Global Sports Apparel - Subdued Optimism For 2025
Firm industry growth. The global sports apparel industry is set to enter 2025 with stabilising revenue expansion estimated in the mid-single digits. Non-luxury segments are expected to drive growth a...
Chief Investment Office - Hong Kong version5 Dec 2024
  • Global sports apparel industry to sustain 5.9% CAGR in 2023-28
  • Consumer behaviours shift towards value-conscious, personalised shopping experiences
  • "Silver generation" emerges as new growth engine
  • Incumbent-challenger rivalry demands more diversification, partnerships, and innovation
  • Chinese sports apparel brands showing greater resilience, well-poised to benefit from government support
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Firm industry growth. The global sports apparel industry is set to enter 2025 with stabilising revenue expansion estimated in the mid-single digits. Non-luxury segments are expected to drive growth as rising inflation, lingering geopolitical tensions, and subdued consumer sentiment prompt shoppers to gravitate toward value-driven options. At the same time, shifting consumer behaviors, marked by a preference for personalised products, value-conscious choices, and unique shopping experiences continue to reshape the industry’s landscape.

While young consumers remain the key demand driver, the emerging influence of the silver generation (i.e. the over-50 demographic) has prompted brands to cater to their preferences. To capitalise on these evolving opportunities, industry players must prioritise innovative product differentiation, agile operational models, and cultural resonance. Such strategies will help mitigate inventory challenges and maintain competitiveness in a crowded marketplace.

The rise of challenger brands. Established players in the sports apparel industry are facing mounting competition from challenger brands like Lululemon, ON, and Hoka. While these relatively newer entrants have started to see gradual normalisation in growth after the initial rapid expansion, they have distinguished themselves through visible product innovation, a focus on specialised sports categories, and strategic marketing initiatives.

Incumbent brands like Nike and Adidas must adapt by diversifying their offerings and fostering more authentic partnerships with athletes and celebrities to maintain relevance. Striking the right balance between direct-to-consumer and wholesale channels will be critical to enhancing brand presence and customer engagement. Moreover, continued investment in innovation, targeted marketing, and consumer relationships will be essential for legacy brands to retain their competitive edge.

Bolstering resilience. While top players like Nike, Adidas, and Puma have experienced mixed results in recent year, Chinese sports apparel brands have shown agility in responding to shifting consumer demands. They are also poised to benefit from the government's latest stimulus plans, as well as its goal of expanding the Chinese sports industry to CNY5tn by 2025 (2022: CNYB3.3tn). To navigate the volatility, key players continue to reduce excess stock and steer towards healthier inventory levels. These efforts position them well for better growth prospects as market conditions stabilise.

Overall, with the global sports apparel industry expecting to sustain decent CAGR of 5.9% in 2023-28, brands that can improve their resilience and responsiveness to market changes are likely to emerge as industry outperformers.


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