Innovation in activewear propelling its steady growth

In the US, Target's activewear brand All in Motion hit US $ 1 billion in sales one year after launching. In India, the biggest retail giant, Reliance Retail is expanding the presence of its high-performance and technologically advanced activewear brand ‘Performax’ through exclusive brand outlets (EBOs) at Reliance Retail's fashion and lifestyle stores and digital platforms as well as in multi-brand outlets. It already has a presence across over 1000 stores in 330+ cities. Just six months back, Van Heusen of Aditya Birla Fashion and Retail Ltd (ABFRL), a premium lifestyle brand for professionals, entered into the activewear category and launched a new sub-brand ‘Flex’. There are many more such examples that show how across the globe, brands and retailers have tilted towards the activewear category. Indeed, across all levels, be it D2C brands, celebrity brands, budding start-ups and Instagram sellers, the activewear product category is in constant demand from the last few years.

Compared to various markets across the globe, India is the fastest-growing market of this segment, growing at the rate of 13.9 per cent CAGR. Combination of innovations with fashion is the most significant factor leading to the growth of this product category which is further supported by the active lifestyle of people. Blurring lines with many product categories like workwear or workout wear is also an important supporting factor contributing to the demand. Various market studies are also bullish about the growth trajectory in India – from a market size of US $ 5.83 billion in 2018, the Indian market for activewear is estimated to reach US $ 12.47 billion by 2024 (footwear includes approximately 50 per cent). At the global level, the activewear market is expected to have an effective CAGR of 6.4 per cent during the period of 2022-2032 and it is expected to expand from US $ 421 billion in 2022 to US $ 779 billion in 2032. Growth is also enjoyed majorly by the companies that are dedicated to the combination of fashion and innovations.

Industry stalwarts are strongly of the observation that people are incorporating wellness routine in their lifestyle which is leading the activewear market to grow which in turn offers numerous opportunities for the entire value chain like apparel manufacturers, textile mills, finishers and retailers. But this segment is now overcrowded as many players are there. However, irrespective of the growing number of brands, this segment will have continuous demand going ahead.

Activewear is connected with an active lifestyle be it working out in the gym, office or public place. People especially millennials have fitness as their top priority but don't necessarily always see themselves as sports-centric, so activewear is timeless, comfort and design-driven and with functional aspects. Activewear products possess strengths like being water-resistant, 4-way stretch, moisture wicking, air permeability, easy dry, ergonomic design, anti-bacterial and anti-microbial formulations.

Looking at the opportunities in the activewear segment, Eight Roads Ventures, a global venture capital firm, recently invested in BlissClub, a D2C women's activewear brand which is on track to hit Rs. 100 crore in annual revenue run-rate. Shweta Bhatia, Partner, Head of technology investments, Eight Roads Ventures, India says, "Activewear has become one of the fastest-growing apparel categories globally, including in India, driven by an increasing interest in fitness and shift towards comfortable clothing."

Like fast fashion, youth, especially millennials and Generation Y, Z are the flag bearers of the demand for activewear. And they are the best target audience for companies geared up to grow in this product category.

Abhay Bahugune, COO, Van Heusen says, "With the growing popularity of sports and home fitness, young consumers are seeking comfortable and functional active/sportswear. Our Flex range is targeted at self-driven, passionate, stylish, tech-savvy, ambitious and assertive young professionals who are focused on health and wellness."

And interestingly, women have a significant share in this category with women-specific products like sports bra, leggings having good demand. And Zivame and Clovia, which started as lingerie brands, are now present as leading brands for women's activewear. Reliance Retail has a majority stake in both brands.

Having a specific focus on women's activewear, BlissClub was founded in 2020 by Minu Margeret and has raised a total funding of US $ 20.25 million so far. Minu Margeret says the company is on track to hit Rs. 100 crore in annual revenue run-rate. The company came up with insanely comfortable activewear after extensive R&D and surveys. There are also brands like Spirit Animal, a premium plus-size activewear brand that focuses on the curvy woman.

A year ago, Radhika Shanker, a professional footballer and Aditi Kakkar, a national-level weightlifter and CrossFit athlete launched Ochre Athletica focusing on comfortable activewear that doesn't cause itching or tear off during or after the workout. It has been also observed that the increasing participation of women and kids in sports activities and the promotion of activewar as casualwear has led to the expansion of the activewear market in India.

With the common thread of active lifestyle, these segments are used interchangeably but there are differences. Indeed, there is no strong and well-accepted demarcation between these segments like casualwear and formalwear.

Activewear is where fashion meets performance and wearing during exercise. Athleisure sits at the intersection of exercise and leisure.

Brands believe that modern-day professionals seamlessly shift between work and play. Style, creativity, innovation, perfection, comfortable and yet fashionable are significant aspects of this segment.

Clovia believes that extra-fancy activewear is the new athleisure as it offers activewear products that can be styled as athleisurewear.

There is a gradual blurring of lines between work attire and workout attire due to global factors like celebrity collaborations with D2C and designer activewear brands. In fact, this is with many product categories.

To differentiate, sportswear is designed specifically for sports purposes, while activewear is designed to transition from exercisewear to casualwear. Certain functions like comfort, specific fabric weight and sport-specific (Swimming, Cycling etc.) requirements are significant factors differentiating both categories.

Prasanta Sarkar, an apparel expert believes that activewear is casual, comfortable clothing suitable for sports or exercise whereas athleisure is casual, comfortable clothing designed to be suitable both for exercise and everyday wear. Athleisure clothes are perfect for travelling and walking.

Film celebrities and sportspersons have higher concern for their fitness and in the Indian market, celebrities have a direct connection with the activewear segment. It's going to be a decade now since actor Hrithik Roshan launched his (co-owned) brand HRX and thereafter, cricketer Virat Kohli came up with Wrogn brand, and in 2016, another actor Shahid Kapoor came up with SKULT. Later Tiger Shroff launched the activewear brand Prowl.

The majority of these brands have performed well and are continuously growing. HRX is now a Rs. 500 crore plus brand, similarly, Wrogn is also doing well and Porwal was launched on Flipkart in October 2022. Abhishek Maloo, Senior Director, Flipkart Fashion says, "Over the past two years, we at Flipkart have observed an increase in the demand for activewear. With this segment becoming more mainstream, its share of the closet as a fashion essential has increased tremendously. We believe PROWL will effectively cater to the increasing need for fashionable and comfortable clothing."

On the other hand, along with a focus on innovations and creativity, various brands are associated with celebrities for their activewear products. Clovia has associated with actress Payal Rajput, Performax of Reliance has signed cricket star and India's top bowler, Jasprit Bumrah as its brand ambassador.

All brands are on their toes for innovation in activewear and the thrust is on raw material. Target has highlighted that the majority of ‘All In Motion’ activewear incorporates sustainably sourced materials, primarily including recycled polyester and sustainably sourced cotton. Van Heusen also has an innovative ‘reflect technology’ with reflective elements that look normal during the day but glow in the dark.

Founded by Sanjana Masand, Seeq, majorly uses a blend of nylon and spandex (78:28 or 88:12), recycled polyester and spandex etc., that are built with quick-drying yarns, provide compression and allow a four-way stretch with high recovery. Heat-bonded seams and ventilation design detail are also strengths of the brand's products. Bliss Club's leggings have features like deep pockets, true ankle length and foldable waistbands.

Budding start-ups DaMENSCH, Zymrat (performance wear brand) have also created a strong presence in the market with their innovative products for men.

"At Zymrat, we believe that technology elevates performance. And by combining engineered fabrics with industry-first tech, we’ve managed to launch world-beating products. Our innovation is structured and methodical, solving problems through incremental benefits and tailored for the Indian audience. All innovations at Zymrat are led by a solution to a problem. We made SuperSilva T-shirt to solve the common problem of odour in products that are sweat resultant, SuperVent to add more breathability to the bottoms and thereby solve the problem of fabric sticking to the skin during intense workouts, Centurion has been designed to solve the problem of weight in running T-shirts," says Ujjawal Asthana, Co-Founder, Zymrat.

Global: Nike, Puma, ASICS, FILA Decathlon, Columbia Sportswear, Lululemon, Sweaty Betty, Alo Yoga

India: HRX, Alcis, BlissClub, Tego, Myriad Activewear, c9, Silvertraq, Ochre Athletica, Kica, SeeqActive

Activewear includes footwear, apparel and other few sports accessories (caps) too. The strong presence of international brands like Puma, adidas, Nike, Decathlon etc., across all categories is strongly in its favour. Puma India's revenue was Rs. 2,044 crore for FY ’21 ended December. At the same time, its massive experience stores and engagements at stores attract customers more.

Just last month PUMA launched its first experiential store in Mumbai which is the largest store in West India. The brand, in the last one year, has launched two other experiential stores in Gurugram and in Bengaluru. Having highest turnover among its peers, Puma has a total of 490 stores in India.

While few of the Indian brands have the edge of offering similar apparel products to these brands but at affordable prices. The strong presence of Indian brands in smaller cities is also supportive towards the growth of activewear.

Manufacturers in this segment that have their own labels have also got the advantage of their distributors’ reach in Tier-3 and Tier-4 cities or villages. E-commerce is also beneficial to the industry as a whole.

The majority of manufacturers in this segment are enthusiastic about rapid and steady growth. Few of them are sure about 15-20 per cent growth at least, while there are companies that are geared up to double their business in the next 3 to 4 years. Focus on innovation, quality and quick turnaround are major factors making them different from others.

Tirupur-based Techno Sports India, one of the most respected manufacturers in this segment, has integrated fashion and technology to drive innovations in final products. With a current revenue of Rs. 200 crore, it aims for five times growth in the next 3 years. Sunil Jhunjhunwala, Techno Sport, an ex-Microsoft engineer also has plans to start a fabric unit as his thrust has been innovation in fabrics.

"We have been collecting data on fabrics and fibres for 8 years in order to develop better garments. We have observed that spandex is not good for activewear because it decreases air permeability and increases compression, so we ventured into using polyester instead. We have also produced mesh clothes with high air permeability. These kinds of various elements are taken care of in product manufacturing ensuring our growth," says Sunil. The company spends 2 per cent of its annual revenue on R&D, in close collaboration with WRA (Wool Research Association).

He further adds that brands like Techno Sports, achieved good growth as they offered the greatest functional clothing that gave a transforming experience while keeping customer psychology in mind. At the same time, the price range is also affordable, unlike the globally well-known brands that are unaffordable for the masses.

"Techno Sport is a firm believer in the fact that Indian consumers do not give much attention to tags or information; they want a garment that meets their needs within their limited budget," avers Sunil.

Activewear is all about knit base, so companies from knitting hubs like Tirupur, Ludhiana are witnessing high growth in this segment. Arpit Aryan Gupta, Director, Marketing, NG Apparels, a leading manufacturer of activewear in Ludhiana says, "I have seen almost a 400 per cent jump in India's activewear market as more and more homegrown brands have now started focusing on quality rather than quantity and even consumers these days are willing to pay the extra buck for an international standard homegrown product. I can expect the Indian activewear market to go double in the next 5 years."

As per industry estimates, there are more than 1000 brands across India which are into activewear and with a growing focus on the same, it will not be wrong to say that this number is growing, so this space is now overcrowded.

Although new brands and players at different levels are coming in this segment, but the majority of them are offering regular products which lack innovation especially functional aspects. Hence, these kinds of products have regular demand unlike the high demand for proper activewear. So this segment appears to be overcrowded.

Mojostar, a Mumbai-based company, intending to co-create authentic, high-impact indigenous brands in lifestyle space, has launched Prowl brand. Abhishek Verma, CEO of the company believes, "There is a gap in the activewear market for products that are meant for hyperactive young Indians. Traditional activewear brands have over-specified the products, whereas young consumers want simplified functional products that offer great style. Products that help you look amazing, are suited for multi-functional movement and are easy to maintain, are the needs of this market."

Along with quality and innovation, changing dynamics of the market and economy are important aspects ensuring the long-term demand for activewear.

"India is a manufacturing economy, slowly shifting towards a consumer economy which means the market is going to expand further and with more and more people having higher incomes and international exposure, I believe that the market is ‘not’ overcrowded with ‘quality’ products. There is going to be a huge demand for homegrown brands now with a focus on quality and innovations," says Arpit.

Due to versatility and flexibility that activewear offers, it is here to stay but the market will be mainly for innovators only.