You're Willing to Pay More for Athleisure

October 26 2016 by David Oliver for US News

Read on
Download PDF

The rise of athleisure hasn't gone unnoticed by companies trying to flex other muscles, like Nike.

Retail consumers are willing to pay more of the manufacturer's suggested retail price for athleisure (think Lululemon-style) items while they aren't for other types of clothing, according to new data from Fung Global Retail & Technology and First Insight. This is amid the sector's growth and womenswear becoming more casual.

athletes working out in warehouse

Consumers decreasingly wanted to pay full market price on seven out of 10 womenswear categories in the report, which examined data from January 2013 through June 2016. The companies partnered to analyze the data set of more than 57,000 women's apparel and accessories products across these categories.

Specifically, consumers were willing to pay more for knit bottoms (made up mostly of athleisure/athleticwear) and leggings in the "bottoms" sector than other items, jumping to 82 percent (up 9 percent since 2013) and 74 percent (up 12 percent since 2013) of the asking price, respectively. First Insight conducted the tests in 11 countries, including the U.S., Spain and Canada.

Growth-graph.pngEuromonitor data cited in the report says that athleisure's rise has contributed to womenswear sales growth overall. Lululemon Athletica (ticker: LULU) in particular saw sales rise 369 percent from 2010 to 2015, while Nike (NKE), Adidas and Under Armour (UA) enjoyed double-digit sales growth in 2015. The report anticipates women's activewear will keep apparel sales surging as companies invest in multifunctional fabrics and technologies.

The rise of athleisure hasn't gone unnoticed by companies trying to flex other muscles, like Nike. That's not to say, of course, that the trend has unstoppable stamina. In fact, enthusiasm for athleisure has already waned as the market's become more and more crowded. Prices additionally have decreased as Wal-Mart Stores (WMT) and Target Corp. (TGT) dove further into sportswear, plus fast-fashion retailers joining the fray, notes Bloomberg Gadfly.

But could athleisure have a "second act?" Investopedia says that if Adidas and Under Armour elbow deeper into athleisure, the whole sector could benefit. That's not to mention if Nike puts forth a greater effort.

Nike stock is down more than 18 percent on the year, Under Armour is down 21 percent and Lululemon is up 5.6 percent.


pricing  Consumer  retailers  Consumer Products  Wholesale  Consumer Driven  Assortment Planning  markdowns  Merchant  Reduce Markdowns  Set Entry Price Points  Strategic Planner

Looking for more info? Complete the form below.

What Retail Executives Say About Supply Chain Disruption Leading Into Holiday: Shortages, Pricing and Delays

We partnered with The Wharton Baker Retailing Center to create a comprehensive infographic exploring our findings.

View the Infographic

The State Of Consumer Spending: Gen Z Influencing All Generations To Make Sustainability-First Purchasing Decisions

We partnered with The Wharton Baker Retailing Center and asked consumers in the U.S. how sustainable practices are impacting shopping habits and purchase decisions.

Read the Report
Featured Product

InsightSuite for Small Business

Specialized Tools for Small & Emerging Businesses

The fastest and most cost effective way to increase sales, profits and sell-in for growing businesses and digitally native brands.

Learn more
Free Ebook

Maximize Value, Speed & Profit

Learn how to leverage Voice of the Customer Analytics and 3D Product Creation to make more profitable products, faster.

Get the Free E-book
Roundtable Video

Kohl's Creates Value W/Predictive Analytics

Learn How First Insight's Predictive Tools Fuel Kohl's Success

As one of the world's leading omnichannel retailers with more than 1,100 stores in 49 states, Kohl's is leveraging First Insight's predictive analytics solution and voice-of-the-customer data to improve their business.

Watch the Webinar

Consumer Sustainability Survey 2021

The First Industry-Wide Consumer Study On Shoe Sustainability

This industry-wide survey aims to create a critical baseline that brands and retailers can use to ensure they understand what consumers actually comprehend, what terms and phrases resonate best, and what areas they should prioritize.

Download the Webinar & Findings
Supply Chain & Pricing

Navigating Disruption

How The Rockport Company is Optimizing Assortments and Pricing with Data + Digital Product Testing

Learn how The Rockport Company created a new product playbook powered by the Voice of the Customer and predictive tools.

View the Webinar & Highlights