factory workers in metalworking
industries. According to DANE, 65% of the working women in Colombia are
concentrated in two main sectors: tourism (most employees in hotels and
restaurants are women) and social and community services.
According to the International Labour Organisation (ILO), there are strong
patterns of gender discrimination in the Colombian labour market. DANE
recently revealed that working men earned salaries 26% higher than those of
women in 2010. Unemployment rates for women are also higher than those for
men. In 2010, according to DANE, the unemployment rate for men was 9.2%
while the unemployment rate for women was nearly 16%.
Traditionally, Colombian companies have preferred to hire women for entrylevel positions and men for executive positions. However, this has changed
somewhat as more women have attained higher education qualifications.
Indeed, there are many more women working at various levels in the banking
and finance and tourism sectors. Within manufacturing environments, however,
there are fewer women managers (with the exception of clothing
manufacturing) as many male factory employees would find it difficult to be
supervised by women.
All working women are entitled to 14 weeks of maternity leave. Women may
start to make use of this time two weeks before their due date. The Labour
Code states that maternity leave is also applicable to any woman adopting a
child below the age of seven years-old. In these cases, the due date will be
replaced by the date of the official reception of the child. Once they have

completed their maternity leave and returned to their normal work duties, new
mothers are entitled to two breaks of thirty minutes per day to breastfeed their
children.
Commuting
The most common ways that Colombians get to work are via passenger cars,
motorcycles and public transport. Executives tend to drive their own vehicles to
work and it is not common for them to use public transportation. Some
organisations even provide company cars for the use of general managers. It is
also common for mid-level employees to have their own cars and drive them to
work. Less affluent employees often use public transport or their own
motorcycles. Motorcycles have become very popular among commuters as the
costs related to their use and maintenance are lower than the costs related to
passenger cars. While the number of passenger cars in Colombia increased by
26% since 2005 (reaching a total of two million in 2010) the number of
motorcycles increased by 108% (reaching a total of 2.7 million in 2010).
Only a few Colombian cities have modern urban transport systems. Medellin,
Colombias second-largest city, is the only city with a modern railway system
for urban transport, the Metro de Medellin. According to Metro de Medellin, the
system served more than 159 million passengers in 2010. Other cities, such as
Bogot, Cali, Pereira, Barranquilla, Cucuta and Bucaramanga, maintain rapid
bus systems. These usually consist of several lines and numerous elevated
stations in the centre of main avenues. Typically, two or four lanes down the
centre of the street are dedicated exclusively to bus traffic. In the case of
Bogota, Colombias capital and largest city, 1.6 million passengers per day use
the Transmilenio bus system. Manizales and Medellin also have systems known
as Metrocable. In the remainder of the cities, there are no organised
transportation networks and urban transport is limited to just a number of
buses and transport companies.
Buses are the most common public urban transport vehicles, followed by
busetas. Busetas are buses of a smaller size and lower passenger capacity.
According to DANE, 34% of the passengers that use public urban transport
travel by bus while almost 30% use busetas. The rest of the commuters use
minibuses, also referred to as colectivos and, in the cities where they are
available, urban transport systems. Taxis are considered by commuters to be
expensive and they are usually used only in cases of emergency, such as when
workers are late or if their usual mode of transport is not available.
The average length of a commute to work in Colombia depends on the city.
Commutes in large metropolitan areas, such as Bogota, Medellin and Cali, tend
to average of 38.5 minutes. According to the World Bank, this average would
be 32% higher if these cities did not have modern urban transport systems
such as the Metro de Medellin or rapid bus systems. Commutes in smaller cities
such as Pereira, Cartagena and Bucaramanga average about 25 minutes. The
average cost of commuting also varies depending on the city and of the means
of transport used. In Bogota and Cali, the average cost of commuting in 2010

was Col$$1.70 while in Medellin it was Col$1.75. In other cities, the average
cost of a commute by bus was Col$1.10, Col$1.40 for those commuting in
busetas and Col$1.50 for those commuting in minibuses or colectivos.
Travel by bus in urban areas is mostly informal and operates on a cash basis,
meaning that commuters pay for the service at the time of use. Only in cities
with modern urban transport systems may commuters buy travel permits.
Travel permits are not popular amongst Colombian commuters as they are not
discounted.
It is often difficult to find parking spaces in urban areas and this affects the
commuting decisions of many Colombian workers. Parking in main streets in
city centres is mostly forbidden and unsecure. Some cities have buildings
dedicated to providing parking spaces. Fees may be paid monthly (at an
estimated cost of Col$60) or by the hour, with an estimated value of Col$2.
Some cities have implemented a programme known as Pico y Placa (Peak and
License Plate). This programme restricts private and public vehicles with
license plate numbers ending in specified digits from travelling on city streets
between certain times. These policies are intended to encourage commuters to
use public transport. Additionally, Bogota holds the worlds largest car-free
weekday event, encouraging motorists to give up their car for one day and use
an alternative means of transport.
Cycling is becoming an increasingly popular commuting option in the largest
metropolitan cities of Colombia. Cycling routes can be found in many large
metropolitan cities but smaller cities and towns lack an adequate infrastructure
to promote cycling as a commuting alternative. Bogota offers the most
extensive network of cycling routes, also referred to as ciclorrutas. The network
comprises over 300 kilometres of paths dedicated exclusively to the use of
bicycles. Some Transmilenio Stations (the citys Bus Rapid Transport System)
are integrated with the cycling network through bicycle parking facilities.
Medellin has a shorter cycling network of 33 kilometres, in which 45,000 people
commute every day.
Alternative Work Options
For the most part, Colombian workers tend to want to work in traditional fulltime jobs and alternative work options are not eagerly sought after. According
to Banco de la Repblica, the monthly income of full-time employees is double
the income of part-time or informal employees. In 2010, the average monthly
income of an informal employee was estimated to be Col$550 while for a fulltime employee it was estimated to be Col$1, 050. As well, most of the
alternative work options tend to be informal jobs without access to healthcare
and pension benefits. According to the economic journal Portafolio, by the end
of 2011 there were more than 12.5 million informal workers in the Colombian
labour market, with 8.3 million earning less than the minimal wage.
Between 2005 and 2010, the number of part-time workers increased by just
over 5% to reach 25,300 in 2010. According to DANE, 57% of part-time

employees in Colombia are women. The reason behind this is that men are still
considered to be the main providers of household income in the Colombian
society. Hence, men will accept part-time jobs only on a temporarily basis; they
tend to quit as soon as they find a full-time work that provides more security
and stability. Women, on the other hand, seek out part-time jobs in order to
help increase household income. Many women work as domestic and
housekeeping employees. As well, there are many female part-time workers in
restaurants and hotels and in the public sector.
The number of self-employed Colombians increased by 22% between 2005 and
2010, reaching 8.2 million in 2010. This trend reflects the positive attitude
many Colombians have towards being your own boss. Women often prefer to
be self-employed as it allows them to combine their work with household
chores and looking after their children. Self-employed women often work with
catalogue sales (Ventas por Catlogo) in which they advertise, sell and
distribute a wide range of products, such as cosmetics, diet foods and clothing.
Women get paid on commission based on the volume of their sales. Some
professional men prefer to be self-employed as do younger entrepreneurs who
often decide to take advantage of the subsidies provided by the Colombian
government to start up new businesses. These include bank loans at low
interest rates as well as free advisory services.
Working at home is common only for those who are self-employed. Employers
do not typically encourage full-time employees to work from home. On the
other hand, this is expected to change in coming years and it is projected that
the number of workers working from home will increase by 30% between 2010
and 2020.
Retirement
The number of pensioners in Colombia increased by 24.5% between 2005 and
2010, reaching 4.9 million in 2010. Women accounted for 64% of the total
retired population in 2010. It was estimated that at the end of 2010, 11% of the
Colombian population were pensioners. By 2020, that percentage is expected
to reach 15%. Before 2010, men could retire at the age of 55 years and women
could retire at the age of 50 years, after proving they had worked for a
minimum of twenty years. In 2010, the Ministry of Social Protection increased
the retirement age to 62 years for men and 60 years for women.
Pensions in Colombia correspond to 75% of the average wages earned by the
employee during the last year of work. Although retirement in Colombia is not
compulsory, most employees look forward to this stage of their lives. A high
number of Colombians see their retirement as an opportunity to change their
lifestyles without having to worry about work. This perception is not likely to
change in the future, as most employees tend to retire from work once they
have met the age and working time requirements.
As Colombias healthcare system is seen as inefficient and often providing poor
attention to all patients, pensioners and older adults tend to buy private health

care services through insurance companies or prepaid medicine companies


(Compaas de Medicina Prepagada). Services offered by these companies are
considered to be expensive and can only be afforded by more affluent
consumers. Regardless, as the number of pensioners increases in coming years
it is expected that demand for these services will grow.
Traditionally, the lives of Colombian pensioners have centred on their homes.
However, there is an increasing trend among those that can afford it to join
healthcare centres and gyms, not only as a way to monitor and enhance their
health but also as a way to socialise and spend their free time. There has also
been increased demand (again among those that can afford it) for leisure
products and services such as package holidays. It is also common for retired
people to join associations whose memberships are based on shared interests.
Examples of these associations include the Colombian Garden Club and the
Colombian Orchid Association, which allow retired people to specialise on their
hobbies and assist specialised exhibitions on these matters. Going to church is
also an important part of daily life for many older people, as older Colombians
are still strong believers in the Catholic religion.
The range of housing options for older consumers ultimately depends on their
level of income. Older people from the affluent segments tend to live in their
own houses or apartments. Those with low incomes often live with extended
family. It is not common for older people in Colombia to live in retirement
communities. Despite the fact that nursing homes are common, these are often
inhabited by elderly homeless people. The average Colombian associates
nursing and retirement homes with abandonment; hence, they would rather
live with their older family members than to intern them in retirement
communities.
Do beauty contests for young girls promote the premature sexualisation of
children? (February 2015)
Beauty pageants are hugely popular events locally, but for some, this passion
for beauty went too far recently in the municipality of Barbosa in the province
of Antioquia in the north of the country. The Miss Tanguita pageant, part of the
town's annual river festival, saw girls aged between six years and 12 years
parading down a catwalk in G-string bikinis. This is not the first time this has
happened, and a growing number of Colombians are voicing disquiet about the
participation of minors in such events, claiming that it is contributing to the
premature sexualisation of children.
Bogota celebrates its 15th car-free day (February 2015)
Bogota celebrated its annual car-free day on Thursday February the 5th.
According to website Cityfix.com, Between 5am and 7:30pm, residents left
their cars behind and turned to a variety of other modes of transport a
symbolic act that 63% of citizens institutionalised through a referendum in
October 2000. Things were slightly different this year motorbikes and
scooters were also banned from the citys streets. Bogota now boasts 392km of

bike lanes. With drivers facing heavy fines, passenger numbers on the citys
TransMilenio bus service rose sharply.
Run for reforestation (February 2015)
On February the 22nd, the Green Race will take place in Bogotas Simon Bolvar
Park as part of efforts to raise awareness of such issues as climate change,
deforestation and biodiversity, as well as the impact of air pollution in urban
areas. This 10km run is being organised by the US embassy in partnership with
the Natura Foundation, which promotes sustainability. Six trees will be planted
for each of the events 5,000 participants as part of a Natura Foundation
campaign called United for the Forest. The race seeks to empower citizens
by raising awareness of the accelerated loss of biodiversity and what this
represents
for
the
green
heritage
of
Colombia,
website
Thecitypaperbogota.com reports.
Colombia named among the coolest travel destinations (January 2015)
Business magazine Forbes has named Colombia as one of the worlds Ten
coolest places to visit in 2015. The list was compiled by Owen Gaddis, luxury
travel manager at travel company Absolute Travel. Improved political stability
and the increased availability of luxury accommodation were cited among the
factors that led to the countrys inclusion. According to Forbes, The country
encompasses everything from pristine Caribbean coastlines, picturesque
cobblestone streets in Cartagena, the exotic Amazon rain forest and seven
UNESCO World Heritage sites to the buzzing metropolis of Bogota and some of
the worlds most vivacious people.
Educational parks aim to tackle inequality and violence (January 2015)
Sergio Fajardo, governor of the north western province of Antioquia, has
initiated a campaign called "Antioquia, the most educated". Through the
provision of educational parks (buildings where education can be safely
delivered), Fajardo aims to tackle such issues as inequality, violence and
corruption. According to Doris Sommer, director of the Cultural Agents Initiative
of the Department of Literature and Romance Languages at Harvard University
in the USA, Educational Parks represent an opportunity to install a new way of
teaching through exploration and experimentation.
Women turn to scooters for transport (January 2015)
According to the newspaper El Espectador, more and more women are opting
for scooters as their main form of transportation. They are perceived as a
practical, stylish and convenient way of getting to work, it adds. Many also use
them for leisure. They are particularly popular in Bogota. Gabriel Valderrama of
scooter-maker Piaggio Colombia says: "Women are more interested in colour,
design and exclusivity than men". A survey conducted by website TuMoto.com
during late 2014 found that the favourite model of local consumers was the
Kymco Agility Naked, followed by the Yamaha BWS 125 and the Akt Dynamic
R12.

Miami and New York the favourite Christmas destinations of Colombians


(December 2014)
According to data published by tourism website Despegar, the most popular
destinations for Colombians travelling internationally during December are
Miami, New York, Buenos Aires, Mexico and Orlando. Affluent families favour
Miami and Orlando for their mix of theme parks for children and shopping
centres for adults, while New York is now a classic Christmas destination, it
notes. Most Colombians who travel internationally around Christmas are based
in Bogota, it adds.
Demand for double mastectomies rises in the wake of celebrity revelation
(December 2014)
Speaking to daily El Espectador, Dr. Jenny Rodrguez and Dr. Jos Fernando
Robledo from the oncology department at the National Clinic in Bogota note
that referrals to breast cancer clinics have risen since Hollywood actress
Angelina Jolie announced last year that she had a double mastectomy due to
an elevated risk of breast cancer. Rodrguez warns that while Jolie's status has
helped to raise awareness and encourage women who have similar concerns to
consider genetic testing, it may have also have helped to generate a state of
panic among some of them. "We have noticed an increase in the number of
women who want to have both breasts removed, even when only one is
affected [by cancer]", she maintains.
Sales of electric bikes yet to take off (December 2014)
Guido Prieto of Chinese electric-bicycle company Lucky Lion believes that
electric bikes will soon be commonplace on the streets of Colombia. "All our
sector needs is a bit more promotion and clear regulations from the
government. People need to be made aware of the benefits for their health, the
environment and the country as a whole", he says. At the moment, the biggest
issue is a lack of charging stations, but Lucky Lion will shortly open a number of
them in Bogota. According to the company, it has sold just 2,000 electric bikes
in Colombia to date.
Photographers lead the charge against Reggaeton's alleged misogynism
(November 2014)
Photographers Alejandra Hernandez, John Fredy Melo and Lineyl Ibaez are
leading a campaign against Reggaeton a form of dance music of Puerto Rican
origin that is characterised by a fusion of Latin rhythms, dancehall, and rap
which (its critics allege) sometimes contains misogynistic and sexually explicit
lyrics, as well as references to violence, especially towards women. With the
tagline Usa la razn, que la msica no degrade tu condicin (use your head,
don't let the music degrade you), the campaign's graphic representations of
macho culture have been favourably received by the many Colombians who
agree with the contention that this musical genre normalises gender violence.
Turning a profit from electronic waste (November 2014)

Due in large part to the increased popularity and affordability of electronic


gadgets in general and smartphones in particular, Colombia is now producing
somewhere in the region of 200,000 tonnes of electronic waste annually,
according to newspaper El Espectador, citing data provided by the countrys
Environment Ministry. "Most of this waste is not disposed of adequately much
of it is burnt without any consideration for the environment and the potential
for recycling valuable minerals", according to Juan Carlos Moya from Click on
Green. Click on Green is one of the dozen or so companies in Colombia seeking
to recover such materials as coltan, copper and even gold from gadgets. Since
2010, companies are legally bound to hand over their electronic waste for
recycling, but many still fail to do so.
Colombia to give the world another superfood? (November 2014)
According to Proexport, a government body that promotes tourism and exports,
Colombian cosmetics maker Kahai has started marketing such products as skin
creams made from the so-called Amazon almond in Europe, the USA and Asia.
According to the company, Caryodendron orinocense Karsten [the Kahai tree]
is an Amazon tree that grows wild along the eastern base of the Andes
Mountains in Colombia, Venezuela, Ecuador and Peru. Rich in protein and
omega oils, the nuts that it yields are very popular in Colombia, as their oil is
often used for cooking or even for medicinal purposes. Milk and flour derived
from these nuts are also widely consumed, while their shells can even be used
as fuel. Mara Claudia Lacouture of Proexport said: "Colombia's biodiversity is a
great comparative advantage".
An uphill struggle to boost the countrys English skills (October 2014)
Writing on news website Colombian, Juan Sebastian Yepes discusses the
government's recent launch of its ten-year National English Programme, which
aims to improve the level of language proficiency in the country. He argues that
Colombia will still struggle to find "skilled labour with advanced English or other
languages". Citing government data, Yepes notes that in 2013 just 6% of
students attending private high schools achieved an intermediate level of
English. In the public sector, this figure was even lower 59% of the students in
public schools struggled to acquire even the most basic level of English. In
private bilingual schools, more than 80% of students had an advanced level of
English, but these schools accounted for a mere 1% of the high school student
population.
Cartagena hotel named the countrys best (October 2014)
Magazine National Geographic has ranked a number of Colombian hotels
among the best in Latin America. According to daily El Espectador, the
countrys best hotels offer a combination of attractive architecture and highquality service, as well as being active in the local community. "Authenticity,
great service, an ethical approach to business and social responsibility are
important in terms of both winning awards and attracting customers who
demand much more than a place to stay", it added. The Delirio Hotel in the

coastal city of Cartagena was the highest ranked hotel in the country, largely
due to its location in the citys historic city centre and architectural splendour.
Online advertising market growing rapidly but still relatively small (October
2014)
According to Olga Britt from the Association of Advertising Agencies (IAB) in
Colombia, internet advertising continues to grow in importance. However, she
adds that "Its impact in relation to conventional advertising models remains
relatively small". She warns that old-style online advertising, such as pop ups
and banners, is not only ineffective but annoying to potential customers and
believes that content marketing and digital video represent the future of the
advertising industry in Colombia. According to Euromonitor International data,
online adspend in Colombia rose by 15% during 2013, to US$107 million.
Collaborative consumption taking off (September 2014)
Website Collaborativeconsumption.com looks at the growing number of
collaborative projects in Colombia, especially in Bogota and Medellin. Local
writer Gustavo Palacios notes that "The collaborative-economy concept is still
relatively new, but there is clearly no shortage of interest. Collaborative events
are a sell-out. However, given the high incidence of crime in Colombia,
building trust can be an issue. Local startups include carpooling platform
EasyWay and bike-sharing scheme Pedaleando por Bogota (Riding bikes in
Bogota), while American car-sharing company Uber has a presence in two
Colombian cities Bogota and Santiago de Cali.
Mango magnificence (September 2014)
Richard Campbell and Noris Ledesma travel around the world in search of rare
and exotic fruits to bring back to the Fairchild Tropical Botanic Garden in Miami.
This year they are focusing on Colombia, which is the worlds third-largest
exporter of mango pulp. They are showcasing three Colombian mango
varieties: the Azucar, Colombias national fruit; the Hilacha, a sweet orange
mango; and the Vallenato, a round, reddish mango. Ledesma, who is from
Colombia, noted that Colombians ate mangoes for breakfast, lunch, dinner and
as a snack in between. As Azucar and Hilacha mangoes have a short shelf life,
relatively few of them are exported, so local consumers do not have to share
them with the rest of the world.
Court rules that bullfighting is artistic and culturally significant (September
2014)
The high court has ordered the District Institute of Recreation and Sport to
reinstate bullfighting events at the Santa Mara bullfighting ring in Bogota. The
ruling stated that bullfighting is artistic and part of the national culture. Bogota
Mayor Gustavo Petro said that he was disappointed by the decision, and the
reaction on social media was broadly similar. Despite the growth of the animal
rights movement in Colombia, hundreds of bullfighting events are still held

nationwide every year. However, the number of events has declined markedly
over recent years.
Childhood obesity researchers point finger at TV ads (August 2014)
A study conducted by researchers at the Nutrition and Diet School at the
University of Antioqua during early 2013 has posited a link between TV
advertising and childhood obesity. An examination of 1,560 advertisements
over 52 hours of television found that 23.3% of them were for food and nonalcoholic beverages, with 56.3% of these shown during children's programmes.
Researcher Isabel Carmona told newspaper El Espectador that "Most of these
products are processed foods of very little nutritional value and lack fibre." The
study also found that 38.9% of children aged between five years and 12 years
spent a daily average of between two and four hours watching TV.
Government wants consumers to generate their own electricity (August 2014)
Despite Colombias abundant oil reserves, the government is encouraging
consumers to use more renewable energy. Senator Jos David Name said:
"Colombia needs to assess new sources of energy ahead of a likely energy
crisis in the medium to long term." He added that a new law was aimed at
encouraging citizens "to choose cleaner and more environmentally friendly
energy sources. This law will make it easier for Colombian households to
generate electricity on a small scale (either individually or in groups) and feed
any excess into the national grid. However, weekly newspaper Semana warns
that the country currently lacks the infrastructure to do this.
Say it with flowers (August 2014)
Since 1957, the city of Medelln has celebrated its Silleteros Parade (festival of
the flowers) every August, attracting thousands of tourists with a colourful
array of flowery medallions, locals in traditional costume and dancing. This
festival, which commemorates the end of slavery, sees large flowered
medallions carried through the citys streets by locals. With the region
surrounding Medellin one of the world's largest suppliers of fresh flowers, it is
also something of a showcase for this important local industry.
Football brings the country together (July 2014)
After an absence of 16 years, Colombia returned to the World Cup with a
performance that exceeded the expectations of most football fans. After
victories over Greece, Ivory Coast, Japan and Uruguay, the national team finally
succumbed to hosts Brazil, losing 2-1 in the quarter finals. Moreover,
Colombian striker James Rodriguez was the tournaments top scorer, with six
goals.
Student Pedro Gonzalez commented: "It doesn't matter if you're black or white,
tall or short whatever. Everyone is behind Colombia." However some
lamented a temporary ban imposed on sales of alcohol drinks by the municipal

authorities in Bogota. This was part of efforts to curb post-match violence and
drink-driving.
Traditional Andean foodstuff grows in popularity nationwide (July 2014)
Quinoa, a grain-like crop that is high in protein, has traditionally been
associated with the Andean region of Colombia, but it is now growing in
popularity in kitchens nationwide. As a result, domestic production is booming.
Writing in newspaper El Espectador, chef Harry Sasson notes that quinoa is
increasingly being used as a substitute for pasta, particularly among those
following gluten-free diets. "I must admit I was very impressed with this
product not only healthy but tasty," he wrote.
Mobile phone users freed liberated long contracts (July 2014)
From this month, mobile phone companies are no longer allowed to lock
subscribers into long contracts of 24 months or more. A spokeswoman for the
national communications regulator (CRC) claimed that "This measure will
improve quality of service and help to bring prices down."
Talking to TV channel Caracol, one consumer expressed relief that he would
now be free to switch providers in order to get a stronger mobile signal.
However, another feared that this change would ultimately result in higher
prices as providers moved to protect their profit margins.
Travel boom to the EU in prospect (June 2014)
The EU is to lift visa requirements for Colombians visiting the Schengen Area,
which encompasses most of the 28-country bloc. As a result, visa free travel in
Europe for up to 90 days is expected to become a reality for Colombians from
2015. Under the current regime, getting a visa involves a long and tedious
administrative process that puts many Colombians off visiting Europe.
Speaking to Spanish TV channel RTVE, one travel agency manager in Bogota
commented that many of her clients would be touring Europe as soon as the
visa requirement was lifted. Jean Claude Bessudo from travel agency Aviatur
predicted a 15% bump in travel to Europe.
It's Colombia, not Columbia! (June 2014)
The Wall Street Journal newspaper reports that Colombian digital media
executive Carlos Pardos campaign to make people aware of the correct
spelling of his countrys name has gone viral. The campaign is called Its
Colombia, not Columbia.
As a result, celebrities who have misspelled the countrys name, such as Paris
Hilton, Ozzy Osbourne and Justin Bieber, have been bombarded with messages
via such social networks as Facebook, Twitter, Instagram and Tumblr. Such
brands as Starbucks and media organisations like CNN and the BBC have also
come under scrutiny.

In the pink after cycling triumph (June 2014)


Colombian cycling fans have been celebrating Nairo Quintanas victory in the
Giro dItalia cycling race during May. Newspaper El Espectador printed its
Sunday edition on pink paper to celebrate (the leader of the race dons a pink
jersey), while some in Quintanas home province of Boyac dyed their
traditional long woolen ponchos (ruanas) the same colour.
Today is a historic day for Colombia, commented President Juan Manuel
Santos, who was wearing a pink button-down shirt. Every weekend, thousands
of Colombians take to the countrys steep and winding Andean mountain roads
on their bikes. Recreational cyclist Carlos Alberto Torres Herrera commented:
The sport is taking off again.
Is quinoa the new soya? (May 2014)
Since the Food and Agriculture Organization (FAO) named 2013 International
Year of Quinoa, its visibility in Colombia has increased, albeit not as rapidly as
in some other Latin American countries. Quinoa is a highly nutritious grain, and
according to newspaper El Espectador, production has grown rapidly in
Colombia over the past decade, particularly in the south of the country.
At last summers gastronomy congress in Popayn, capital of the southwestern
province of Cauca, organisers promoted quinoa as a gourmet ingredient for
biscuits and bread. According to industry source Mnica Narvaez, Learning
from soya, we have a project to process quinoa into such products as ice cream
and vegetarian ready meals.
Online security concerns diminishing (May 2014)
According to the Unisys Security Index Report for 2014, online attacks (such as
viruses and trojans), credit and debit card fraud and data theft and misuse are
the three main concerns of Colombian interest users. While 60% of Colombians
expressed concern about internet security, this figure has fallen over recent
years. Carlos Ferrer of Unisiys said that this was largely due to a combination of
public and private initiatives to promote online security. 31% believed that their
privacy had been invaded by a third party on at least one occasion.
Pet shop textile trends (May 2014)
At a recent textile export fair in the city of Medellin organised by Proexport
Colombia, Ruffus Pets presented its new line of pet clothing. This company was
founded by Luz Gavy Vsquez 11 years ago, and she said that she was inspired
by the love Colombians have for their pets. She added that domestic sales of
its doggie clothing, shoes and hats were growing.
Moreover, Ruffus Pets is now exporting its creations to the USA, Canada,
Venezuela and Panama. Euromonitor International data states that real value
sales of other pet products (including clothing and accessories) in Colombia
were worth US$2.2 million in 2013.

Technology changing the face of Colombia (April 2014)


In an interview with news agency Colombia-inn, Pedro Moneo from the
publication MIT Technology Review in Spanish claimed that Colombia has
ceased to be an emerging country in technology." He argued that the countrys
innovation and entrepreneurship environment was both developed and
mature."
Digital development and the inclusion of technology in schools have made
Colombias transformation possible," he added. Moneo was speaking at Emtech
Colombia 2014, an international event organised by MIT Technology in Medellin.
Euromonitor International data states that 30% of Colombian households had a
broadband internet connection in 2013.
Music streaming goes mainstream (April 2014)
Newspaper El Pas reports that online music streaming is growing in popularity
in Colombia, with Paris-based Deezer and Swedish company Spotify leading the
way in terms of paid-for services and website YouTube the preferred choice of
those seeking free content. Deezer launched in Colombia during mid-2012,
with Spotify joining it late last year. A premium subscription to Spotify (enabling
a user to listen to an unlimited amount of music both online and offline) costs
COP11,499 (just under US$6) per month in Colombia. At last Spotify has
come to Colombia, Facebook user Alejandro Velendia commented.
Lifestyle changes leading to more bad backs (April 2014)
Website Cromos.com.co reports that a growing number of people are suffering
from back pain due to changing lifestyles, particularly increased sedentarism.
Lower back pain used to be associated with age, according to Cromos, but it is
increasingly affecting younger Colombians and even children.
The increased prevalence of back pain is not due to heavy lifting but rather
extended periods sitting in an office chair or watching TV or playing video
games at home, chiropractor Rian Fitzpatrick from clinic Quirolife maintained.
He added that many of those suffering from back pain were self-medicating.
Middle class consumers increasingly opt for private health insurance (March
2014)
According to website Colombia-politics.com, a growing number of middle class
consumers are acquiring private health insurance, taking pressure off the
public system. Euromonitor International data states that private expenditure
accounted for 23.5% of total health expenditure (the latter figure amounting to
US$498 per capita) in Colombia during 2013.
"Healthcare provision in Colombia is intimately linked to employment. It is an
insurance system provided by both private and public companies, thus
avoiding monopolies, ensuring competition and a high standard of service, the
website claims. However, it acknowledges that there were hitches in the

system, with many rural areas underserved, in addition to the elderly and the
unemployed.
Come to Colombia to learn Spanish (March 2014)
A growing number of courses in Colombian universities are teaching Spanish to
foreign tour guides. "The students come from Malaysia, Thailand, Indonesia,
Laos, Cambodia, Myanmar, China, South Korea and Brazil," according to
government official Patti Londoo. These courses last for four months, with the
students staying with local families during that time. This initiative is part of a
government programme launched last year that is designed to promote
Colombia as a place to learn Spanish. Londoo claimed that We have the best
Spanish in the world all Spanish speakers acknowledge that.
Programmes such as this illustrate how improved security is benefitting the
domestic tourism industry. The government is hoping that within a few years,
Colombia will be more famous for its landscape and culture than for drug
smuggling and violent kidnappings.
CrossFit all the rage with gym goers (March 2014)
Website Cromos.com.co reports that CrossFit is growing in popularity in
Colombian gyms. CrossFit is a mixture of aerobic exercise and weight training.
According to fitness expert Juan Rodrguez, it is a short-duration, high-intensity
workout that offers a lot of variation. People particularly enjoy the variety,
doing different things every day, " he said.
CrossFit also has a reputation for being addictive, with some adherents
overdoing it. It has also fuelled a boom in so-called garage gyms that are
sometimes run by trainers with little in the way of formal training, which can
lead to injuries. This has led some to erroneously conclude that the CrossFit
method is unsafe, Rodrguez claimed.
Public transport in Bogota not for the impatient (February 2014)
According to a global survey conducted during late 2013 by Moovit, a free
public transport trip planner for smartphones, Bogota is the fourth worst city in
the world in terms of the amount of time people have to wait for public
transport, after Los Angeles, Rome and Rio de Janeiro. Bogota's public transport
users were found to wait an average of 31 minutes. Overcrowding was also
found to be a major complaint among public transport users in the city. Locals
were found to spend an average of one hour and 42 minutes on public
transport daily the seventh highest figure in the world.
Shortage of IT skills a threat to economic growth? (February 2014)
Speaking to Spanish news agency EFE, Eduardo Rueda of IT company HewlettPackard (HP) warned that a lack of innovation could throttle economic growth in
Colombia. "There is an urgent need to improve the education system and fill
the gap created by a lack of professionals in information and communication
technologies (ICT), he asserted. In response to this, HP is set to launch two

programmes in Colombia: One is aimed at supporting tech entrepreneurs, while


the other will help students and entrepreneurs to acquire ICT skills.
Cancer still the leading killer in Bogota (February 2014)
According to Bogotas Health Department, cancer remained the leading cause
of death in the city during 2013. The most common cancer was found to be
skin cancer, followed by breast, cervical and prostate cancer. According to the
health secretary Aldo Cadena, "In 2013, 77 out of every 100,000 inhabitants
died of cancer, with women accounting for 53% of these deaths."
The department maintains that many cancer sufferers do not receive treatment
early enough and that too few people are having regular health check-ups.
Euromonitor International data states that the death rate from malignant
neoplasms per 100,000 people in Colombia rose from 72.1 to 74.6 between
2008 and 2013.
Devoted to shopping mall culture (January 2014)
Online magazine Hispanicallyspeakingnews.com reports on Colombian's
growing love for shopping malls. "The mall has replaced both the church and
the plaza as a place to self-actualize and consume," it claimed. Business
newspaper Portafolio highlights the brands that have proliferated around the
country with the spread of malls. These include Tex-Mex bar-and-grill chain
Chili's, clothing retailers Forever 21 and GAP, lingerie retailer Victoria's Secret,
Chilean department store Ripley, Paris Hilton Handbags and Italian designer
clothing and accessories brand Dolce & Gabbana.
Trade liberalisation could mean cheaper cars (January 2014)
Finance Minister Mauricio Crdenas has announced that Colombia is to reduce
tariffs on imported automobile components. The local car industry assembles
foreign marques, including Chevrolet, Renault and Mazda. Although this
measure could hurt local component manufactures, it will reduce costs,
potentially making locally assembled vehicles more affordable to consumers.
Euromonitor International data states that 14.1% of Colombian households had
a passenger car in 2012, up from 11.6% during 2007. Meanwhile, 240,000 new
registrations of passenger cars were recorded in 2012, down from 250,000
during the previous year.
Visits to the US on the rise (January 2014)
According to the US consulate in Bogota, a record 500,000 Colombians
requested visas to visit that country during 2013. Around 85% of these
requests were approved. 94% of these visas were for tourism or business, while
most of the remainder were student visas. Talking to Spanish news agency EFE,
Roberto Powers, US Consul General in Colombia, said: The positive economic
and social situation in the country has made Colombians among the main
sources of visitors to the US from Latin America." He added that he anticipated
further growth in the number of Colombians visiting the US during 2014.

Cali's cosmetic surgery boom (December 2013)


News agency Agence France Presse (AFP) reports that Cali, Colombia's third
largest city, is becoming a global centre for cosmetic surgery. Alba Daz runs a
hotel that specialises in medical tourism. She picks up clients at the airport,
stays with them during their procedure and manages their dietary
requirements and exercise programme during their convalescence. "Clients
leave their families and loved ones behind, and they need special care during
the post-surgery period," she said.
Puerto Rican Miriam Alvarado told AFP that she chose Colombia and Alba's
hotel because of the high level of post-operative care and competitive pricing.
The operation she had would have cost her US$14,000 at home, but in Cali, the
price tag was less than US$4,000.
Adapting educational methods to agricultural communities (December 2013)
Myriam Mazzo, a teacher in the central Colombian town of Armenia, teaches
children of various ages and grade levels in small groups at their own pace.
Rather than standing by a blackboard, she moves among them, serving more
as a guide than an instructor. Using this method, which is called New School
and dates from the 1970s, she has taught the children of local farmers and
coffee growers for generations.
Many of her students are among the first in their families ever to have set foot
in a classroom. Students are participative, democratic, can work in teams and
are always motivated to come back after long absences due to work or family
issues, she said. Between 2007 and 2009, this programme was used to teach
some 700,000 children in Colombia.
Using the personal touch to build trust in financial institutions (December 2013)
Speaking to website Colombianreports.co, Ana Barrera of social enterprise
Aflore, said: In Latin America, 65% of people dont use banks because they
just dont trust them. She added: Trust is built between people. It is hard to
build trust with an institution. With this in mind, Aflore, an offshoot of business
incubator Polymath Ventures, is working to provide informal financial advisers
(known locally as consejeros) with formal training to enable them to offer
loans and insurance products to their clients.
The aim is to have 120 consejeros trained by October 2014. Euromonitor
International data states that the proportion of Colombians aged 15 years or
older who are banked (i.e. have a bank account) rose from 50.3% to 63.1%
between 2008 and 2013.
Surge in sales of vitamins (November 2013)
Until fairly recently, vitamins and dietary supplements were the preserve of
affluent consumers in Colombia, but a free trade agreement with the USA has
helped to make them more affordable to mass market consumers, helping to
drive strong growth in their consumption. Euromonitor International data states

that real value sales of vitamins and dietary supplements in Colombia


expanded by 26.2%, to US$349 million, during 2012. Products containing
vitamin C are particularly popular with local consumers, with those containing
Vitamin E also enjoying strong growth. Many mothers purchase these products
for their children Some consider them to have anti-aging properties, while
others even see them to be a way of preventing cancer.
Making home ownership more affordable (November 2013)
Minister of housing Felipe Henao Cardona has unveiled a rent-to-buy scheme
that he hopes will enable many middle- and low-income consumers to own
their own home. He said: Many of us cannot afford the down payment that
mortgage lenders require. Yet if we can afford to pay rent, there is no reason
why we cannot pay a mortgage. Releasing potential buyers from upfront costs
will free us from this vicious circle.
Euromonitor International data states that 8.9 million Colombian households
lived in owner-occupied housing during 2012, with just 676,000 of them having
a mortgage. 3.3 million households lived in rented accommodation, while
754,000 had other forms of tenure.
Car sharing comes to Bogota (November 2013)
A private initiative to promote car sharing was launched in Bogota during
October. The aim of Easyway.com.co is to help car owners make contact with
potential travelling companions, enabling them to split the cost of travel and
reduce air pollution. However, Nicols Castillo of Easyway.com.co
acknowledges that cars are a status symbol for many Colombians and that they
will not be easily parted from them. According to Euromonitor International
data, the proportion of Colombian households with a passenger car rose from
11.6% to 14.1% between 2007 and 2012.
Making the internet universally accessible (October 2013)
The Ministry of Information and Telecommunications (MinTic) claims that
around 1.3 million Colombians with visual disabilities will benefit from a new
initiative to make the internet and related technologies more accessible to
them. MinTic is seeking to offer what it calls "screen voiceover software" in
public places, such as transport hubs and libraries. Senator Juan Manuel Galn
said that similar services would have to be provided by internet cafs and other
businesses. The project will be launched in January 2014.
Facebook to open an office in Colombia (October 2013)
Facebook is due to open an office in Bogota during January 2014. According to
data from online analytics firm SocialBakers, almost all Colombians with
internet access use Facebook, with the average user spending almost six hours
every month on the social network. Euromonitor International data states that
49% of Colombians were internet users in 2012, up from 21.8% during 2007.
Young people have been the main driver of this growth. Alexandre Hohagen of

Facebook said: "The market in Colombia is growing rapidly, and people are
increasingly using smartphones to access Facebook.
Teaching computer skills to coffee growers (October 2013)
A significant urban-rural digital divide persists in Colombia. In an effort to
tackle this, the National Federation of Coffee Growers (FNC) is leading a project
to teach small growers IT skills. As part of this initiative, they will learn how to
use computers and tablet devices to enter the FNC's website to find
information on everything from accounting and economic data to legal
assistance. "With this initiative, we hope that every coffee grower will come to
understand the benefits of technology," said Lautaro Spotorno of software
corporation SAP, which is partnering with the FNC in this initiative.
Men more likely to fall behind on their debt repayments (September 2013)
Speaking at the ninth Andean Credit and Collection Conference, which was held
in Bogota during mid-September, Martha Luca Meza of credit firm Covinoc
presented a profile of Colombia debtors, based on her companys portfolio of
123,604 clients. She said that men (who account for 57% of Covinocs client
base) were more likely than women to miss repayments.
She added that those in Cali in the west of the country and Eje Cafetero in the
northeast were more likely to fall into arrears than debtors in other parts of the
country. Euromonitor International data states that the outstanding balance of
consumer lending in Colombia grew by 52.6% in real terms between 2008 and
2012, to US$52.5 billion. 5.2% of this debt was non-performing in 2012.
Electric taxis arrive in Bogota (September 2013)
Electric taxis came into service in Bogota for the first time during early
September. The blue cars are powered by rechargeable batteries, and many
early users were impressed with their lack of noise, making them a more
attractive way to travel for some. They are suitable for cities and contribute
towards a cleaner environment. It is a pity there are not more of them, said
one user.
The city authorities hope that the presence of electric taxis will help to boost
sales of electric cars to private motorists. To this end, electric cars have been
exempted from import duty and some traffic restrictions.
Smartphone users want the latest and the coolest (September 2013)
Speaking to newspaper El Universal, Ricardo Triana of smartphone maker
Huawei claimed that Colombian consumers are getting impatient with their
Android phones. They are no longer fast enough or capable of running the
latest apps. As a result, they are trading up to higher-end models, he said. Ana
Mara Osorio Correa of Sony Mobile added that apart from functionality, the
look of a smartphone also played an important role in purchasing decisions.

However, some holdouts remain. Gonzalo Aguado, who does not own a mobile
phone, told the newspaper that People think I am weird. Value sales of
smartphones stood at US$2.2 billion in Colombia during 2012, up 6.6% on the
previous year in real terms.
Coca Cola taking cold drinks to the next level (August 2013)
Advertising agency Ogilvy & Mather has worked with Coca-Cola to launch a
limited edition coke bottle made out of ice in Colombia. The ice bottles are
made by pouring water into a silicone mould, freezing it at -26.1 degrees
Celsius and then filling the mould with Coke. They are wrapped with red rubber
bands for easy handling. These can be worn as bracelets after the ice melts.
According to the London-based Daily Telegraph newspaper, the ice bottles are
selling at the rate of 265 bottles an hour. However, some wonder if ice bottles
are unsanitary, as they may carry bacteria.
Government seeks to reduce the cost of medicines (August 2013)
In July, Health minister Alejandro Gaviria announced new regulations for pricing
medicines in an effort to curb inflation in this sector. After examining prices in
both Europe and other Latin American countries, the ministry established a
system that sets prices in Colombia at no more than the fourth cheapest
country in Latin America and Europe.
This move came after the Ministry found that 55 of the 59 most popular
medicines in Colombia were more expensive there than in Spain, where the
purchasing power of consumers is much greater. According to Gaviria, lenient
regulations have allowed prices to get out of control over the past decade.
Rise in sales of luxury cars (August 2013)
According to data from the Colombian vehicle registration office (RUNT),
demand for luxury cars boomed during the first quarter of 2013, with 3,906
new high-end vehicles sold. Business magazine La Semana attributes this
growth to the weakness of the US dollar, market liberalisation in the
automotive sector and an increased choice of luxury marques. All of these
factors have helped to push down prices. The most popular luxury marques are
Mercedes-Benz, BMW and Audi, followed by Volvo and Mini.
However, sales of cheaper vehicles fell at an annual rate of 10% during the first
quarter of 2013, according to RUNT. Euromonitor International data states that
the proportion of Colombian households with a passenger car rose from 11.6%
to 14.1% between 2007 and 2012.
Preparing children for a career in tourism (July 2013)
The mayor's office in Bogota has published a booklet to provide local
schoolchildren with a comprehensive overview of Colombia's tourist sector,
dealing with everything from the country's most historic sites to legislation
governing the sector. Called Schools Friends of Tourism, it is hoped that it
will encourage students to pursue careers in the sector.

Luis Fernando Rosas, director of the Tourist Institute (IDT) said: This is a tool to
stimulate future generations to pursue a career in a very promising sector, as
well as strengthening their understanding of the country's heritage. According
to Euromonitor International forecasts, the annual number of tourist arrivals in
Colombia will reach 2.2 million by 2016.
Same-sex unions now legally recognised (July 2013)
Since June, gay couples have been entitled to apply for legal recognition of
their relationships. This follows a Constitutional Court ruling that same-sex
couples are entitled to enjoy the same rights and benefits as heterosexual
couples. Although it remains unclear whether or not these unions will be
deemed marriages, many same-sex couples have begun submitting the
relevant paperwork to the authorities. There are many couples like us in this
country who believe that their relationships have reached a point where they
need to commit to civil marriage, gay rights activist Elizabeth Castillo
commented.
The reinvention of Medellin (July 2013)
Medellin, the second largest city in Colombia, which is located in the northwest
of the country, has been dubbed the most innovative city of the world by the
Wall Street Journal (WSJ) newspaper. Once wracked by drug-related violence,
Medellin's homicide rate plunged by nearly 80% between 1991 and 2010. The
city has built public libraries, parks and schools in poor hillside neighbourhoods,
as well as constructing a network of transportation routes linking these
neighbourhoods to the city's commercial and industrial centres.
According to the WSJ, The local government, businesses, community
organisations and universities have worked together to fight violence and
modernise the city, with a large number of community organisations, health
centres, and youth groups empowering locals to take ownership of their
neighbourhoods.
Tackling sun care myths (June 2013)
In an interview with the daily El Universal, Dr Hernando Harker discussed some
of the more common mistakes made by Colombian consumers with regard to
sun care. These included the fact that many Colombians believe that the higher
the sun protection factor (SPF) of a product, the smaller the quantity they need
to apply; that they only need to apply sun screen once a day; that working
indoors is protection in itself (skin blemishes and alterations can result from the
light emitted by computer monitors, Harker maintains); that most Colombians
are unaware that sunscreen and sun protection are separate things and should
be used together; and that sun protection products lead to skin discoloration.
Chilean mapping software popular with both consumers and businesses (June
2013)

Revistadiners.com discusses the growing use of geolocation software in


Colombia, especially Mapcity, which was created by a Chilean developer and is
very popular with local consumers. Given that the streets in Bogot and many
other Colombian cites are designated by numbers, rather than names, they are
fairly easy to navigate, but Mapcity is commonly used as a way of finding local
businesses. Locals appreciate the detailed local information and the frequency
with which it is updated. Overall, it compares favourably to Google Maps,
according to the website.
Mapcity also offers around 150 different statistical indicators relating to local
residents, from what they spend money on to what they do in their spare time,
based on data from the national statistics office (DANE), as well as its own
research. According to Revistadiners.com, this is helping local entrepreneurs to
select better locations for new business ventures.
Saving for university a family affair (June 2013)
Many Colombians place a high value on sending their children to university,
and some begin contributing to a Student Insurance Fund (a savings product
offered by a number of financial services providers) as soon as a child is born.
According to Rodrigo Uribe of insurance company Global Seguros,
Grandparents often pay the equivalent of one semester of tuition as a present
when their grandchild make their first communion (an important Catholic
religious ceremony), while a Godparent may contribute something as a
birthday present. In this way, every member of the family is involved in the
child's future. If they have between US$27,000 and US$42,000, a student can
attend any university in the country, he added.
What 30-something women want (May 2013)
Writing in Diners magazine, Juliana Rojas discusses attitudes to marriage
among her peers middle class Colombians in their mid-thirties. She says that
many men want to wait. Some of them [her male friends] even told me they
had not thought about marriage until their partner suggested it, she writes.
She adds that women in their mid-thirties hear the biological clock ticking ever
louder and that they are also subject to greater social pressure to marry.
Psychologist Roco Hernndez argues that Colombian men cannot easily meet
all of the very high standards that women set for marriage. These include A
good salary, success at work, physical attractiveness, generosity, intelligence,
a sense of humour and protectiveness. Couples now want to have more
experience and financial security before taking the big step. Women also feel
that having children is not their only role in life, she adds. Psychiatrist Juanita
Atuesta maintains that as women's role in society changes, they are becoming
more demanding and are now more likely to end a relationship if they feel that
their needs are not being met.
The average age of first marriage for women in Colombia rose from 23.5 years
to 24.2 years between 2007 and 2012, Euromonitor International data states.

The average age of first marriage for men rose from 27.3 years to 27.7 years
over the same period.
Rising environmental awareness percolating into consumer choices (May 2013)
Demand for environmentally friendly products is growing across a range of
markets in Colombia. Designer Nixa Sierra produces handbags and other
accessories using such materials as vinyl from old records, creating highquality items that are meant to last. We are concerned about the materials we
use and the quality of the items we produce, and we also try to give each of
them a personal and exclusive touch so that consumers grow fond of them and
want to keep them for longer, she says.
Another successful venture is 8M2, a retail outlet located in La Concordia
market in the centre of Bogota. It sells hampers containing a selection of
natural and environmentally friendly products. 8M2 also provides training
services for green businesses in the areas of product design, innovation and
productivity.
More demand for books in English (May 2013)
A survey conducted by Cerlalc (an NGO that aims to promote literacy in Latin
America) during late 2012 found that 67% of Colombians did not read, with
most saying this was simply because they did not like it. However, anecdotal
evidence suggests that a small, but significant, number of Colombians like to
read books in foreign languages. Indeed, in 2012, publishing company
Panamericana launched a new collection of books in English, ranging from
novels to cook books and works on home decoration.
According to Felipe Ossa, director of the national library, increased demand for
books in foreign languages is primarily being driven by the growing number of
expats who have settled in Colombia. We are beginning to see the return of
foreigners to Bogota, he said. He added that the growing number of
Colombians traveling or studying abroad and the growth of bilingual education
were also playing a role in this.
More than half of households now have cable TV (April 2013)
Euromonitor International data states that 52.5% of Colombian households had
access to cable television in 2012, up from 42.5% during 2007. This was the
third-highest figure in Latin America, behind Argentina (57.6% of households)
and Uruguay (57.5%). According to Gary McBride, president and CEO of the
Latin American Multichannel Advertising Council, poorer households have been
the main drivers of growth in cable penetration in Colombia, as most affluent
households already have it. He partly attributes this to increased affordability,
with fierce competition among cable providers driving down prices.
Continuity and change in family life (April 2013)
A study conducted in urban areas by the National Research Centre (CNC)
during 2012 found that most families eat together at least once a day. Men

continue to be the main breadwinners, while poorer families tend to be larger


than richer ones. It also found that children tend to maintain a close
relationship with their parents as they grow old and that children from more
affluent families tend to leave the parental home at a later age. Euromonitor
International data states that average household size is shrinking in Colombia
as a whole, from 3.9 persons in 2007 to 3.6 persons during 2012, as people had
fewer children.
App makes finding a taxi a little easier (April 2013)
In Bogota, Finding a taxi during rush hour or on a rainy day can be a Herculean
task. But it is has now been made slightly less difficult for smartphone users by
an app called Easy Taxi, which can be used to order one. The app also displays
the name of the name of the driver and the model of their car. To date, more
than 1,500 taxi drivers have signed up to be included in the app's database.
Tallis Gmez, Easy Taxi's Brazilian developer, argues that the app makes it
easier for taxi drivers to find a fare, saving them money on fuel and decreasing
carbon dioxide emissions. The app will be launched in the cities of Medellin and
Cali in the near future. Separately, some taxi drivers are using Twitter to find
fares, although this is much more cumbersome.
Men want to look good too (March 2013)
According to Cuponatic.com.co, which sells beauty products online, male
grooming is growing in popularity in Colombia. Country manager Camilo
Perdomo said: Colombian men will buy almost anything in an effort to improve
their looks. In some cases, they are buying women's products. According to
Euromonitor International data, value sales in the Colombian male grooming
market grew by 6% in 2011, to US$322 million.
Laser hair removal is also popular with men, with the hairless look very much
en vogue. According to cosmetic surgeon lvaro Salazar, Men know the
importance of looking good and are prepared to undergo any beauty treatment
that they think will help. They want to reduce the signs of ageing. However, he
added that most tended to opt for surgery only as a last resort.
New mothers not breastfeeding enough (March 2013)
According to the Colombian Institute for Family Wellbeing (ICBF), the number of
women breastfeeding their children through the recommended six-month
period after birth continues to decline. It maintains that while most mothers
breastfeed their children, they tend to supplement it with other foodstuffs
prematurely.
Paediatrician scar Javier Quintero of Pfizer Nutrition, a subsidiary of Nestl,
said: Bad nutrition is directly related to poor health, leading to death in some
cases. We have to emphasise the importance of breastfeeding during the first
six months of a baby's life. After that, they should combine breastfeeding with
other foodstuffs until the age of two. Real value sales of baby milk formula

have grown steadily in Colombia over recent years, increasing by 1.8% in 2012,
to US$167 million.
Recycling containers as fast food eateries (March 2013)
Container City is a new concept in quickservice dining in Bogota. People can
eat pizza, sushi, burgers and many other kinds of fast food in restaurants
housed in recycled containers. Container City took less than three months to
create, at a fraction of the cost of building it in the conventional manner. The
consensus among those who have visited it to date is that it is a fun way to eat,
while also being environmentally friendly.
Celebrating Colombian film (February 2013)
Colombia held its second annual Macondo film awards on November the 22nd,
2012. This year's ceremony was dominated by director Carlos Moreno's Todos
Tus Muertos (All Your Dead Ones), which won five awards, including best film,
best director and best original screenplay. US trade publication Hollywood
Reporter describes it as an oblique allegory for a desensitised society.
Diego Ramirez, vice president of the Colombian Academy of Motion Picture Arts
and Sciences, said the awards were a reflection of the rude health of domestic
film industry. According to Ramirez, The number of people working full time in
the industry has grown exponentially, and this required the creation of a
professional association. Film producers can now express their needs with a
single voice and help the sector to grow and develop.
Ramirez said that the domestic film industry now matched international
standards and that the number of Colombians watching home-produced films
had increased. He added: Domestic films cannot compete with foreign
blockbusters in terms of audience, but apart from this, people are now more
likely to watch a Colombian film than a foreign one. According to Euromonitor
International data, Colombians made 0.7 per-capita trips to the cinema in 2012,
up from 0.5 during 2007.
More in Bogota now walking or cycling (February 2013)
At least half of daily journeys made in Bogota and the Savannah (the plateau in
which the city is located) are made on foot, according to a study conducted
during late 2012 by research company Steer Davies Gleave for the Colombian
Consulting Centre (CNC). The second most popular means of transportation
was public transport, followed by car, taxi, bicycle and motorcycle.
A similar survey conducted in 2005 found that public transport was the most
popular option. Between 2005 and 2012, the popularity of walking increased by
two thirds. The study found that, unsurprisingly, those with the lowest incomes
were the most likely to walk. A 376km network of cycling routes has done much
to boost the popularity of this means of transport in and around the city over
recent years.
Tablet computers to be introduced into schools (February 2013)

Educational publishing company Santillana has launched a tablet computer


that comes preloaded with what it says are all of the learning materials
children need for school. Later this year, students at 70 schools in 13
administrative districts will begin to use this tablet as their main educational
resource. It is designed to be used by children in both primary and secondary
schools.
According to Fredy Vota of Santillana, teachers who have been experimenting
with it have noticed that difficult children concentrate better and show
improved exam results. It is also hoped that it will help to narrow the gap that
exists in standards of education between rural and urban schools in the
country, as well as boosting the general level of IT knowledge in the Colombian
workforce.
Rate of childhood obesity soars (January 2013)
Childhood obesity is a growing problem in Colombia. Speaking to newspaper El
Universal, Doctor Tatiana Fortich said: We used to think that obesity only
affected adults. But we now have more cases of obesity among youngsters
than adults. Many think this is due to increased consumption of processed
food over recent decades. According to the newspaper, the national diet was
never low in calories and fats, but meals used to be prepared from scratch
using natural products. This is no longer the case in many households
structural changes, demanding that both parents spend most of the day away
from home have significantly impacted the diets of children.
It also blamed a lack of exercise and the increased pressured that children were
under to perform well at school. All this contributes to a growing sense of
anxiety that children attempt to smoother by opening the fridge and
devouring whatever they come across, according to Fortich.
Motorcycle taxis a safer alternative to public transport for students (January
2013)
In Cartagena, a group of motorcycle taxi drivers have decided to don a uniform
and work exclusively for students and staff from the University of San
Buenaventura. By doing this, they hope to become an alternative to public
transport, which is often unreliable and dangerous, and offer a trustworthy and
secure service to the university community.
Some of them already have regular customers. Most of us have been working
in this area for many years, and the students know who we are. We had the
idea of putting on a vest that would identify us, said motorcycle taxi driver
Miguel Angel. They are also hoping to help reduce petty crime, which is
commonplace in the vicinity of the university. We are all very happy with this
service, which gives us security at a very reasonable price. They are also very
good drivers, according to student Adriana Alvis.
Popularity of cycling grows (January 2013)

A growing number of Colombians are discovering the benefits of cycling. Pulso


Verde (Green Pulse), an NGO working to raise awareness of such issues as
sustainability and environmental protection, has helped to raise the profile of
cycling by organising special events, like Better on your Bicycle in Bogota.
These are group cycling trips through the city intended to draw public, media
and governmental attention to the need for more cycling routes and other
measures to make the roads safer for cyclists. At the moment, urban planners
in most Colombian cities tend to take little account of cyclists. In cities like
Medellin, the use of bicycles is already very popular, while Cartagena is seeing
slow, but steady, growth in the number of cyclists.
Minister promises crackdown on jalopies (December 2012)
According to data from the Ministry of Transportation, around a third of cars on
the country's roads are overdue an MOT. This is of particular concern because
mechanical failure is a major cause of road accidents in Colombia, with
thousands of jalopies (vehicles in very poor condition) on the roads. Minister
Ayda Lucy Ospina said controls would be tightened and fines would be
increased. Once a car is six years old, it is supposed to undergo an MOT.
According to Euromonitor International data, there were 15 deaths from
transportation accidents per 100,000 people in Colombia during 2011,
compared with 11.7 in Argentina, 16.5 in Mexico, 20.7 in Brazil, 14.1 in the USA
and 4.1 in the UK.

Increased consumer interest in sport is also driving strong growth in demand


for sports equipment everything from bikes, surfboards and wetsuits to
sunglasses, and high-tech watches and heart-rate monitors. Affluent 30- and
40-somethings, particularly men, have been the main drivers of this. High-end
bicycles costing upwards of US$10,000 are particularly notable in this regard.
Off-trade consumption of sports drinks rose by 16% in volume terms between
2008 and 2013, in spite of the fact that evidence for their efficacy is somewhat
lacking at least for recreational athletes. In China, the fastest growing market
for sports drinks, they are usually perceived as functional drinks for young
consumers performing sports activities or watching sports events.
Off-trade consumption of energy drinks rose by 78% between 2008 and 2013.
Although sports participants tend not to be the primary market for these
products, some consume an energy drink before a workout in order to give
their energy level a short-term boost. Energy drink manufacturers, particularly
Red Bull, have spent a lot of marketing money to associate their brands with
extreme sports.
Products targeting those interested in sport and exercise are a growing niche
within the wider market for vitamin and dietary supplements. Demand for
sports supplements is growing, as mainstream consumers seek to enhance

physical properties, such as muscle mass, strength and endurance. However,


this area can be murky and is frequently controversial.
Having seen their heroes use performance enhancing drugs to get to the top in
sports as varied as baseball and cycling, it is perhaps unsurprising that such
products are growing in popularity with recreational athletes in spite of their
potentially harmful side effects. Products that help to build muscle, such as
human growth hormone (HGH) and anabolic steroids are used by some young
male gym goers who want to bulk up.
The market for sports nutrition has spread beyond its traditional core of
bodybuilders and extreme athletes to encompass a growing number of
mainstream consumers. Young men who are insecure about their physiques
have become a particularly lucrative market for sports nutrition.
The marketing of protein as a recovery product in powder, bar or drink form
has been a major driver of growth. Manufacturers have also worked hard to
dispel the idea that protein builds muscle mass leading to bulkier frames,
something that is off-putting to many women.
Market opportunities
Long blurry, the distinction between sportswear and leisure wear continues to
fade. Whereas once, sportswear-as-daywear was looked down upon as the
preserve of the shell-suited lower class, a growing number of middle class yoga
enthusiasts proudly wear their Lululemon yoga pants to the supermarket or the
caf.
Designer sportswear, such as Adidas by Stella McCartney, is also proliferating,
while fast fashion retailers are also launching sportswear collections. High-end
clothing has long been a feature of the skiwear market, but has now spread to
cycling.
Baltimore-based brand Under Armour has enjoyed great success selling figurehugging, performance sportswear in the mass market, particularly in the US.
It is also vigorously pursuing female consumers.
Traditionally, active travel has involved such activities as hiking, cycling and,
particularly, winter sports, but it is now much broader. Committed amateur
athletes are increasingly travelling both domestically and internationally to
train and receive specialised coaching, or to participate in events.
Enthusiastic amateurs are also increasingly travelling overnight or even
internationally to compete in events. They are sometimes after the cachet that
goes with participating in particularly hard-core events.
Many fitness fans are seeking to improve the quality of their food consumption
in order to maximise their energy levels eating more fruit and vegetables and
less meat (or substituting white for red meat), for example. Sports and fitness
fans also tend to show considerable interest in so-called superfoods.

Increased consumer interest in sport and fitness is also helping to drive growth
in sales of health and wellness food, such as organic, better for you and
functional/fortified offerings. Some follow the latest dietary fads, such as lowcarb diets (minimising consumption of grains and sugars).
Many are prepared to spend money to boost their performance, by investing in
a lightweight, carbon fibre bike frame or depilation in order to minimise wind
resistance and help them to move faster.
Sport and fitness enthusiasts are increasingly buying gadgets, such as
wristbands and watches, that track their performance, with advances in
technology and falling costs making such devices more practical to carry or
wear and more affordable.
Miniaturisation and the advent of high-definition video have helped to grow the
market for sports video cameras, while the rise of social media websites like
Facebook and such video sharing websites YouTube have made sharing video of
ones sporting activities with others much easier.
High-end smartphones are beginning to incorporate such features as motion
sensors and heart-rate monitoring, while apps relating to sports and fitness are
increasingly popular with smartphone users, particularly those that utilise
global positioning system (GPS) software.
In the long run, advances in smartphone and sensor technology could even put
some coaches out of work by providing real-time feedback on their body
position, for example.
Rather than concentrating on performance, some apps simply aim to make
exercising more fun a trend that has been dubbed gamification.
With a growing number of owners humanising their pets, they want their dogs
to be a part of their sporting lives. This is fuelling a small, but growing, market
for active or high performance pet wear.
Outlook
Urbanisation is set to continue apace over the coming years, particularly in
such emerging markets as China and India. The transition from a
predominantly rural to a predominantly urban demographic profile is usually
closely associated with reduced family size, giving parents more time to focus
on themselves and their own interests.
Urbanisation in these countries will also go hand-in-hand with increasingly
sedentary lifestyles, as employment shifts from manufacturing to the service
sector.
Obesity rates will continue to tend upwards, even in relatively svelte countries
like France and Sweden. The obesity issue is likely to become particularly
prominent in the Middle East.

The gym market will continue to polarise between high-end boutique


establishments and much cheaper, no-frills ones.
The growth of a new middle class in emerging markets will fuel consumer
interest in sports and exercise. The fact that crime rates are high in many
emerging market cities will favourably dispose many of them towards gym
membership, as it is regarded as safer than running on the streets. Such
markets are ripe for the development of low-cost gym chain.
Emerging clinical evidence suggests that although exercise is important for
maintaining cardiovascular wellbeing, it is not a panacea for a healthy lifestyle
and certainly not an antidote to an unhealthy diet. If such an idea were to gain
currency among consumers, their incentive to exercise vigorously could be
diminished. Some may conclude that regular brisk walks and more time spent
doing housework and gardening are just as beneficial.
The surface is just being scratched in terms of the use of technology in
participative sport and exercise. Such emerging technologies as Google Glass
(glasses that incorporate a computer screen), smart contact lenses and
wearable technology (eg apparel containing electronic devices, including
sensors) are likely to find numerous applications in the field of sports and
exercise over the coming years.
However, wearable tech also risks prompting a backlash among consumers,
some of whom maintain (rather tongue-in-cheek perhaps) that they do not
want to become cyborgs.
A number of studies have been published that provide a much greater degree
of clarity on how exercise can drastically alter how genes operate though not
the genes themselves and that these changes can be passed on to ones
offspring. This raises the fascinating prospect that the intensive exercise is not
only of benefit to the exerciser but also to their future offspring potentially
providing a whole new level of motivation to those who pursue vigorous
training regimes.
In a world where even young children now being pushed towards structured
sporting activities rather than unstructured play, and a growing number of
people aspire to being ironmen or ultramen, some may push back by
dropping out and moving away from such notions of rank and status.
Combined with the emerging neuroscience and philosophy of mindfulness, with
its emphasis on being present in the moment, this could undermine interest
in specialised equipment, apparel and technology designed to improve
performance. This impulse towards simplicity is reflected in increased interest
in barefoot running.
Summary 1 Global Participative Sport: Opportunities and Challenges
Opportunities

Challenges

As sedentarism and obesity become bigger issues worldwide, a growing


number of consumers of all ages are devoting increased amounts of time and
money to sport and exercise.
Emerging research shows that regular mediumor even high-intensity training may not be enough to combat the long-term
impact of energy-dense diets and sedentarism on human health.
Affluent consumers are increasingly willing to spend on advanced equipment,
such as carbon fibre bikes.
With even young children now being pushed
towards structured sporting activities, some may react by dropping out and
moving away from notions of rank and status.
Mainstream clothing brands and retailers, in addition to designer labels, are
beginning to pay more attention to the growing market for sportswear.
Like a lot of fashion trends, the current fondness among many
consumers for sportswear as daywear may well prove to be ephemeral.
Gyms continue to proliferate in developed economies and are also beginning to
grow in popularity in emerging markets.
The gym market is polarising
between boutique gyms targeting the affluent and low-margin, and no-frills
facilities aimed at the mass market.
A growing number of sports enthusiasts are travelling both domestically and
internationally to participate in training camps or events.
Some
ski
resorts are becoming less affordable to mainstream consumers. In Western
Europe, a growing number of consumers are travelling to cheaper mountain
resorts in Eastern Europe.
The advent of miniature, high-definition devices has helped to spur sales of
sports video cameras, while social media websites have made sharing video
much easier.
Overly eager to improve their performance or physique,
some people are turning to illegal and potentially dangerous substances, such
as steroids and human growth hormone.
Sports and
been quite
sports.
particularly

energy drinks continue to enjoy strong growth, as marketing has


effective in closely associating them with elite sport and extreme
Private label is growing in popularity in the sports drink segment,
in such recession-hit Western European markets as Spain.

Manufacturers of vitamins and supplements are increasingly marketing


products specifically targeting recreational athletes.
The efficacy of some
supplements is questionable and regulation is sometimes patchy (some have
even been found to be dangerous), so consumers could lose interest.
Protein has become a mainstream ingredient in health and wellness snack bars,
particularly in the US, spreading beyond its core of bodybuilders and extreme
athletes.
Consumer tastes in health and wellness can be fickle, and as new
dietary fads emerge, they could begin to lose interest in these high-calorie,
highly processed products.

Fitness gadgets, ranging from heart-rate monitors to motion-tracking sensors,


are becoming more functional and growing in popularity. This quantified self
movement risks prompting a backlash among some consumers if it becomes
too intrusive.
High-end smartphones are increasingly functioning as de facto fitness gadgets,
with a growing eco system of apps catering to those interested in fitness.
Apps that make consumers more self-sufficient in terms of monitoring or
improving their performance may reduce their desire to pay for personal
training or other specialised coaching.
Source: Euromonitor International
DEMAND FACTORS
Growing awareness of obesity risks raises the perceived payoff from sport
Over the past decade or so, obesity has increasingly come to be identified as a
public health issue in many countries. It has also received a huge amount of
media coverage, helping to raise public awareness. This issue is particularly
acute in the US, where nearly 41% of adults were classed as obese in 2013, but
it is a growing problem worldwide. In some countries, campaigns to promote
exercise are now almost as important as those to curb smoking and excessive
consumption of alcohol.
Over a third globally now overweight
A study conducted by UK-based think tank The Overseas Development Institute
during 2013 found that more than a third of all adults worldwide (just under 1.5
billion people) were either overweight or obese (defined as having a body mass
index or BMI of 25-30 and over 30, respectively). It added that Between 1980
and 2008, the number of people affected in the developing world more than
tripled, from 250 million to 904 million. In high-income countries the number
increased by 1.7 times over the same period.
Table 1
2008/2013

Obese Population (BMI 30kg/m2 or more), Top 20 Countries

% of population aged 15+


US

2008 2013

34.1 40.7

Venezuela

28.5 35.0

Mexico

28.5 34.4

United Arab Emirates


New Zealand
Chile 26.4 32.5
Egypt 30.7 32.5

32.8 34.1

26.6 33.2

Saudi Arabia
Australia
UK

27.5 28.9
24.3 28.6

24.5 26.6

Russia

24.4 26.3

Argentina

22.7 25.6

Germany

21.8 23.7

Hungary

21.1 22.8

Peru 16.5 21.8


South Africa 19.8 21.0
Canada

18.2 20.1

Brazil 14.2 19.3


Slovakia

17.1 19.0

Bulgaria

17.1 18.9

Source: Euromonitor International


The Overseas Development Institute attributed these increases to a creeping
homogenisation in diets... with a marked shift from cereals and tubers to meat,
fats and sugar. The study identified China and Mexico as the emerging
markets that had seen the largest increases in obesity rates. It has even been
speculated that rising obesity could eventually result in decreasing life
expectancy in some countries, as obesity-related health problems, such as
hypertension and diabetes mellitus become more commonplace. For example,
the proportion of Mexicans aged between 20 years and 79 years with diabetes
mellitus rose from 13% to 15% between 2007 and 2012.
Table 2
2008/2013

Overweight Population (BMI 25-30kg/m2), Top 20 Countries

% of population aged 15+


Germany

40.5 40.6

Greece

40.4 39.9

Bulgaria

37.5 39.5

Portugal

38.4 39.0

Norway

37.1 38.9

Venezuela

39.7 38.4

Spain 37.7 38.3

2008 2013

Turkey
UK

37.4 37.9

38.0 37.6

Mexico

38.9 37.5

Peru 37.8 37.5


Hungary

35.8 36.4

Ireland

35.6 36.3

Netherlands 35.6 36.2


Australia

36.9 36.2

Colombia

36.1 36.0

United Arab Emirates


Argentina

36.1 35.8

37.1 35.6

Chile 36.7 35.6


Israel 35.0 35.5
Source: Euromonitor International
Chart 1

Mean BMI, Top 10 Countries 2013

Source: Euromonitor International


Scientific research, particularly in the emerging field of epigenetics, has shed
some light on how exercise and health are related. Genes are not static they
turn on or off, depending on what biochemical signals they receive from
elsewhere in the body, and exercise plays an important role in this. A study
conducted by researchers at the Lund University Diabetes Centre in Sweden
and published in mid-2013 found that even a single session of vigorous
exercise began to alter DNA methylation in genes in a way that reduced the
risk of developing diabetes. Our data suggest that exercise may affect the risk
for type-two diabetes and obesity by changing DNA methylation of those
genes, said Charlotte Ling, an associate professor at Lund University and
senior author of the study. As such findings percolate into the mass media, the
benefits of sports participation become increasingly tangible to consumers.
Encouraging exercise as an antidote to obesity
Strategies to combat obesity usually have two main components a reduction
in calorific intake and increased calorific expenditure (ie exercise). As a result,
governments around the world have initiated a myriad strategies to encourage
consumers to exercise more, for example increasing funding for public sports
facilities. In some countries, governments have even provided tax incentives to
get people exercising more. For example, the Irish governments Cycle to Work

scheme allows employers to pay for bicycles and bicycle equipment for their
employees, which the employee pays back through a salary sacrifice
arrangement of up to 12 months, with these repayments exempt from income
tax. All of this is helping to educate consumers on the importance of physical
fitness for their own long-term health and wellbeing, and encouraging them to
become more active.
According to Euromonitor Internationals Global Consumer Trends survey that
covered consumers in eight developed economies and emerging markets, just
over a quarter (25.9%) of consumers agreed with the contention that I am
very worried about my health due to my lifestyle. This figure ranged from less
than one in six consumers in France to 44% in Brazil. In general, consumers in
emerging markets were found to be significantly more worried by this than
their counterparts in developed economies.
Table 3
I am very worried about my health due to my lifestyle Selected
Countries 2011
Proportion of respondents answering yes

Brazil 44.0
China 32.1
France

15.2

Germany

16.2

India 28.6
Japan 31.7
UK

18.9

US

20.4

Source: Euromonitor Internationals Global Consumer Trends survey 2011


The changing shape of role models
Ideals of physical beauty have gradually shifted over recent decades. This is
best reflected in cinema and on television. Where it was once enough for a
leading man to be handsome and square jawed, they must increasingly be
physically fit and have a ripped physique. Of course, such imagery dates
back to Greek antiquity, and a line can be drawn from the depiction of the
human body in Leni Riefenstahls infamous Nazi propaganda documentary
Olympia (which chronicled the 1936 Olympic Games in Berlin) to Calvin Klein
underwear advertising in the 1980s, which depicted men posing in a highly
stylised, Adonis-like way. Writing in the New Yorker, critic Judith Thurman
referred to Riefenstahl as a consummate stylist obsessed with bodies in
motion, particularly those of dancers and athletes.
The audacity of huge

Taking its cue from Riefenstahls work, Calvin Klein showcased the male form in
ways never seen before and ushered in an era where men could be sexually
objectified (almost) as much as women. Indeed, the billboard of a well-muscled
young man in white briefs went up in Times Square in 1982 has been named
one of the Ten Pictures that Changed America by American Photographer
magazine. Meanwhile, the seminal 1977 documentary film Pumping Iron,
which focused on the burgeoning body building scene in Southern California,
propelled a young Arnold Schwarzenegger to fame, and helped to usher in a
decade where muscle-bound heroes like Schwarzenegger and Sylvester
Stallone dominated the silver screen. By the 2000s, the Hollywood zeitgeist
had shifted towards a subtler look, with an emphasis on muscles appearing
defined and cut, rather than large and bulging, perhaps epitomised by
Canadian actor Ryan Gosling.
In February 2014, the New York Times noted that Because the American movie
market now makes up less than a third of global box-office receipts, studios
tend to favour projects featuring explosions, car chases and doomsday
scenarios a universal language of violence that translates easily in China,
India, Brazil and Europe. Almost without exception, the movies star some
beefcake with pecs that make Ben-Hurs seem puny. There are now more
indistinguishable, barrel-chested, eight-packed aspiring stars than ever. Almost
any actor, even some of Hollywoods most scrawny, can be physically
transformed for the part if hes willing to put in the hard work, it added.
Inevitably, the images presented by mass media percolate down into popular
consciousness, hence the growing fascination of many consumers with
celebrity diets and workout regimes. When a celebrity gossip website reports
that Ryan Gosling is practicing Muay Thai (Thai boxing) for an upcoming role,
the young man in the street is likely to take heed. This trend is also visible in
professional sport just compare pictures of the current generation of elite
sportspeople with their peers a generation or two ago and the differences in
physique are unmistakable.
Sow the seeds of inadequacy, reap body dysmorphia?
Indeed, it can be difficult for the ordinary consumer not to feel vaguely
inadequate when faced with the extremely fit and well-defined physiques
showcased by popular culture (often with the aid of Photoshop), and it is
undoubtedly the case that such feelings of inadequacy are fuelling increased
consumer interest in sport and exercise. For young adults, the emphasis in on
achieving muscle definition, while middle aged and older consumers tend to
focus on maintaining a relatively youthful physique for as long as possible, and
delaying the inevitable physical deterioration that accompanies ageing. During
mid-2013, the UK-based Daily Mail newspaper reported that, Across London
the number of men joining gyms has soared. Five years ago, men accounted for
less than a quarter of gym users in the capital. Today they account for nearly
half.

In extremis, this can spill over into body dysmorphic disorder or body
dysmorphia, the incidence of which appears to have risen over recent decades.
Afflicted individuals think they have a defect in either one or more features of
their body, causing psychological and clinically significant distress or impairing
occupational or social functioning. A related condition is muscle dysmorphia or
bigorexia or the Adonis complex, where sufferers become convinced that
their physique is not sufficiently muscular.
There is a growing insecurity among men about their bodies, commented Dr
John Morgan, a consultant psychiatrist at St Thomass Hospital, told the Daily
Mail newspaper in the UK during mid-2013. A documentary called Vigor that
was screened on Spanish television in mid-2013 claimed that 10% of men who
regularly went to local gyms were afflicted by this condition, and that the abuse
of such drugs as anabolic steroids and human growth hormone by body
building enthusiasts was causing more deaths than anorexia in the country.
Writing in the Guardian in March 2014, columnist Melissa Bradshaw claimed
that The lenses of social media, reality TV and the womens weekly magazine
market (for which there is no male equivalent), seem to make it harder than
ever for women in particular to be content with themselves. Men have to live
up to bodily ideals too, often through athletic achievements, but women are
constantly being scrutinised either for their insecurities, or the way that they
deal with them.
Pot bellies no longer regarding as a sign of affluence in emerging markets
Whereas being slim and fit has long been established as a signifier of
prosperity and wellbeing in the west, until fairly recently this has not been the
case in many emerging markets, such as India and China, where famine is a
relatively recent memory among many families. Writing in the New York Times
in 2011, journalist Ranjani Iyer Mohanty noted that For a long time in India, fat
has meant good. For centuries the ideal Indian woman and child have been
Rubenesque, with no visible bone structure.
However, this is now changing rapidly. In Bollywood, the plump actors and
actresses of the 1970s and 1980s have been replaced by muscular men and
slender women. Meanwhile, Vogue and Harpers Bazaar are among the growing
list of international fashion magazines that publish Indian editions, all
promoting thinness as the beauty ideal.
Female attitudes towards sport shifting
Young women, particularly teens, have traditionally been one of the groups
most resistant to incorporating exercise into their lifestyles a significant
number of teenage girls resort to smoking as a weight-loss strategy, rather
than exercising. Indeed, studies in many countries have found that rates of
smoking prevalence are significantly higher among teenage girls than their
male counterparts.
Femininity versus sportiness?

Many girls are simply not interesting in sport and exercise at this age, often out
of a feeling that vigorous exercise will leave them red, sweaty and unattractive
to the opposite sex. Speaking to the Daily Telegraph in February 2014, Helen
Grant, Minister for Sport in the UK, controversially suggested that women who
felt unfeminine when playing sport could take up other activities, like ballet,
gymnastics, cheerleading and even roller-skating. Speaking to the Guardian,
Laura Bates of the Everyday Sexism project responded: Its actually
discouraging for a minister to say this. With our great athletes performing
fantastically at the Olympics, we still see media outlets focusing on the looks
and femininity, which the comments seem to do too.
A study conducted in the UK during 2012 by the Womens Sport and Fitness
Foundation, using data collected by the Institute of Youth Sport at
Loughborough University, found that just over half (51%) of teenage girls were
put off physical activity by their experiences of school sport and PE lessons.
45% thought that sport was too competitive, while a third thought that PE
teachers only paid attention to pupils who were good at sport. Just under half
(48%) of the girls agreed with the contention that getting sweaty is not
feminine, while almost a third of boys said that girls who were sporty were not
feminine. 76% of girls said they were self-conscious of their bodies. 57% of girls
said that girls often dropped physical activity because their friends did. The
study concluded that Being popular is not defined by being sporty for girls
but it is for boys. Boys receive more encouragement to be sporty from their
friends.
Fit is the new thin
However, there is evidence that such attitudes are beginning to shift, at least in
some countries. As paparazzi shots of female celebrities, particularly actresses,
models and pop singers, running or working out with their personal trainers
proliferate in celebrity magazines and online, for many, being slim is no longer
enough they must be slim and fit. Selfies (photos taken of oneself that are
posted online) have percolated into the mainstream over the past couple of
years, and the gym selfie has become a popular sub-genre, helping to push
the athletic look more into the mainstream.
In the UK, it is hoped that the huge medal haul of British women at the 2012
Olympics in London will act as a catalyst to get young women exercising.
Meanwhile, a growing number of young women are hitting the gym in an effort
to have a beach body to show off once summertime rolls around. All of this is
reflected in the pages of womens fashion and lifestyle magazines, where space
is increasingly being devoted to advice on exercise routines and features on
trendy workout clothes.
Some young actresses are feeling the heat. During December 2013, 23 yearold Oscar-winning actress Jennifer Lawrence (star of the popular The Hunger
Games film franchise) spoke of the pressure actresses were under to be slim,
adding that she thought it should be illegal to call somebody fat on TV. She

has also spoken of the pressure put on her by some of her employers to lose
weight.
Interest among women in extreme sports is also on the rise. In January 2014,
Spanish newspaper El Pas, noted that 2014 is all about extreme challenges.
Merely to be fit is no longer enough not even for women. The piece went on
to cite such examples (illustrated by photos) as actress Jenifer Lopez practicing
the mixed marshal art Krav Maga and model Izabel Goularts love of TRX
(bodyweight exercises performed using elastic cables).
Nonetheless, a significant gender gap remains. For example, a survey of
Euromonitor International analysts conducted during early 2014 found that
male respondents were more than twice as likely as their female counterparts
to have participated in a marathon over the previous five years. Male
respondents were three times more likely to have participated in surfing.
Table 4
Global Participation in Adventure Sports over the Previous Five
Years 2014
% of respondents participating Female
Marathon

4.2

8.5

5.9

7.5

12.2 9.0

9.5

5.9

Adventure race

3.3

6.0

Mountain biking

7.4

16.7 10.4

Trail running
Surfing

3.3

Male Total

4.1

Source: Euromonitor International Survey Analyst Pulse


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world
Shifts in Family Structure and Life Stages
The timing of the progression from childhood to adulthood has shifted radically
over recent generations. Many young people are delaying marriage and
starting families (often into their 30s) in favour of staying in education, building
their careers or simply having fun. Average age at first marriage is now over 30
years in much of Western Europe (32.8 years for men and 30.2 years for
women in Germany during 2013, for example). Fertility rates are also on the
wane, with the number of children born per female in the US falling from 2.1 in
2007 to 1.9 in 2012, for example.
The so-called great recession that followed in the wake of the global financial
crisis has helped to entrench this trend towards delaying some of the
responsibilities of adulthood by making it increasingly difficult for young adults
(particularly in North America and Western Europe) to move out of the parental
home and achieve financial independence. For example, the rate of youth

unemployment (among those aged between 15 years and 24 years) had risen
to 15% in the US, 25% in France, 28% in Poland and 43% in Italy by 2013. In
Southern Europe in particular, a growing number of people are still living in the
parental home well into their 30s.
Chart 2

Fertility Rates 2013 Top 10 and Bottom 10 Countries

Source: Euromonitor International from UN, Eurostat, World Bank, national


statistics
Generation Y more leisure-oriented
As a result of high youth unemployment, many 20- and 30-somethings have
more time if not money to devote to their hobbies, including sporting
activities. This has been rather flippantly dubbed funemployment. For
example, during late 2012, the news agency AFP reported that Rather than
mope around at home, legions of unemployed Spaniards are riding out the
economic crisis on some of the best waves in Europe, driving a surf boom on
the countrys northern beaches.
Indeed, in Europe, 6.9% of respondents had participated in surfing during the
five years prior to survey, a Euromonitor International Analyst Pulse Survey
conducted during early 2014 found. However, surfing was found to be a
particularly masculine sport, with almost 10% of men participating.
Chart 3
2014

Participation in Surfing by Region over the Previous Five Years

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world
The global rates of participation in the related sports of windsurfing and kite
surfing stood at 2.8% (ranging from 5.3% in Asia to 0% in Latin America) and
1.9% (ranging from 2.9% in Europe, the Middle East and Africa to 0% in Latin
America and the US, Canada and the Caribbean), respectively.
Increasingly active retirees
As the Baby Boomer generation (those born between 1946 and 1964) begin to
retire, attitudes towards exercise and sporting participation are beginning to
shift among the elderly (those aged 65 or older). This generation lived through
the fitness boom of the 1970s and the 1980s, when such activities as jogging
and aerobics grew significantly in popularity. As a result, they tend to be more
interested in exercise than previous generations, and are looking forward to a
long and active retirement.

Retirement goes from years to decades


With life expectancy now approaching or exceeding 80 years in many
countries, and healthy life expectancy at 60 years now close to 20 years in
many developed economies, retirees are becoming more confident asking more
of their bodies than a round of golf. For example, in the US, healthy life
expectancy at age 60 rose from 17.7 years to 19.1 years for men in the US
between 2008 and 2013. For women, it increased from 19.3 years to 20.6 years
over the same period. In Australia during 2013, a 60 year-old woman could
expect a further 21.3 years of good health.
Table 5
2008/2013

Healthy Female Life Expectancy at 60 Years Top 20 Countries

Number of years

2008 2013

Switzerland 23.1 24.4


Hong Kong, China 22.6 24.2
Japan 22.8 24.1
Canada

21.3 22.8

Australia

20.7 21.3

Norway

19.6 21.0

Taiwan

19.4 20.9

US

19.3 20.6

Mexico

18.2 20.5

New Zealand

19.9 20.5

Israel 19.2 20.3


Sweden

17.1 20.0

Argentina

18.3 19.8

South Korea 18.9 19.7


Colombia

17.3 19.1

Chile 18.2 19.1


Singapore

17.7 18.3

Russia

16.6 18.2

Ukraine

16.3 17.8

Vietnam

15.8 17.5

Source: Euromonitor International from WHO, Eurostat, national statistics

Table 6
2008/2013

Healthy Male Life Expectancy at 60 Years Top 20 Countries

Number of years

2008 2013

Japan 19.3 20.6


Hong Kong, China 19.3 20.4
Israel 18.4 19.8
Australia

18.9 19.8

Switzerland 18.8 19.4


US

17.7 19.1

Taiwan

17.6 19.1

Sweden

16.0 18.8

New Zealand

17.9 18.5

Canada

17.5 18.3

Norway

16.7 17.6

Mexico

15.6 16.6

Chile 15.7 16.6


Colombia

14.6 16.4

China 14.9 16.3


Singapore

15.5 16.0

Venezuela

16.0 15.8

Peru 14.7 15.8


South Korea 15.0 15.7
Argentina

14.4 15.6

Source: Euromonitor International from WHO, Eurostat, national statistics


Scientific evidence that regular exercise can help to improve both muscle
strength and life expectancy in older people is mounting. In 2009, a study
conducted by researchers at University of Nottingham found that an hour of
weightlifting twice a week could help to preserve muscles. Professor of Clinical
Physiology Michael Rennie said: I recommend they should go to the gym and
do weight training. They will stay lean and strong.
Meanwhile, there are a growing number of role models that older athletes can
aspire to emulate. For example, in autumn 2013, 64 year-old American Diana
Nyad became the first person to swim across the 177km of shark-infested sea

that separates Cuba from Florida without using a shark cage, on her fifth
attempt. This astounding feat took her more than 53 hours.
Among the current generation of Baby Boomers, it is no longer unusual to find
60- or even 70-somethings engaged in fairly vigorous sporting activities, such
as tennis, cycling, jogging, exercise classes and cross-country skiing. A visit to
almost any gym will also provide ample evidence of the growing popularity of
exercise among older consumers. Future generations are likely to be even more
active.
In a comment thread on the New York Times website that discussed this issue,
one female poster living in Idaho said: Im 54 and have been running since my
20s. [My friends and I] plan to run into the foreseeable future, as well as hike,
backpack, bike, and swim with our husbands. Another added: I can no longer
throw a softball more than a few feet. But at nearly 86 and with an artificial hip
and open-heart 18 months ago, I cycle every day. A 65 year-old said: I hike
the hills with a pack several days per week, rain or shine, swim laps several
days per week, cross-country ski in the winter, bike and backpack in the
backcountry in the good weather.
60-somethings are also participating in triathlons, while there have even been
reports of 70-somethings taking part in ironman races. Naturally, most are
taking to exercise in gentler ways. Swimming is particularly popular with this
age group, especially among those with joint problems (as it is non-weight
bearing), while many also enjoy cycling. Some skiers shift from alpine/downhill
to cross-country skiing as they grow older, as the latter is generally much safer,
particularly in terms of the strain it places on joints.
Concerns about age-appropriate exercise speculative?
Until recently, the conventional wisdom was that running is an unsuitable
activity for older people, but research is emerging to challenge this. In January
2014, the New York Times reported that There is also little evidence to support
the widespread belief that high-impact exercise speeds the onset of arthritis. In
a 2013 study, adult runners, including many aged 45 or older, had a lower
incidence of knee osteoarthritis and hip replacement than age-matched
walkers, with the adults who accumulated the most mileage over the course of
seven years having the lowest risk, possibly, the studys author speculated,
because running improved the health of joint cartilage and kept them lean as
they aged. A lot of concerns about age-appropriate exercise modalities have
turned out to be more speculative than real over the years, commented Dr
Michael Joyner, an exercise physiologist at the Mayo Clinic in Rochester,
Minnesota.
You do what you can until nature says you cant
Commenting on this piece, a number of older people discussed their exercise
regimes. One said: I jog one mile and walk back briskly one mile, six days a
week. Been doing it for about fifteen years. After I return home I lift 50 pounds
10 times standing (curls) and 11 times lying on a weight bench. Im 69. I plan

to continue this regimen as long as I can. It helps me control my type-two


diabetes. According to a second, As a 64 year old who has run for half his life
without joint problems, I can attest to the positive effects of high impact
exercise. I dont run as far as I used to (3-5 miles a run), and I use yoga to keep
my joints limber. A third added: Began running in 1970 at age 40. Im
currently still running and competing at age 83 significant slowing after 75.
Annual mileage peaked around 2,700, now about 1,800. You do what you can
until nature says you cant, an 86 year-old cyclist commented.
Urbanisation and sedentarism have profound lifestyle impacts
The advent of lifestyles where most people do not spend their working day
engaged in physical labour of one sort or another is a very recent development
in human history. Urbanisation has helped to accelerate this change
transferring billions of people from the countryside to the towns. This change,
which was sparked by the industrial revolution in the late 18th century, has
largely been completed in the developed world, but it is still very much ongoing
in emerging markets, particularly India and China. Indeed, a milestone was
reached in China a couple of years ago, when its rapidly expanding urban
population eclipsed its rural population for the first time ever.
In some countries, such as Belgium and Japan, over 90% of the population was
urbanised by 2013. Meanwhile, in countries as varied as the US, Denmark,
Morocco and Malaysia, the rural population is declining in absolute terms. For
example, the rural population in the US decreased from 56 million to 54 million
between 2008 and 2013. Over the same period, its urban population grew from
248 million to 262 million. This process is set to accelerate during the coming
years, with the rural population of the US forecast to decline to 53 million by
2018. The main driver of this is the fact that the young are leaving rural areas
in significant numbers to go the cities, leaving a disproportionately elderly
population behind.
Table 7

Urban Population Top 30 Countries 2013

% of population living in urban areas 2013


Hong Kong, China 100.0
Singapore

100.0

Belgium

97.6

Argentina

92.9

Japan 92.5
Israel 92.2
Australia

89.8

Chile 89.7
Venezuela

88.8

Denmark

87.5

France

87.0

New Zealand
Finland

85.9

Taiwan

85.9

Sweden

85.1

86.3

Brazil 85.0
United Arab Emirates

84.6

Netherlands 83.9
South Korea 83.8
US

82.9

Saudi Arabia

82.7

Canada

81.0

Norway

80.6

UK

79.9

Mexico

78.7

Spain 78.1
Peru 77.9
Colombia

75.8

Germany

74.3

Russia

74.0

Source: Euromonitor International from national statistics, UN


Urban lifestyles tend to be more sedentary than those of rural dwellers, and
this is a long-term health risk. Participation in sport is one way of alleviating
that risk. According to the Centers for Disease Control and Prevention, People
of all ages who are generally inactive can improve their health and well-being
by becoming even moderately active on a regular basis... Regular physical
activity that is performed on most days of the week reduces the risk for
developing or dying from some of the leading causes of illness in the US.
Among men, sedentarism may lead to feelings of emasculation
For men, sedentary occupations can also give rise to feelings of emasculation,
which is helping to drive participation in sports, particularly endurance sports,
adventure sports and combat sports. The most visceral example of this is so-

called white collar boxing, where men in professional occupations (the legal
and financial sectors, for example) participate in what has traditionally been a
working class sport. White collar boxing events have sprung up everywhere
from New York City and London to Moscow and Cape Town. There is even an
American reality TV show called White Collar Brawlers.
In an October 2013 report on the white collar boxing scene in London, the BBC
noted that A mid-life crisis used to mean buying a pair of trousers that are too
fashionable for the wearer, or doing something different with your hair.
Wealthier 30-somethings might have bought a motorbike, and the truly
reckless would flirt with the girl in accounts. But somewhere along the line it
became mandatory for middle-aged men (and some women) to assert their
undiminished vigour by taking on an extreme challenge: run a marathon, climb
Kilimanjaro, swim the Channel, that kind of thing.
It added that There has clearly been an element of inflation at play here a
concept that City workers should be comfortable with because fighting a
stranger in front of 400 spectators is what you do when a triathlon... Speak to
anybody involved in British boxing and they will tell you white-collar boxing is
growing fast, it noted.
You are not your job
This kind of activity forms a central theme of the 1999 film Fight Club (based
on a novel by Chuck Palahniuk), where the protagonist finds nihilistic relief from
the ennui of his job as an insurance assessor by forming an underground
fighting club. To quote one of its most famous monologues: You are not your
job. You are not how much you have in the bank... the things you own, end up
owning you. Its only after youve lost everything that youre free to do
anything. Fight Club represents that kind of freedom.
The rise of experiential consumption
Closely related to this reaction against sedentarism is an increased desire for
experiential consumption on the part of many consumers. For some,
experiences are becoming increasingly important, while such status symbols as
large homes and cars are becoming less so. Others want both. At the more
extreme end, these experiences can range from recreating a stage of the Tour
de France in the Alps, open water swimming and iron man events to a host of
so-called adventure races, like Tough Mudder (where participants tackle a
military-style assault course), which barely existed five years ago. In a January
2013 report, the Financial Times noted that, A regular Tough Mudder is one lap
of a boggy 10- to 13-mile obstacle course, designed by British Special Forces
personnel to push participants up to and beyond their physical and mental
limits.
In late 2012, the New York Times noted that About 25,700 others participated
[one] October weekend in an ordeal in Englishtown, New Jersey, known as
Tough Mudder, an extreme obstacle course that is becoming the macho sport
of choice for Type A men (and some women) who find marathons too easy and

triathlons meh... Along with other quasi-military obstacle courses like the
Spartan Race and Warrior Dash, Tough Mudder is the new gauntlet for bodyconscious Gen Xers.
Their hands are soft
It added that, The common motivator could be called the Walter Mitty
weekend-warrior complex. While the races draw a fair share of endurance
athletes and ex-military, many of the muddiest, most avid, most agro
participants hail from Wall Street. 30 year-old Bryan Garlick, an analyst at
Merrill Lynch in New York City, told the newspaper: Having competed in both,
triathlons are boring and road races are even more boring. Tough Mudder is the
only chance for a guy like me to feel like King Leonidas. According to Tough
Mudder founder Will Dean, Finance people are in a weird juxtaposition. They
may make 100 times more than their fathers, but their hands are soft. We
designed Tough Mudder to fill that void.
In a world where many people are increasingly connected to the virtual world,
such activities can perhaps help to ground them in the real one. Team work and
camaraderie tend to play a big role in such events, with participants urging
each other on and even helping one another out when they falter over a
particularly difficult obstacle. Indeed, some obstacles cannot be surmounted
without team work. The New York Times noted that Male bonding figures
prominently. The bonhomie is reinforced by challenges like the Everest and
Berlin Walls, which require the men to work together and, in some cases, stand
on one anothers shoulders. There are many one-arm bro-hugs, and even some
full embraces.
Tough Mudder has enjoyed phenomenal growth over recent years. Founded as
recently as 2010, over a million people had participated by the end of 2013. In
2012, it began to hold events in Western Europe. Dr Robert Heasley, a
sociology professor at the Indiana University of Pennsylvania and the president
of the American Mens Studies Association, commented: Obstacle courses like
these are the physical representation of masculinity, which is lacking for people
like lawyers, doctors, bankers and others in softer careers. By associating
themselves with the military and military training, these men are becoming
masculine by association, he added.
Welcome to hell
In Ireland, team sports like GAA (Gaelic football and hurling), soccer and rugby
all remain popular (in terms of both participation and viewing), while a growing
number of people are signing up to participate in long-distance ocean swims,
triathlons and adventure races. One adventure race held in Dublin during 2013
involved urban orienteering, a cycling treasure hunt, kayaking and abseiling.
Some adventure races have colourful names, like The Lough Derg Monster in
Killaloe, County Clare, and the Beast of Ballyhoura in Ballyhoura, County
Limerick. There is even a Tough Mudder Event planned for Ireland (in addition
to seven in the neighbouring UK) during 2014.

Similarly, in Spain, ocean swims and trail running events (such as the Soplao
10,000 off-road running and biking event, and the Reinosa winter triathlon
which encompasses running, cycling and cross-country skiing in the northern
province of Cantabria) have proliferated over recent years. The eighth edition
of the former event is due to be held in 2014. Moreover, the 2014 Soplao event
has been expanded to incorporate a 10km ocean swim for the first time. Those
who finish the gruelling course (which involves a significant ascent) gain the
right to call themselves a saploaman (or woman). 8,000 people from all over
Spain participated in this event, dubbed El infierno Cantrabo, (Cantabrian
hell) in 2013.
Experiential consumption can also play an important role in managing stress.
Euromonitor Internationals Global Consumer Trends survey found that 71% of
respondents in nine countries considered limiting daily stress levels to be either
very important or important to their health.
Table 8

Importance of Limited Daily Stress Selected Countries 2011/2013

% of respondents Very important

Important Not important

Brazil 48.5 31.2 11.0


China 27.7 52.1 3.7
France

24.7 45.5 8.6

Germany

18.2 39.9 11.2

India 30.1 38.8 13.0


Japan 13.1 50.5 6.6
Russia

35.0 49.5 9.6

UK

28.3 45.1 5.1

US

33.2 42.1 5.1

Source: Euromonitor Internationals Global Consumer Trends survey 2011


Note: Russian results are from the 2013 Global Consumer Trends survey
The decline of manual labour
This growing desire for experiential consumption is being fed in part by shifting
of employment away from such manual occupations as agriculture and
manufacturing towards services. Many service jobs require little in the way of
physical activity, contributing to overweight and obesity. In the US, for
example, such sectors as finance, transport, personal services and public
administration accounted for almost 51% of all employment in 2013, up from
just under 47% a decade earlier.
Chart 4

US: Employment in Selected Sectors 2003-2013

Source: Euromonitor International


More broadly, the proportion of workers involved with such primary industries
as agriculture and fishing is in long-term decline around the world, even in such
countries as India, where they still account for half of all employment. In such
developed economies as Germany and the Netherlands, these sectors
accounted for less than 2% of total employment in 2013.
On the other hand, such business services as finance, insurance and real estate
accounted for close to a fifth of all employment in such countries as the US,
Canada, Sweden and Israel in 2013.
Manufacturing jobs have been shifting from developed economies to emerging
markets (particularly China) for decades, often replaced by positions in the
service sector. Technological advances are also playing a significant role. More
nimble and flexible robots are increasingly taking over jobs that used to be the
preserve of humans, while the advent of 3-D printing is likely to decrease
further the need for human input in many facets of the manufacturing process.
The internet lets a thousand sporting flowers bloom
The rise of the internet has greatly facilitated the growing popularity of sport,
particularly niche sports like triathlon. For one thing, it makes getting in touch
with like-minded people much easier, making it simpler to find people to train
or play with, regardless of how niche or obscure the sport in which you are
interested in is. It is now relatively easy for those living in small towns and even
villages to connect with like-minded individuals with similar interests via social
networks, blogs and discussion forums. For urbanities, the internet can also be
a source of connectivity, providing an antidote to the social atomisation that is
often part-and-parcel of life in a large city.
Monkey see, monkey do
Video-sharing websites like YouTube also play an important role by providing
both inspiration to aspirants and practical instruction literally, a
demonstration effect. Thanks to video sharing, it is possible to learn (or at least
try) to do everything from playing tennis and volleyball to skiing and surfing by
watching YouTube videos. Some of these videos are subscription-based, but
most are free.
For example, in late 2013, TV news network CNN reported that parkour or free
running was flourishing among a small group of devotees in the Iraqi capital of
Bagdad, thanks in part to YouTube. Originally developed as part of French
military training, parkour involves running through urban environments using
only the body to overcome obstacles and objects. 25 year-old Bagdad resident
Prince Haydar was quoted on CNN: I love parkour because this sport is the art
of movement and freedom and this art has made me know true freedom in this
difficult life. He first encountered free running in 2007, when he watched the

French film District B13, which featured parkour in many of its action scenes.
He then sought out YouTube clips of the sport to learn the techniques required.
With home internet access increasingly ubiquitous and mobile internet access
increasingly commonplace, the vast majority of the population are now internet
users in most developed markets, while the number is growing rapidly in
emerging markets. Relatively low-cost smartphones and tablet devices are
playing a key role in this. In China, for example, the number of internet cafs is
beginning to decline as smartphones become increasingly affordable to massmarket consumers and become their primary device for going online. There
were more than 278 million internet subscriptions in China during 2013
(making it second only to the US), up from a mere seven million in 2008.
Table 9
2008/2013

Percentage of the Population Using the Internet Top 20 Countries

% of population

2008 2013

Norway

90.6 95.8

Sweden

90.0 95.1

Denmark

85.0 93.8

Netherlands 87.4 93.8


Finland

83.7 92.1

New Zealand
UK

72.0 91.3

78.4 88.7

Canada

76.7 88.4

United Arab Emirates


Switzerland 79.2 86.5
Germany

78.0 85.2

France

70.7 85.0

South Korea 81.0 84.7


Belgium

66.0 84.2

Australia

71.7 84.0

Austria

72.9 82.6

Slovakia

66.1 82.0

US

74.0 81.9

Ireland

65.3 81.4

63.0 86.9

Japan 75.4 80.4


Source: Euromonitor International from International Telecommunications
Union, OECD, national statistics
Table 10

Mobile Internet Subscriptions Top 20 Countries 2008/2013

Million people
US

2008 2013

26.5 292.7

China 7.3

278.2

Japan 65.8 137.1


Indonesia

1.0

90.8

Brazil 3.5

90.3

Russia

25.7 89.3

India 3.2

72.1

South Korea 35.3 53.6


UK

15.1 51.1

Germany

13.6 37.6

France

11.4 37.4

Italy

8.1

35.6

Spain 3.1

28.1

Egypt 5.4

27.4

Australia

7.5

Poland

12.9 22.2

Canada

3.3

21.7

Vietnam

2.3

19.7

South Africa 3.0

16.0

Turkey

14.1

0.8

25.7

Source: Euromonitor International from trade sources, national statistics


A star is born online
A new generation of cheap (with prices starting at less than US$100), highdefinition, waterproof video cameras that can be attached to headgear like
cycling and skiing helmets are particularly popular for creating shared video
content. Such devices are being used by a growing number of winter sports
enthusiasts and adventure sports lovers, who then post clips of their exploits

online. Posters receive a (very small) portion of the advertising revenue


generated by views of their videos on YouTube from Google (its owner). It is
thus possible (at least in theory) to make a living and fund further adventures
by posting video online.
Does the Olympic effect really exist?
Televised sport is also hugely popular with consumers worldwide, particularly
such events as the Olympic Games and the football World Cup. However, while
it is maintained by some that such events boost participation in sport, evidence
to back up such claims is mixed. It had been claimed by the UK government
that the legacy of the 2012 London Olympics would be increased
participation in sport in that country, but this does not seem to have come to
pass. Participation figures published in late 2013 by Sport England found that a
total of 15.4 million people played sport on a weekly basis, down almost 51,000
year-on-year. However, some sort of Olympic effect seemed be at play in
athletics and boxing, which recorded strong increases in participation in the
wake of the games.
Overall, the evidence from London suggests that while the Olympic effect may
exist, it is not particularly significant.
Sport as signifier and status symbol
Participation in certain sporting activities has always been seen as a marker of
class and status. In the 19th century, Victorian gentlemen strove to
differentiate themselves from the lower and middle classes by using their
ample leisure time to cultivate sporting prowess in football, rugby, swimming
and athletics. Nowadays, a growing number of middle class strivers are treating
sport in a manner similar to their careers.
Differentiate yourself from the herd
Some become so devoted to their chosen sports that their partners have taken
to referring to themselves as workout widows. Exercise is getting more and
more couples into my office, Karen Gail Lewis, a counsellor in Cincinnati, Ohio,
told the Wall Street Journal in 2011. There have even been cases of divorce by
triathlon. The article went on to discuss the case of 46 year-old father-of-three
Jordan Waxman, a New Jersey-based banker and amateur ironman who at one
time spent up to two hours each weekday and up to five or six hours each
Saturday and Sunday training. His wife and family eventually staged an
intervention to get him to exercise less.
Nor is such enthusiasm solely confined to men, although it is more
commonplace. In November 2013, the UK-based Daily Mail newspaper reported
that 35 year-old Los Angeles resident Lea-Anne Ellison continued to pursue a
vigorous regime of cross training (including pull-ups and weight lifting) until
three days before the birth of her child. For some, she achieved a degree
notoriety when photos of her lifting heavy weights while heavily pregnant were

posted online. While such cases are extreme, they do illustrate the increasing
importance of sport in the self-identities of a growing number of consumers.
For some, sport is now a way of differentiating themselves from the herd and
being identified as being part of an elite, adding meaning to their lives. Some
sociologists argue that such striving is an extension of the hypercompetitivity
that is integral to a globalised economy.
In search of virgin snow
A desire among consumers to differentiate themselves through their sporting
activities and prowess, and to experience something unique is evident in the
growing popularity of off-piste skiing. In January 2014, the Financial Times
observed that The sport has changed. Once, off-piste skiing was an activity
reserved for a tiny elite, something practised only when conditions were ideal.
That has changed with growing pace over the past decade, as new wider,
specially shaped skis have made it easier for relative novices to master deep
powder. It added: The result has been an explosion in the number of off-piste
skiers... the overriding sense is If I dont ski it now, someone else will. Virgin
snow is only virgin once.
Euromonitor Internationals Global Consumer Trends survey found that more
than three quarters of consumers in nine countries considered regular exercise
to be either very important or important. This proportion of respondents
considering exercise to be very important was highest in Brazil, India and
China, and lowest in Russia and Japan.
Table 11

Importance of Regular Exercise Selected Countries 2011/2013

% of respondents Very important

Important Not important

Brazil 47.9 36.3 10.8


China 43.6 47.9 1.6
France

20.6 46.6 10.0

Germany

16.5 36.8 17.4

India 47.1 40.9 6.2


Japan 20.7 53.6 6.6
Russia

16.3 44.4 21.0

UK

27.8 47.7 7.5

US

33.0 47.7 6.2

Source: Euromonitor Internationals Global Consumer Trends survey 2011


Note Russian results are from the 2013 Global Consumer Trends survey
In search of a fountain of youth

For a significant number of middle aged and older consumers, delaying the
ageing process is a major driver of participation in sport. In some countries,
most notably Japan and Germany, the median age of population is now over 40
years. As the global population ages, this demographic is becoming
increasingly important. Apart from health, vanity undoubtedly plays a
significant role in this, as consumers seek to maintain a fit appearance
particularly among the growing population of middle-aged singles. For
example, the number of divorced persons in the US rose by 8%, to just over 32
million, between 2008 and 2013, while in Germany, it grew by 9%, to 6.7
million.
Chart 5

Median Age of Population Top 10 Countries 2008/2013/2018

Source: Euromonitor International from national statistics, UN


Chart 6

Population by Marital Status Germany 2008/2013/2018

Source: Euromonitor International from national statistics, UN, Eurostat


Vigorous exercise can slow the ageing process, at least for a while
For the middle aged, participation in sport does seem to have a significant
payoff in later life. A seminal study conducted by S Hawkins and R Wiswell and
published in 2003 called Rate and Mechanism of Maximal Oxygen
Consumption Decline with Aging: Implications for Exercise Training found that,
among those aged between 30 years and 70 years, sedentary adults lost about
10% of their maximal endurance capacity every decade. However, young and
middle-aged athletes who regularly engaged in intense and high-impact
exercise, such as running intervals, experienced a much slower decline, losing
only about 5% of their capacity per decade until age 70, when the loss of
capacity accelerated for everyone.
Many holdouts remain
Of course, many still lack the time, money or motivation to participate in sport.
A Euromonitor International Consumer Survey of youth leisure time activities
conducted in 15 countries found that 45% of respondents never went to a gym
or sports facility. This figure ranged from 84% in Japan and 60% in Indonesia to
24% in Colombia and 28% in Brazil. Globally, a mere 4% of respondents spent
at least four hours a week participating in organised sport.
Chart 7
Participating at a Gym or Sports Facility (hours per week) Youth
in Selected Countries 2011-2013

Source: Euromonitor Internationals Global Youth surveys 2011 and 2013


CONSUMER BEHAVIOUR

Euromonitor International Surveys


Findings from three types of Euromonitor International Surveys were used in
this report:
Global Consumer Trends: Euromonitor Internationals Global Consumer Trends
Survey results are drawn from online consumers ranging in age from 15 to 65+
and living in 9 major markets: Brazil, China, France, Germany, India, Japan,
Russia (2013 only), United Kingdom, and the USA. Between 1,800-2,000
consumers in each market are surveyed each round, with many topics tracked
over time.
Global Youth: Euromonitor Internationals Global Youth Survey results are drawn
from ~4,700 internet-connected young people between the ages of 16 and 24
living in 15 countries around the world in 2011: Brazil, China, Colombia,
Germany, India, Indonesia, Japan, Malaysia, Mexico, the Philippines, Russia,
South Africa, Turkey, United Kingdom, and the USA.
Analyst Pulse: responses reflect the opinions and habits of several hundred of
Euromonitor Internationals in-country analysts and in-house researchers
around the world. As such, results reflect a great degree of geographic,
economic, and cultural diversity among educated consumers. However, these
respondents do not constitute a random sample of consumers in a given
country or across the globe, so their responses do not necessarily represent the
opinions of a broader population of consumers, but they are useful in this
context.
Extreme sports in search of safe danger?
For some consumers, a hike in the countryside, a game of football in the park
or a round of golf are no longer enough they want something with a little
more adrenalin. Broadly speaking, the term extreme sports relates to any
activity that is perceived as having a high level of inherent danger. These
activities often involve speed, height or a high level of physical exertion. They
also frequently require a significant amount of specialised equipment and
clothing. The term encompasses such activities as mountain biking, surfing,
canoeing rock climbing, kite surfing and snowboarding, rafting and spelunking
(caving).
Climbing to success
The boundaries between outdoor extreme sports and indoor, gym-based
activities are also blurring, due to such factors as the growing popularity of
purpose-built climbing walls. In June 2012, the Guardian newspaper noted that
Climbing walls were once used by rock climbers between mountains. Now all
kinds of people use them as a more social alternative to a gym, many with no
intention of climbing outdoors. It described one such venue as A
multicoloured playground for adults, complete with blaring drum and bass,
dazzle paint, and bright red crash mats. It noted that The Biscuit Factory gets

up to 20 new climbers through the door each day... it is just one of the 10-15
new public climbing walls that open in the UK each year.
For some, such sports can be about getting a taste of danger while remaining
in a relatively safe environment. Indoor climbing is the safest way to do what
people perceive to be an extreme sport, in a relatively benign environment,
according to Rob Adie, the climbing walls officer for the British Mountaineering
Council. Its a bit like watching Formula One on the TV. It has also definitely
replaced gym use its a social experience, rather than just being stuck on a
treadmill, he added. In the past five years theres been a massive boom in
bouldering-only centres many climbing wall owners are finding there are a lot
of indoor climbers now who will never go outdoor climbing, he said.
One poster on the newspapers website commented: Not a cheap pastime but
incredibly sociable and people do pass on tips on routes and technique with
cheerful ease. Indoor climbing is also a sport in which a family or group of
friends can do it together and not be bothered that one is far better or more
experienced than the others as you climb at your individual level and improve
your grade. Another said: Its nice do to something where youre encouraging
each other, working together and supporting each other. However, what
attracts me most is that its really sociable and friendly.
A third added: The rise of indoor climbing has helped make this sport much,
much more accessible for the average person. Especially those of us without
cars, money for trips to Fontainbleu, or loads of free time. Those who moan
that indoor climbers arent doing it right if they choose not to or arent able to
climb outdoors should concentrate on themselves and worry less about what
other people are doing!
According to data published by Sport England in late 2013, the number of
participants in mountaineering in England rose from 67,000 to 77,000 between
2005/2006 and 2012/2013. Over the same period, the number adults
participating in canoeing increased from 36,500 to 43,000. Meanwhile,
participation in more traditional sports like tennis, football and rugby (both
union and league) fell.
Chart 8
2012/13

Participation in Selected Sporting Activities in the UK 2005/06-

Source: Sport England Active People Survey 7


Similarly, a Euromonitor International Analyst Pulse Survey conducted during
early 2014 found that 9.0% of respondents (9.5% of men and 8.3%) of women
had participated in mountaineering/bouldering over the previous five years.
Chart 9
Participation in Mountaineering/Bouldering by Region over the
Previous Five Years 2014

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world.
Extreme doesnt have to mean dangerous
Even children are now participating in these activities in greater numbers.
Extreme sports offer an opportunity to challenge and express yourself. There
exists an air of cooperation, without specific winning and losing that may help
some childrens development of self-esteem. There is little organisation into
teams or leagues, and no overzealous parents screaming at their children
through the backstop fence, website Xtremesport claims. It also claims that,
despite such sports reputation for danger, injury rates tend to be significantly
lower than in such contact sports as rugby or football.
With awareness of the risk posed by such injuries as concussion on the rise,
parents are picking up on this. Indeed, according to the 2013 edition of the
National Sporting Goods Associations Sports Participation survey, participation
in tackle football (ie American football, as opposed to soccer) declined by 13%
between 2011 and 2012. It is hard to believe that widespread media coverage
of the impact of brain injuries on the health of ex-NFL players did not play a
role in this. More than half of this decline was recorded among those aged
between seven years and 11 years.
Adventure sports a lifestyle for some
Although closely related, there are subtle differences between extreme and
adventure sports. Although the definitions are rather porous, such activities as
triathlon and particularly ironman are often included in the latter, as are a host
of adventure races, such as Tough Mudder. Unlike team sports, adventure (and
extreme) sports are fairly easy to fit into busy schedules, as they do not have
set training times.
Explosion in triathlon participation
Membership of British Triathlon Association, which currently has more than 500
affiliated clubs, increased from 6,400 in 2004/2005 to 15,274 in 2011/2012,
with the annual rate of growth accelerating to double digits by the end of this
period. In 2012, there were 856 registered triathlon events in England, Wales
and Scotland, with over 149,000 people participating, up by 6% on the previous
year.
Chart 10

Participation in Triathlons in the UK 2009-2012

Source: British Triathlon Association


The situation is quite similar in the US. According to US Triathlon, Participation
in the US is at an all-time high, following unprecedented growth over the past

decade-plus. It had almost 137,000 members in 2012, with more than a third
of these (37%) female. Moreover, between 2000 and 2012, the number of
triathlon clubs in the US surged from a mere 50 to almost 1,000. US Triathlon
credits the introduction of triathlon into the Olympic Games in Sydney during
2000 as a major catalyst of this growth. It also notes that for some participants,
the ego boost provided by identifying oneself as a triathlete is an incentive.
The image of triathlon in the US was further boosted in early 2014, when the
NCAA (National Collegiate Athletic Association) approved triathlon as a fullscholarship, emerging sport for women.
Table 12

Number of Triathlon Clubs in the US 2000-2012

Number of clubs
2000 50
2005 375
2006 523
2007 544
2008 593
2009 624
2010 869
2011 938
2012 985
Source: 2012 US Triathlon Demographics Report
For some, such activities are more of a lifestyle than a sport, as many serious
triathletes train twice a day. Speaking to the Irish Times newspaper in June
2013, one expat triathlete living in Dubai said: It started off as a personal
challenge to do something for myself and get fit. I knew it was going to get
tough. Training in the summer involved going to bed at 6pm on weekends and
getting up at midnight to cycle through the desert to avoid the extreme heat.
You have no social life.
There are also a growing number of adventure race/triathlon hybrid events,
combining cycling and running with kayaking, rather than swimming, for
example. Shorter course events designed to gently ease beginners into the
sport are also proliferating. For example, the rather ambitiously named Hellfire
Adventure Duathlon, which was held in County Wicklow in Ireland during March
2014, consists of a relatively benign 17km cycle sandwiched between two 3km
runs. According to the races website, Its short enough for beginners looking
to dip their toe into adventure racing. US Triathlon notes that the largest
growth continues to be at the shorter sprint distances.
Endurophilia and masochism

At the other end of the spectrum, there is also increased participation in iron
man races, which involve a 3.9km swim, a 180km cycle and a 42km run (a full
marathon), and ultramarathons events where participants sometimes run
hundreds of kilometres over several days. One example of this is the 250km
Marathon Des Sables, which takes place in Morocco every April. Participants in
these types of events have even been dubbed endurophiles by some. The
marathon is no longer the pinnacle of sporting machismo, the Guardian noted
in 2009. Life is sanitised, effortless and risk free. Doing challenging sports
events is a way of altering this dull existence, one poster on this article
commented.
A growing army of iron men (and women)
In November 2013, website Triathlete-europe.competitor.com reported that
demand for iron man racing in Europe had reached a record high, noting that
most 2014 races in the region were already full. It added that Over 45,000
athletes racing in 2013, up 12% on last year. Kevin Stewart, managing
director of Ironman UK & Ireland, said: It is very likely all three UK events will
be sold out by Christmas. The UK has the largest number of participants racing
both on home and European soil over 8,000.
Can you handle a tough mudder?
Adventure races like Tough Mudder have grown rapidly in popularity in the US
over recent years and are spreading to Western Europe, with 20- and 30something men their core market. Tough Mudder is 15-20km course
incorporating hardcore military-style obstacles, including barbed wire, icecold water and even live electric wires, with names like the Arctic Enema and
Electroshock Therapy. According to the company, Tough Mudder is designed
to challenge strength, stamina, mental grit, and camaraderie. Tough Mudder
founder Will Dean has even been dubbed the Mark Zuckerberg of obstacle
racing.
In a report on this trend published in January 2014, the New Yorker magazine
noted that Young men have long engaged in tribal rituals of passage to test
courage and toughness... The overgrown adolescents of America have come up
with their own substitutes. It added: The popularity of obstacle races owes
something to the broader trend towards functional fitness, which
encompasses the likes of CrossFit, P90X, and boot camps. The idea is to
reclaim athleticism from the sanitised realm of the elliptical machine and get
back to the basics that kept our prehistoric forebears fit. In this light, it is
analogous to such dietary trends as the Paleo Diet, which attempts to mimic
how those same prehistoric forebears ate.
A Euromonitor International Analyst Pulse Survey conducted during early 2014
found that 12% of respondents in North America had participated in an
adventure race during the previous five years significantly higher than the
global rate (4.1%).

Chart 11
Participation in Adventure Races over the Previous Five Years by
Region 2014

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world.
Cycling Revival
The past decade or so has seen a revival of consumer interest in cycling, and
government efforts to make the roads safer for cycling have played a role in
this. Bike rental schemes, which have proliferated in such cities as Paris,
London and New York over recent years, have also helped to encourage
consumer interest in cycling.
All of this is feeding into higher bicycle sales in many countries. Even in Spain,
one of the most depressed economies in Europe over recent years, bicycle
shops are thriving, with new ones opening all the time. At the weekends, many
country roads are sprinkled with lycra-clad middle-aged men who are often
riding high-end racing bikes.
Speaking to the Guardian newspaper in September 2013, Rafael Quereda, who
opened a bike shop in Madrid during early 2012, said: All types of people come
in, young and old, some want a new bike some bring in the bicycles theyve
had stored in the garage for 30 years to be repaired. The newspaper even
claimed that bikes were outselling cars in Spain. However, cycling
infrastructure remains somewhat underdeveloped in Spain compared with
many of its northern neighbours. There still are not many good cycle paths,
but small activist groups are pressuring town halls across the country, the
newspaper noted.
Professional success burnishes cyclings image in the UK
In the UK, the success of its athletes in the Olympic Games and the Tour de
France over recent years has played a role in encouraging more people to take
to the roads on two wheels. In August 2012, the Daily Mail newspaper claimed
that the success of Team GBs female cyclists, such as Victoria Pendleton, at
the London Olympics, had led to a surge in sales of womens bikes. In the
wake of Team GBs triumphant fortnight in the London 2012 Olympic velodrome
and road races, bicycle retailers, including Halfords (which sells a range of
Victoria Pendleton bikes that have proven very popular), Evans and Bobbin
Bicycles have reported steep increases in enquiries and sales for womens
models, it reported.
In January 2014, the Financial Times newspaper reported that at UK retailer
Halfords, Like-for-like cycle sales were up nearly 20% at the end of last year.
Premium bike sales rose 31%, while childrens bike sales increased nearly

15%. It noted that The Olympics-inspired cycling boom continues to power


cycle sales. Bike brands fronted by Olympians Victoria Pendleton and Chris
Boardman have performed particularly well at Halfords. Writing in the wake of
the Olympics in September 2012, Observer columnist Elizabeth Day observed:
Over the last fortnight, our screens have been filled not with the usual diet of
size-zero actresses and surgically enhanced reality TV stars but with women
who are proud to look powerful, who have muscles and who arent afraid to
sweat and pant their way to a gold medal.
Tax incentive plays key role in Ireland
In Ireland, a tax incentive has helped to revive cycling as a leisure pursuit. By
the early 1990s, cycling was on life support as a leisure activity in Ireland, but
it has enjoyed a remarkable revival over the past decade or so. Under the Cycle
to Work Scheme, an employer can pay for bicycles and bicycle equipment for
their employees. The employees pay this back through a salary sacrifice
arrangement of up to 12 months. Crucially, the employee is not liable for taxes
on these repayments effectively subsidising their purchase (up to 52% for
those paying the top rate of income tax).
During the mid-1990s, membership of Cycling Ireland had fallen to not much
more than 2,000, and in 2006 it was still below 4,000. The Cycle to Work
Scheme was launched in 2009, and by 2013, membership had surged to more
than 18,000. This growth looks even more impressive when the depressed
state of the Irish economy since 2008 is taken into account. As with the
previously discussed example of Spanish surfing, there may be an element of
funemployment at play here.
In spite of this growth, levels of bicycle ownership in the UK and Ireland remain
a long way behind the Scandinavian countries, Finland and particularly the
Netherlands, where bicycles tend to be used more in day-to-day life.
Table 13
2008/2013
%

Proportion of Households with a Bicycle Top 20 Countries

2008 2013

Netherlands 91.8 92.6


Sweden

84.7 85.3

Finland

85.0 85.0

Japan 83.2 83.3


Norway

80.8 81.5

Germany

79.5 80.9

Austria

74.0 79.3

Vietnam

77.4 77.4

Taiwan

73.2 75.3

Hong Kong, China 72.5 75.1


France

74.4 74.6

South Korea 73.3 73.4


China 73.3 73.2
Belgium

68.4 72.5

Hungary

65.4 66.3

Slovakia

64.5 66.2

UK

63.7 65.7

Denmark

61.8 63.8

Poland

63.6 63.1

Ireland

61.4 62.8

Source: Euromonitor International from national statistics


Indeed, cycling has become so popular in some parts of northwestern Europe
that congestion is an emerging issue. In August 2013, German magazine Der
Speigel noted that the popularity of two-wheeled travel is causing problems in
some cities in the Netherlands and Denmark, where traffic jams and parking
shortages are common. The bike boom long seen as the universal solution
to roads jammed with parked cars, dead inner cities and other urban maladies
like noise, smog and lack of exercise threatens to choke on its own success,
it added. Take the example of Groningen, a city in the northern Netherlands.
Out of a population of just under 200,000, there are 375,000 bicycles, and 50%
of all trips are made by bike, it noted.
Recession hits bike sales in Europe
According to European trade group COLIPED, 19.7 million bicycles were sold in
Europe during 2012. This figure peaked at 21.3 million in 2007. Given the
economic context, this represents a reasonably robust performance. Germany
and the UK were the largest markets in 2012 (accounting for 20% and 18% of
unit sales, respectively), followed by France (14%), Italy (8%), the Netherlands
and Poland (both 5%) and Spain (4%). The average price paid for a new bike in
2012 ranged from 724 in the Netherlands and 513 in Germany to 305 in the
UK, 278 in France, 268 in Italy and 260 in Spain.
Table 14
Million units
2007 21.3
2008 20.2

EU27 Bicycle Sales 2007-2012

2009 19.6
2010 20.5
2011 20.0
2012 19.7
Source: COLIPED
A study conducted by consultancy Millward Brown SMG/KRC during 2013 found
that Polish consumers bought more than one million bicycles in 2012, a quarter
more than in 2008. The most popular brand was found to be Kross, followed by
Arkus & Romet, Giant and Merida. 70% of respondents said they rode a bicycle
at least once during 2012, while 22% said they used one regularly. Speaking to
newspaper Gazeta Wyborcza, Tomasz Radzki of bike retailer Velo noted that
Cycling infrastructure is improving every year. He added that hybrid bikes (a
combination of mountain bike and road bike) were growing in popularity with
local consumers.
A Euromonitor International Analyst Pulse Survey conducted during early 2014
found that 11% of respondents had participated in mountain biking during the
previous five years. In North America, 28% of respondents had participated in
this activity.
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Table Of Contents
EXECUTIVE SUMMARY
Demand factors
Consumer behaviour
Commercial impact
Market opportunities
Outlook
DEMAND FACTORS
Growing awareness of obesity risks raises the perceived payoff from sport
The changing shape of role models
Female attitudes towards sport shifting
Shifts in Family Structure and Life Stages
Increasingly active retirees
Urbanisation and sedentarism have profound lifestyle impacts
The rise of experiential consumption

The decline of manual labour


The internet lets a thousand sporting flowers bloom
Sport as signifier and status symbol
In search of a fountain of youth
CONSUMER BEHAVIOUR
Euromonitor International Surveys
Extreme sports in search of safe danger?
Adventure sports a lifestyle for some
Cycling Revival
Gyms still popular, but competition within the sector is hotting up
Winter sports struggle against a difficult economic background
Emerging market running boom
Increased emphasis on structured play in childhood
Putting Fun into Unemployment
Geek and hipster sports Sport for All?
COMMERCIAL IMPACT
Gyms seek specialised niches
In search of peak performance with coaching and training
Sportswear on the catwalk
Middle aged men splash out on sports equipment
Emerging markets drive growth in sports and energy drinks
Vitamin and dietary supplements popular, but sometimes controversial
Sports nutrition goes mainstream
MARKET OPPORTUNITIES
Luxury brands eye sportswear market
Tourists get active
In the search of the food of champions
Digging deep to boost performance
Gadgets facilitate the evolution of the quantified self
On the cusp of an app revolution

Active wear for the sporty pet


OUTLOOK AND IMPLICATIONS
An urban future bodes well for sports participation
Obesity problem spreading beyond developed economies
Increased segmentation in gym market?
Diet is more important than exercise?
The real tech revolution is yet to come
Too much of a good thing?
Epigenetics posits potential generational benefits for exercisers
A playful reaction to hypercompetitivity?
Related Statistics
View Statistics
Related Industry Reports
Related Articles
More Related Items
Global Participative Sport as Consumption: The New Rules of the Game
Strategy Briefing | 04 Jun 2014

EXECUTIVE SUMMARY
Demand factors
Obesity is increasingly identified as a public health issue, receiving a huge
amount of media coverage. This has helped to raise public awareness of the
importance of exercise in general and participative sport in particular. This
issue is particularly acute in Anglo-Saxon societies, but its profile is on the rise
worldwide.
Partly as a result of this, governments around the world have initiated a myriad
strategies to encourage consumers to exercise more, for example through
increasing funding for public sports facilities or providing tax incentives.
Scientific research, particularly in the emerging field of epigenetics, has shed
some light on how exercise and health are related, and these results are
percolating into the public consciousness. One Swedish study found that even a
single session of vigorous exercise began to alter DNA methylation in genes in
a way that reduced the risk of developing diabetes.

Physical fitness is increasingly portrayed as an important aspect of physical


attractiveness in mass media. In such an environment, it can be difficult for the
average person not to feel vaguely inadequate when confronted with images of
(frequently airbrushed) perfection at every turn on every screen they look
at and on many streets they pass through.
Such feelings of inadequacy are fuelling increased consumer interest in sport
and exercise. In extremis, this can spill over into body dysmorphia, the
incidence of which appears to have risen over recent decades.
Young women, particularly teens, have traditionally been one of the groups
most resistant to incorporating exercise into their lifestyles. However, there is
evidence that such attitudes are beginning to shift, at least in some countries.
For a growing number of women, being slim is no longer enough they must be
slim and fit.
The timing of the progression from childhood to adulthood has shifted radically
over recent generations, as a growing number of young people delay marriage
and starting a family. As a result, many 20- and 30-somethings have more time
to devote to their hobbies, including sporting activities.
At the other end of the demographic spectrum, life expectancy is lengthening,
and many in the Baby Boomer generation are looking forward to a long and
active retirement. Some are seeking more than the occasional game of golf
with which to pass the time.
For a significant number of middle aged and older consumers, delaying the
ageing process is a major driver of participation in sport. Apart from health,
vanity undoubtedly plays a significant role in this, as consumers seek to
maintain a fit appearance particularly among the growing population of
middle-aged singles.
Urbanisation has helped to accelerate a shift towards lifestyles where most
people do not spend their working day engaged in physical labour. This shift
has largely been completed in the developed world, but it is still very much
ongoing in emerging markets, particularly India and China.
Among men, sedentary occupations can engender feelings of emasculation,
which is helping to drive participation in sports, particularly endurance sports,
adventure sports and combat sports.
A growing number of middle class strivers are treating sport in a manner
similar to their careers. For some, sport has become a way of differentiating
themselves from the herd and being identified as being part of an elite, adding
meaning to their livings.
Closely related to this reaction against sedentary lifestyles is an increased
desire for experiential consumption on the part of many consumers. For
some, experiences are becoming increasingly important, while such status
symbols as large homes and cars are becoming less so. Others want both.

Experiential consumption can also play an important role in helping to manage


stress.
The internet makes getting in touch with like-minded people much easier,
making it simpler to find people to train or play with, regardless of how niche or
obscure the sport in which you are interested in is. Meanwhile, video-sharing
websites like YouTube play an important role by providing both inspiration to
aspirants and practical instruction.
Consumer behaviour
A growing number of consumers seeking a greater dose of adrenaline in their
leisure are turning to so-called extreme sports. The boundaries between
outdoor extreme sports and indoor, gym-based activities are also blurring, as
illustrated by the growing popularity of indoor climbing walls.
Even children are now participating in these activities in greater numbers.
Some claim that despite their reputation for danger, injury rates in such sports
tended to be significantly lower than in such contact sports as rugby or
football.
Growing interest in adventure sports in illustrated by the surge in participation
in triathlons over the past decade or so. An Olympic sport since 2000, for some
participants, the ego boost provided by identifying oneself as a triathlete is a
major incentive for some.
There are also a growing number of adventure race/triathlon hybrid events,
combining cycling and running with kayaking, rather than swimming, for
example, in addition to military-style obstacle courses, such as Tough Mudder.
The popularity of obstacle races is part of a broader trend towards functional
fitness, which encompasses the likes of CrossFit and boot camps.
The past decade or so has seen a revival of consumer interest in cycling.
Government efforts to make the roads safer for cycling, high-profile public bikehire schemes in cities from Paris to Moscow and tax incentives have played a
role in this. Cycling has become so popular in some parts of northwestern
Europe that congestion is an emerging issue.
In spite of recession, the number of gyms and health clubs continues to grow in
developed economies. In many European countries, lower cost and pay-as-yougo gyms (which do not require membership) proliferated during the recession.
In many European countries, particularly in Scandinavia and central Europe,
winter sports are among the most popular leisure activities, with some parents
teaching their children to ski almost as soon as they can walk. Participation in
winter sports has been hit by recessionary conditions in many developed
economies. In contrast, skiing is also growing in popularity among affluent
consumers in emerging markets.
Recent years have seen a revival in the popularity of running, which has been
dubbed the second running boom (the first having taken place in the 1970s

and 1980s), with trail running growing in popularity and many events
oversubscribed.
Running is also growing in popularity in China and India, where marathons are
proliferating. However, poor air quality and security concerns lead many to
prefer running on treadmills in gyms.
Sharply increased rates of unemployment in such countries as Spain and
Ireland have left many consumers with more time on their hands, encouraging
them to spend more time running or in the gym, or to take up a new sport,
such as surfing.
The internet, particularly social networks, have helped to popularise such niche
or fringe sporting activities as muggle quidditch (a terrestrial version of a game
from Harry Potter), live-action role playing and zombie runs, while such as
films as The Hunger Games have helped to revive interest in archery.
Some young hipsters have embraced such sports as ptanque, a type of bowls
beloved by elderly men in French provincial towns, and even shuffleboard.
Commercial impact
Price competition among gyms and sports clubs has grown fiercer as
disposable incomes have been squeezed in many developed economies. This
has facilitated the rise of no-frills gyms. Nonetheless, membership continues to
grow in spite of the prevailing climate of economic uncertainty.
At the other end of the market, specialised boutique gyms that charge
premium prices are proliferating in large cities, such as New York and London.
These classes, which cover everything from ballet and pole dancing to spinning
(static cycling) tend to be particularly popular with women.
Consumers are seeking to maximise their performance and are increasingly
prepared to pay for specialised coaching and training to achieve this. Some use
coaches as more of a motivational tool, while others see it as an investment in
their long-term health and wellbeing. Some in North America even go so far as
to claim that coaches are the new therapists.
Sportswear sales have consistently outperformed the wider apparel market
over recent years, with outdoor clothing particularly popular. Sales of sportsinspired clothing, particularly yoga pants, have also been strong, as sportswear
becomes increasingly acceptable as daywear.
In a similar vein, sneaker culture is highly developed in many developed
economies and is spreading to emerging markets, such as China and the Czech
Republic. Running shoes have even begun to turn up in couture fashion shows.
Increased consumer interest in sport is also driving strong growth in demand
for sports equipment everything from bikes, surfboards and wetsuits to
sunglasses, and high-tech watches and heart-rate monitors. Affluent 30- and

40-somethings, particularly men, have been the main drivers of this. High-end
bicycles costing upwards of US$10,000 are particularly notable in this regard.
Off-trade consumption of sports drinks rose by 16% in volume terms between
2008 and 2013, in spite of the fact that evidence for their efficacy is somewhat
lacking at least for recreational athletes. In China, the fastest growing market
for sports drinks, they are usually perceived as functional drinks for young
consumers performing sports activities or watching sports events.
Off-trade consumption of energy drinks rose by 78% between 2008 and 2013.
Although sports participants tend not to be the primary market for these
products, some consume an energy drink before a workout in order to give
their energy level a short-term boost. Energy drink manufacturers, particularly
Red Bull, have spent a lot of marketing money to associate their brands with
extreme sports.
Products targeting those interested in sport and exercise are a growing niche
within the wider market for vitamin and dietary supplements. Demand for
sports supplements is growing, as mainstream consumers seek to enhance
physical properties, such as muscle mass, strength and endurance. However,
this area can be murky and is frequently controversial.
Having seen their heroes use performance enhancing drugs to get to the top in
sports as varied as baseball and cycling, it is perhaps unsurprising that such
products are growing in popularity with recreational athletes in spite of their
potentially harmful side effects. Products that help to build muscle, such as
human growth hormone (HGH) and anabolic steroids are used by some young
male gym goers who want to bulk up.
The market for sports nutrition has spread beyond its traditional core of
bodybuilders and extreme athletes to encompass a growing number of
mainstream consumers. Young men who are insecure about their physiques
have become a particularly lucrative market for sports nutrition.
The marketing of protein as a recovery product in powder, bar or drink form
has been a major driver of growth. Manufacturers have also worked hard to
dispel the idea that protein builds muscle mass leading to bulkier frames,
something that is off-putting to many women.
Market opportunities
Long blurry, the distinction between sportswear and leisure wear continues to
fade. Whereas once, sportswear-as-daywear was looked down upon as the
preserve of the shell-suited lower class, a growing number of middle class yoga
enthusiasts proudly wear their Lululemon yoga pants to the supermarket or the
caf.
Designer sportswear, such as Adidas by Stella McCartney, is also proliferating,
while fast fashion retailers are also launching sportswear collections. High-end

clothing has long been a feature of the skiwear market, but has now spread to
cycling.
Baltimore-based brand Under Armour has enjoyed great success selling figurehugging, performance sportswear in the mass market, particularly in the US.
It is also vigorously pursuing female consumers.
Traditionally, active travel has involved such activities as hiking, cycling and,
particularly, winter sports, but it is now much broader. Committed amateur
athletes are increasingly travelling both domestically and internationally to
train and receive specialised coaching, or to participate in events.
Enthusiastic amateurs are also increasingly travelling overnight or even
internationally to compete in events. They are sometimes after the cachet that
goes with participating in particularly hard-core events.
Many fitness fans are seeking to improve the quality of their food consumption
in order to maximise their energy levels eating more fruit and vegetables and
less meat (or substituting white for red meat), for example. Sports and fitness
fans also tend to show considerable interest in so-called superfoods.
Increased consumer interest in sport and fitness is also helping to drive growth
in sales of health and wellness food, such as organic, better for you and
functional/fortified offerings. Some follow the latest dietary fads, such as lowcarb diets (minimising consumption of grains and sugars).
Many are prepared to spend money to boost their performance, by investing in
a lightweight, carbon fibre bike frame or depilation in order to minimise wind
resistance and help them to move faster.
Sport and fitness enthusiasts are increasingly buying gadgets, such as
wristbands and watches, that track their performance, with advances in
technology and falling costs making such devices more practical to carry or
wear and more affordable.
Miniaturisation and the advent of high-definition video have helped to grow the
market for sports video cameras, while the rise of social media websites like
Facebook and such video sharing websites YouTube have made sharing video of
ones sporting activities with others much easier.
High-end smartphones are beginning to incorporate such features as motion
sensors and heart-rate monitoring, while apps relating to sports and fitness are
increasingly popular with smartphone users, particularly those that utilise
global positioning system (GPS) software.
In the long run, advances in smartphone and sensor technology could even put
some coaches out of work by providing real-time feedback on their body
position, for example.
Rather than concentrating on performance, some apps simply aim to make
exercising more fun a trend that has been dubbed gamification.

With a growing number of owners humanising their pets, they want their dogs
to be a part of their sporting lives. This is fuelling a small, but growing, market
for active or high performance pet wear.
Outlook
Urbanisation is set to continue apace over the coming years, particularly in
such emerging markets as China and India. The transition from a
predominantly rural to a predominantly urban demographic profile is usually
closely associated with reduced family size, giving parents more time to focus
on themselves and their own interests.
Urbanisation in these countries will also go hand-in-hand with increasingly
sedentary lifestyles, as employment shifts from manufacturing to the service
sector.
Obesity rates will continue to tend upwards, even in relatively svelte countries
like France and Sweden. The obesity issue is likely to become particularly
prominent in the Middle East.
The gym market will continue to polarise between high-end boutique
establishments and much cheaper, no-frills ones.
The growth of a new middle class in emerging markets will fuel consumer
interest in sports and exercise. The fact that crime rates are high in many
emerging market cities will favourably dispose many of them towards gym
membership, as it is regarded as safer than running on the streets. Such
markets are ripe for the development of low-cost gym chain.
Emerging clinical evidence suggests that although exercise is important for
maintaining cardiovascular wellbeing, it is not a panacea for a healthy lifestyle
and certainly not an antidote to an unhealthy diet. If such an idea were to gain
currency among consumers, their incentive to exercise vigorously could be
diminished. Some may conclude that regular brisk walks and more time spent
doing housework and gardening are just as beneficial.
The surface is just being scratched in terms of the use of technology in
participative sport and exercise. Such emerging technologies as Google Glass
(glasses that incorporate a computer screen), smart contact lenses and
wearable technology (eg apparel containing electronic devices, including
sensors) are likely to find numerous applications in the field of sports and
exercise over the coming years.
However, wearable tech also risks prompting a backlash among consumers,
some of whom maintain (rather tongue-in-cheek perhaps) that they do not
want to become cyborgs.
A number of studies have been published that provide a much greater degree
of clarity on how exercise can drastically alter how genes operate though not
the genes themselves and that these changes can be passed on to ones
offspring. This raises the fascinating prospect that the intensive exercise is not

only of benefit to the exerciser but also to their future offspring potentially
providing a whole new level of motivation to those who pursue vigorous
training regimes.
In a world where even young children now being pushed towards structured
sporting activities rather than unstructured play, and a growing number of
people aspire to being ironmen or ultramen, some may push back by
dropping out and moving away from such notions of rank and status.
Combined with the emerging neuroscience and philosophy of mindfulness, with
its emphasis on being present in the moment, this could undermine interest
in specialised equipment, apparel and technology designed to improve
performance. This impulse towards simplicity is reflected in increased interest
in barefoot running.
Summary 1 Global Participative Sport: Opportunities and Challenges
Opportunities

Challenges

As sedentarism and obesity become bigger issues worldwide, a growing


number of consumers of all ages are devoting increased amounts of time and
money to sport and exercise.
Emerging research shows that regular mediumor even high-intensity training may not be enough to combat the long-term
impact of energy-dense diets and sedentarism on human health.
Affluent consumers are increasingly willing to spend on advanced equipment,
such as carbon fibre bikes.
With even young children now being pushed
towards structured sporting activities, some may react by dropping out and
moving away from notions of rank and status.
Mainstream clothing brands and retailers, in addition to designer labels, are
beginning to pay more attention to the growing market for sportswear.
Like a lot of fashion trends, the current fondness among many
consumers for sportswear as daywear may well prove to be ephemeral.
Gyms continue to proliferate in developed economies and are also beginning to
grow in popularity in emerging markets.
The gym market is polarising
between boutique gyms targeting the affluent and low-margin, and no-frills
facilities aimed at the mass market.
A growing number of sports enthusiasts are travelling both domestically and
internationally to participate in training camps or events.
Some
ski
resorts are becoming less affordable to mainstream consumers. In Western
Europe, a growing number of consumers are travelling to cheaper mountain
resorts in Eastern Europe.
The advent of miniature, high-definition devices has helped to spur sales of
sports video cameras, while social media websites have made sharing video
much easier.
Overly eager to improve their performance or physique,
some people are turning to illegal and potentially dangerous substances, such
as steroids and human growth hormone.

Sports and
been quite
sports.
particularly

energy drinks continue to enjoy strong growth, as marketing has


effective in closely associating them with elite sport and extreme
Private label is growing in popularity in the sports drink segment,
in such recession-hit Western European markets as Spain.

Manufacturers of vitamins and supplements are increasingly marketing


products specifically targeting recreational athletes.
The efficacy of some
supplements is questionable and regulation is sometimes patchy (some have
even been found to be dangerous), so consumers could lose interest.
Protein has become a mainstream ingredient in health and wellness snack bars,
particularly in the US, spreading beyond its core of bodybuilders and extreme
athletes.
Consumer tastes in health and wellness can be fickle, and as new
dietary fads emerge, they could begin to lose interest in these high-calorie,
highly processed products.
Fitness gadgets, ranging from heart-rate monitors to motion-tracking sensors,
are becoming more functional and growing in popularity. This quantified self
movement risks prompting a backlash among some consumers if it becomes
too intrusive.
High-end smartphones are increasingly functioning as de facto fitness gadgets,
with a growing eco system of apps catering to those interested in fitness.
Apps that make consumers more self-sufficient in terms of monitoring or
improving their performance may reduce their desire to pay for personal
training or other specialised coaching.
Source: Euromonitor International
DEMAND FACTORS
Growing awareness of obesity risks raises the perceived payoff from sport
Over the past decade or so, obesity has increasingly come to be identified as a
public health issue in many countries. It has also received a huge amount of
media coverage, helping to raise public awareness. This issue is particularly
acute in the US, where nearly 41% of adults were classed as obese in 2013, but
it is a growing problem worldwide. In some countries, campaigns to promote
exercise are now almost as important as those to curb smoking and excessive
consumption of alcohol.
Over a third globally now overweight
A study conducted by UK-based think tank The Overseas Development Institute
during 2013 found that more than a third of all adults worldwide (just under 1.5
billion people) were either overweight or obese (defined as having a body mass
index or BMI of 25-30 and over 30, respectively). It added that Between 1980
and 2008, the number of people affected in the developing world more than
tripled, from 250 million to 904 million. In high-income countries the number
increased by 1.7 times over the same period.

Table 1
2008/2013

Obese Population (BMI 30kg/m2 or more), Top 20 Countries

% of population aged 15+


US

2008 2013

34.1 40.7

Venezuela

28.5 35.0

Mexico

28.5 34.4

United Arab Emirates


New Zealand

32.8 34.1

26.6 33.2

Chile 26.4 32.5


Egypt 30.7 32.5
Saudi Arabia
Australia
UK

27.5 28.9
24.3 28.6

24.5 26.6

Russia

24.4 26.3

Argentina

22.7 25.6

Germany

21.8 23.7

Hungary

21.1 22.8

Peru 16.5 21.8


South Africa 19.8 21.0
Canada

18.2 20.1

Brazil 14.2 19.3


Slovakia

17.1 19.0

Bulgaria

17.1 18.9

Source: Euromonitor International


The Overseas Development Institute attributed these increases to a creeping
homogenisation in diets... with a marked shift from cereals and tubers to meat,
fats and sugar. The study identified China and Mexico as the emerging
markets that had seen the largest increases in obesity rates. It has even been
speculated that rising obesity could eventually result in decreasing life
expectancy in some countries, as obesity-related health problems, such as
hypertension and diabetes mellitus become more commonplace. For example,
the proportion of Mexicans aged between 20 years and 79 years with diabetes
mellitus rose from 13% to 15% between 2007 and 2012.

Table 2
2008/2013

Overweight Population (BMI 25-30kg/m2), Top 20 Countries

% of population aged 15+


Germany

40.5 40.6

Greece

40.4 39.9

Bulgaria

37.5 39.5

Portugal

38.4 39.0

Norway

37.1 38.9

Venezuela

39.7 38.4

2008 2013

Spain 37.7 38.3


Turkey
UK

37.4 37.9

38.0 37.6

Mexico

38.9 37.5

Peru 37.8 37.5


Hungary

35.8 36.4

Ireland

35.6 36.3

Netherlands 35.6 36.2


Australia

36.9 36.2

Colombia

36.1 36.0

United Arab Emirates


Argentina

36.1 35.8

37.1 35.6

Chile 36.7 35.6


Israel 35.0 35.5
Source: Euromonitor International
Chart 1

Mean BMI, Top 10 Countries 2013

Source: Euromonitor International


Scientific research, particularly in the emerging field of epigenetics, has shed
some light on how exercise and health are related. Genes are not static they
turn on or off, depending on what biochemical signals they receive from
elsewhere in the body, and exercise plays an important role in this. A study
conducted by researchers at the Lund University Diabetes Centre in Sweden

and published in mid-2013 found that even a single session of vigorous


exercise began to alter DNA methylation in genes in a way that reduced the
risk of developing diabetes. Our data suggest that exercise may affect the risk
for type-two diabetes and obesity by changing DNA methylation of those
genes, said Charlotte Ling, an associate professor at Lund University and
senior author of the study. As such findings percolate into the mass media, the
benefits of sports participation become increasingly tangible to consumers.
Encouraging exercise as an antidote to obesity
Strategies to combat obesity usually have two main components a reduction
in calorific intake and increased calorific expenditure (ie exercise). As a result,
governments around the world have initiated a myriad strategies to encourage
consumers to exercise more, for example increasing funding for public sports
facilities. In some countries, governments have even provided tax incentives to
get people exercising more. For example, the Irish governments Cycle to Work
scheme allows employers to pay for bicycles and bicycle equipment for their
employees, which the employee pays back through a salary sacrifice
arrangement of up to 12 months, with these repayments exempt from income
tax. All of this is helping to educate consumers on the importance of physical
fitness for their own long-term health and wellbeing, and encouraging them to
become more active.
According to Euromonitor Internationals Global Consumer Trends survey that
covered consumers in eight developed economies and emerging markets, just
over a quarter (25.9%) of consumers agreed with the contention that I am
very worried about my health due to my lifestyle. This figure ranged from less
than one in six consumers in France to 44% in Brazil. In general, consumers in
emerging markets were found to be significantly more worried by this than
their counterparts in developed economies.
Table 3
I am very worried about my health due to my lifestyle Selected
Countries 2011
Proportion of respondents answering yes

Brazil 44.0
China 32.1
France

15.2

Germany

16.2

India 28.6
Japan 31.7
UK

18.9

US

20.4

Source: Euromonitor Internationals Global Consumer Trends survey 2011

The changing shape of role models


Ideals of physical beauty have gradually shifted over recent decades. This is
best reflected in cinema and on television. Where it was once enough for a
leading man to be handsome and square jawed, they must increasingly be
physically fit and have a ripped physique. Of course, such imagery dates
back to Greek antiquity, and a line can be drawn from the depiction of the
human body in Leni Riefenstahls infamous Nazi propaganda documentary
Olympia (which chronicled the 1936 Olympic Games in Berlin) to Calvin Klein
underwear advertising in the 1980s, which depicted men posing in a highly
stylised, Adonis-like way. Writing in the New Yorker, critic Judith Thurman
referred to Riefenstahl as a consummate stylist obsessed with bodies in
motion, particularly those of dancers and athletes.
The audacity of huge
Taking its cue from Riefenstahls work, Calvin Klein showcased the male form in
ways never seen before and ushered in an era where men could be sexually
objectified (almost) as much as women. Indeed, the billboard of a well-muscled
young man in white briefs went up in Times Square in 1982 has been named
one of the Ten Pictures that Changed America by American Photographer
magazine. Meanwhile, the seminal 1977 documentary film Pumping Iron,
which focused on the burgeoning body building scene in Southern California,
propelled a young Arnold Schwarzenegger to fame, and helped to usher in a
decade where muscle-bound heroes like Schwarzenegger and Sylvester
Stallone dominated the silver screen. By the 2000s, the Hollywood zeitgeist
had shifted towards a subtler look, with an emphasis on muscles appearing
defined and cut, rather than large and bulging, perhaps epitomised by
Canadian actor Ryan Gosling.
In February 2014, the New York Times noted that Because the American movie
market now makes up less than a third of global box-office receipts, studios
tend to favour projects featuring explosions, car chases and doomsday
scenarios a universal language of violence that translates easily in China,
India, Brazil and Europe. Almost without exception, the movies star some
beefcake with pecs that make Ben-Hurs seem puny. There are now more
indistinguishable, barrel-chested, eight-packed aspiring stars than ever. Almost
any actor, even some of Hollywoods most scrawny, can be physically
transformed for the part if hes willing to put in the hard work, it added.
Inevitably, the images presented by mass media percolate down into popular
consciousness, hence the growing fascination of many consumers with
celebrity diets and workout regimes. When a celebrity gossip website reports
that Ryan Gosling is practicing Muay Thai (Thai boxing) for an upcoming role,
the young man in the street is likely to take heed. This trend is also visible in
professional sport just compare pictures of the current generation of elite
sportspeople with their peers a generation or two ago and the differences in
physique are unmistakable.

Sow the seeds of inadequacy, reap body dysmorphia?


Indeed, it can be difficult for the ordinary consumer not to feel vaguely
inadequate when faced with the extremely fit and well-defined physiques
showcased by popular culture (often with the aid of Photoshop), and it is
undoubtedly the case that such feelings of inadequacy are fuelling increased
consumer interest in sport and exercise. For young adults, the emphasis in on
achieving muscle definition, while middle aged and older consumers tend to
focus on maintaining a relatively youthful physique for as long as possible, and
delaying the inevitable physical deterioration that accompanies ageing. During
mid-2013, the UK-based Daily Mail newspaper reported that, Across London
the number of men joining gyms has soared. Five years ago, men accounted for
less than a quarter of gym users in the capital. Today they account for nearly
half.
In extremis, this can spill over into body dysmorphic disorder or body
dysmorphia, the incidence of which appears to have risen over recent decades.
Afflicted individuals think they have a defect in either one or more features of
their body, causing psychological and clinically significant distress or impairing
occupational or social functioning. A related condition is muscle dysmorphia or
bigorexia or the Adonis complex, where sufferers become convinced that
their physique is not sufficiently muscular.
There is a growing insecurity among men about their bodies, commented Dr
John Morgan, a consultant psychiatrist at St Thomass Hospital, told the Daily
Mail newspaper in the UK during mid-2013. A documentary called Vigor that
was screened on Spanish television in mid-2013 claimed that 10% of men who
regularly went to local gyms were afflicted by this condition, and that the abuse
of such drugs as anabolic steroids and human growth hormone by body
building enthusiasts was causing more deaths than anorexia in the country.
Writing in the Guardian in March 2014, columnist Melissa Bradshaw claimed
that The lenses of social media, reality TV and the womens weekly magazine
market (for which there is no male equivalent), seem to make it harder than
ever for women in particular to be content with themselves. Men have to live
up to bodily ideals too, often through athletic achievements, but women are
constantly being scrutinised either for their insecurities, or the way that they
deal with them.
Pot bellies no longer regarding as a sign of affluence in emerging markets
Whereas being slim and fit has long been established as a signifier of
prosperity and wellbeing in the west, until fairly recently this has not been the
case in many emerging markets, such as India and China, where famine is a
relatively recent memory among many families. Writing in the New York Times
in 2011, journalist Ranjani Iyer Mohanty noted that For a long time in India, fat
has meant good. For centuries the ideal Indian woman and child have been
Rubenesque, with no visible bone structure.

However, this is now changing rapidly. In Bollywood, the plump actors and
actresses of the 1970s and 1980s have been replaced by muscular men and
slender women. Meanwhile, Vogue and Harpers Bazaar are among the growing
list of international fashion magazines that publish Indian editions, all
promoting thinness as the beauty ideal.
Female attitudes towards sport shifting
Young women, particularly teens, have traditionally been one of the groups
most resistant to incorporating exercise into their lifestyles a significant
number of teenage girls resort to smoking as a weight-loss strategy, rather
than exercising. Indeed, studies in many countries have found that rates of
smoking prevalence are significantly higher among teenage girls than their
male counterparts.
Femininity versus sportiness?
Many girls are simply not interesting in sport and exercise at this age, often out
of a feeling that vigorous exercise will leave them red, sweaty and unattractive
to the opposite sex. Speaking to the Daily Telegraph in February 2014, Helen
Grant, Minister for Sport in the UK, controversially suggested that women who
felt unfeminine when playing sport could take up other activities, like ballet,
gymnastics, cheerleading and even roller-skating. Speaking to the Guardian,
Laura Bates of the Everyday Sexism project responded: Its actually
discouraging for a minister to say this. With our great athletes performing
fantastically at the Olympics, we still see media outlets focusing on the looks
and femininity, which the comments seem to do too.
A study conducted in the UK during 2012 by the Womens Sport and Fitness
Foundation, using data collected by the Institute of Youth Sport at
Loughborough University, found that just over half (51%) of teenage girls were
put off physical activity by their experiences of school sport and PE lessons.
45% thought that sport was too competitive, while a third thought that PE
teachers only paid attention to pupils who were good at sport. Just under half
(48%) of the girls agreed with the contention that getting sweaty is not
feminine, while almost a third of boys said that girls who were sporty were not
feminine. 76% of girls said they were self-conscious of their bodies. 57% of girls
said that girls often dropped physical activity because their friends did. The
study concluded that Being popular is not defined by being sporty for girls
but it is for boys. Boys receive more encouragement to be sporty from their
friends.
Fit is the new thin
However, there is evidence that such attitudes are beginning to shift, at least in
some countries. As paparazzi shots of female celebrities, particularly actresses,
models and pop singers, running or working out with their personal trainers
proliferate in celebrity magazines and online, for many, being slim is no longer
enough they must be slim and fit. Selfies (photos taken of oneself that are
posted online) have percolated into the mainstream over the past couple of

years, and the gym selfie has become a popular sub-genre, helping to push
the athletic look more into the mainstream.
In the UK, it is hoped that the huge medal haul of British women at the 2012
Olympics in London will act as a catalyst to get young women exercising.
Meanwhile, a growing number of young women are hitting the gym in an effort
to have a beach body to show off once summertime rolls around. All of this is
reflected in the pages of womens fashion and lifestyle magazines, where space
is increasingly being devoted to advice on exercise routines and features on
trendy workout clothes.
Some young actresses are feeling the heat. During December 2013, 23 yearold Oscar-winning actress Jennifer Lawrence (star of the popular The Hunger
Games film franchise) spoke of the pressure actresses were under to be slim,
adding that she thought it should be illegal to call somebody fat on TV. She
has also spoken of the pressure put on her by some of her employers to lose
weight.
Interest among women in extreme sports is also on the rise. In January 2014,
Spanish newspaper El Pas, noted that 2014 is all about extreme challenges.
Merely to be fit is no longer enough not even for women. The piece went on
to cite such examples (illustrated by photos) as actress Jenifer Lopez practicing
the mixed marshal art Krav Maga and model Izabel Goularts love of TRX
(bodyweight exercises performed using elastic cables).
Nonetheless, a significant gender gap remains. For example, a survey of
Euromonitor International analysts conducted during early 2014 found that
male respondents were more than twice as likely as their female counterparts
to have participated in a marathon over the previous five years. Male
respondents were three times more likely to have participated in surfing.
Table 4
Global Participation in Adventure Sports over the Previous Five
Years 2014
% of respondents participating Female
Marathon

4.2

8.5

5.9

7.5

12.2 9.0

9.5

5.9

Adventure race

3.3

6.0

Mountain biking

7.4

16.7 10.4

Trail running
Surfing

3.3

Male Total

4.1

Source: Euromonitor International Survey Analyst Pulse


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world
Shifts in Family Structure and Life Stages

The timing of the progression from childhood to adulthood has shifted radically
over recent generations. Many young people are delaying marriage and
starting families (often into their 30s) in favour of staying in education, building
their careers or simply having fun. Average age at first marriage is now over 30
years in much of Western Europe (32.8 years for men and 30.2 years for
women in Germany during 2013, for example). Fertility rates are also on the
wane, with the number of children born per female in the US falling from 2.1 in
2007 to 1.9 in 2012, for example.
The so-called great recession that followed in the wake of the global financial
crisis has helped to entrench this trend towards delaying some of the
responsibilities of adulthood by making it increasingly difficult for young adults
(particularly in North America and Western Europe) to move out of the parental
home and achieve financial independence. For example, the rate of youth
unemployment (among those aged between 15 years and 24 years) had risen
to 15% in the US, 25% in France, 28% in Poland and 43% in Italy by 2013. In
Southern Europe in particular, a growing number of people are still living in the
parental home well into their 30s.
Chart 2

Fertility Rates 2013 Top 10 and Bottom 10 Countries

Source: Euromonitor International from UN, Eurostat, World Bank, national


statistics
Generation Y more leisure-oriented
As a result of high youth unemployment, many 20- and 30-somethings have
more time if not money to devote to their hobbies, including sporting
activities. This has been rather flippantly dubbed funemployment. For
example, during late 2012, the news agency AFP reported that Rather than
mope around at home, legions of unemployed Spaniards are riding out the
economic crisis on some of the best waves in Europe, driving a surf boom on
the countrys northern beaches.
Indeed, in Europe, 6.9% of respondents had participated in surfing during the
five years prior to survey, a Euromonitor International Analyst Pulse Survey
conducted during early 2014 found. However, surfing was found to be a
particularly masculine sport, with almost 10% of men participating.
Chart 3
2014

Participation in Surfing by Region over the Previous Five Years

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world

The global rates of participation in the related sports of windsurfing and kite
surfing stood at 2.8% (ranging from 5.3% in Asia to 0% in Latin America) and
1.9% (ranging from 2.9% in Europe, the Middle East and Africa to 0% in Latin
America and the US, Canada and the Caribbean), respectively.
Increasingly active retirees
As the Baby Boomer generation (those born between 1946 and 1964) begin to
retire, attitudes towards exercise and sporting participation are beginning to
shift among the elderly (those aged 65 or older). This generation lived through
the fitness boom of the 1970s and the 1980s, when such activities as jogging
and aerobics grew significantly in popularity. As a result, they tend to be more
interested in exercise than previous generations, and are looking forward to a
long and active retirement.
Retirement goes from years to decades
With life expectancy now approaching or exceeding 80 years in many
countries, and healthy life expectancy at 60 years now close to 20 years in
many developed economies, retirees are becoming more confident asking more
of their bodies than a round of golf. For example, in the US, healthy life
expectancy at age 60 rose from 17.7 years to 19.1 years for men in the US
between 2008 and 2013. For women, it increased from 19.3 years to 20.6 years
over the same period. In Australia during 2013, a 60 year-old woman could
expect a further 21.3 years of good health.
Table 5
2008/2013

Healthy Female Life Expectancy at 60 Years Top 20 Countries

Number of years

2008 2013

Switzerland 23.1 24.4


Hong Kong, China 22.6 24.2
Japan 22.8 24.1
Canada

21.3 22.8

Australia

20.7 21.3

Norway

19.6 21.0

Taiwan

19.4 20.9

US

19.3 20.6

Mexico

18.2 20.5

New Zealand

19.9 20.5

Israel 19.2 20.3


Sweden

17.1 20.0

Argentina

18.3 19.8

South Korea 18.9 19.7


Colombia

17.3 19.1

Chile 18.2 19.1


Singapore

17.7 18.3

Russia

16.6 18.2

Ukraine

16.3 17.8

Vietnam

15.8 17.5

Source: Euromonitor International from WHO, Eurostat, national statistics


Table 6
2008/2013

Healthy Male Life Expectancy at 60 Years Top 20 Countries

Number of years

2008 2013

Japan 19.3 20.6


Hong Kong, China 19.3 20.4
Israel 18.4 19.8
Australia

18.9 19.8

Switzerland 18.8 19.4


US

17.7 19.1

Taiwan

17.6 19.1

Sweden

16.0 18.8

New Zealand

17.9 18.5

Canada

17.5 18.3

Norway

16.7 17.6

Mexico

15.6 16.6

Chile 15.7 16.6


Colombia

14.6 16.4

China 14.9 16.3


Singapore

15.5 16.0

Venezuela

16.0 15.8

Peru 14.7 15.8

South Korea 15.0 15.7


Argentina

14.4 15.6

Source: Euromonitor International from WHO, Eurostat, national statistics


Scientific evidence that regular exercise can help to improve both muscle
strength and life expectancy in older people is mounting. In 2009, a study
conducted by researchers at University of Nottingham found that an hour of
weightlifting twice a week could help to preserve muscles. Professor of Clinical
Physiology Michael Rennie said: I recommend they should go to the gym and
do weight training. They will stay lean and strong.
Meanwhile, there are a growing number of role models that older athletes can
aspire to emulate. For example, in autumn 2013, 64 year-old American Diana
Nyad became the first person to swim across the 177km of shark-infested sea
that separates Cuba from Florida without using a shark cage, on her fifth
attempt. This astounding feat took her more than 53 hours.
Among the current generation of Baby Boomers, it is no longer unusual to find
60- or even 70-somethings engaged in fairly vigorous sporting activities, such
as tennis, cycling, jogging, exercise classes and cross-country skiing. A visit to
almost any gym will also provide ample evidence of the growing popularity of
exercise among older consumers. Future generations are likely to be even more
active.
In a comment thread on the New York Times website that discussed this issue,
one female poster living in Idaho said: Im 54 and have been running since my
20s. [My friends and I] plan to run into the foreseeable future, as well as hike,
backpack, bike, and swim with our husbands. Another added: I can no longer
throw a softball more than a few feet. But at nearly 86 and with an artificial hip
and open-heart 18 months ago, I cycle every day. A 65 year-old said: I hike
the hills with a pack several days per week, rain or shine, swim laps several
days per week, cross-country ski in the winter, bike and backpack in the
backcountry in the good weather.
60-somethings are also participating in triathlons, while there have even been
reports of 70-somethings taking part in ironman races. Naturally, most are
taking to exercise in gentler ways. Swimming is particularly popular with this
age group, especially among those with joint problems (as it is non-weight
bearing), while many also enjoy cycling. Some skiers shift from alpine/downhill
to cross-country skiing as they grow older, as the latter is generally much safer,
particularly in terms of the strain it places on joints.
Concerns about age-appropriate exercise speculative?
Until recently, the conventional wisdom was that running is an unsuitable
activity for older people, but research is emerging to challenge this. In January
2014, the New York Times reported that There is also little evidence to support
the widespread belief that high-impact exercise speeds the onset of arthritis. In

a 2013 study, adult runners, including many aged 45 or older, had a lower
incidence of knee osteoarthritis and hip replacement than age-matched
walkers, with the adults who accumulated the most mileage over the course of
seven years having the lowest risk, possibly, the studys author speculated,
because running improved the health of joint cartilage and kept them lean as
they aged. A lot of concerns about age-appropriate exercise modalities have
turned out to be more speculative than real over the years, commented Dr
Michael Joyner, an exercise physiologist at the Mayo Clinic in Rochester,
Minnesota.
You do what you can until nature says you cant
Commenting on this piece, a number of older people discussed their exercise
regimes. One said: I jog one mile and walk back briskly one mile, six days a
week. Been doing it for about fifteen years. After I return home I lift 50 pounds
10 times standing (curls) and 11 times lying on a weight bench. Im 69. I plan
to continue this regimen as long as I can. It helps me control my type-two
diabetes. According to a second, As a 64 year old who has run for half his life
without joint problems, I can attest to the positive effects of high impact
exercise. I dont run as far as I used to (3-5 miles a run), and I use yoga to keep
my joints limber. A third added: Began running in 1970 at age 40. Im
currently still running and competing at age 83 significant slowing after 75.
Annual mileage peaked around 2,700, now about 1,800. You do what you can
until nature says you cant, an 86 year-old cyclist commented.
Urbanisation and sedentarism have profound lifestyle impacts
The advent of lifestyles where most people do not spend their working day
engaged in physical labour of one sort or another is a very recent development
in human history. Urbanisation has helped to accelerate this change
transferring billions of people from the countryside to the towns. This change,
which was sparked by the industrial revolution in the late 18th century, has
largely been completed in the developed world, but it is still very much ongoing
in emerging markets, particularly India and China. Indeed, a milestone was
reached in China a couple of years ago, when its rapidly expanding urban
population eclipsed its rural population for the first time ever.
In some countries, such as Belgium and Japan, over 90% of the population was
urbanised by 2013. Meanwhile, in countries as varied as the US, Denmark,
Morocco and Malaysia, the rural population is declining in absolute terms. For
example, the rural population in the US decreased from 56 million to 54 million
between 2008 and 2013. Over the same period, its urban population grew from
248 million to 262 million. This process is set to accelerate during the coming
years, with the rural population of the US forecast to decline to 53 million by
2018. The main driver of this is the fact that the young are leaving rural areas
in significant numbers to go the cities, leaving a disproportionately elderly
population behind.
Table 7

Urban Population Top 30 Countries 2013

% of population living in urban areas 2013


Hong Kong, China 100.0
Singapore

100.0

Belgium

97.6

Argentina

92.9

Japan 92.5
Israel 92.2
Australia

89.8

Chile 89.7
Venezuela

88.8

Denmark

87.5

France

87.0

New Zealand
Finland

85.9

Taiwan

85.9

Sweden

85.1

86.3

Brazil 85.0
United Arab Emirates
Netherlands 83.9
South Korea 83.8
US

82.9

Saudi Arabia

82.7

Canada

81.0

Norway

80.6

UK

79.9

Mexico

78.7

Spain 78.1
Peru 77.9
Colombia

75.8

Germany

74.3

84.6

Russia

74.0

Source: Euromonitor International from national statistics, UN


Urban lifestyles tend to be more sedentary than those of rural dwellers, and
this is a long-term health risk. Participation in sport is one way of alleviating
that risk. According to the Centers for Disease Control and Prevention, People
of all ages who are generally inactive can improve their health and well-being
by becoming even moderately active on a regular basis... Regular physical
activity that is performed on most days of the week reduces the risk for
developing or dying from some of the leading causes of illness in the US.
Among men, sedentarism may lead to feelings of emasculation
For men, sedentary occupations can also give rise to feelings of emasculation,
which is helping to drive participation in sports, particularly endurance sports,
adventure sports and combat sports. The most visceral example of this is socalled white collar boxing, where men in professional occupations (the legal
and financial sectors, for example) participate in what has traditionally been a
working class sport. White collar boxing events have sprung up everywhere
from New York City and London to Moscow and Cape Town. There is even an
American reality TV show called White Collar Brawlers.
In an October 2013 report on the white collar boxing scene in London, the BBC
noted that A mid-life crisis used to mean buying a pair of trousers that are too
fashionable for the wearer, or doing something different with your hair.
Wealthier 30-somethings might have bought a motorbike, and the truly
reckless would flirt with the girl in accounts. But somewhere along the line it
became mandatory for middle-aged men (and some women) to assert their
undiminished vigour by taking on an extreme challenge: run a marathon, climb
Kilimanjaro, swim the Channel, that kind of thing.
It added that There has clearly been an element of inflation at play here a
concept that City workers should be comfortable with because fighting a
stranger in front of 400 spectators is what you do when a triathlon... Speak to
anybody involved in British boxing and they will tell you white-collar boxing is
growing fast, it noted.
You are not your job
This kind of activity forms a central theme of the 1999 film Fight Club (based
on a novel by Chuck Palahniuk), where the protagonist finds nihilistic relief from
the ennui of his job as an insurance assessor by forming an underground
fighting club. To quote one of its most famous monologues: You are not your
job. You are not how much you have in the bank... the things you own, end up
owning you. Its only after youve lost everything that youre free to do
anything. Fight Club represents that kind of freedom.
The rise of experiential consumption

Closely related to this reaction against sedentarism is an increased desire for


experiential consumption on the part of many consumers. For some,
experiences are becoming increasingly important, while such status symbols as
large homes and cars are becoming less so. Others want both. At the more
extreme end, these experiences can range from recreating a stage of the Tour
de France in the Alps, open water swimming and iron man events to a host of
so-called adventure races, like Tough Mudder (where participants tackle a
military-style assault course), which barely existed five years ago. In a January
2013 report, the Financial Times noted that, A regular Tough Mudder is one lap
of a boggy 10- to 13-mile obstacle course, designed by British Special Forces
personnel to push participants up to and beyond their physical and mental
limits.
In late 2012, the New York Times noted that About 25,700 others participated
[one] October weekend in an ordeal in Englishtown, New Jersey, known as
Tough Mudder, an extreme obstacle course that is becoming the macho sport
of choice for Type A men (and some women) who find marathons too easy and
triathlons meh... Along with other quasi-military obstacle courses like the
Spartan Race and Warrior Dash, Tough Mudder is the new gauntlet for bodyconscious Gen Xers.
Their hands are soft
It added that, The common motivator could be called the Walter Mitty
weekend-warrior complex. While the races draw a fair share of endurance
athletes and ex-military, many of the muddiest, most avid, most agro
participants hail from Wall Street. 30 year-old Bryan Garlick, an analyst at
Merrill Lynch in New York City, told the newspaper: Having competed in both,
triathlons are boring and road races are even more boring. Tough Mudder is the
only chance for a guy like me to feel like King Leonidas. According to Tough
Mudder founder Will Dean, Finance people are in a weird juxtaposition. They
may make 100 times more than their fathers, but their hands are soft. We
designed Tough Mudder to fill that void.
In a world where many people are increasingly connected to the virtual world,
such activities can perhaps help to ground them in the real one. Team work and
camaraderie tend to play a big role in such events, with participants urging
each other on and even helping one another out when they falter over a
particularly difficult obstacle. Indeed, some obstacles cannot be surmounted
without team work. The New York Times noted that Male bonding figures
prominently. The bonhomie is reinforced by challenges like the Everest and
Berlin Walls, which require the men to work together and, in some cases, stand
on one anothers shoulders. There are many one-arm bro-hugs, and even some
full embraces.
Tough Mudder has enjoyed phenomenal growth over recent years. Founded as
recently as 2010, over a million people had participated by the end of 2013. In
2012, it began to hold events in Western Europe. Dr Robert Heasley, a
sociology professor at the Indiana University of Pennsylvania and the president

of the American Mens Studies Association, commented: Obstacle courses like


these are the physical representation of masculinity, which is lacking for people
like lawyers, doctors, bankers and others in softer careers. By associating
themselves with the military and military training, these men are becoming
masculine by association, he added.
Welcome to hell
In Ireland, team sports like GAA (Gaelic football and hurling), soccer and rugby
all remain popular (in terms of both participation and viewing), while a growing
number of people are signing up to participate in long-distance ocean swims,
triathlons and adventure races. One adventure race held in Dublin during 2013
involved urban orienteering, a cycling treasure hunt, kayaking and abseiling.
Some adventure races have colourful names, like The Lough Derg Monster in
Killaloe, County Clare, and the Beast of Ballyhoura in Ballyhoura, County
Limerick. There is even a Tough Mudder Event planned for Ireland (in addition
to seven in the neighbouring UK) during 2014.
Similarly, in Spain, ocean swims and trail running events (such as the Soplao
10,000 off-road running and biking event, and the Reinosa winter triathlon
which encompasses running, cycling and cross-country skiing in the northern
province of Cantabria) have proliferated over recent years. The eighth edition
of the former event is due to be held in 2014. Moreover, the 2014 Soplao event
has been expanded to incorporate a 10km ocean swim for the first time. Those
who finish the gruelling course (which involves a significant ascent) gain the
right to call themselves a saploaman (or woman). 8,000 people from all over
Spain participated in this event, dubbed El infierno Cantrabo, (Cantabrian
hell) in 2013.
Experiential consumption can also play an important role in managing stress.
Euromonitor Internationals Global Consumer Trends survey found that 71% of
respondents in nine countries considered limiting daily stress levels to be either
very important or important to their health.
Table 8

Importance of Limited Daily Stress Selected Countries 2011/2013

% of respondents Very important


Brazil 48.5 31.2 11.0
China 27.7 52.1 3.7
France

24.7 45.5 8.6

Germany

18.2 39.9 11.2

India 30.1 38.8 13.0


Japan 13.1 50.5 6.6
Russia
UK

35.0 49.5 9.6


28.3 45.1 5.1

Important Not important

US

33.2 42.1 5.1

Source: Euromonitor Internationals Global Consumer Trends survey 2011


Note: Russian results are from the 2013 Global Consumer Trends survey
The decline of manual labour
This growing desire for experiential consumption is being fed in part by shifting
of employment away from such manual occupations as agriculture and
manufacturing towards services. Many service jobs require little in the way of
physical activity, contributing to overweight and obesity. In the US, for
example, such sectors as finance, transport, personal services and public
administration accounted for almost 51% of all employment in 2013, up from
just under 47% a decade earlier.
Chart 4

US: Employment in Selected Sectors 2003-2013

Source: Euromonitor International


More broadly, the proportion of workers involved with such primary industries
as agriculture and fishing is in long-term decline around the world, even in such
countries as India, where they still account for half of all employment. In such
developed economies as Germany and the Netherlands, these sectors
accounted for less than 2% of total employment in 2013.
On the other hand, such business services as finance, insurance and real estate
accounted for close to a fifth of all employment in such countries as the US,
Canada, Sweden and Israel in 2013.
Manufacturing jobs have been shifting from developed economies to emerging
markets (particularly China) for decades, often replaced by positions in the
service sector. Technological advances are also playing a significant role. More
nimble and flexible robots are increasingly taking over jobs that used to be the
preserve of humans, while the advent of 3-D printing is likely to decrease
further the need for human input in many facets of the manufacturing process.
The internet lets a thousand sporting flowers bloom
The rise of the internet has greatly facilitated the growing popularity of sport,
particularly niche sports like triathlon. For one thing, it makes getting in touch
with like-minded people much easier, making it simpler to find people to train
or play with, regardless of how niche or obscure the sport in which you are
interested in is. It is now relatively easy for those living in small towns and even
villages to connect with like-minded individuals with similar interests via social
networks, blogs and discussion forums. For urbanities, the internet can also be
a source of connectivity, providing an antidote to the social atomisation that is
often part-and-parcel of life in a large city.
Monkey see, monkey do

Video-sharing websites like YouTube also play an important role by providing


both inspiration to aspirants and practical instruction literally, a
demonstration effect. Thanks to video sharing, it is possible to learn (or at least
try) to do everything from playing tennis and volleyball to skiing and surfing by
watching YouTube videos. Some of these videos are subscription-based, but
most are free.
For example, in late 2013, TV news network CNN reported that parkour or free
running was flourishing among a small group of devotees in the Iraqi capital of
Bagdad, thanks in part to YouTube. Originally developed as part of French
military training, parkour involves running through urban environments using
only the body to overcome obstacles and objects. 25 year-old Bagdad resident
Prince Haydar was quoted on CNN: I love parkour because this sport is the art
of movement and freedom and this art has made me know true freedom in this
difficult life. He first encountered free running in 2007, when he watched the
French film District B13, which featured parkour in many of its action scenes.
He then sought out YouTube clips of the sport to learn the techniques required.
With home internet access increasingly ubiquitous and mobile internet access
increasingly commonplace, the vast majority of the population are now internet
users in most developed markets, while the number is growing rapidly in
emerging markets. Relatively low-cost smartphones and tablet devices are
playing a key role in this. In China, for example, the number of internet cafs is
beginning to decline as smartphones become increasingly affordable to massmarket consumers and become their primary device for going online. There
were more than 278 million internet subscriptions in China during 2013
(making it second only to the US), up from a mere seven million in 2008.
Table 9
2008/2013

Percentage of the Population Using the Internet Top 20 Countries

% of population

2008 2013

Norway

90.6 95.8

Sweden

90.0 95.1

Denmark

85.0 93.8

Netherlands 87.4 93.8


Finland

83.7 92.1

New Zealand
UK

72.0 91.3

78.4 88.7

Canada

76.7 88.4

United Arab Emirates


Switzerland 79.2 86.5

63.0 86.9

Germany

78.0 85.2

France

70.7 85.0

South Korea 81.0 84.7


Belgium

66.0 84.2

Australia

71.7 84.0

Austria

72.9 82.6

Slovakia

66.1 82.0

US

74.0 81.9

Ireland

65.3 81.4

Japan 75.4 80.4


Source: Euromonitor International from International Telecommunications
Union, OECD, national statistics
Table 10

Mobile Internet Subscriptions Top 20 Countries 2008/2013

Million people
US

2008 2013

26.5 292.7

China 7.3

278.2

Japan 65.8 137.1


Indonesia

1.0

90.8

Brazil 3.5

90.3

Russia

25.7 89.3

India 3.2

72.1

South Korea 35.3 53.6


UK

15.1 51.1

Germany

13.6 37.6

France

11.4 37.4

Italy

8.1

35.6

Spain 3.1

28.1

Egypt 5.4

27.4

Australia

7.5

Poland

12.9 22.2

25.7

Canada

3.3

21.7

Vietnam

2.3

19.7

South Africa 3.0

16.0

Turkey

14.1

0.8

Source: Euromonitor International from trade sources, national statistics


A star is born online
A new generation of cheap (with prices starting at less than US$100), highdefinition, waterproof video cameras that can be attached to headgear like
cycling and skiing helmets are particularly popular for creating shared video
content. Such devices are being used by a growing number of winter sports
enthusiasts and adventure sports lovers, who then post clips of their exploits
online. Posters receive a (very small) portion of the advertising revenue
generated by views of their videos on YouTube from Google (its owner). It is
thus possible (at least in theory) to make a living and fund further adventures
by posting video online.
Does the Olympic effect really exist?
Televised sport is also hugely popular with consumers worldwide, particularly
such events as the Olympic Games and the football World Cup. However, while
it is maintained by some that such events boost participation in sport, evidence
to back up such claims is mixed. It had been claimed by the UK government
that the legacy of the 2012 London Olympics would be increased
participation in sport in that country, but this does not seem to have come to
pass. Participation figures published in late 2013 by Sport England found that a
total of 15.4 million people played sport on a weekly basis, down almost 51,000
year-on-year. However, some sort of Olympic effect seemed be at play in
athletics and boxing, which recorded strong increases in participation in the
wake of the games.
Overall, the evidence from London suggests that while the Olympic effect may
exist, it is not particularly significant.
Sport as signifier and status symbol
Participation in certain sporting activities has always been seen as a marker of
class and status. In the 19th century, Victorian gentlemen strove to
differentiate themselves from the lower and middle classes by using their
ample leisure time to cultivate sporting prowess in football, rugby, swimming
and athletics. Nowadays, a growing number of middle class strivers are treating
sport in a manner similar to their careers.
Differentiate yourself from the herd
Some become so devoted to their chosen sports that their partners have taken
to referring to themselves as workout widows. Exercise is getting more and

more couples into my office, Karen Gail Lewis, a counsellor in Cincinnati, Ohio,
told the Wall Street Journal in 2011. There have even been cases of divorce by
triathlon. The article went on to discuss the case of 46 year-old father-of-three
Jordan Waxman, a New Jersey-based banker and amateur ironman who at one
time spent up to two hours each weekday and up to five or six hours each
Saturday and Sunday training. His wife and family eventually staged an
intervention to get him to exercise less.
Nor is such enthusiasm solely confined to men, although it is more
commonplace. In November 2013, the UK-based Daily Mail newspaper reported
that 35 year-old Los Angeles resident Lea-Anne Ellison continued to pursue a
vigorous regime of cross training (including pull-ups and weight lifting) until
three days before the birth of her child. For some, she achieved a degree
notoriety when photos of her lifting heavy weights while heavily pregnant were
posted online. While such cases are extreme, they do illustrate the increasing
importance of sport in the self-identities of a growing number of consumers.
For some, sport is now a way of differentiating themselves from the herd and
being identified as being part of an elite, adding meaning to their lives. Some
sociologists argue that such striving is an extension of the hypercompetitivity
that is integral to a globalised economy.
In search of virgin snow
A desire among consumers to differentiate themselves through their sporting
activities and prowess, and to experience something unique is evident in the
growing popularity of off-piste skiing. In January 2014, the Financial Times
observed that The sport has changed. Once, off-piste skiing was an activity
reserved for a tiny elite, something practised only when conditions were ideal.
That has changed with growing pace over the past decade, as new wider,
specially shaped skis have made it easier for relative novices to master deep
powder. It added: The result has been an explosion in the number of off-piste
skiers... the overriding sense is If I dont ski it now, someone else will. Virgin
snow is only virgin once.
Euromonitor Internationals Global Consumer Trends survey found that more
than three quarters of consumers in nine countries considered regular exercise
to be either very important or important. This proportion of respondents
considering exercise to be very important was highest in Brazil, India and
China, and lowest in Russia and Japan.
Table 11

Importance of Regular Exercise Selected Countries 2011/2013

% of respondents Very important


Brazil 47.9 36.3 10.8
China 43.6 47.9 1.6
France

20.6 46.6 10.0

Important Not important

Germany

16.5 36.8 17.4

India 47.1 40.9 6.2


Japan 20.7 53.6 6.6
Russia

16.3 44.4 21.0

UK

27.8 47.7 7.5

US

33.0 47.7 6.2

Source: Euromonitor Internationals Global Consumer Trends survey 2011


Note Russian results are from the 2013 Global Consumer Trends survey
In search of a fountain of youth
For a significant number of middle aged and older consumers, delaying the
ageing process is a major driver of participation in sport. In some countries,
most notably Japan and Germany, the median age of population is now over 40
years. As the global population ages, this demographic is becoming
increasingly important. Apart from health, vanity undoubtedly plays a
significant role in this, as consumers seek to maintain a fit appearance
particularly among the growing population of middle-aged singles. For
example, the number of divorced persons in the US rose by 8%, to just over 32
million, between 2008 and 2013, while in Germany, it grew by 9%, to 6.7
million.
Chart 5

Median Age of Population Top 10 Countries 2008/2013/2018

Source: Euromonitor International from national statistics, UN


Chart 6

Population by Marital Status Germany 2008/2013/2018

Source: Euromonitor International from national statistics, UN, Eurostat


Vigorous exercise can slow the ageing process, at least for a while
For the middle aged, participation in sport does seem to have a significant
payoff in later life. A seminal study conducted by S Hawkins and R Wiswell and
published in 2003 called Rate and Mechanism of Maximal Oxygen
Consumption Decline with Aging: Implications for Exercise Training found that,
among those aged between 30 years and 70 years, sedentary adults lost about
10% of their maximal endurance capacity every decade. However, young and
middle-aged athletes who regularly engaged in intense and high-impact
exercise, such as running intervals, experienced a much slower decline, losing
only about 5% of their capacity per decade until age 70, when the loss of
capacity accelerated for everyone.

Many holdouts remain


Of course, many still lack the time, money or motivation to participate in sport.
A Euromonitor International Consumer Survey of youth leisure time activities
conducted in 15 countries found that 45% of respondents never went to a gym
or sports facility. This figure ranged from 84% in Japan and 60% in Indonesia to
24% in Colombia and 28% in Brazil. Globally, a mere 4% of respondents spent
at least four hours a week participating in organised sport.
Chart 7
Participating at a Gym or Sports Facility (hours per week) Youth
in Selected Countries 2011-2013

Source: Euromonitor Internationals Global Youth surveys 2011 and 2013


CONSUMER BEHAVIOUR
Euromonitor International Surveys
Findings from three types of Euromonitor International Surveys were used in
this report:
Global Consumer Trends: Euromonitor Internationals Global Consumer Trends
Survey results are drawn from online consumers ranging in age from 15 to 65+
and living in 9 major markets: Brazil, China, France, Germany, India, Japan,
Russia (2013 only), United Kingdom, and the USA. Between 1,800-2,000
consumers in each market are surveyed each round, with many topics tracked
over time.
Global Youth: Euromonitor Internationals Global Youth Survey results are drawn
from ~4,700 internet-connected young people between the ages of 16 and 24
living in 15 countries around the world in 2011: Brazil, China, Colombia,
Germany, India, Indonesia, Japan, Malaysia, Mexico, the Philippines, Russia,
South Africa, Turkey, United Kingdom, and the USA.
Analyst Pulse: responses reflect the opinions and habits of several hundred of
Euromonitor Internationals in-country analysts and in-house researchers
around the world. As such, results reflect a great degree of geographic,
economic, and cultural diversity among educated consumers. However, these
respondents do not constitute a random sample of consumers in a given
country or across the globe, so their responses do not necessarily represent the
opinions of a broader population of consumers, but they are useful in this
context.
Extreme sports in search of safe danger?
For some consumers, a hike in the countryside, a game of football in the park
or a round of golf are no longer enough they want something with a little
more adrenalin. Broadly speaking, the term extreme sports relates to any
activity that is perceived as having a high level of inherent danger. These
activities often involve speed, height or a high level of physical exertion. They

also frequently require a significant amount of specialised equipment and


clothing. The term encompasses such activities as mountain biking, surfing,
canoeing rock climbing, kite surfing and snowboarding, rafting and spelunking
(caving).
Climbing to success
The boundaries between outdoor extreme sports and indoor, gym-based
activities are also blurring, due to such factors as the growing popularity of
purpose-built climbing walls. In June 2012, the Guardian newspaper noted that
Climbing walls were once used by rock climbers between mountains. Now all
kinds of people use them as a more social alternative to a gym, many with no
intention of climbing outdoors. It described one such venue as A
multicoloured playground for adults, complete with blaring drum and bass,
dazzle paint, and bright red crash mats. It noted that The Biscuit Factory gets
up to 20 new climbers through the door each day... it is just one of the 10-15
new public climbing walls that open in the UK each year.
For some, such sports can be about getting a taste of danger while remaining
in a relatively safe environment. Indoor climbing is the safest way to do what
people perceive to be an extreme sport, in a relatively benign environment,
according to Rob Adie, the climbing walls officer for the British Mountaineering
Council. Its a bit like watching Formula One on the TV. It has also definitely
replaced gym use its a social experience, rather than just being stuck on a
treadmill, he added. In the past five years theres been a massive boom in
bouldering-only centres many climbing wall owners are finding there are a lot
of indoor climbers now who will never go outdoor climbing, he said.
One poster on the newspapers website commented: Not a cheap pastime but
incredibly sociable and people do pass on tips on routes and technique with
cheerful ease. Indoor climbing is also a sport in which a family or group of
friends can do it together and not be bothered that one is far better or more
experienced than the others as you climb at your individual level and improve
your grade. Another said: Its nice do to something where youre encouraging
each other, working together and supporting each other. However, what
attracts me most is that its really sociable and friendly.
A third added: The rise of indoor climbing has helped make this sport much,
much more accessible for the average person. Especially those of us without
cars, money for trips to Fontainbleu, or loads of free time. Those who moan
that indoor climbers arent doing it right if they choose not to or arent able to
climb outdoors should concentrate on themselves and worry less about what
other people are doing!
According to data published by Sport England in late 2013, the number of
participants in mountaineering in England rose from 67,000 to 77,000 between
2005/2006 and 2012/2013. Over the same period, the number adults
participating in canoeing increased from 36,500 to 43,000. Meanwhile,

participation in more traditional sports like tennis, football and rugby (both
union and league) fell.
Chart 8
2012/13

Participation in Selected Sporting Activities in the UK 2005/06-

Source: Sport England Active People Survey 7


Similarly, a Euromonitor International Analyst Pulse Survey conducted during
early 2014 found that 9.0% of respondents (9.5% of men and 8.3%) of women
had participated in mountaineering/bouldering over the previous five years.
Chart 9
Participation in Mountaineering/Bouldering by Region over the
Previous Five Years 2014

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world.
Extreme doesnt have to mean dangerous
Even children are now participating in these activities in greater numbers.
Extreme sports offer an opportunity to challenge and express yourself. There
exists an air of cooperation, without specific winning and losing that may help
some childrens development of self-esteem. There is little organisation into
teams or leagues, and no overzealous parents screaming at their children
through the backstop fence, website Xtremesport claims. It also claims that,
despite such sports reputation for danger, injury rates tend to be significantly
lower than in such contact sports as rugby or football.
With awareness of the risk posed by such injuries as concussion on the rise,
parents are picking up on this. Indeed, according to the 2013 edition of the
National Sporting Goods Associations Sports Participation survey, participation
in tackle football (ie American football, as opposed to soccer) declined by 13%
between 2011 and 2012. It is hard to believe that widespread media coverage
of the impact of brain injuries on the health of ex-NFL players did not play a
role in this. More than half of this decline was recorded among those aged
between seven years and 11 years.
Adventure sports a lifestyle for some
Although closely related, there are subtle differences between extreme and
adventure sports. Although the definitions are rather porous, such activities as
triathlon and particularly ironman are often included in the latter, as are a host
of adventure races, such as Tough Mudder. Unlike team sports, adventure (and

extreme) sports are fairly easy to fit into busy schedules, as they do not have
set training times.
Explosion in triathlon participation
Membership of British Triathlon Association, which currently has more than 500
affiliated clubs, increased from 6,400 in 2004/2005 to 15,274 in 2011/2012,
with the annual rate of growth accelerating to double digits by the end of this
period. In 2012, there were 856 registered triathlon events in England, Wales
and Scotland, with over 149,000 people participating, up by 6% on the previous
year.
Chart 10

Participation in Triathlons in the UK 2009-2012

Source: British Triathlon Association


The situation is quite similar in the US. According to US Triathlon, Participation
in the US is at an all-time high, following unprecedented growth over the past
decade-plus. It had almost 137,000 members in 2012, with more than a third
of these (37%) female. Moreover, between 2000 and 2012, the number of
triathlon clubs in the US surged from a mere 50 to almost 1,000. US Triathlon
credits the introduction of triathlon into the Olympic Games in Sydney during
2000 as a major catalyst of this growth. It also notes that for some participants,
the ego boost provided by identifying oneself as a triathlete is an incentive.
The image of triathlon in the US was further boosted in early 2014, when the
NCAA (National Collegiate Athletic Association) approved triathlon as a fullscholarship, emerging sport for women.
Table 12

Number of Triathlon Clubs in the US 2000-2012

Number of clubs
2000 50
2005 375
2006 523
2007 544
2008 593
2009 624
2010 869
2011 938
2012 985
Source: 2012 US Triathlon Demographics Report

For some, such activities are more of a lifestyle than a sport, as many serious
triathletes train twice a day. Speaking to the Irish Times newspaper in June
2013, one expat triathlete living in Dubai said: It started off as a personal
challenge to do something for myself and get fit. I knew it was going to get
tough. Training in the summer involved going to bed at 6pm on weekends and
getting up at midnight to cycle through the desert to avoid the extreme heat.
You have no social life.
There are also a growing number of adventure race/triathlon hybrid events,
combining cycling and running with kayaking, rather than swimming, for
example. Shorter course events designed to gently ease beginners into the
sport are also proliferating. For example, the rather ambitiously named Hellfire
Adventure Duathlon, which was held in County Wicklow in Ireland during March
2014, consists of a relatively benign 17km cycle sandwiched between two 3km
runs. According to the races website, Its short enough for beginners looking
to dip their toe into adventure racing. US Triathlon notes that the largest
growth continues to be at the shorter sprint distances.
Endurophilia and masochism
At the other end of the spectrum, there is also increased participation in iron
man races, which involve a 3.9km swim, a 180km cycle and a 42km run (a full
marathon), and ultramarathons events where participants sometimes run
hundreds of kilometres over several days. One example of this is the 250km
Marathon Des Sables, which takes place in Morocco every April. Participants in
these types of events have even been dubbed endurophiles by some. The
marathon is no longer the pinnacle of sporting machismo, the Guardian noted
in 2009. Life is sanitised, effortless and risk free. Doing challenging sports
events is a way of altering this dull existence, one poster on this article
commented.
A growing army of iron men (and women)
In November 2013, website Triathlete-europe.competitor.com reported that
demand for iron man racing in Europe had reached a record high, noting that
most 2014 races in the region were already full. It added that Over 45,000
athletes racing in 2013, up 12% on last year. Kevin Stewart, managing
director of Ironman UK & Ireland, said: It is very likely all three UK events will
be sold out by Christmas. The UK has the largest number of participants racing
both on home and European soil over 8,000.
Can you handle a tough mudder?
Adventure races like Tough Mudder have grown rapidly in popularity in the US
over recent years and are spreading to Western Europe, with 20- and 30something men their core market. Tough Mudder is 15-20km course
incorporating hardcore military-style obstacles, including barbed wire, icecold water and even live electric wires, with names like the Arctic Enema and
Electroshock Therapy. According to the company, Tough Mudder is designed
to challenge strength, stamina, mental grit, and camaraderie. Tough Mudder

founder Will Dean has even been dubbed the Mark Zuckerberg of obstacle
racing.
In a report on this trend published in January 2014, the New Yorker magazine
noted that Young men have long engaged in tribal rituals of passage to test
courage and toughness... The overgrown adolescents of America have come up
with their own substitutes. It added: The popularity of obstacle races owes
something to the broader trend towards functional fitness, which
encompasses the likes of CrossFit, P90X, and boot camps. The idea is to
reclaim athleticism from the sanitised realm of the elliptical machine and get
back to the basics that kept our prehistoric forebears fit. In this light, it is
analogous to such dietary trends as the Paleo Diet, which attempts to mimic
how those same prehistoric forebears ate.
A Euromonitor International Analyst Pulse Survey conducted during early 2014
found that 12% of respondents in North America had participated in an
adventure race during the previous five years significantly higher than the
global rate (4.1%).
Chart 11
Participation in Adventure Races over the Previous Five Years by
Region 2014

Source: Euromonitor International Survey Analyst Pulse February 2014


Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors
network of in-country and in-house researchers in over 80 countries around the
world.
Cycling Revival
The past decade or so has seen a revival of consumer interest in cycling, and
government efforts to make the roads safer for cycling have played a role in
this. Bike rental schemes, which have proliferated in such cities as Paris,
London and New York over recent years, have also helped to encourage
consumer interest in cycling.
All of this is feeding into higher bicycle sales in many countries. Even in Spain,
one of the most depressed economies in Europe over recent years, bicycle
shops are thriving, with new ones opening all the time. At the weekends, many
country roads are sprinkled with lycra-clad middle-aged men who are often
riding high-end racing bikes.
Speaking to the Guardian newspaper in September 2013, Rafael Quereda, who
opened a bike shop in Madrid during early 2012, said: All types of people come
in, young and old, some want a new bike some bring in the bicycles theyve
had stored in the garage for 30 years to be repaired. The newspaper even
claimed that bikes were outselling cars in Spain. However, cycling
infrastructure remains somewhat underdeveloped in Spain compared with
many of its northern neighbours. There still are not many good cycle paths,

but small activist groups are pressuring town halls across the country, the
newspaper noted.
Professional success burnishes cyclings image in the UK
In the UK, the success of its athletes in the Olympic Games and the Tour de
France over recent years has played a role in encouraging more people to take
to the roads on two wheels. In August 2012, the Daily Mail newspaper claimed
that the success of Team GBs female cyclists, such as Victoria Pendleton, at
the London Olympics, had led to a surge in sales of womens bikes. In the
wake of Team GBs triumphant fortnight in the London 2012 Olympic velodrome
and road races, bicycle retailers, including Halfords (which sells a range of
Victoria Pendleton bikes that have proven very popular), Evans and Bobbin
Bicycles have reported steep increases in enquiries and sales for womens
models, it reported.
In January 2014, the Financial Times newspaper reported that at UK retailer
Halfords, Like-for-like cycle sales were up nearly 20% at the end of last year.
Premium bike sales rose 31%, while childrens bike sales increased nearly
15%. It noted that The Olympics-inspired cycling boom continues to power
cycle sales. Bike brands fronted by Olympians Victoria Pendleton and Chris
Boardman have performed particularly well at Halfords. Writing in the wake of
the Olympics in September 2012, Observer columnist Elizabeth Day observed:
Over the last fortnight, our screens have been filled not with the usual diet of
size-zero actresses and surgically enhanced reality TV stars but with women
who are proud to look powerful, who have muscles and who arent afraid to
sweat and pant their way to a gold medal.
Tax incentive plays key role in Ireland
In Ireland, a tax incentive has helped to revive cycling as a leisure pursuit. By
the early 1990s, cycling was on life support as a leisure activity in Ireland, but
it has enjoyed a remarkable revival over the past decade or so. Under the Cycle
to Work Scheme, an employer can pay for bicycles and bicycle equipment for
their employees. The employees pay this back through a salary sacrifice
arrangement of up to 12 months. Crucially, the employee is not liable for taxes
on these repayments effectively subsidising their purchase (up to 52% for
those paying the top rate of income tax).
During the mid-1990s, membership of Cycling Ireland had fallen to not much
more than 2,000, and in 2006 it was still below 4,000. The Cycle to Work
Scheme was launched in 2009, and by 2013, membership had surged to more
than 18,000. This growth looks even more impressive when the depressed
state of the Irish economy since 2008 is taken into account. As with the
previously discussed example of Spanish surfing, there may be an element of
funemployment at play here.
In spite of this growth, levels of bicycle ownership in the UK and Ireland remain
a long way behind the Scandinavian countries, Finland and particularly the
Netherlands, where bicycles tend to be used more in day-to-day life.

Table 13
2008/2013
%

Proportion of Households with a Bicycle Top 20 Countries

2008 2013

Netherlands 91.8 92.6


Sweden

84.7 85.3

Finland

85.0 85.0

Japan 83.2 83.3


Norway

80.8 81.5

Germany

79.5 80.9

Austria

74.0 79.3

Vietnam

77.4 77.4

Taiwan

73.2 75.3

Hong Kong, China 72.5 75.1


France

74.4 74.6

South Korea 73.3 73.4


China 73.3 73.2
Belgium

68.4 72.5

Hungary

65.4 66.3

Slovakia

64.5 66.2

UK

63.7 65.7

Denmark

61.8 63.8

Poland

63.6 63.1

Ireland

61.4 62.8

Source: Euromonitor International from national statistics


Indeed, cycling has become so popular in some parts of northwestern Europe
that congestion is an emerging issue. In August 2013, German magazine Der
Speigel noted that the popularity of two-wheeled travel is causing problems in
some cities in the Netherlands and Denmark, where traffic jams and parking
shortages are common. The bike boom long seen as the universal solution
to roads jammed with parked cars, dead inner cities and other urban maladies
like noise, smog and lack of exercise threatens to choke on its own success,
it added. Take the example of Groningen, a city in the northern Netherlands.

Out of a population of just under 200,000, there are 375,000 bicycles, and 50%
of all trips are made by bike, it noted.
Recession hits bike sales in Europe
According to European trade group COLIPED, 19.7 million bicycles were sold in
Europe during 2012. This figure peaked at 21.3 million in 2007. Given the
economic context, this represents a reasonably robust performance. Germany
and the UK were the largest markets in 2012 (accounting for 20% and 18% of
unit sales, respectively), followed by France (14%), Italy (8%), the Netherlands
and Poland (both 5%) and Spain (4%). The average price paid for a new bike in
2012 ranged from 724 in the Netherlands and 513 in Germany to 305 in the
UK, 278 in France, 268 in Italy and 260 in Spain.
Table 14

EU27 Bicycle Sales 2007-2012

Million units
2007 21.3
2008 20.2
2009 19.6
2010 20.5
2011 20.0
2012 19.7
A study conducted by consultancy Millward Brown SMG/KRC during 2013 found
that Polish consumers bought more than one million bicycles in 2012, a quarter
more than in 2008. The most popular brand was found to be Kross, followed by
Arkus & Romet, Giant and Merida. 70% of respondents said they rode a bicycle
at least once during 2012, while 22% said they used one regularly. Speaking to
newspaper Gazeta Wyborcza, Tomasz Radzki of bike retailer Velo noted that
Cycling infrastructure is improving every year. He added that hybrid bikes (a
combination of mountain bike and road bike) were growing in popularity with
local consumers.
A Euromonitor International Analyst Pulse Survey conducted during early 2014
found that 11% of respondents had participated in mountain biking during the
previous five years. In North America, 28% of respondents had participated in
this activity.
Chart 12
Participation in Mountain Biking over the Previous Five Years over
the Previous Five Years by Region 2014

Source: Euromonitor International Survey Analyst Pulse February 2014

Note: In Analyst Pulse surveys, Passport Survey reaches out to Euromonitors


network of in-country and in-house researchers in over 80 countries around the
world.
Gyms still popular, but competition within the sector is hotting up
According to the International Health, Racquet & Sportsclub Association
(IHRSA), 50.2 million Americans were members of a health club in 2012, while
the total number of health clubs stood at 30,500, up from 29,960 during the
previous year. More than 58 million Americans used a health club during 2012,
while industry revenue reached US$21.8 billion. In spite of the so-called great
recession, membership increased by 10% between 2008 and 2012. The IHRSA
claims that One out of five Americans aged six years or older were health club
consumers in 2012.

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