2020 has been a rollercoaster year for a good number of industries and activewear is no exception.
According to the research data analysed and published by Comprar Acciones, the global activewear market is expected to be worth $353.45 billion in 2020. It is projected to have a 3.7 percent compound annual growth rate (CAGR) between 2020 and 2026 to reach $439.17 billion by the end of the period.
Key players in the activewear space are adapting to change consumer trends by embracing direct-to-consumer sales online.
Nike had a 75 percent increase in online sales during its Q4 FY2020 which ended in June 2020. E-commerce accounted for 30 percent of its total revenue as it closed 90 percent of retail stores. Its online sales rose by 82 percent during its Q1 FY2021 which ended on August 31, 2020, with total revenue at $10.6 billion and net profit at $1.5 billion.
For Adidas, its total revenue in H1 2020 fell by 27 percent to $9.81 billion as it closed 70 percent of stores. Similarly, Q3 2020 saw a drop of 12 percent in its operating profit. However, online sales surged by 93 percent in Q2 2020 and 51 percent in Q3 2020.
On the other hand, Puma had a 61.6 percent drop in profit during Q1 2020, but eCommerce sales for the period rose by 40 percent. For the first nine months of 2020, it had a 66.5 percent increase in eCommerce sales.
Top activewear brands are also embracing the thriving athleisure trend. According to NPD, athleisure sales in the US will account for 31 percent of total apparel spending during the holiday season. The figure is up from 26 percent in 2019.
In Q3 2020, Old Navy’s activewear segment surged 55 percent. Athleta, which deals in female workout clothes had a 35 percent sales increase. However, Banana Republic which specialises in work apparel had a drop of 34 percent in net sales.