The sportswear market remains on the move and is putting on an impressive growth spurt. Our HANSE Interim Team Research has prepared for you why this is so and what trends can be expected
The German sportswear industry proved comparatively robust during the Corona pandemic, recording only a drop of around 6% in 2020 due to the rapid increase in online consumption, while other segments in the apparel market suffered significant double-digit sales declines.
At the same time, the pandemic also acted as a catalyst for the renewal of outdated structures and accelerated the transformation of the industry. Various, in some cases even contradictory, developments regarding consumer behavior have gained significantly in importance. Within the scope of a company sale project for the sales exposé of a client of the HANSE Group, HANSE Interim considered the most important trends and analyzed which influencing factors could shape the change of the sportswear market in the future.
Market overview
According to forecasts, the German sportswear market is expected to grow by more than 7% per year until 2027.
Possible reasons for a further steady increase in growth include rising health and self-awareness. The desire to lead an active lifestyle and appear fit is encouraging consumers to integrate sports and fitness activities into their everyday lives.
In addition, today’s sports fashion is versatile. It is comfortable, trendy and can now be worn for a wide variety of occasions – is even considered “socially acceptable”.
Important factors in the purchase decision are also the fit, functionality and design.
Sales development in the German sportswear market (in EUR billion)
Breathable and fast-drying materials and innovative technologies such as compression clothing and smart clothing are particularly popular.
Demand for fashionable color combinations for various sports activities has become another growth factor in the market. The demand for pastel colors has expanded beyond yoga wear to the larger sportswear industry as traditional black and white colors are abandoned.
Trends
The increasing crossover between sports and fashion, has led to an increased presence of fashionable sportswear – so-called “athleisure wear” – and is expected to continue to grow in importance in the future, accelerating development in both the outdoor segment and the “fitness at home” segment.
Sportswear with improved properties, such as moisture management, temperature regulation, as well as other performance-enhancing properties that prevent discomfort and possible injury, are being endorsed by consumers and the higher costs accepted.
With the impact of COVID-19, consumer interest in participating in individual outdoor sports increased rapidly. This increased participation has led to a change in market dynamics and increased demand for appropriate sportswear.
Sustainability awareness is also increasingly influencing the sportswear industry, which has just been further strengthened by the recent World Climate Change Conference (COP26). Two thirds of consumers state that sustainability is an important criterion for them when buying clothing.
Preferred shopping channel (n=11,250)
Thanks to rapidly rising expectations, the bar is also getting higher for companies that want to stand out through their commitment to greater sustainability. Thus, in the future, companies will rely even more on sustainable materials and circular models to enable customers to make purchasing decisions that match their values.
Also very concise is the permanently growing social media hype. Influencers and digital communities are creating a closer relationship with shopping. When searching for specific products, more than 80 percent use online channels.
Especially during the pandemic, consumer buying behavior changed enormously in two ways. First, demand for outdoor clothing increased significantly due to the shift from indoor to outdoor activities (hiking, jogging, skating), and second, all purchases were “lockdown-related,” made online.
Conclusion
The sportswear market is not only moving with the times, but sprinting with the times and staying in motion. Further growth is to be expected.
What developments do you see in this market in the future?
With sporty regards
Your HANSE Interim Management
Andreas Lau and Christian Heuermann
