Why athleisure gets investors' pulses racing

Gone are the days when dri-fit tights or leggings, tee-shirts, racerback tank tops and sports shoes were what you wore only to the gym, a yoga session or for a run. Today, athletic wear has upped its game to become a fashion staple — even a lifestyle. It also has a new name — athleisure wear. And it’s not just a wardrobe essential of sporty types or athletes — you see regular people of all ages in athleisure wear running errands, attending meetings, having lunch with friends or a night out in town, to relaxing at home. It’s become part of everyday wear.

A hybrid of the words “athletics” and “leisure”, athleisure is the versatile new casual wear that isn’t just functional, but also stylish. Think Lululemon, Adidas and Kanye West, Puma x Rihanna. Athleisure wear is so hot that Morgan Stanley projects sales to hit USD350 billion by 2020, with athleisure grabbing a giant share from the non-athletic apparel market.

Here’s why the athleisure trend won’t be cooling down anytime soon:

Style Icons meets Social Media meets Wellness: Celebrities and social influencers strutting about in athleisure wear all over Instagram have played a huge role in athleisure’s red-hot popularity. And we know that social media is king. The enormous growth in followers for Nike on Instagram (Figure 1) for instance, is the perfect example of how social media has worked its magic on athleisure’s popularity.

Figure 1: Social media accentuating consumers’ interest in Athleisure

Source: Bloomberg, DBS

What’s more, people today aspire to live better and healthier. Wellness is a priority in our busy lifestyles. According to a survey by CreditCards.com, Americans spent more than USD100 billion in the past year on sports events, equipment, and gym memberships (Figure 2).

Figure 2: Sport-related spending amongst Americans

Source: CreditCards.com

Rising obesity. More people are overweight today. According to Nielsen’s Global Health and Wellness Survey (2015), 49% of global respondents felt that they were overweight, while 50% were trying to lose weight. As to how they planned to reach their goals, 75% said they would change their diet, while 72% said they would exercise more (Figure 3). The desire to live healthier has spiked demand for athleisure wear.

Figure 3: Athleisure is boosted by rising awareness of health and wellness

Source: Nielsen

Power of collaborations: Sports companies teaming up with high street fashion brands or celebrities to create athletic-inspired capsule collections have generated lots of publicity and hype in recent years. More consumers are looking for unique buys and experiences, no longer are they content with something off-the-shelf. The limited edition collections spawned from these collaborations have brought a sense of exclusivity and added hip, cool value to these items.

More of a staple, less of a luxury. Unlike higher-priced and bigger-ticket luxury goods, athleisure comes at a wide price range and is affordable — it’s everyday wear for everybody.

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