Retail Athleisure

Athleisure Basics

What is Athleisure Fashion?

The essence of athleisure lies in the term itself – ‘athletic’ and ‘leisure’. Thus, athleisure is a type of fashion that blends the functionalities of athletic and casual wear. The need for athleisure fashion mainly arose from the demand for fashion merchandise that could meet the requirements of both physical training as well as everyday use. Coming to examples of athleisure wear, it is more of an application of design. Therefore, it can be applied to almost any type of casual and athletic wear (including footwear and accessories) to make it what it is called ‘athleisure fashion’. By that definition, typical examples of athleisure wear include yoga pants, sneakers, leggings, sports jackets, shorts, etc.

Athleisure vs Activewear

Athleisure wear is meant for everyday casual wear on the lines of athletic appearances. However, the emphasis in athletic wear is on general or specific physical training purposes. Activewear is also inclined towards professional sports or sporting activities (can also be used by non-professionals but intended for sports or physical training usage). Athleisure is more about style first and athleticism later. Athleisure wear may not be even the right cut for many kinds of sports or physical training. A simple example of this would be swimwear which we ideally cannot wear for purposes other than for swimming or enjoying the beach or any suitable water body.

Markets and Brands

North America is the largest market for athleisure fashion with Asia-Pacific catching up fast. Big retail brands to be actively invested in athleisure fashion are Nike, Adidas, Puma, Lululemon, Alo Yoga, Under Armour, Fablectis, Athleta, and more. This blog will not delve into why athleisure fashion is on the rise as the reasons are not difficult to decipher.

Retail Athleisure Trends and Insights

Luxury

The element of luxury somehow comes in-built with athleisure fashion. This is likely to remain the same for a while till athleisure fashion does not attain mass popularity which will give businesses in the value chain economies of scale at the level of industry. Another reason is the high-end fabric materials currently used in making athleisure merchandise. Because of the element of luxury, athleisure products tend to be more expensive. Right now, it is also confined to fewer customer segments. Customers in these segments are willing to pay higher prices for better quality and designer touch. Athleisure products have an extensive usage range. People like to don this fashion for varied occasions including workouts or as casual wear or even for parties. So, is luxury then an inherent feature of athleisure fashion or is it a new addition to it to be counted as a market trend? The level of marketing efforts and investments put in by big brands like Adidas, Puma, or Nike and the emergence of new brands like Lululemon, Alo Yoga, and Athleta focusing on luxury athleisure is a reflection of their conviction in treating athleisure as luxury fashion.

Sustainability

Today, customers around the world are more conscious than ever before about the planet’s environment. It includes people from all age groups but what is making the difference is that a massive proportion of customers are millennials and Gen Z. These two sections are the powerhouses of the global economy. They are the biggest customer segments for almost all retail sectors. Athleisure fashion is no exception and is treated with the same lenses of environmental scrutiny. Various aspects of sustainable athleisure include concerns pertaining to the quality or nature of materials used in the production, efficiency of manufacturing processes, energy saving, waste disposal, labour practices, recycling programs, marketing campaigns, etc.

As a growing industry, environmental activists also have an eye on sustainability concerns associated with the production and distribution of athleisure merchandise. Online news portals and social media further fuel the awareness level of people.

The increased level of sensitivity among the masses towards the planet’s environment is something that is also recognised by governments around the world. The environment is a hot political issue as well. Governments cannot afford to perform dismally on this parameter. The positive outcome of this is tight environmental laws governing the activities of organisations involved in supply chains cutting across industries.

Technology

Technology is influencing the global athleisure fashion market in many revolutionising ways. Here, we are not talking about basic stuff like eCommerce platforms or inventory management software for athletic wear brands but tangible innovation in products.

Smart clothing is one of the interesting developments on the fore. Here, we are talking about athleisure merchandise that comes with biometric sensors and trackers. Such tech-infused apparels are of great value to sports professionals or even fitness enthusiasts. These smart apparels could make smart fitness bands go out of job.

Next is the use of artificial intelligence in athleisure product design. With the help of AI, fashion designers can come up with more localised and personalised solutions. There are legal and consent issues involved as such designing processes will involve collecting and analysing user data.

From known science and passed-on legacies, we know that the colour of the clothes we wear has a bearing on our comfort levels. For example, light colours are preferable while outside on a sunny day. But what if those barriers are gone? Clothing with body temperature regulation and self-cleaning features are other worthwhile developments in athleisure clothing.

Those thinking of venturing into the athleisure business line should not be dismissive about the impact of not just the available technology but need to keep an eye on trends and developments as well.

Idealism to Inclusivity

Athleisure is breaking the barriers of many age-old thinking patterns. Make no mistake, when we say age-old beliefs, even Gen Z is not free from it. Let us get on this one by one.

Traditionally, models and mannequins used to reflect the standards of what is ‘ideal’ for a body. Many contemporary fashionistas changed that perception for good. Today, mannequins are disappearing from the stores of many big brands. Models with diverse body structures, abilities, and age groups now appear on the front pages of fashion news. Athleisure starts just about here and is not stopping from breaking antique thinking patterns. There are athleisure brands that offer sizes from XXS to 4XL.

Athleisure fashion is also engulfing an increasing number of use cases. Adjustable straps and magnetic closures serve as examples here. Athleisure aligns with the idea of ‘easy dressing’. The scope of athleisure has expanded to include clothing for fitting comfort, space and breathability, and flexibility in movement for all.

The marketing part that gets automatically covered by the element of inclusivity in athleisure is that customers need not buy two sets of clothes – one for a general workout look and purpose and another for running errands.

Experiential Retail

Experiential retail helps brands and businesses deliver a memorable shopping experience to customers. In other words, the emphasis is to go beyond the transactional nature of retailing and give customers more to cherish in their shopping experience and forge a stronger customer-brand connection. Athleisure may not yet be a mass phenomenon but the competition is already fierce wherever a market exists. There are already many players trying to attract a relatively small customer segment. This is where experiential retail comes into the picture as a strategic manoeuvre. Some applied examples of experiential retail are interactive product testing, the creation of community space, and the use of AR/VR.

In interactive product testing, customers are provided with a simulated environment where they can test the features of products. For example, a rock climbing wall (say on a smaller scale within a store) would help customers try and test the stretchability of apparel or the grip of footwear. Interactive product testing can also include the use of AR and VR solutions to help customers assess products in a virtual or simulated environment.

A sense of community is also a useful notion in experiential retail. This could be used to give a common community space to customers with similar interests and passions to come together and do more. Say, an athleisure brand could hold events for parkour lovers in a city or state.

Soma and Soul

Our bodies stay fit by movement and our minds by staying still or calm. Athleisure perfectly aligns with this chunk of wisdom plus it comes as something fresh and new. From fabrics and design to technology infusion and a sense of community, athleisure provides a welcoming avenue to embark on our physical and emotional fitness endeavours. In this sense, athleisure is not just fashion but a long-term partner for achieving two important life goals – physical and emotional fitness.

A good outfit is also a mood enhancer. It boosts our self-esteem and self-confidence. Adding purpose beyond fashion to it makes it even more powerful. For many of us, even thinking and planning about what we are going to wear the next day excites us in good ways.

Both physical and emotional states have reinforcing effects on one another. For example, after a small run or a stretch of swim, we tend to feel active. By putting on clothes or footwear (say even buying a pair of swimming goggles or a yoga mat) designed for movement or any sport or meditation, athleisure can be the subtle nudge most of us need to get us moving. These small energy bursts are great for our emotional well-being and on the other side, the moments of calm and happiness inspire us to move and make a difference in the realm of the physical sphere.

Challenges in Athleisure Retailing

Athleisure fashion is a growing sector within the fashion industry. There are lesser players but the target segments are also limited. As a sector still in its nascent stages, developing business models around it is not easy in every region. Even if a market shows potential, getting the offerings and value propositions right in the initial stages is also not easy. These and a few other challenges concerning the athleisure retail business are discussed ahead.

Shortcomings in Value Chains

Even if a market shows potential and products to be offered are correctly identified, the intended value propositions cannot be delivered if the value chain is broken. For example, if there are no distributors or sourcing platforms for athletic apparel brands, wherefrom would retail businesses procure inventory? If big brands are not offering franchises, retailers will have to go as independent brands. Even if distributors are available or athleisure franchise arrangements are possible, can it be pulled off profitably? Other requirements like commercial space, warehousing and logistical solutions, and ease of doing business are also important considerations, which if not in place, can thwart business possibilities. While the first few players in a market have many early-bird advantages, there are also several hitches. They are the ones who pave the way for the first time. Once the road to a market is shown, it becomes easier for competitors to quickly enter that market with less effort and possibly, even lesser investments.

Brand Distinction

Brand distinction in athleisure retail is challenging owing to many reasons. For starters, the focus of a majority of athleisure brands is on a few select product categories. This limits the abilities of brands and businesses to distinguish on the grounds of their merchandising mix. Next is the ability of fast-fashion entities to quickly replicate the designs of big brands and launch them in the market. This shortens the timeframe available to big brands to market their design innovations. Also, brand loyalty is becoming an increasingly difficult feat in the face of consumer behaviour that prioritises value over who is offering that value. For small and medium retailers with independent value chains, the dominance of the big brands is a major challenge to establish in a market. This is partly because quality athleisure fashion is still in the realm of luxury. Going the eCommerce route, fashion products already face the challenge of validation and in the face of something as relatively new as athleisure, this challenge becomes more acute. These challenges partially explain the growing demand for athleisure brand marketing and advertising services. Getting listed on any popular B2B marketplace for athleisure manufacturers and retailers also helps learn more about markets, offerings, brands, and retailers. More importantly, it helps gauge the prevailing nature and intensity of competition in a given market.

Finding the Right Value Point

True athleisure is an expensive affair. Enormous amounts of research, studies, and investments go into the design studios. The coming together of fabrics and technology is a relatively new branch of science. Coming up with a genuine athleisure product idea ropes in three professions – fashion design, fashion technology, and fashion business. The challenge here for athleisure brands is finding the right value for the customer segments they intend to cater to. The products must look fashionable with the right fabric and technical features for the right customer segments. Then there are elements of pricing and distribution. A good product with the wrong price tag fails to find buyers. The issue of physical validation also comes up for purely eCommerce brands. In the case of expensive products, brands have little scope to play with offers and discounts. Right now, the scenario with athleisure is like – go right or go home. This is why expertise and precision in athleisure retail business model development are so important.

Alternative Competition

Another parallel challenge for athleisure brands and businesses is the competition from alternative solutions. Two of the biggest sources of alternative competition are activewear and fast fashion. Activewear products share a lot of similarities with athleisure merchandise. For example, a running shoe designed for casual runners and joggers is not very far away from a shoe built for the same purpose but with a touch of fashion in it. It makes it easier for existing activewear brands and manufacturers to quickly extend their offerings catering to the athleisure segment. The same cannot be said for products specifically designed for sports professionals but the nature of similarities surely provides leverage to activewear brands and manufacturers in terms of already existing value chain capabilities.

The competition from fast fashion businesses is more abrasive. These players can replicate and launch similar-looking products (if not feature-wise) in a short period. Such products may not attract customers looking for true athleisure merchandise but there is a big market comprising customers who want to look stylish or ride the trend without bothering about the technical attributes of true athleisure. At the level of retailing, it becomes important for business owners and stakeholders intending to offer true athleisure value propositions to be meticulous with brand positioning, target segments, promotional strategies, and market size among other elements of their business models.

Changing Trends and Preferences

Keeping track of fashion trends and customer preferences has become a complicated task and it applies to all kinds of fashion including athleisure. It has just become difficult to pinpoint coordinates but only directions can be gauged. Today, people want to look stylish and unique without the razzle-dazzle. People in the same circle would never buy the same design. Copying celebrities is no longer a fad. Social circles play a big role as they determine the level of the field itself. So, at any given point, it is difficult for a fashion retailer to anticipate fashion trends or predict changes in consumer preferences with certainty. How somebody decides what fashion is increasingly becoming individualised. The best way to keep track of fashion trends and changing consumer preferences is going real-time and finding places where any relevant data and information could be found. This is where digital marketing and analytics solutions become such potent tools as they help brands track general patterns with the element of personalised recommendations. Needless to say, social media also plays a strong role in helping customers discover new products. Conventional as it may seem, fashion manufacturers and retailers (including aspiring entrepreneurs) should also try to attend athleisure trade shows and conferences and networking events for the athleisure industry. Follow-up on athleisure industry trends and reports are also highly recommended.

Sustainability

Today, a vast majority of people around the world are environment-conscious and sustainability in the fashion industry has been the eye of the storm for a while now. Experts in sustainability consulting for the athleisure industry are often found reiterating that athleisure fashion is also seen through the same lenses as for any other fashion sector. All it takes is a few days of adverse publicity on social media for fashion brands to take the beating. Retailers, who are at the bottom of the value chain, have to bear the final brunt. Some sustainability issues concerning the athleisure fashion industry are discussed ahead. On the top of that list is the issue of raw materials used in making athleisure apparel. Synthetic fabrics that are commonly used in athleisure clothing are of fossil origin and the decomposition of such materials by the course of nature is an enormously time-consuming process. Then comes the heavy-duty manufacturing processes involved in producing athleisure merchandise creating concerns about carbon footprint. Retailers who are resellers or even franchise outlets have no control over what happens in the earlier stages of the value chain. This makes them susceptible to any potential or perceived greenwashing practices by entities in the value chain.

Quick Recap

Globally, athleisure fashion is a rising trend with its biggest markets in North America and Asia-Pacific.

Athleisure, as different from activewear, is the coming together of athletic and casual fashion styles. There is an element of luxury that comes inherent with athleisure fashion. However, with mass popularity and economies of scale, this is likely going to change. As a part of the fashion industry, athleisure fashion also gets scrutinised with the stringent lenses of sustainability. On the scoring table, athleisure breaks the shackles of many traditionally held notions of what fashion is and who it is for, making it more inclusive by nature. Also, athleisure aligns with the idea of maintaining fitness at the level of body and mind.

Technology has played and will continue to play its part in revolutionising the features and functionalities of athleisure products. Smart clothing is a glaring example of this. Speaking of technology, many big brands and retailers are using experiential retail solutions to attract customers and add value to their shopping journeys.

Despite being a growing industry, things are not easy in athleisure retailing. Because athleisure is a relatively new concept, the value chains are not robust everywhere. Even if there is a market opportunity, shortcomings in value chains render pulling off a business idea unfeasible. Athleisure is dominated by big brands and the abilities of independent MSME retailers to counter them are limited. Among the big brands, the problem is creating distinctive market positioning because of the homogeneity of products and limitations in design. Another challenge for athleisure brands and independent retailers is finding the right value point owing to complex design and the dynamic nature of values athleisure merchandise holds for customers. Then there is alternative competition from activewear and fast fashion solutions reducing the time window available to true athleisure brands and retailers to solidify their market positions. This problem compounds because of the dynamic nature of fashion trends and shifting customer preferences. The issue of the impact of the environment is already there in the fashion industry and athleisure is also subject to the same.

For enquiries on retail and eCommerce solutions for athleisure retailers or to speak to one of our expert omnichannel consultants, please drop us a message and we will reach out to you.