FASH419 SPRING 2017 CURRENT TRENDS AND FORECASTING
athleisure is more than a trend
TARGETED TREND RESEARCH DOCUMENT
PRODUCED BY
NICOLE CHEONG
CHLOE, YUJUNG CHUNG DESIGNED BY
CHI-HANG WONG
CHI-HANG WONG
contents 4 INTRODUCTION athleisure market
8 TARGET MARKET millennials
12 BRANDS RELEVANT TO TARGET MARKET luluemon, nike and adidas
16 MARKET TREND RESEARCH sweatshirts & hoodies, tracksuits, sports bra & leggings nature-inspired prints and others
32 PEST ANALYSIS politcal, economic, social and technological
36 MARKET STRATEGIES & PROPOSALS two short term and one long term goals
39 CONCLUSION summary and insights
40 APPENDIX additionaly findings and supporting photos
46 REFERENCE text and figures & images
athleisure market
ATHLEISURE is the trend almost everyone currently loves. Everywhere we look, there is bound to be someone sporting a garment or accessory, which holds a functional history in sportswear, but also been established as a fashion item. The garment we choose to wear for exercise can also make a statement about who we are, whereby it portrays the sport we play, the team we support, and the brands we purchase; luxury or mass-market. This is also evident in footwear, which has also vastly evolved through the advancement in technology leading to new and improved materials. As a result, functionality in sportswear increased whereby garments were either breathable, more lightweight, waterproof, and so on. Some notable pieces include the yoga pants, leggings, sweatshirts, hoodies, and sneakers. These garments are not only functional and facilitative; they are also performance enhancing; allowing wearers to easily carry out everyday activities as well (Goodrum, 2016). According to a survey conducted by Statista, the number of consumers who purchased sports apparel and footwear for everyday life and leisurewear is relatively high, coming in at 63.02% and 60.29%. Although the use for sports and exercise has a higher percentage, the evolution into street and casual wear is evident too, especially if both styles are mixed in both situations (Statista, 2016).
4
introduction
The sporty looks adorning the streets, runways, and fashion stores nowadays, may be seen as a stylish update to the denim uniforms once commonly associated with workwear (Salfino, 2017). The athleisure trend often defines as comfortable, versatile, and stylish activewear (Slouchy Style, A. A. - Entrepreneur, 2014). This is further supported by the emergence of new innovations in activewear, which are now often geared towards a product’s comfort, fit, and style. Some notorious examples on the market include the Gore Tex, and the Nike FlyKnit. In these recent years, sports apparels have noticeably transitioned from the gym to the street and from active wear to casual wear. Athleisure’s popularity also stems from its ability to fill a gap in the market, when sportswear were once merely function rather than stylish (Great Speculations and Trefis Team, 2016). The versatility factor benefits by an increase in on-the-go lifestyles of young adults, leading to relaxed dress codes at the workplace, restaurants, and various other establishments (Fromm, 2016). LifeStyle Monitor further proves this in a study, whereby almost 35% of respondents wore causal clothes to work compared to business dress or uniforms.
When do you wear sportswear and sports shoes?
Statista. (2016). When do you wear sportswear and sports shoes?*. Retrieved April 26, 2017, from www.statista.com.library.scad.edu/statistics/629976/when-do-people-wear-sportswear-and-sportsshoes/.
Types of clothes worn to work
Sourcing Journal. (2017). From workout to workwear, athleisure works a new angle. Retrieved April 26, 2017, from https://sourcingjournalonline.com/workout-workwear-athleisure-works-new-angle/.
introduction
5
According to the NDP Group, sportswear sales increased by 8% to $35.1billion USD in October 2014; across all channels of distribution. In the U.S. apparel market alone, not only does sportswear hold a 17% market share, it contributed largely to success of the market; outperforming traditional apparels (DiBlasio, 2015). By 2016, the NDP Group reported a 16% increase to $44 billion USD in 2015. Globally, the athleisure sector is worth over $83 billion USD, with a predicted growth of 30% in Asia and the U.S. by 2020 (Trendshop, 2016). In addition, a chart provided by Morgan Stanley, indicates that global sales may rise to over $350 billion USD (Great Speculations and Trefis Team, 2016). However, the issue with this increase, is the fear of market saturation, with more traditional luxury, and mass merchant activewear brands joining the trend (Salfino, 2017). Hong Kong has always been a notorious harbor for sportswear brands and companies due to activewear often adopted as causal wear and street wear by the young and middle age consumers. During 2016, Hong Kong also saw sportswear as the best performing category, with an 8% current value growth leading to sales of $14.5 billion HKD. Women’s sports apparel in particular had the fastest growth of 12%, and sportswear is predicted to continue to grow at 9% current growth rate; equating to $22.0 billion HKD by 2021. With the shift towards healthy lifestyle trends causing the push in demand for sportswear and sports inspired goods, brands are beginning to compete based on capturing todays consumers through brand loyalty, social media, and marketing strategies and campaigns (Euromonitor, 2017).
6
introduction
Other impacts pushing the athleisure trend include social media, wearable tech, fitness apps, sports cosmetics, and new product developments in healthy foods, weight loss products and dietary supplements. Celebrities, fashion bloggers, and brands are other key influences in the global evolution of athleisure, by supporting its transformation into a trend and lifestyle statement. Due to its dominance in the market, retailers ranging from high street to luxury also want to get their share of better profits by adapting to shifts in consumer tastes. Brand identities are tweaked or new lines or brands launched, in order to tap into a new generation of customers who need clothes that allow them to transition from the gym, to the office or street (DiBlasio, 2015). The tactic of traditional sport brands therefore includes the refurbishment of products from practical to stylish. However, competition is high as the athleisure market is currently very highly saturated. On a positive note, leading athleisure and sportswear brands such as Lululemon Athletica, Under Armour, Nike, and Adidas, can owe their success to their product’s ability to build an emotional connection with consumers. For athletic apparel, customers also want the active lifestyle that comes with the garment and purchase (Fung Global Retail & Technology). These brands have picked up on consumer trends, and began retailing sports fused work appropriate garments. In 2016, luxury brands and fashion houses also launched capsule sportswear collections, as well as collaboration with other designers, in order to produce athleisure and athletic apparel for performance and casual wear purposes (Halliday, 2017). Athletic-inspired looks added into personal collections too. It is evident that there is a lifestyle shift in play, as we see more consumers adopting the athleisure trend, despite being an active sportsman or not. Furthermore, the average consumer is now more willing to pay high prices for fitness and wellness, making them prime targets for high-end athletic inspired apparel, which are more fashion focused (Halliday, 2017)
Morgan Stanley’s projection for global activewear sales
Morgan Stanley. (2016). Morgan Stanley’s projection for global active wear sales. Retrieved April 26, 2017, https://www.forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-hereto-stay/#598ae34028bd.
introduction
7
athleisure target market After visiting gyms, sport centers, the streets, and browsing through research sources, it can be concluded that the main followers of athleisure are millennial. At Pure gym in Hong Kong, we noticed majority of members were around the ages of 20 to 40 years old, and often mix and matched different price ranges of athletic brands. The trend is also seen trickling down into Generation Z, when visiting the 6th Hong Kong Games. Spectators even sported athletic-inspired garments, with participants dressed in stylized team sportswear. As the years pass however, more are and will begin to adopt this trend if it preservers. Mintel further confirms findings, stating that athleisure goods are most popular among the ages of 16 to 34; thus encompassing Generation Y as well (Goodrum, 2016). It is identified that majority of followers that purchase activewear as leisurewear, are turning athletic garments and footwear into everyday clothing that may be used for sport performance too. Millennial women in particular are the main culprits, often fusing sports apparel with causal clothing, by swapping jeans for sweatpants or leggings (DiBlasio, 2015). Although this trend is more prevalent with women, men hold 40% of the Millennial audience, while women hold 60%. Currently, these groups make up the largest sector of the workforce, with numbers due to increase by 75%, along with their real disposable incomes. Since athleisure is about embracing ideologies and aspirational lifestyles, millennials are more willing to spend on fashion and food experiences, gym memberships, and health or fitness tracking apps and devices (Hanson, 2017).
8
target market
This group believes that wellness and health is an everyday active pursuit, starting from eating the right foods, and exercising to stay in shape, and look their best. According to a survey conducted by Aetna, 24% of millennials were concerned with sensible eating and their well-being, with 40% actively reading through food labels for artificial ingredients (Fung Global Retail & Technology). Additionally, the chart shows that 81% of millennials partake in exercise or are willing to keep fit and healthy (Fung Global Retail & Technology). It is important to note that a segment of athleisure customers purchase sportswear for non-active purposes too. This is the group that has help transform activewear into casualwear purposes such as when dining, shopping, travelling, and at work (DiBlasio, 2015). Deep Focus released a survey, and out of 1700 U.S. respondents, more than one-third of Millennials have reduced their spending in order to shift towards health-related purchases. Moreover, 46% of women aged 19 to 34 years old; state that they are becoming increasingly interested in athletic inspired garments (Fung Global Retail & Technology). However, due to the high prices that come with this regime, purchases are frequently made by the older section of Millennials; specifically those ranging from 25 to 34 years old (Bailis, 2016). Yet the trend remains popular among the young; however, their buying power is still lacking.
Aetna - Fung Global Retail & Technology. (n.d.). A primer on athleisure - share of US population that considers eating right the most important behavior to stay healthy. Retrieved Apirl 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gym-primer-athleisure/.
Nielsen/Les Mills - Fung Global Retail & Technology. (n.d.). A primer on athleisure - exercise habits of millennials. Retrieved April 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gymprimer-athleisure/.
Millennial Activewear Audience Stats
Hitwise. (2016). Why millennials love activewear - the numbers behind this explosive growth. Retrieved April 26, 2017, http://www.hitwise.com/articles/millennials-love-activewear/.
target market
9
With higher disposable incomes and shifts in lifestyle trends, Fung Global Retail and First Insight, believes that consumers are now more willing to spend more on athleisure garments compared to traditional items (Oliver, 2016). With hefty price tags, millennials are a prime group for this trend, especially with their willingness to splurge on garments even if it is more than their affordability range (Bailis, 2016). The athlesiure market comprises of 57% of consumers that are willing to spend $50 to $150 USD per purchase (Dinnen, 2016). Furthermore, based on Statista, majority of respondents spent $201 to $300 USD in the past year, with more than $500 USD following behind (Statista Survey, 2016). Hence, the evolution of sportswear is extremely evident with the popularity of brands such as Lululemon and Under Armour, and high-end luxury sportswear brands like Kanye West’s Yeezy, and Alexander Wang entering the market as well.
Based on a survey conducted by MacKenzie, key components assessed when purchasing activewear or athleisurewear includes comfort, which ranked at 62%, cost and value at 16%, and style at 11%. On the other hand, functionality had a low ranking; thus further emphasizing the evolution of sportswear with consumers (Dinnen, 2016). According to Statista, in the recent year, 54.76% of consumers bought sports apparel, footwear, equipment, and gear for basic needs or luxury purposes, as compared to 32.48% who needed for its functionality (Statista Survey, 2016). Furthermore, consumers regarded comfort at 75.07% and fit at 70.51% as the most important attributes. Value, durability, quality, low prices, materials, and style followed behind. Yet it is interesting to note that special functions were not popular among consumers with rankings only at 29.23% (Statista Survey, 2016)
Statista Survey. (2016). How much did you spend on sports apparel last year?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library.scad.edu/statistics/631233/amount-of-money-people-spent-on-sports-apparel-last-year/.
10
target market
Hitwise. (2016). Why millennials love activewear - millennial activewear shoppers. Retrieved April 26, 2017, http://www.hitwise.com/articles/millennials-love-activewear/.
Why do you purchase sports apparel, sports shoes and sports equipment or gear?*
Statista Survey. (2016). Why do you purchase sports apparel, sports shoes and sports equipment or gear?*. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0www.statista.com.library.scad. edu/statistics/630003/why-consumers-buy-sports-apparelsports-shoes/.
Statista Survey. (2016). What is important to you when purchasing sporting goods such as sports apparel, sports shoes and sports equipment or gear?*. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library. scad.edu/statistics/630021/important-qualities-of-sports-apparel-sports-shoes/.
target market
11
brands relevant to target market When consumers were asked to pick their favourite brands for sports apparel, Nike ranked the highest with 27.15%. Under Armour came in at 10.02%, and Adidas had 8.08% of respondents. Although footwear dominant brands topped the list, the emergence of athleisure brand Lululemon was evident, ranking at 0.93% (Statista, 2016). According to another survey from Statista, respondents of 18 to 35 years old stated Nike as their favourite sports brand for apparel, with Adidas being the second at 13.44%, followed by Under Armour at 11.63% (Statista Survey, 2016). In 2016, Nike and Under Armour were amongst the top brands favoured by millennials, with Nike being popular with Generation Z as well (Fromm, 2016). Granting Lululemon’s low ranking in terms of sports apparel for both surveys, its dominance in athleisure is unbeatable alongside Nike, Adidas, and Under Armour. However, Under Armour has begun to deter away from this trend, to begin focusing on the assortment and functionality of sports apparel and footwear; thus its high numbers. By 2016, sales at Lululemon doubled, while Nike and Adidas increased by double digits (Kell. J., 2016, 174(6), 67-68). In reference to athleisure brands and their products’ ability to establish emotional connection with customers, the active lifestyle developed has caused followers to embody the features these brands represent. This is especially prominent with the rise in the fitness consumer and the wellness trend, influencing the popularity of athlesiurewear over traditional apparel items (Moschitto, 2015). With the aim of catering to millennials and customers who wear athletic inspired or sports apparel as casual wear, brands such as Nike and Adidas have infused product offerings with more fashion-led designs (Pike, 2016). According to Liebmann, “these brands are pushing more into a fashion orientation as opposed to just a professional sports orientation. If you look at some of the styling, the colouration, the fabrications, the silhouettes they began to push out, it became a
12
brands relevant to target market
broader fashion statement (Pike, 2016). The emergence of this trend in luxury is highly evident, especially when 2016’s New York Fashion Week featured sportswear brands including Adidas with Yeezy and Under Armour. Paris on the other hand, saw Puma and Rihanna unveiling their new Fenty x Puma lines (Kell. J., 2016, 174(6), 67-68). LULULEMON ATHLETICA INC. is founded in 1998 as a Canadian retailer and manufacturer of yogainspired athletic apparel. Today, the brand has established its prominance in Europe, Asia, and Oceania, with a worldwide brand value of $3.05 billion USD. Global revenues on another hand came in at $2.34 billion USD, amongst its 289 stores (Statistics and Facts - Lululemon). Lululemon’s popularity with millennials is seen through its promotion of a healthy lifestyle for the mind, body, and soul (Fromm, 2016). This ties into their beliefs, and will therefore wear a brand that expresses their same views of expression. Best known for incorporating the smallest service detail into products, the brand was also popular for their leggings and yoga pants, signature fabrics and user-friendly styles such as hidden pockets and reversible functions (Statista and Facts Lululemon). Other product categories include tops, skirts, swimwear, yoga equipment, sports bras, and accessories. In 2015, Lululemon were one of the top fashion brands worn by teenagers in the United States. Canada on the other hand, saw average purchasers to be approximately 36 years old (Oliver, 2016). Although the brand received numerous backlashes in 2015 for its leggings and other apparel, Lululemon opened a new store concept named Lululemon Lab in Lower Manhattan. It may have been the brand’s second design lab, the assortment of goods pushed the brands further into the athleisure market. Products ranged from functional sportswear to streetwear, to business casualwear (Fung Global Retail & Technology).
Statista Survey. (2016). Which one of them would you call your favorite brand for sports apparel?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista. com.library.scad.edu/statistics/630846/favorite-sports-apparel-brands-of-us-consumers/.
brands relevant to target market
13
Statista Survey. (2016). Which one of them would you call your favorite brand for sports apparel?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library.scad.edu/ statistics/640907/favorite-sports-apparel-brands-of-us-consumers-by-age/.
NIKE INC. is an American sportswear company, and one of the world’s largest manufacturers and retailer of sports apparel, footwear, and equipment. Founded in 1964, the brand is popular amongst all types of consumers, with footwear being one of their most dominant sector. The brand’s success is also devoted to iconic marketing campaigns, collaborations with celebrities and star athletes, most notably, Michael Jordan and the Air Jordan shoe line. The Nike Air Jordan propelled the brand to fame in the late 20th and early 21st century, increasing awareness with millennials (Nike, Inc., 2017). In 2016, Nike’s global revenue was valued at $32.4 billion USD, with a proposal increase to $50 billion by 2020 (Fung Global Retail & Technology). By 2017, its brand valued topped at $31.76 billion USD, amongst 1,045 stores worldwide (Statistics and Facts - Nike). The iconic release of the Nike + app in 2010, exploded among many millennials and older, due to its
14
brands relevant to target market
ability to allow users to keep track of activities and health, while sharing progresses on social media platforms. According to a report from Conde Nast Inc. and Goldman Sachs Group Inc., Nike ranked at 29.7% out of 2345 U.S. millennials as one of their favourites retail brands (Verhage, 2017). Nike’s status amid teenagers is extremely relevant, with 31% of them devoting expenditure to Nike footwear and apparel, compared to 21% in the previous year. Furthermore, 41% of teenagers also chose sportswear brands as their preferred fashion brands, which is a 15% increase from last year (Donaldson, 2017). Although Nike achieved high sales in athleisure market due to its footwear being favoured among consumers, the brand also believes that their future relies on this market due to its expected growth of 50% by 2020. (Zacks Equity Research, 2015). In order to achieve this, the brand plans to tap into the women’s athleisure market,
and develop new product lines for its best performing apparel categories - leggings and sports bras, due to recent exponential growth. However, Nike has to consider Lululemon’s reputation amongst millenials. Therefore, products must be infused with fashion forward styles and innovative sport utility attributes (Sendra, 2015). Other product manufacturing developments include the blending and weaving of polyester and spandex together through new techniques, which will offer better fit, form, and function for the wearer (Petro, 2015). Overall, to support its focus on the women’s athletic market, Nike’s “Better For It” marketing campaign purposely featured normal everyday women rather than models or professional athletes (Petro, 2015). Hence, this further reiterates the embodiment of a lifestyle for all individuals, and the growing acceptance and trend of individuality. ADIDAS AG, a German sportswear brand, the largest manufacturer in Europe, and second largest in the world. In 2016, the group generated €19.29 billion EUR in global net sales, with North America’s share increasing to 21%. Global net sales of the brand on the other hand was valued at €16.33 EUR, an 18% increase from the previous year. (Statistics and Facts - Adidas). Though Adidas has established its dominance in the sports industry, the brand hopes to further increase sales by driving brand desirability through product innovations, brand exits and turnarounds, as well as by focusing on strategic growth areas including, health and fitness, and higher participation rates in sports and exercise (Fung Global Retail & Technology). With its recognition in footwear growing after the release of the Ultraboost, NMD collections, and Kanye West’s Yeezy sparking trends and explosive consumer followings, Adidas’s entrance into the Asian Athleisure market is unbeatable too.
Unlike Nike’s advertising campaigns, Adidas taps into the millennial market by relying on word of mouth and social media platforms, that lead to lines forming whenever an event, or new lines or products are dropped (Euromonitor, 2017). Millennials comprise a large segment of these fans, when the launch of the Yeezy Boost 350 v2 last year, created an immense hype on social media before selling out almost immediately (Chadwick, 2016). Based on an analysis by Cowen & Co., there has been an upsurge in 18 to 34 year old millennial consumers moving brand preferences away from Nike to Adidas (Williams, 2016). Not only did Adidas Originals see a 60% increase in the first half of 2016, the unveiling of the Boost technology led to even stronger sales for the remaining months (Kell, 2016). The rise in classic sneakers such as the Stan Smith in the recent years, also assisted in propelling Adidas’s success in the athleisure and sportswear market. As stated by the NDP Group, this footwear category increased by more than 29% in 2016, and is the best performing item in the market. With the recent ‘retro’ trend, and designers, films, and TV shows referencing the past decades, the revival of the classics in activewear culture links us back to our original roots; a trait commonly exhibited by Generation Z and millennials as well. Granting Nike’s hold of the sportswear market, Adidas is starting to close in on the brands popularity. Aside from collaborations and footwear, Adidas announced a new product line titled “Adidas Athletics” in New York City. This collection sees the brand devotion towards the athleisure trend, by connecting the gap between an athlete’s style and their on-field performance. A mixture of sportswear and leisure is prominent through the minimalistic and stylish designs infused with superior fabrics (Green, 2016)
brands relevant to target market
15
market trend research In reference to outstanding sales and performance in the recent years, sportswear will remain strong in 2017. In Hong Kong, sportswear is predicted to increase at 9% CAGR based on the rise in consumer awareness and following of healthy lifestyle trends. Furthermore, Hong Kong consumer particular enjoy collecting sport items, particularly footwear no matter the price. Sports-inspired apparel on the other hand will see a 12% CAGR, since it is a highly soughtafter category to be worn as both a functional and fashion statement. Collaborations between brands and the unveiling of limited edition items may also influence this trend; considering the segment of consumers who collect footwear (Euromonitor, 2017). Trends influencing and developing from athleisure goes beyond fashion, as external influences grow stronger. As it is also seen as a way of life with Millennials who believe in eating the right foods and exercising, the rise in gyms, sport-dedicated centers, and wellness restaurants are now extremely common everywhere. Young women in particular will “continue to take a growing interest in their personal health, inspired by fitness-oriented celebrities and influenced by the increasing among of health messages and nutritional information targeting them” (Euromonitor, 2015). According to Euromonitor, sports club and gyms increased 9% from 2011 to 2016 in developed and emerging markets. This number expected to increase to 10% next year, and 13% in the following year.
16
market trend research
The athleisure trend has also led to beauty parlous and spas benefiting from the increased need for women to de-stress. Their entrance into the market sees consumers benefiting from products such as, cosmeceuticals, injectables, and detox treatments (Euromonitor, 2015). Beauty and cosmetics industry are also seeing a rise in sales, since gyms have now become a component of the sporty lifestyle, and a place for go-ers to socialize and to be seen. In the U.S. alone, luxury makeup sales rose by 11% to $7.6 billion USD by Feburary 2017. According to the NDP Group, this accounted for more than 80% of total industry earnings (Guyduy, 2017 ). Brands such as Aveda, Sweat Cosmetics, Dior, and Chanel have already begun shifting focus to retailing cosmetics, apparel, and hair care “products that meet the needs of these “fashion-forward gym-goers” (Johnson, 2017). The attention on this lifestyle may also lead to more performance enhancing sporstwear or athletic inspired apparel. The sports clothing and accessories market is predicted to reach $30 billion USD, with athleisurewear ranking $24 billion USD in the upcoming year (Halliday, 2017). In terms of fashion, some notable events include the evolution of sportswear, and its adoption in everyday wear and places. Although this trend was prevalent in the 1980’s and 1990’s, it resurged after shifts towards the health and wellness lifestyle trend. The ‘it-girls’ and trend setters of today, have the biggest influence on the fashion industry, with their pairing of dresses with sneakers,
swapping jeans for leggings, and adding a touch of bodycon to complete the look (Malacoff, 2016). However, in order to fully cater to these consumers, brands and retailers must be able to seamless create a one-stop destination for shopping and lifestyle. Another key event is, the emergence of luxury and high-end designers catering to the segment of consumers willing to pay high prices for athletic inspired apparel and footwear. According to Edited, premium and luxury brands shared 16% of the sportswear market in 2015, while high-street and mass-market brands dominated with 81%. Therefore in order to compete with high street
brands, and offer consumers the best value, luxury designers often improve assortments by mixing basic and exquisite materials together with patterns and textures. Such brands include, Brunello Cucinelli and Donna Karen, who both sported cashmere leggings in their collections. Notwithstanding business trends and shifts in consumer tastes, luxury designers’ mixed athleisure with sporty cool looks influenced by street fashion for spring 2017. Contrasting textures and the baring of skin are just a few of the outstanding elements to feature. Prominent names include DKNY, and Versace, which infused bright bold colours with the re-invention of the track pants and windbreaker.
Fung Global Retail & Technology. (n.d.). A primer on athleisure - market segmentaion of athleisure. Retrieved Apirl 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gym-primer-athleisure/.
ALEXANDER WANG
DKNY
VERSACE
Instyle. (2016). This is what the athleisure trend is going to look like in 2017. Retrived April 26, 2007, http://www.instyle.com/fashion/runway/style-forecast-spring-2017-sporty-trend#1617163.
market trend research
17
ADIDAS ORIGINAL x AW ALEXANDER WANG
Alexander Wang on the other hand, partnered with Adidas Originals to release a unisex collection, which saw him playing with the three stripes of Adidas. Wang took the “codes and iconography of the Adidas Originals brand” and identified the symbolism that lied within, before “invert[ing] what’s on the surface and add a layer of subversion” (Phelps, 2016). In addition, he wanted to play with idea of authenticity and fakeness, in order to analyse how change in setting can alter perception entirely.
ADIDAS ORIGINAL x AW ALEXANDER WANG
18
market trend research
NIKELAB x RT RICCARDO TISCI
Nike on the other hand partnered with Givenchy last year, and released a line of athletic apparel under “NikeLab x RT: Training Redefined�. The collection was not only designed for Olympic athletes to sport during the training for the 2016 Summer Games in Brazil, sport or gym users, and athleisure lovers were included in the mix too. Riccardo Tisci envisioned a collection that had fashion appeal, and served the functionality purposes need for sports and exercise (Cristobal, 2016). The floral featured in designs were a reflection of the flowers he observed in Brazil, Italy, and Oregon, and the small skull motifs hidden where also one of his signature styles (Pearson, 2016).
NIKELAB x RT RICCARDO TISCI market trend research
19
Styles on street are incredibly relevant, especially with trends from the past resurfacing or disappearing in 2017. According to athletic retailer Bandier, the biggest trend for 2017 is the correlation of fashion meeting function. This is even seen when visiting gyms and yoga centres in Hong Kong, with many mixing and matching items of different purposes. Together with
the runway, the 6 trends that will continue to remain ubiquitous in 2017 include both garment and styling elements. These identified ones are tracksuits and matching sets, hoodie and sweatshirts. The styling elements evident in these categories – there are athletic stripes, nature-inspired prints and patterns, and cut-outs and rips.
sweatshirts & hoodies The sweatshirt is a must-have wardrobe staple for all. The garment can be styled and matched based on the individual’s preferences too. After several decades of evolution, the sweatshirt has transitioned from an athletic to fashion apparel, thus allowing it to achieve mass-market domination. On the other hand, although Champion Products popularized the hoodie, many other fashion and sportswear brands took the garment and created their own renditions. However, recently, there has been evident resurfacing of the Champion hoodie, especially with celebrities and style stars alike. Although these styles date back to the 1920’s, those featured on the streets, runway, and media, seeing designers referencing the past by depicting the trends of the 1970’s onwards; after the emergence of the hip-hop and street scene. Sweatshirts are long-sleeved, collarless pullovers that are often oversized, and feature cuffed sleeves and hem. These garments designed to induce and absorb sweat during exercise, as well as provide warmth to the wearer. Aside from these properties, its comfort and athletic look and usability has also propelled the sweatshirt to success. One of the earliest sweatshirts were the grey utilitarian gear athletes often wore during training, before trickling down into gym wear for children and adults, and eventually as a fashion piece. During the 1960’s, many saw the sweatshirt as an advertising tool, causing universities in the U.S. to start printing on names and emblems. The T-shirt slogan trend of the 1970’s continued this trend, with sweatshirts containing clever and relatable graphics, which soon be came a medium for personal
20
market trend research
expression for both the wearer and designer. In addition, the 1970’s also saw the birth of the hip-hop culture and its impact on fashion. Dress styles of ‘old-school’ hip-hop were the most influential particularly with pairing of sweatshirts with sneakers or big jewelry. The hoodie is often associated with the youth-driven culture of punk, hip-hop, and skateboarding. Similar to the sweatshirt, the garment used as an advertising tool to “express iconoclastic and sometimes criminal subtext” (Wilson, 2012). During the 1970’s, graffiti artists used to hoodie to maintain a low profile from the police, while break-dancers wore the garment as a protection from the concrete floor. The hoodie’s followed the same route as the sweatshirt, with its break in to skateboarding. With the rise of extreme outdoor sports during the 1980’s and the founding of hip-hop as a cultural phenomenon, a new era of cool was infused into the current sweatshirt and hoodie. Skateboarders also play an important role in the evolution of the sweatshirt. Thrasher Magazine and Transworld Skateboarding began publishing articles regarding this sport, and the images used became the subtext of the skateboarder style. This led to many skate brands refining styles to fit the current trend. In addition, youths soon began to imitate the style, which often incorporated the hooded sweatshirt. As shown through these images, wearers are typically students or young adults, since dress codes for work often do not include the sweatshirt. It is also evident that the sweatshirt no longer worn for athletic purposes, and has instead transformed into a causal wear piece, which
HAILEY BALDWIN
KENDALL JENNER
ROBYN RIHANNA FENTY
individuals wear for its comfort and versatility. By the 1990’s, high-end designers such as Ralph Lauren and Tommy Hilfiger sourced inspiration from the streets, and produced designs for school and daily wear. Now, the garments has paved its way into urban street styles and the likes of the athleisure market. Overall, the importance of both garments in fashion is thus evident by its ability to surpass its athletic backstory by becoming a, component of various subculture dress and, an influential aspect of the athletic apparel. The hoodie on the other hand, stemmed from
humble backstories in work wear, to high school athletic uniforms, and finally entering haute and street fashion. Hence, the hoodie will continue to become a status symbol and fashion staple for many more years to come. Furthermore, there is a high chance both trends could continue to persist; however, the stylistic appeal may center around the younger generations who are not only more influenced by the streetwear culture, but are also fashion-conscious yet are unable to afford or wear more formal pieces.
market trend research
21
22 market trend research
matchy-matchy in tracksuits
BEN STILLER
The space trend and creation of ‘space-age’ technology during the 1960’s, led to the creation of tracksuits as a reflection of astronaut suits. Designers often combined synthetic nylon fabrics in order to produce a matching monochromatic top and bottom set. Although consumers were wary of the style during the 60’s, Adidas catapulted the style into popularity, after collaborating with German soccer player Franz Beckenbauer in 1967. However, although tracksuits typically worn for sport activities, the 1970’s saw the garment blending with the fashion trends of the decade. Evidence of reference is still prevalent today, with flare track pants released this year by a few designers. The 70’s saw the jogging trend and increase in personal fitness causing tracksuits to become to must-have garment for recreational athletes. This continued into 80’s and 90’s, with today’s pieces incorporated with newly developed synthetic textiles such as the Gore-Tex. The infusion of these technologies
increases the functionality and practicality of the tracksuit, keeping the wearer comfortable during high performance activities as well. The emergence of the tracksuit in dance and hip-hop culture was also common, especially during the breakdancing scene. Tracksuits relation to hip-hop stems after the 1990’s, when the music scene saw celebrities like Jay-Z and Diddy launching the idea that tracksuits can be worn as daily wear or as a luxury statement. The 2000’s pushed this status symbol further with the Juicy Couture velour tracksuits worn by celebrities and trickled down into the streets and wardrobes of teenage girls. Fortunately by the 2010’s, the tracksuit incorporated minimalism as the main design attribute, and styles soon became monochromatic and simplified. With the influence of athleisure in both Womenswear and Menswear, consumers have opted for comfort, versatility, and street cool looks.
market trend research
23
ROBYN RIHANNA FENTY
ADRIANNE HO
24
market trend research
JOAN SMALLS
BELLA HADID
matchy-matchy in sports bra & leggings
The sports bra or crop top and legging-pairing trend was a recent addition compared to the others, as it reached popularity during the 2000’s. With women only wearing pants after World War II, the evolution of pants for women have escalated over the years. In the upcoming months, we are planning to see a larger range of nature-inspired prints, including camouflage, bold floral, and safari prints. Although the leggings are a thicker evolution of the stocking, the increase in individual’s interest in dance; especially Zumba, led to the crop top and black or colorful legging trend. Athleisure is known for its mixture of sports apparel with causal wear, but it made garments that are not functional, stylish, and leggings are a key example. Leggings are also an integral part of athleisure fashion, due to consumer’s increasing demands and pressure from both their personal lives and jobs causing a preference of comfort over fashion. By the 2010’s, the sportswear industry and consumers shifted
towards spiritual exercises, such as yoga and pilates. The domination of Lululemon in the legging sector with their ethical and high-tech fabrics, also caused a further increase in demand, and soon athletic wear began to merge with street wear. While it received numerous backlash, leggings is considered a replacement for pants, and black leggings transitioned into various styles including, prints, colours, and mesh. Shown from these images, women wearing leggings for both functional and aesthetic purposes, pairing it with sneakers, windbreakers, tank tops, or ballet flats. This shows that individuals see leggings as an alternative to pants, dressing the garment up or down depending on their preference. The activewear sector on the other hand, also see designers releasing matching sports bra/crop top and legging sets. Black and white colour combinations, as well as colour blocking details are extremely prominent as well, almost as if it is a reference
market trend research
25
LAURA KASPERZAK
to the striped detailing and panels of tracksuits. Colours such as black and grey are the most common, with very few people sporting colorful styles as it only appeals to a very small percentage of the Womenswear market. In addition, darker colours create a slimming effect to an already tight-fitting garment; hence, it could be a reason as to the lack of colours. Contrast leggings are also another trend, with styles being mixed with mesh or a separate coloured layer. Due to colder weather, individuals typically do not wear crop tops or sports bra out, and sweatshirts or jackets are used as a replacement.
26
market trend research
MANDY VASQUEZ
Nevertheless, styles of leggings are very similar to those frequented in yoga or pilates classes. Dance apparel on the other hand; have transitioned from leggings or slim-fitting pants to sweatpants with loose baggy silhouettes. With the current domination of leggings not just in Hong Kong, the legging trend is here to stay due to its comfort, functionality, and versatility. However, basic colours will always continue to be the most popular among consumers. Yet, aesthetic detailing such as mesh inserts or lace-panels could be a possible addition to test for future legging trends.
nature-inspired prints
Patterns and prints reflect the overall yearning for the beach as well, with “water and the tropics” inspiration from Patagonia, a merged beach-to-city-lifestyle with “bold retro surf stripes, hand-drawn ethnic geos, exotic Hawaiian prints and jungle leaves” from Volcom and “three spectacular flowers patterns worked in a more feminine way than before” from Roxy. Colour Wear take inspiration from nature, “the forest, lakes and all the colours of the spring flowers,” states Fredrik. Protest take “a darker turn” with “deep floral designs” in deep purple and blue. In line with their Mix N Match philosophy, making all their gear “compatible to unlimit your styling,” Eivy match floral and animal patterns with comic prints and simple black/white designs. “Every piece of base layer or training wear can be mixed and matched with another top or bottom, even from season to season, this allows customers to create their own unique look,” says Annamaria.
Patagonia have crossovers into the main line, while Roxy features specific prints with a specific colour palette, including their iconic dots and stripes. Mons Royal features stripes too, as do Bench, alongside bold statement prints, and Ion, who have “wavy stripes in different variations”. Kari Traa is sticking to simple design with small colour-blocking effects. Just like summer itself, the main colour palettes are bright and sunny. “Corals and scream magentas balanced out by rich jewel tones of teal and coastal blues with touches of flash yellow” from Volcom, “seashell pinks, island greens and citrus yellows” from Roxy, “aqua and tangelo contrasted with grey marl” from Mons Royale, grey combined with ebony, orange and white from Kari Traa and a “soft, laundered, sophisticated palette with coral, paprika and light blue” from Bench. As mentioned before, Protest also feature a deep purple and Kari Traa combine navy and pink, while Ion stick to “reduced designs and muted colours.”
market trend research
27
cut-outs & sheers
28
market trend research
panel detailing & color blocking
market trend research
29
athletic stripes
30
market trend research
market trend research
31
pest analysis: political The clothing industry often face several political barriers and backlash, especially with issues including worker’s rights and labour laws. Although sweatshops are illegal, many brands have come under fire for abusing such practices. However, the event of union workers of garment manufacturing plants protesting against wages, may lead to delays in production and retail. Furthermore, the average consumer is allowed to go against retailers in several countries, therefore creating negative publicity and damaging brand image (Suttle, 2017). Sportswear brands such as Nike and Adidas are known for their iconic advertisements and marketing campaigns. Therefore, brands must be conscious of advertising and consumer protection laws that prevent companies from wrongly conveying messages in order to persuade customers to purchase. With the consumer protection law, they are able to sue to the company, and if found guilty, heavy financial penalties will ensue (Suttle, 2017). Companies who plan to set up stores in foreign countries must be aware of Foreign Direct Investment Policies that prevent full ownership of retail stores. Although the implementation of this policy benefits and protect local owners, it is seen as a threat to globalization for those entering. Other factors include, currency exposure risks and competitive tax systems, which may ultimately affect and cause the fluctuations
32
pest analysis
of future sales and profits in different countries. Rules and regulations surrounding manufacturing and taxation are key aspects to consider, along with political climates affecting import and export laws. Laws regarding these affect companies and brands with locations in different countries, whereby tariffs and quotas may limit the number of products shipped. Trade embargos may affect the imports of a company as well, causing them to switch suppliers almost immediately. (Suttle, 2017). With the loss of free trade between the EU, many brands in the UK had to move production either back home or in other countries. This may have resulted in either profits or losses depending on prices of new suppliers. The political climate in the U.S., which is the dominant market for many athleisure brands, is another component to consider for future projections. Due to political instability, many brands have started spending on lobbying with policies and policy makers. Nike’s expenditure for 2016, rose to $750,000 USD (Pratap, 2017). Although these practices are frowned upon, it is common, as many companies rely on favourable political environments. Fortunately, the NAFTA still benefits companies in the U.S., and especially Canadian companies such as, Lululemon. This allows the brand to better reach consumers, and retail its products in North America.
pest analysis: economic A key economic factor in which all retailers and consumers must consider is the state of the economy. Economic booms will lead to higher disposable incomes for consumers, while recessions will see them cut back on expenditure. The current climate evidently shows high disposable incomes for consumers in most developed countries, but the same cannot be said for those in underdeveloped or developing countries. Evident growth continues to persist in developing markets, especially with China’s fruitful economy and the enormous wealth of Mainland citizens. Brands will thus begin to implement favourable economic policies in order to better target developing countries. With consumers’ increased ability to spend on clothing too, clothing manufacturers will see an increase in sales, and possibly low amounts of stock inventory left over. By 2019, the global sports apparel market has a current estimated growth of $178 billion USD (Sherman, 2014). Performance sportswear on the other hand, is expected to rise to $30 billion USD, compared to $24 billion USD for athleisure apparel and accessories (Halliday, 2017). The sportswear industry in Hong Kong is also expecting a strong outlook for the remaining of 2017, due to local consumer’s interest in collecting sport items and brands, utilising it as a status symbol or fashion statement. Additionally, with the rise of the fitness-conscious consumer, and their adoption of healthier lifestyles, a 9% CAGR is predicted for the upcoming year. Since replacements are often needed for sport items, growth in sales performance will continue to remain strong as well. Athletic-inspired garments on the other hand, will see a higher CAGR of 12%, as these styles are highly sought after, and be worn for multiple
purposes. Furthermore, the existence and opportunity for further collaborations between sportswear brands and other companies, can offer consumers an incentive to purchase these limited or exclusive products (Euromonitor, 2017). Nonetheless, brands and companies around the world must also take into account, possible fluctuations in interest rates, labour costs and inflation in countries where factories or stores are located. If the retailer relies on overseas production and outsourcing, shipping and raw material costs are also key components to analyse before any decisions are made. Already the upsurge in counterfeit products leading to inflating prices, and loss in customers, have already begun to threaten the sportswear industry. On a more positive note, the growth in the number of young women devoting their lives to their careers instead of marriage or motherhood, will see the increase in disposable incomes being spent on up keeping the wellness and fitness lifestyle, which is essential in maintaining a healthy balance between work and personal life. If the embracement of this fitness trend continues among women, it will also drive a strong market for female activewear and sports nutrition (Euromonitor, 2015). Furthermore, gym memberships has increased by 9% among all age groups from 2011 to 2016, in both developed and emerging markets. This number is expected to increase to 10% next year, and 13% in the following year. Brands may start to capitalize on this continuous rise by offering specialized garments for popular sport categories, or meet the rising need for plus-sized options too (D’Adamo, 2015).
pest analysis
33
pest analysis: social Global shifts towards the rise in health and fitness trends, has led to growing interest and participation in sports among followers and consumers. As mentioned before, many have actively joined clubs and competitions to fully adopt the characteristics of this lifestyle. Consequently, sportswear brands can utilities this opportunity to improve and introduce better quality sport apparel, footwear, and gear. Although fit, comfort, and style are what consumers consider first before purchasing, it is the “offering of a lifestyle that these brands give to consumers that garner loyalty” (Fromm, 2016). With longer average lifespans, the percentage of senior citizens around the world has increased, along with the number of active people. Rising obesity rates has also led to health scares and warnings for many, thus resulting in their participation in activities. Yet, the escalating rates also raises concerns regarding the group who are not interested in the active lifestyle. Although the U.S. has already established sports as part of its culture, with the likes of the NBA and NFL, the number of women athletes joining the industry has increased significantly as well. Marathons, the Olympics, or other sporting events are still prevalent today. The aim of these events remain, whereby companies want to create a sense of community by bringing athletes and spectators together, in order to celebrate athleticism and exercise. In Hong Kong, the Standard Chartered marathon is held every year, while recently the city saw the commencement of the 6th Hong Kong Games organised by the Sports Commission and co-ordinated and organised by other committees, departments, and associations. Approximately 3200 athletes took part, with countless friends and family supporting in the stadium. The Hong Kong Games not only offers prospects for amateur athletes from different districts of the city to share experiences and grow their potential, the awareness of citizens and viewing of spectators will help improve the level of sports at a district level. Furthermore, community cohesion can be
34
pest analysis
strengthen between districts as well (The 6th Hong Kong Games). Celebrity influences are also key in the evolution of sportswear and athleisurewear into a fashion movement. Some notable names include Beyoncé, who released her line of activewear titled IVY PARK with Top Shop, and Rihanna with Fenty x Puma. After Rihanna’s debut line with Puma, the company’s net worth rose by 4% in 2016. Adidas’s collaboration with Kanye West’s Yeezy on the other hand, resulted in an impressive 12% increase in total sales. Beyoncé’s collection with TopShop, topped the brand’s Instagram engagement rate by 50% per post. Designer and celebrity endorsed athleisure collections have also caused many consumers to admit to this fashionably active lifestyle. With popular key online influencers such as Kayla Itsines who is currently dominating at the athlesiure game, with over 11 million followers on Instagram, and a growing 40% in engagement rate per post (Moon, 2017). However, in order for brands to succeed in this saturated market, continuous innovations, increased focus in social media promotion, and brand differentiation is necessary (Hanson, 2017). With the increasing infusion of social media with fitness activities, Millennials have begun to view fitness centers and sports activities as social situations to attend with friends. In the U.S., young adults comprised of the highest segment of participants in group fitness and exercise classes. According to a Nielsen report, Millennial women have the highest rankings too. In Hong Kong, numerous wellness cafés have already established; however, the trend in incorporating gyms and restaurants is gaining on the city. “Elephas” is a café located in Warrior Academy fitness, opened by those who believe that if “you work out seriously, and then you need to be fed.” Asia is not a hidden secret from this wellness trend, it holds a historical record in sports, but the rise in the need to take care of the mind, body, and soul, has led to the adoption and expansion of this trend (Wang, 2016).
pest analysis: technological
Millennials are one of the most tech-savvy group of individuals today, leading to increased use in e-commerce and mobile payments. Aside from the traditional brick-and-mortar stores, brands often upkeep an online store for both web and mobile systems. This group of individuals heavily rely on their devices to conduct product searches and in order to ensure the product meets their expected value. Millennials and activewear shoppers are already 39% more willing purchase a product online rather than in-store. However, if a product is seen in stores, 37% of them will try to find a better price for the garment online. On the other hand, 44% of activewear shoppers are willing to spend longer periods in-store in order to find the garment with the best fit and comfort. Nonetheless, 76% of Millennial activewear shoppers are more likely to use their mobile devices to find the best deals available. According to Hitwise, 78% of the average Millennial activewear follower will buy a product if it has been advertised on social media, while 93% listen to friendly advice or social media. (Bailis, 2016). Social media platforms are also becoming more important for brands to market products and brand awareness to consumers. These platforms such as Youtube and Instagram have also heavily influence the proceedings of this trend (Hanson, 2017). YouTube is a popular website for many consumers to seek out beauty and fashion advice and tutorials. Numerous influencers have taken advantage of the opportunity for collaboration content with brands. This therefore helps position and increase awareness of the brand in the eyes of athleisure consumers (Johnson, 2017). For instance, the escalating rise in yoga influencers on social media is a reflection of the fast growing fitness trend and interest in health and wellness. Many sportswear and athleisure brands have begun collaborating with these influencers for sponsored posts in order to promote the awareness of their name, garment, or collection. The popularity of these platforms are also beneficial for yoga instructors to connect and share their passion and expertise, with the community. Similar to brand collaborations, many have also used Instagram and YouTube to market the retailing of their new book, apparel, footwear, accessory, cosmetic, or fitness equipment as well. Famous names include Rachel Brathen, with 1.6 million followers and Sadie Nardini, who was listed as one of the top 10 fitness influencers. Nonetheless, with the rise in demand for health and fitness applications by consumers, there will be a further need for fitness expertise to share methods and inspiration for their online audiences (Dahan, 2015).
Expanding interest in wearable technological devices and fitness application has also paved its way into the athletisure and sports market. Famous fitness applications include, FitNet, which aims at those with busy schedules with its short workouts, and Blogilates which showcases tutorial videos. Wearable devices on the other hand include the well-known FitBit, and Omsignal which integrates sensors into the fabric of garments, in order to track heart rate and breathing. Sport teams can also now benefit from organisational applications including TeamSnap and Teamer, which allows for better communication as well. SpledidCity, which is a scheduling application will also allow users to easily schedule workouts with friends and others. Although these pieces of technology are costly, the introduction of new and improved technologies in the market that allow companies to become more energy efficient, will lowering cost of manufacturing. Furthermore, the development of data mining software that allow brands to better track and analyse consumers have helped in optimising targeting and production, while maximizing profits and revenue (Defoy, n.d.). With increasing competition from brands in the athleisure market, many have begun engaging with consumers through different om ni-channels such as, in-store workouts, app-based fitness regime for tracking, and several fitness communities. A notable contender is Lululemon, with live workout store windows in their Causeway Bay store. This method of engagement not only further improves sales, it is about building “brand uniqueness and gaining customer [loyalty]” (Hanson, 2017). Lululemon also offers in-store yoga classes and fitness camps in other countries. Nike on the other hand, retains a popular online presence with its fitness platforms that allow users to track progress, challenge with their buddies, gain encouragement from others through sharing capabilities, while also improving their overall health knowledge. The emergence of customisation tools for many retailers is also growing, with Nike and Adidas offering in-store personalisation for footwear. Nike recently opened a T-shirt customisation pop-up in Hong Kong, allowing users to personalise their team tees. In Hong Kong, some companies are taking technological a dvancements further by developing interactive mirrors for the retail and hospitality industries. Called the “actiMirror”, the application installed will allow the mirror to profile the customer through RFID tags on products. With the ability to track consumers leading to higher in-stores sales; this may be another method for retailers to remain prevalent, after the significant shift in retail towards e-commerce (Woodhouse, 2016)
pest analysis
35
proposal one (short term goal)
LULULEMON CITY COLLECTION & GUIDE
Hong Kong, New York, London, Seoul, Shanghai & Singapore
LULULEMON
CITY GUIDE
If you have to decide on one word that mirrors the last few decades, globalization would be it, and Millennials are at the center of this revolution. Easy accessibility has allowed Millennials to dream of a seamless life or even nomadic lifestyle that has heavily impacted the fashion industry. Globalization led to the creation of new business models such as the “Airbnb”, which meets the public’s desire of an affordable and localized travel experience. Therefore, with the popularization of this trend and the addition of new technology, bring you Lululemon’s city collection. Inspired by the different sports of major international cities; Hong Kong, New York, London, Seoul, Shanghai, Singapore, our aim is to create curiosity amongst the public through
36
market strategies and proposals
unique designs. This collection will feature the unique personality of each city, while emphasis is placed on the popular sporting activity of each city. In lieu of Globalization, customers all over the word will thus able to buy the collection. Those who have purchased will be rewarded with a QR code to virtually enter their chosen city, with an added audio-guided content feature from the Lululemon mobile application. The city guide will contain information regarding trendy exercise studios, and wellness and lifestyle shops, and restaurants. Overall, with the use of new technology, Lululemon’s new strategy will further engage the brand with broader range of Millennial customers.
proposal two
(short term goal)
SOCIAL INFLUENCER COLLABORATION - #luluandme Twitter, Facebook, Instagram, Pinterest & YouTube
CINDY KO 詩韻 - @cindiddy (36.8k followers)
ALISON EL ALZAR 曾昭亮 - @alisonchan.elazar (24.8k followers)
Social media has become such an influential part of our lives, and some simply cannot live without it, especially Millennials. Social media became a daily routine check-up for many Millennials, and celebrities or bloggers became online influencers for many brands alike. With the popularity of yoga influencers leading to the increased growth in Athleisure, this route is extremely important. Lululemon already has a strong following on social media sites including Twitter, Facebook, Instagram, Pinterest, YoTube and more. Although their Twitter account had the highest engagement rate, the brand’s Instagram had the most number of followers.
With Instagram’s concept of daily visual content posting, and Twitter’s trending alerts, Lululemon will fully utilise these channels by collaborating with key online influencers. Sponsored posts and videos featuring Lululemon products are options, with articles as a possible future development. The chosen two social influencers will snap and share their daily routines in different locations, and add the hashtag #luluandme before posting. The aim of this collaboration therefore, is to inspire followers of the athleisure trend and, or are loyal to the brand, and its beliefs and aesthetics.
market strategies and proposals
37
proposal three (long term goal)
MORE THAN BEING A “OFFICIAL SPONSOR” Lululemon - the Peacekeeper
YOGA CONNECTS FESTIVAL THE GROOVE YOGA FESTIVAL BALI SPIRIT FESTIVAL IOWA YOGA FEST INTERNATIONAL YOGA FESTIVAL WANDERLUST
WORLDWIDE PA R T N E R
TELLURIDE YOGA FESTIVAL HANUMAN FESTIVAL EVOLVE YOGA FESTIVAL SEDONA YOGA FESTIVAL
Yoga festivals and events are taking the world by storm, from United States to India. Each festival is special in its own way - The Groove Yoga Festival combines music concerts, Bali Spirit Festival focuses on harmony with God, community and nature in reponse to the devastating impacts of the 2002 and 2005 bombings, and International Yoga Festival features internationally yoga instructors and revered spiritual masters of India. Lululemon can partnered with global and local festivals to become the official sponsor of yoga. By sponsoring the right properties, Lululemon will further build their business through effective sponsorship, proving that as a brand
38
market strategies and proposals
stands for more than the traditional official sponsor platform but identifying and quantifying the value that a powerful “reason for being” platform can achieve a much more meaningful presence to the consumers Lululemon are trying to reach. Like how Rolex is the Official Timekeeper of Wimbledon and Redbull is A Vehicle for Sport. In this case, Lululemon can become the official peacekeeper - supporting the inifinite potentials yoga offer to the human mind and soul. Yoga for all - no constraints in age, gender, body size and ethnicity, it brings us closer together. All you need is a mat to explore the true essence of perfection, peace and everlasting happiness
conclusion With the growing awareness of health and embracing the athleisure movement worldwide, consumers are beginning to acknowledge that sportswear can be as innovative and fashionable as any other apparel. Even though its inital idea is to designed for workout purposes for gym and fitness, it can now be worn in non-athletic settings, to work or running errands. Moreover, not just high end or fast fashion brands, but governments and schools are investing massively to encourage active participation in sports to raise more interest and promote healthy living. Some countries are hosting major sport events, while some are preparing for Winter and Summer Olympics, Pyeongchang 2018 and Tokyo 2020 respectively. We are certain that the sports industry are growing stronger than ever - many consumers are posting photos on multiple social platforms to share their health transformations through going to gym or joining sport related activities, while some simply want to share their athleisure wear looks, this has also became a fashion trend, especially among millennials. The proposals for Lululemon, besides investing in direct-to-customer channels, the main strategy is to find the right balance between an online and offline presence. Having continuous collaborations with athletics, designers and influencers and also projecting a modern and fresh voice to sportswear with funtional and innovative concepts in its apparel and gear. Athleisure is certainly meeting a growing demand and gaining poplularity worldwide. We believe that athleisure is more than a trend - it is a lifestyle
conclusion
39
appendix one the 6th hong kong games opening ceremony 23 april 2017
HONG KONG COLISEUM, HUNG HOM
40
appendix
appendix two public facilities
TSIM SHA TSUI PROMENADE
appendix
41
appendix three hong kong gyms and yoga studios
GOJI STUDIOS - TSIM SHA TSUI
H-KORE - CENTRAL
PURE FITNESS - CENTRAL
AMICO STUDIO - WAN CHAI
42
appendix
BARRE 2 BARRE - CENTRAL
MARI YOGA - KENNEDY TOWN
FLEX STUDIO - ABERDEEN
YOGA BAMBAM - CENTRAL
appendix
43
appendix four in-store visits
NIKE - NEW TOWN PLAZA
FILA - NEW TOWN PLAZA
CALVIN KLEIN - NEW TOWN PLAZA
LULULEMON - NEW TOWN PLAZA
44
appendix
appendix five lululemon
SARAH TAYLOR - HYSAN PLACE
XYZ WORKSHOP - HYSAN PLACE
appendix
45
references text A Primer on Athleisure. (n.d.). Retrieved April 26, 2017, from https://fungglobalretailtech.com/research/ gym-clothes-making-way-gym-primer-athleisure/ Bailis, R. (2016, November 17). Why Millennials Love Activewear- The Numbers Behind This Explosive Growth. Retrieved April 26, 2017, from http://www.hitwise.com/articles/millennials-love-activewear/ Chadwick, S. (2016, September 27). How Kanye West and Adidas are conquering the millennial market. Retrieved April 26, 2017, from http://theconversation.com/how-kanye-west-and-adidas-are-conquering-themillennial-market-66035/ D'Adamo, A. (2015, May 12). Athleisure Is Winning the Lifestyle Marketing Game | WMI. Retrieved April 26, 2017, from http://www.womensmarketing.com/blog/2015/05/athleisure-is-winning-the-lifestyle-marketing-game/ Dahan, E. (2015, October 20). The Rise of Yoga Influencers on Instagram. Retrieved April 26, 2017, from http://www.socialmediatoday.com/social-networks/ericdahan/2015-10-14/rise-yoga-influencers-instagram/ Dinnen, J. (2016, August 1). MacKenzie Corporation Blog. Retrieved April 26, 2017, from http://www.mackenziecorp.com/who-is-the-athleisure-consumer/ Fromm, J. (2016, July 06). The Lululemon Lifestyle: Millennials Seek More Than Just Comfort From Athleisure Wear. Retrieved April 26, 2017, from https://www.forbes.com/sites/jefffromm/2016/07/06/the-lululemon-lifestyle-millennials-seek-more-than-just-comfort-from-athleisure-wear/#235f01c414d9/ Goodrum, A. (2016, April 15). Annals of leisure of research - the dress issue. Retrieved April 24, 2017, from http://www.tandfonline.com/doi/full/10.1080/11745398.2016.1169581/ Green, D. (2016, September 01). Adidas is launching a new athleisure line to take on Nike. Retrieved April 26, 2017, from http://www.businessinsider.com/adidas-is-launching-a-new-athleisure-line-to-take-on-nike-2016-9 Halliday, S. (2017, February 14). Athleisure trend to stay an influencer on move into luxury, lifestyle and tech. Retrieved May 27, 2017, from http://uk.fashionnetwork.com/news/Athleisure-trend-to-stay-an-influencer-on-move-into-luxury-lifestyle-and-tech,793062.html#.WQS9p1OGPBI/ Hanson, L. (2017, January 17). Athleisure: the emerging fashion statement that is becoming the new normal. Retrieved April 26, 2017, from https://www.whichplm.com/athleisure-emerging-fashion-statement-becoming-new-normal/ Kell, J. (2016, August 04). Why Adidas is outperforming Nike, Under Armour. Retrieved March 26, 2017, from http://fortune.com/2016/08/04/adidas-outperforming-nike-ua/ Moschitto, M. (2015, August 4). Athleisure: Bigger Than a Trend. Retrieved April 27, 2017, from http://keltonglobal.com/blog-post/athleisure-bigger-than-a-trend/ Oliver, D. (2016, October 26). You're willing to pay more for athleisure. Retrieved April 26, 2017, from http://money.usnews.com/investing/articles/2016-10-26/youre-willing-to-pay-more-for-athleisure-report-says/ Petro, G. (2015, September 16). Lululemon, Nike And The Rise Of 'Athleisure' Retrieved April 26, 2017, from https://www.forbes.com/sites/gregpetro/2015/09/16/lululemon-nike-and-the-rise-of-athleisure/#4f6162e037c8/
46
reference
Pike, H. (2016, November 16). Athleisure's Winners and Losers. Retrieved April 26, 2017, from https:// www.businessoffashion.com/articles/intelligence/athleisures-winners-and-losers/ Salfino, C. (2017, February 02). From Workout to Workwear, Athleisure Works a New Angle. Retrieved April 26, 2017, from https://sourcingjournalonline.com/workout-workwear-athleisure-works-new-angle/ Sendra, M. M. (2015, April 15). Nike Inc. - Team Management Paper. Retrieved April 26, 2017, from http://www.marisolmoran-sendra.com/wp-content/uploads/2016/03/Nike-Team-Project.pdf Speculations, G., & Team, T. (2016, October 06). The Athleisure Trend Is Here To Stay. Retrieved April 26, 2017, from https://www.forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-here-tostay/#598ae34028bd/ The 6th Hong Kong Games. (2017, February 02). Retrieved April 26, 2017, from http://www.hongkonggames.hk/hkg2017/en/content/aboutHkg/overview.html The Rise of Athleisure. (2016, March 08). Retrieved April 26, 2017, from http://blog.trendstop. com/2016/03/the-rise-of-athleisure/ Wang, J. (2016, September 13). Hong Kong's latest fitness trend: restaurants inside gyms. Retrieved April 26, 2017, from http://www.scmp.com/lifestyle/health-beauty/article/2017655/hong-kongs-latest-fitnesstrend-restaurants-inside-gyms Williams, T. (2016, December 07). Millennial shoe shoppers are clamoring for these fashion staples of the '60s and '70s. Retrieved April 26, 2017, from http://www.marketwatch.com/story/how-millennials-are-clamoring-for-classic-fashion-staples-from-the-60s-and-70s-2016-12-07/ Verhage, J. (2017, April 19). Victoria's Secret and Nike Rank Among Top Brands for Millennials. Retrieved April 25, 2017, from https://www.bloomberg.com/news/articles/2017-04-19/victoria-s-secret-and-nikerank-among-top-brands-for-millennials/
reference
47
references figures & images Aetna - Fung Global Retail & Technology. (n.d.). A primer on athleisure - share of US population that considers eating right the most important behavior to stay healthy. Retrieved Apirl 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gym-primer-athleisure/. Fung Global Retail & Technology. (n.d.). A primer on athleisure - market segmentaion of athleisure. Retrieved Apirl 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gym-primer-athleisure/. Hitwise. (2016). Why millennials love activewear - the numbers behind this explosive growth. Retrieved April 26, 2017, http://www.hitwise.com/articles/millennials-love-activewear/. Hitwise. (2016). Why millennials love activewear - millennial activewear shoppers. Retrieved April 26, 2017, http://www.hitwise.com/articles/millennials-love-activewear/. Instyle. (2016). This is what the athleisure trend is going to look like in 2017. Retrived April 26, 2007, http://www.instyle.com/fashion/runway/style-forecast-spring-2017-sporty-trend#1617163 Morgan Stanley. (2016). Morgan Stanley’s projection for global active wear sales. Retrieved April 26, 2017, https://www.forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-here-tostay/#598ae34028bd. Nielsen/Les Mills - Fung Global Retail & Technology. (n.d.). A primer on athleisure - exercise habits of millennials. Retrieved April 26, 2017, https://fungglobalretailtech.com/research/gym-clothes-making-way-gymprimer-athleisure/. Sourcing Journal. (2017). From workout to workwear, athleisure works a new angle. Retrieved April 26, 2017, from https://sourcingjournalonline.com/workout-workwear-athleisure-works-new-angle/. Statista. (2016). When do you wear sportswear and sports shoes?*. Retrieved April 26, 2017, from www.statista.com.library.scad.edu/statistics/629976/when-do-people-wear-sportswear-and-sports-shoes/. Statista Survey. (2016). How much did you spend on sports apparel last year?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library.scad.edu/statistics/631233/ amount-of-money-people-spent-on-sports-apparel-last-year/. Statista Survey. (2016). What is important to you when purchasing sporting goods such as sports apparel, sports shoes and sports equipment or gear?*. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library.scad.edu/statistics/630021/important-qualities-of-sports-apparel-sports-shoes/. Statista Survey. (2016). Why do you purchase sports apparel, sports shoes and sports equipment or gear?*. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista. com.library.scad.edu/statistics/630003/why-consumers-buy-sports-apparel-sports-shoes/. Statista Survey. (2016). Which one of them would you call your favorite brand for sports apparel?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library. scad.edu/statistics/630846/favorite-sports-apparel-brands-of-us-consumers/. Statista Survey. (2016). Which one of them would you call your favorite brand for sports apparel?. In Statista - The Statistics Portal. Retrieved April 26, 2017, from https://0-www.statista.com.library.scad.edu/ statistics/640907/favorite-sports-apparel-brands-of-us-consumers-by-age/.
48
reference
49