Secular Trends: Athleisure & Esports
Athleisure is a trend in fashion in which clothing designed for workouts and other athletic activities is worn in other settings, such as at the workplace, at school, or at other casual or social occasions.
Athleisure is the new casual
athleisure as a “weird hybrid” of business casual and athletic wear, which has essentially created an entirely new category of clothing. Many of the clothes that people now consider work-appropriate incorporate sports-inspired materials, like spandex, Lycra, and other synthetic fibers. It’s combining two trends that have dominated American casual clothing — durability and comfort — in a versatile way. (Business Insider)
Athleisure has been the biggest trend in retail over the past several years, helping put athletic apparel stocks on a fast track to big-time gains. The rise of the internet, social media and photo-sharing apps created an unprecedented surge in consumer self-awareness regarding image, health and fitness. As consumers become more attuned to self-care, they simultaneously lead more active, healthy lifestyles … or at least give off the appearance that they are doing so through Instagram posts. This has likewise led to a surge in athleisure clothing sales, since that is the apparel that best fits this lifestyle
This isn’t a short-term trend — it’s secular. Consumers are only becoming more connected, and they are consequently becoming more self-aware. Thus, the underlying consumer desire to become healthier and more active will continue to grow. Consumer demand for athleisure clothing will likewise continue to grow over the next several years. (Marketwatch)
Facts:
- ) Americans are being drawn to athleisure in larger numbers every year. In 2015, while the whole of retail sales were flat for the year, sales of athletic wear were up 12%, according to Fortune.
2.) Todd Snyder, the former head of menswear at J.Crew and the founder of his eponymous label, told Business Insider that he thinks athleisure is an “evolution,” as opposed to a trend or fad.
“Guys have changed the way they dress,” Snyder said. “[Athleisure] is not going to go away for at least 10 years.”
3.) “People want less maintenance of their clothes,” Clemente said. “Technology is such a pervasive part of our lives. To want it in our clothes is simply natural.”
Simply put: customers are willing to shell out more for what they prefer.
PUMA
Puma’s global sales improved 16.8% in the first half of the year, and according the company, its U.S. sales are growing by 18%, the biggest gain by a top 10 sportswear company in the U.S. Puma stock is also outperforming Adidas. Both trade on the Frankfurt exchange.
We see esports as a growth market for Puma — not just in Australia, but globally, said Puma Oceania general manager Pancho Gutstein, in a release. “ORDER is a leader in their space and it’s our privilege to play a role in their future successes. We’re excited to welcome ORDER to the Puma family and look forward to building together.”
ORDER is also sponsored by Alienware and Monash University, and currently competes in Overwatch, League of Legends, Counter-Strike: Global Offensive, World of Warcraft, and Street Fighter V.
Puma will release an apparel collection with the esports brand Cloud9.
Esports are projected to have a global audience of 194 million in 2019, according to Morgan Stanley.
Nike, Adidas, Champion and K-Swiss also offer products for esports
Puma is trying to find a cheat code to boost its already fast-growing sales.
The German sneaker maker announced a multiyear partnership with esports brand Cloud9 to create an apparel collection for gamers. The clothing will sell for $25 to $75 and be available for purchase on the websites of both companies.
In January, Puma signed a sponsorship deal with Cloud9 to provide official game day shirts and pants for league players. It’s similar to the uniform sponsorship or “kit deal” Puma has with Manchester City in the English Premier League.
According to Morgan Stanley, 194 million people are expected to watch esports this year and they’re within a key demographic: 79% are under the age of 35 years old.
“Tapping into the world of esports, and its broad, dynamic consumer audience, is critical to our marketing strategy moving forward,” said Adam Petrick, global director of brand and marketing at Puma.
“Being able to transcend esports and elevate our brand within a broader global audience is the natural evolution of the growth of Cloud9,” added Jordan Udko, executive vice president, commercial partnerships for Cloud9.
Puma is actively working to reshape its brand image. The company re-entered the basketball sneaker segment last October after a 20-year absence in the space, naming hip-hop mogul Jay-Z creative director of Puma Basketball. It’s also taken a page from Adidas’ lucrative partnership with Kanye West, by offering products in partnership with celebrities like Rihanna, Adriana Lima and Selena Gomez, in addition to sponsoring sports stars like Olympian Usain Bolt and golfer Rickie Fowler.
Amazon Fashion has partnered with sportswear giant Puma to launch a new athleisure brand, Care Of.
Beneficiaries:
Nike
Nike Inc. (NYSE: NKE), one of the leaders in athletic apparel, reported their financial results for its fiscal 2019 fourth quarter and full year ended May 31, 2019 earlier in the summer, with fourth quarter revenues increasing to $10.2 billion, up 4 percent on a reported basis and up 10 percent on a currency-neutral basis. Full year revenue rose to $39.1 billion, up 7 percent on a reported basis and up 11 percent on a currency-neutral basis, as strategic investments in innovation and digital drove global consumer demand led by NIKE Direct in both periods.
“FY19 was a pivotal year for NIKE as we continue to bring our Consumer Direct Offense to life throughout the marketplace,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “Our distinctive innovation and digital advantage led to accelerated growth across our complete portfolio, while our Brand fueled deeper relationships with consumers around the globe.”
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