Expanding market interest in sporty clothing among direct-to-consumer (DTC) companies

The activewear market has seen a surge in growth over the past few years, with a multitude of brands entering the scene to cater to a diverse range of consumers. According to Matt Powell, senior industry adviser for sports with the NPD Group, this trend is not showing signs of slowing down, as fashion brands are increasingly trying to get into activewear.

One brand that has found success in this market is California-based Vuori. Backed by a $400 million investment from SoftBank, Vuori is expanding its reach, planning to build out 100 U.S. stores and enter international markets. Kossow, a industry expert, believes that Vuori's customer base could be drawn in by activewear and eventually move into other categories. However, he cautions against DTC brands moving too fast to expand into new categories, as the stakes are high if a company puts out a poor product and loses some of the consumer's trust.

Vuori is not alone in its success. Brands like Lululemon, Outdoor Voices, and ThirdLove, known for bras, have entered the activewear market and continue to thrive. These brands offer high-priced activewear, with leggings costing upwards of $80 a pair, and consumers continue to accept these prices. According to Powell, there is a conspicuous consumption aspect to this, as wearing branded activewear can signal a higher income to others.

The surging popularity of activewear has meant a lot more companies entering the market. Brands like Allbirds, a company increasingly shifting into the athletics space, and Sweaty Betty, acquired by Wolverine World Wide, have also joined the fray. Even traditional retailers like Target and Kohl's have launched their own activewear lines to strengthen their merchandise assortment.

However, success is not a given in the activewear market. According to Powell, the women's activewear market is a significant growth opportunity, as traditional brands have not been successful in catering to female athletes. This has left the sector's biggest retailers leaving their share on the table when it comes to the women's business. Brands like Thinx, a period brand that entered activewear a few months before ThirdLove, and Beyond Yoga, purchased by Levi's, have found success in this niche.

The strength of the activewear category has led many brands to launch into the space hoping to take advantage of its popularity. Even in the footwear sector, the athleisure trend is so strong that the sports side of the business is now much larger than fashion footwear as a category. Running brand On has even filed for an IPO, joining the ranks of brands like Hydrow and Allbirds, which have also filed for an IPO.

In the outdoor space, brands like Arc'teryx have seen a spike in their average monthly visits, increasing by 264% over the last six months. Outdoor Voices remains one of the most recognizable names in the DTC space from recent years, along with DTC brands like Vuori that are expanding into other categories, such as dress pants and travel-specific products, aiming to attract customers with versatile and durable fabrics.

As the activewear market continues to grow, it's clear that the genie's left the bottle in terms of consumers accepting more versatile, better-looking, and durable fabrics in activewear. However, as Kossow warns, DTC brands must be careful not to move too fast to expand into new categories, as the stakes are high if a company puts out a poor product and loses some of the consumer's trust. With the right approach, brands can tap into the booming activewear market and find success.

Expanding market interest in sporty clothing among direct-to-consumer (DTC) companies