Is technical sportswear the new luxury?

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 |  
Mar 2021
 |  
Vogue Business
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What: consumers are moving away from fast fashion athleisure and looking to invest in longer-lasting performance wear

Why is it important: insights from Vogue Business ahead of IADS Sport & Lifestyle merchandising meeting

Online fitness communities have soared over the last year in response to the closure of gyms and restrictions on spectators at sports events.

As the power of digital communities and the growing interest in health are long-term trends, they have both converged and accelerated, creating networks of consumers ready to invest in fitness apps, equipment and clothes. Premium and mass-market athleticwear brands are tapping into these fitness communities to reach hyper-engaged audiences, while luxury brands are exploring the potential of technical athletic wear. Fitness networks nurture a sense of belonging and, as networks strengthen, participants are naturally ready to step up their spending on higher performance quality products.

More than 74 million athletes worldwide use Strava, an app that enables users to track metrics for outdoor activities. But it's the social aspect that’s attracting 2 million newcomers each month, involving the creation of clubs or challenges. Lululemon has one of the biggest clubs on Strava, with over 100 000 members and some of its challenges saw mass engagement with more than 300 000 people tracking their workouts together. And athleisure is one of few resilient categories during the pandemic.

As the pandemic continues, trust in institutions, media and government have declined. Instead, consumers are seeking out communities and networks online. The result: a long-term and hyper-engaged network of consumers in the fitness space.

Nike launched its run club, NRC, in 2010. It logged 100 million runs over the last 12 months, continuing to see strong year-over-year gains in weekly active users, new users and retained users in Q2, Nike says. The app links seamlessly to in-app purchases and offers exclusive drops and discounts.

As Nike is considered a luxury brand by younger consumers, the On CloudX shoe was ranked as #9 in the Lyst Q4 2020 index of the hottest items for men, the first time a technical running shoe has featured in the ranking. The top ten is typically dominated by luxury and streetwear brands, but Lyst is seeing a shift as consumers invest in technical sportswear.

Luxury brands have tended to steer clear of technical athletic wear, but there are signs that they are ready to push more into this product category. Designers already launched collaborations with sportswear brands in the past few years: Victoria Beckham, Maison Margiela or Vêtements with Reebok, Dior with Nike and Prada with Adidas.

It remains to be seen whether luxury brands will explore besides sneakers. Peloton, the exercise equipment and media brand that went public in 2019 is already serving those consumers. Peloton is a luxury brand, it’s vertically integrated and it has a high price premium.

As online fitness booms, is technical sportswear the new luxury