The sports apparel industry is among the fast-growing market segments in the world today. In 2018 the sports apparel market records significant gains and it will most likely continue with the upwards trends going forward. The robust growth in the industry is a result of the growing athleisure trend and both young and old consumers are driving the growth in trendy apparel.
In 2018 the sports apparel market was worth $167.7 billion but by 2026 the market value could reach $246.1 billion. The industry will register a CAGR of around 5.1% from this year through to 2026. The sportswear that is normally worn during exercises is designed to give you comfort and agility when exercising. They are made from breathable material that enables sweat to quickly evaporate.
Changing trends boosting the growth of the sports apparel industry
Sports apparel was initially a thing of athletes but with time the trend has changed which explains the fast growth, the segment has received in recent times. Trends have changed and people and non-athletes and gym-goers nowadays prefer sportswear. The adoption of sportswear is significantly high in Canada and the US. The growth of apparel has been enhanced by innovations with manufacturers using advanced materials to produce specialized products for various activities.
The industry is gaining traction in the market as a result of improving disposable income and a growing affluent population. Equally growing trends of health and fitness and awareness have significantly boosted the industry. The adoption of activities such as yoga, swimming, aerobics, and running has enhanced the market growth. Also, the growing participation of women in fitness and sports has been a driving factor in apparel industry growth.
Aggressive advertisements by manufacturers as well as celebrity endorsements have helped enhance the growth of the industry. There are higher barriers of entry in the industry which gives some of the established manufacturers and edge over emerging rivals. Considering sportswear especially shoes are high-performance products they thus require significant research and development.
Apparel leveraging the direct-to-consumer sales
Awareness creation and building of loyalty are very important in this industry and thus manufacturers spend a fortune in advertising and marketing. One thing that has helped manufacturers is the ability to sell directly to consumers in their stores or through the internet which means higher profit margins. In terms of pricing sports, apparel has higher pricing power, quick growth and better capital returns evidenced by the rapid growth of the segment.
Sports apparel brands have continued to innovate and expand their offering to meet the growing demand in the segment. For instance, Canadian Athletic brand Ryu Apparel Inc. (OTCMKTS: RYPPF) has partnered with Guesst in bid to bring its products and brands to its store in the US. Guesst offers an online platform that will enable the company to connect with other direct-to-consumer brands. The platform is a secondary POS for the apparel company’s US stores and will handle payments, transactions, reporting, and inventory tracking.