The Asia-Pacific region is expected to drive global sportwear industry growth within the next 5 years according to a recent S&P global report.
The Guidepoint Insights team is closely monitoring this highly competitive market, putting focus on the most promising sportwear categories, and providing timely updates on the highest performing brands.
Below are a few key market trends that the team has been observing.
Trends in Sportswear Apparel
Sportwear apparel continues to be a resilient category that thrives within multiple price tiers, according to a recent McKinsey analysis.
Guidepoint Insights teamed up with a former Vice President of the Global Marketplace from Nike Sportwear to unveil the major trends in this promising category.
Key takeaway:
Athleisure – “This trend remains significant and enduring, although smaller local brands like Lorna Jane, THE UPSIDE, and P.E Nation may struggle if they fail to innovate. Larger brands like Lululemon, Nike, and Adidas are expected to capture more market share.”
Running Apparel – “Premium running brands such as Ciele, Satisfy, Tracksmith, District Vision, and UVU are gaining traction, driven by the trend of marathons as new fashion events.”
Sustainability – “Consumers are increasingly demanding innovation, natural fibers, and sustainability, avoiding harmful chemicals like PFAS.”
Consumer Behavior in China
The Chinese sportwear market represents a promising yet intricate landscape. On one hand, there is a broad spectrum of interest in sports and sportswear as individuals seek to define their identities. Notably, premium and international sports brands have experienced significant growth. Conversely, the “Guochao” trend has been on the rise due to recent geopolitical tensions, leading many consumers to gravitate toward local brands.
Guidepoint Insights engaged in ongoing discussions with market experts from leading sport brands like ANTA, ON-RUNNING, and LI-NING. These discussions aim to keep pace with the latest consumption patterns, decision-making processes, and consumer sentiment that propel this dynamic market.
Key takeaway:
“The Guochao style, popularized by brands like Li-Ning, is particularly appealing to young people.”
“Nike faces stiff competition from local brands like ANTA, which have invested heavily in innovation and strategic acquisitions. Despite these challenges, Nike remains a premium brand in China.”
“In top-tier cities, younger consumers exhibit a stronger preference for international brands while domestic brands struggle to enter such markets.”
“The Chinese market is highly advanced in mobile and direct-to-consumer models. Foreign brands often struggle to meet high expectations for e-commerce, post-sale support, and brand engagement.”
Competition for Southeast Asia Market Share
The Southeast Asia sportswear market is poised for further growth opportunities in the coming years, with an expected CAGR of 5.20%, according to the IMARC report.
Guidepoint Insights recently spoke with experts including a Team Head of Retail Operations of Puma Sport, and a Vice President of Merchandising of Foot Locker to better understand the notable market trends and competitive dynamics.
Key takeaway:
“Local consumers in Singapore exhibit lower sales volumes but spending increases in Malaysia and Thailand.”
“The athletic footwear category in Southeast Asia is a substantial segment within the broader sportswear market, worth billions of dollars.”
“Nike has experienced a significant decline in market share due to a shift in their distribution strategy.”
“Emerging brands like On and HOKA are gaining traction with lifestyle innovations, despite high price points.”
Through ongoing pivotal discussions with renowned industry experts across major markets, Guidepoint Insights will continue to monitor the evolving trends in the APAC sportwear market – providing comprehensive analysis of the latest market performance, consumer behaviors and their far-reaching implications, while staying attuned to the trends in brand and product innovation.
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