Athleisure and its growing appeals post-pandemic

Written by Kezia Pribadi | Read in Indonesian

The term "athleisure" is so popular now that it has been added to the dictionary. Merriam-Webster defined athleisure as “casual clothing designed to be worn for exercising and for general use”. The words athletic and leisure form a fitting contraction that refers to athletic apparel which people can wear in everyday settings.

As everyday styles on the streets continuously change, we see more women wearing leggings with crop tops or men in sweatpants, hoodies and sneakers while out and about - not necessarily while doing athletic activities. They look as though they just finished a workout, about to head to the city to work at a cafe.

Athleisure can also be defined as more than just a style as it can also be emphasised as a lifestyle. These people want comfort whilst embodying an active lifestyle whilst also having casual leisure time.

It is about wearing sports performance clothing and footwear with flair or fashion design influence mixed with sportswear features. The casual aspect of activewear is what differentiates athleisure from sportswear; athleisure is designed to transition from gym wear to daily wear.

The appeal of athleisure

Juicy Couture rose to prominence in the early 2000s thanks to their popular velvet tracksuit. Before that, there were no distinct exercise clothing that was particularly fashionable. Juicy Couture products were tasteful in the way that they were able to use luscious velour, fitted silhouettes and an array of colours with embellished studded logos. It was also worn by the icons of the time, such as Paris Hilton, Madonna and J-Lo. Back then, it was considered stylish and it worked well enough to run errands or to head to the gym.

Juicy Couture’s tracksuits (Source: Twitter @juicycouture)

However, Juicy Couture’s velour tracksuits fell short in terms of functionality as gym wear. They were also not formal enough to wear to the office or for work events. Then came Lululemon’s success; they created high performance clothing items that athletes can wear but were also appealing and comfortable enough to be worn every day. Lululemon was the first company to focus on functionality in sportswear. They added elements such as pockets on leggings, seams and zippers. The clothes could be worn from the gym to the street because their garments were made by sweat wicking fabrics and did not smell. In addition, the styles were modern and flattering.

Today, athleisure is not the same as it was five or ten years ago. In its early years, athleisure meant wearing joggers with heels or sneakers with dresses and designer leggings with a leather jacket. These days, the norm has translated into dressing to feel your best with an emphasis on comfort. What started as performance activewear for fitness goers has turned into a category that refers to functional activewear worn to make everyday wear synonymous with being stylish. Today, athleisure looks like wearing yoga pants with oversized hoodies and scrunched up socks and platform sneakers. Or styling tennis skirts with loafers and a crop top. It is much more stylistically elevated yet still sporty; intentional and sleek but effortless at the same time.

As athleisure continues to permeate within the fashion industry, there has been an influx of popular sportswear brands collaborating with high-end luxury brands, such as Wales Bonner with Adidas which created luxurious tracksuits, Japan-inspired trainers, knit joggers and half-zip jackets. There are also brands such as Fear of God that focus on sophisticated, timeless and elevated everyday staples.

How athleisure was re-energised during the pandemic

The coronavirus hit the world in early March 2020 and began to spread rapidly around the world – people were confined to their houses, only leaving for essential activities such as grocery shopping or bank and doctor appointments. The house became the new office, studio and workplace for many. Traditional clothing items such as suits, gowns, trousers and even jeans found themselves stashed away in the wardrobe never to be worn again (for a while, at least). People wanted comfortable, free-to-move and breathable clothing which are practical for everyday wear.

Activewear is now selling out more frequently than before the pandemic and has proven to outperform almost every other apparel sector, said Michael Maloof, associate director at Earnest Research.

However, it is also a crowded market that is difficult to master. Leggings and trendy sweatshirts are easy to copy and competition is tight at every price point. Companies such as Nike and Adidas have a greater advantage in terms of spending for technical innovation. Startups and smaller brands are facing the pressure to meet investors’ expectation of expeditive growth.

The pandemic, however, brought favourable circumstances to independent brands. According to Earnest Research Data, Gymshark’s US sales skyrocketed to an average of 163% year on year in July and August. Alo Yoga was ranked as the fastest growing activewear in the US by web traffic, surging 132% year on year between March and July, according to SimilarWeb.

Despite closing stores temporarily because of the pandemic, Lululemon was reported to increase its sales to $903 million by Q3/2022.

Lululemon’s apparels (Source: https://www.lululemon.me/)

Now, Alo Yoga was forced to shut down its seven stores and yoga studios, but in reality its wholesale orders and losses in retail sales only counted for a small proportion of its revenue. In fact, 90% of its business was dependent on e-commerce sales and the “Alo Moves” subscription programme.

Brands with more physical stores have been hit harder than those with established digital platforms. The number of online stores in the US are approximately 10% higher than they were initially going into the pandemic, as noted by Earnest Research.

Prior to lockdown, about 20% of activewear sales were online and it was estimated that it will hit 40% over the next few years. This puts tension for brands with brick-and-mortar stores to lean towards e-commerce.

Players with more physical store exposure have been harder hit, and those with less established digital platforms will likely continue to struggle. Currently, online sales of activewear in the US are about 10% higher than they were before the pandemic, said Maloof, despite brick and mortar stores reopening their doors.

Direction going forward

The athleisure sector is projected to grow from $326 billion in 2021 to $548 billion by 2028. Post-pandemic phase consumers are engaging in more outdoor activities, which includes individual outdoor sports (81%), at-home fitness (68%) and virtual races (32%). According to the “Global Athleisure Market Report” from Allied Market Research, athleisure is still on the rise. The athleisure market was valued at $155.2 billion in 2018 and is expected to reach $257.1 billion by 2026.

There are also evolving attitudes and behaviours; amidst the rising health awareness and a greater commitment to staying healthy, consumers are more inclined to continue to be active in new and different ways. Reports find that younger generations and consumers in India, China and the United States are willing to spend more on athleisure/sporting goods categories.

Brand relevance is also more important than ever. To build a brand with consumers who are loyal, especially in a recessionary context, it is important to note that consumers tend to rely on trusted brands. The ability for consumers to influence and push brands is stronger than ever. To build a strong and trusted brand that allows leverage for direct-to-consumer, collaboration with other brands and community marketing is vital in adding value to the brand’s equity. So with that, the growth in inclusivity, comfort and style offers extra appeal to a growing customer base.

It is estimated that the market will see exponential engagement of women taking part in fitness activities; noticing that the integration of sports and fashion has resulted in the rise of stylish sports clothing. There could be a possibility in market expansion to cater to women’s interest and needs.

Amidst rising health awareness and interest in living an active lifestyle and in athleisure apparel, the industry has been posting growth and has proven to be more resilient in bouncing back from downturns. The rise of smaller but wider varieties of brands makes the market an attractive target for growth. This has sparked interest among private investors, venture capital firms and private equity funds. In fact, according to McKinsey & Company, the number of parties showing interest in the sector has doubled over the past decade.

A strong social media presence as the brand’s marketing strategy is vital in gaining traction for today’s growing athleisure brands. Brands that are successful are keen in understanding their customers and catering to their needs. Take, for example, Gymshark. With emphasis on affordable pricing and a large fanbase of fitness influencers, Gymshark shows that having a strong marketing campaign and an element that is able to reach people is key. This could be the path to follow for other athleisure brands: know your customers and meet their ever-changing needs.