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For decades the world of sports apparel was dominated by a few big names \u2014 Nike<\/strong>, Adidas<\/strong>, Puma<\/strong> \u2014 with newer upstarts like Under Armour<\/strong> and Gap Inc.\u2019s Athleta<\/strong> chipping away, slightly, at their dominance. But in the last decade, these global powerhouses all have struggled to maintain their position as consumers\u2019 athletic apparel go-to. Scandals, failed attempts at modernization, uninspired product offerings and bloated balance sheets have created an environment ripe for disruption.<\/p>\n Sensing the opportunity, a new class of brands has entered the ring<\/strong>, and along with them a new term has entered the lexicon \u2014 \u201cathleisure.\u201d<\/strong> Unlike their forebears, brands such as Lululemon<\/strong>, and more recently Fabletics<\/strong> and Alo Yoga<\/strong>, all started with a focus on women first, although all have since expanded into men\u2019s. (Fellow newcomer Vuori<\/strong> stands out for going the opposite direction, debuting with men\u2019s and then quickly expanding to women\u2019s). \u00a0<\/p>\n The battleground product is the women\u2019s legging, and in this regard the offerings can tend to blur together. All the competitors have similar price points and are following similar playbooks, with appeals based on comfort and performance along with a healthy side offering of \u201ccommunity\u201d via events, social media outreach, fitness classes and content.<\/p>\n One thing is clear \u2014 this new cohort of athletic apparel competitors has been hugely successful in capturing the zeitgeist of the more casual post-pandemic fashion era<\/strong>, where joggers are a perfectly acceptable form of officewear and the functional demand for fashion is no longer \u201cday-to-night\u201d but \u201cgym-to-office.\u201d<\/strong><\/p>\n The legacy leaders in sports apparel have taken notice, as evidenced by moves such as Nike\u2019s high-profile new activewear partnership with Kim Kardashian\u2019s trendy Skims<\/strong> brand. And the big-name brands still hold the title when it comes to market share, with only Lululemon offering any real threat at the moment.<\/p>\n Spending data from Earnest Analytics shows Lululemon capturing the second<\/strong>-biggest chunk of monthly athleisure spending in the U.S. (21.2%)<\/strong>, trumped only by Nike\u2019s 31.6%<\/strong>. The other competitors\u2019 share is comparatively miniscule: Athleta 4.4%, Fabletics 4.4%, Vuori 2.9%, Alo Yoga 1.3%.<\/strong><\/p>\n But as Nike is well aware, the bigger you grow the harder you can fall, and Lululemon has been facing pressure on two<\/strong> fronts in recent years: viral yogawear upstarts on one side and the growing popularity of dupe culture on the other.<\/p>\n The ultimate test may lie in the answer to a question CNBC<\/em>\u2019s Sara Eisen posed to Lululemon CEO Calvin McDonald at the 2025 NRF Big Show: \u201cHow many leggings does one women really need?\u201d His answer: \u201cA lot.\u201d<\/p>\n While that answer might be a bit self-serving, it does seem to carry the ring of truth: \u00a0the rampant growth of athleisure shows no signs of slowing. After topping $358 billion<\/strong> in 2023, the global athleisure market is expected to grow at a compound annual growth rate (CAGR) of approximately\u00a09.3%<\/strong>\u00a0through 2030, according to Grandview Research.\u00a0<\/p>\n That makes winning in this sector a big prize, and one that a growing number of brands are chasing, so Retail TouchPoints<\/em> took a deeper look at some of the newer entrants in the space to suss out what will separate the winners from the losers in this increasingly pitched battle.<\/p>\n Differentiators: <\/em><\/strong>First-mover advantage, trusted quality, brand recognition<\/em><\/p>\n Potential Weaknesses: <\/em><\/strong>Stagnation in design innovation, loss of favor among trendsetters<\/em><\/p>\n When Lululemon first entered the picture 27<\/strong> years ago it was the disruptor; now it is the leader being disrupted. Nearly every other player in the world of athleisure looks to Lululemon as its prime target, which places pressure on the brand \u00a0but also speaks to its ongoing advantages.<\/p>\n Lululemon has a significantly larger store footprint than newcomers in the space, bigger market share and more established brand recognition, and this is something that CEO McDonald intends to double down on through continued international expansion. China, where the brand now has 140<\/strong> stores, making it Lululemon\u2019s second<\/strong>-largest market, will be a particular focus. At the NRF Big Show, McDonald promised many more stores in China, the U.S. and around the world as part of his strategy to double<\/strong> its current business.<\/p>\n As far as competitors go, McDonald said the company\u2019s \u201cobsession around innovation\u201d will keep it in good stead: \u201cI find those who are Lululemon guests get it, and our opportunity is always to get more guests into the product because we feel once they try it, they will understand,\u201d McDonald said at the event. \u201cIt really is rooted in how we look to innovate.<\/strong> It begins with, what is the activity the guest is doing and how they want to feel \u2014 that can be through the fabric, the functionality \u2014 those are the basic ingredients. And then we have a unique way in which we build high-performance, high-style, very versatile apparel you can wear to and from the gym. <\/strong>It\u2019s endless, the opportunity for us to keep innovating and creating product for our guests.\u201d<\/p>\n Furthermore, McDonald doesn\u2019t see this as a zero-sum game<\/strong>: \u201cWe grew market share in the Q3 period in the premium athletic category, but there\u2019s a lot of share that Lululemon doesn\u2019t have and we continue to see an opportunity to get a piece of,\u201d he said. \u201cBut [our competitors\u2019] growth and success isn\u2019t coming at the expense of our success and our growth. I believe the brands are differentiated enough. We\u2019ve never had 100%<\/strong> of our guests\u2019 wardrobe. I\u2019d love to have that, but the reality is there\u2019s always been room in the wardrobe for competitors, and there\u2019s a lot of share with global incumbents out there that I think all of us are benefiting from.<\/strong>\u201d<\/p>\n One area where the brand seems to be lagging behind newer entrants is in the more ephemeral sphere of online buzz. Comparable sales in the Americas were flat in Q2 2024 (which ended April 28, 2024), which the company said was largely the result of a miscalculation in the colorways and sizes it carried, a sign that the brand is sometimes finding itself out of step with the trends of the moment. <\/strong>In another product misstep, Lululemon pulled its new Breezethrough leggings after repeated complaints about an unflattering fit.<\/p>\n Failure to release a steady roster of popular new designs can have an outsized impact in a category where purchases by regular consumers are based much more on \u201cwant\u201d than \u201cneed.\u201d<\/p>\n Differentiator:<\/strong> Standout softness combined with versatile style<\/em><\/p>\n Potential Weakness:<\/em><\/strong> Maintaining product freshness as competitive products challenge its core value prop<\/em><\/p>\n Vuori<\/strong>\u00a0skyrocketed to popularity with the release of its trendy, incredibly soft men\u2019s joggers, and quickly followed that success with similarly comfortable and stylish offerings for women in a range of fitness categories. \u00a0<\/p>\n In a signal of its ongoing success, Vuori announced an\u00a0$825 million\u00a0<\/strong>investment round\u00a0in November 2024 led by General Atlantic and Stripes, bringing the brand\u2019s valuation to a staggering\u00a0$5.5 billion<\/strong>.<\/p>\n \u201cVuori competes on a differentiated product, a differentiated brand, a differentiated store experience, differentiated materials,\u201d the company\u2019s CEO and Founder Joe Kudla told CNBC<\/em>. \u201cIf you were to just survey our customer base [and ask], \u2018Why is Vuori so special?\u2019 They would tell you it\u2019s because of our product,<\/strong> it\u2019s because of the comfort, the textile, the fabrics we work with and the fit. We are all about product, product, product, and that\u2019s ultimately what results in great performance in our industry.\u201d<\/p>\n This was confirmed by Chris Carey, a partner at\u00a0Stripes, which led the recent round of funding. He told the New York Times<\/em>: \u201cVuori\u2019s product strength was validated by our consumer research. Vuori has the highest net promoter score amongst its peers in the athleisure space<\/strong>, and is the highest rated on fit, performance and comfort.\u201d<\/p>\n While Vuori\u2019s product has propelled it to its current heights, it\u2019s not clear how long the company will be able to perch on that particular pedestal, as nearly all its competitors have now released products clearly aimed at mimicking the brand\u2019s signature softness. As it looks to future growth, Vuori is focused on community-building and international expansion, but just as with Lululemon, product innovation will be critical to maintaining its edge.<\/strong><\/p>\n \u201cOur vision is to inspire happiness, so what we\u2019re working on at Vuori is making the best product possible to inspire and motivate our customers to really live healthy lives,\u201d Catherine Pike, Vuori\u2019s VP of Retail told Retail TouchPoints<\/em> in 2021. \u201cIt\u2019s not just about the clothing, but it\u2019s about the things that come along with it,\u201d she added mentioning the brand\u2019s ACTV Club classes, educational podcasts and support of nonprofits. \u201cAll of these things go beyond the wonderful, amazing product and [allow us to connect] on a deeper level than just clothing, which I think is really the essence of the brand and our culture.\u201d<\/p>\n Differentiators:<\/em> <\/strong>Buzziest brand of the moment, authenticity to its yoga roots, \u201cinsider\u201d vibe that fuels organic virality<\/em><\/p>\n Potential Weakness:<\/em> <\/strong>Buzz doesn\u2019t last forever<\/em><\/p>\n It might come as a surprise to learn that Alo Yoga has been around longer than many of its competitors. That\u2019s because the brand didn\u2019t truly hit the mainstream until just prior to and during the pandemic, when celebrities ranging from Hailey Bieber to Martha Stewart were tagged wearing its apparel. Virality ensued, and the brand is now currently the buzziest of the athleisure bunch, with an influencer-fueled social presence that is driving demand<\/strong>.<\/p>\n Further fueling Alo Yoga\u2019s buzz is its insider-style retail experiences. The brand\u2019s stores are called \u201csanctuaries\u201d<\/strong> and feature more than just products; there also are yoga studios, caf\u00e9s and other experience-based offerings. Going to Alo Yoga\u2019s stores feels like an event, which explains in part why they seem to always be busy.<\/p>\n The brand\u2019s low-key, influencer-led marketing strategy also helps to bolster a sense of authenticity. Despite no store signage, Alo Yoga locations were swarmed on Black Friday 2024 based on news of deep discounts that was only shared online.\u00a0<\/p>\n \u201cIt definitely does seem cooler and more relevant than Lululemon,\u201d said Ana Andjelic, the author of The Business of Aspiration<\/em> in an interview with The Wall Street Journal<\/em>. \u201cWhy do I think that? I have no idea. Which is exactly what you want when branding works \u2014 when people can\u2019t explain why something seems cooler than something else.\u201d<\/strong><\/p>\n But as any brand that\u2019s gone viral can tell you, that buzz doesn\u2019t last. The biggest question Alo Yoga has to answer is how it will maintain its popularity once its newfound novelty wears off.<\/p>\n Differentiator:<\/strong> Membership model, which offers lower price point<\/em><\/p>\n Potential Weaknesses: <\/em><\/strong>Not seen as high-quality as competitors\u2019 products because of lower price point; membership model turns some people off<\/em><\/p>\n Fabletics\u2019 differentiator is clear \u2014 its membership model means that the company operates very differently than others,<\/strong> and this is the brand\u2019s biggest strength but also its biggest challenge<\/strong>.<\/p>\n \u201cWe offer incredible quality at a price that no one else is competing with right now,\u201d said Fabletics\u2019 Global President Ashley Kechter\u00a0in an interview with Retail TouchPoints<\/em>. \u201cWhen people think of Fabletics, and they don\u2019t know the brand or haven\u2019t experienced our product, the assumption is that the discount means it\u2019s not great quality.\u00a0The reality is we go head-to-head with our competitors in quality \u2014 we are sourcing in a lot of the same factories \u2014 but we are able to offer a great value because of membership.\u00a0That\u2019s what membership unlocks \u2014 we don\u2019t have to sacrifice on quality to get the cost where we need it.\u00a0We have massive scale because of the membership model, and that\u2019s recurring revenue.\u201d<\/strong><\/p>\n This recurring revenue offers solidity to the brand\u2019s business, but the membership can be an extra hoop that consumers aren\u2019t willing to jump through, keeping the brand out of their consideration set. Consumers can buy Fabletics products at full price without becoming a member, but with the deeply discounted member prices amply promoted, they may feel foolish for doing so.<\/p>\n Kechter also pointed out the flexibility of the membership \u2014 members can choose to skip months whenever they want and there are no exit fees or restrictions on cancellation. However, there\u2019s no denying that convincing consumers of the benefit of committing to Fabletics via a monthly membership is its biggest task, one that Kechter hopes will be aided by a brick-and-mortar ramp-up over the next five<\/strong> years, giving its associates the chance to make the case face to face.<\/p>\n<\/p><\/div>\nThe Battle for Market Share<\/strong><\/h2>\n
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Lululemon \u2013 The Reigning Champ<\/strong><\/h2>\n
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Vuori \u2013 The Trendsetting Challenger<\/strong><\/h2>\n
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Alo Yoga \u2013 The Sleeper Star<\/strong><\/h2>\n
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Fabletics \u2013 The Steady Performer<\/strong><\/h2>\n
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