State of sportswear market in 2024

I read an interesting report on the state of sportswear, and where it's headed in 2025. Here's my takeaway:

In 2024, challenger brands like Deckers (Hoka) and Asics are outshining giants like Nike, Adidas, Puma, and Under Armour in growing profitability and market share. Their focus on visible innovations, like Hoka's midsoles and On's CloudTec soles, has delivered standout products while incumbents rely on incremental improvements.

Targeting niche categories has also been key. Lululemon expanded in women's athleisure, Salomon embraced outdoor communities, and Arc'teryx catered to adventure sports, successfully capturing underserved segments. Meanwhile, cultural marketing has fuelled growth, with challengers leveraging grassroots strategies and celebrity endorsements like New Balance's Jack Harlow and Alo Yoga's Kendall Jenner.

Smaller brands capitalised on the big guys missteps in wholesale, partnering with retailers like Dick's Sporting Goods and JD Sports. While Nike and Adidas leaned heavily on direct-to-consumer (DTC) channels, they left shelving space empty, allowing challengers to fill the gaps.

Looking to 2025, sportswear is set to outpace broader fashion growth, buoyed by athleisure demand, health-conscious consumers, and rising sports tourism. Brands like Alo Yoga and Lululemon are diversifying into performance gear, blending innovation with cultural relevance.

To compete, incumbents must prioritise breakthrough innovation, authentic partnerships, and balanced channel strategies - something Nike is doing under the new CEO. Direct to consumer channels should focus on brand storytelling, while wholesale partnerships enhance reach and profitability. The battle for dominance in sportswear is heating up.