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When athleisure came along, it didn\u2019t just redefine what activewear retailers sold. It constituted a new era of apparel, where everything from dress shirts to denim got a stretchy makeover.<\/p>\n
At the forefront of that movement, of course, was Lululemon. A brand that started with yoga pants grew to sell more workwear or commuter-style products like the ABC pant and got used to seeing double-digit sales growth as shoppers happily filled their closets with high-priced active-inspired apparel.\u00a0<\/p>\n
Vuori, Alo Yoga and more have taken their cues from the athleisure powerhouse when it comes to pricing, positioning their products as more of a premium purchase. They\u2019ve also taken category expansion head-on, seeking to push the boundaries of just how much of a shopper\u2019s wallet they can grab \u2014 and that\u2019s not necessarily a bad thing.<\/p>\n
\u201cAdding a category can be a great strategic move, but the category has to make sense. It has to make sense for your customer or your brand DNA,\u201d Liza Amlani, principal at Retail Strategy Group, said, adding that for wholesale brands, they must also think about product fit with retail partners. \u201cThere has to be alignment. It can’t just come out of thin air.\u201d<\/p>\n
But recently, shoppers have been telling activewear retailers in a couple of different ways that they\u2019re missing the mark. The interest in athleisure is still there, but what do brands need to do now to win?<\/p>\n
Are consumers moving on from athleisure?<\/h3>\n Perhaps a clear <\/strong>sign of the times is the stark financial reality Lululemon has faced recently.\u00a0<\/strong><\/p>\nUsually a very solid performer, Lululemon admitted in September that it had been missing trends and needed to rethink its design processes. The issues stem in part from not investing in its innovation hub,\u00a0<\/strong>according to Amlani, and indeed, Lululemon is banking on newness as a cure to its ailments.<\/p>\nAsked about challenges in the sector and at Lululemon specifically, a spokesperson cited efforts discussed on its most recent earnings call to increase the frequency of new styles, rebalance its merchandise mix and bring \u201cnew energy\u201d to its product assortment.<\/p>\n
\u201cIn a highly competitive environment, we differentiate our brand through our Science of Feel product development platform and innovative performance offerings, and we remain confident there continues to be market share to capture,\u201d the spokesperson said. \u201cWe know when we get our product right, guests respond, and we look forward to continuing to drive improvements across our product portfolio and business over the coming quarters.\u201d<\/p>\n
While some of the stumbles are Lululemon\u2019s to own,\u00a0it\u2019s also harder to grow in the category right now.<\/p>\n
\u201cWhen you see lots of growth in a market, it’s hard to keep sustaining that growth,\u201d Suzy Davidkhanian, who leads the retail desk at Emarketer, said. \u201cUntil there are either new brands or completely new categories in athleisure, I think it’s going to be hard to see lots and lots of growth.\u201d<\/p>\n
Davidkhanian added that any category in apparel will struggle \u201cif everything looks the same as last year,\u201d and budget-conscious consumers may need the extra push of new colors and silhouettes to justify purchases right now.<\/p>\n
It\u2019s not activewear that\u2019s lost its premium appeal, according to observers, it\u2019s uninteresting activewear that has. And with more competitors than ever, the bar is higher.<\/p>\n
\u201cOne of the issues facing [Lululemon] is the rise of new athleisure brands, some of whom are operating at similar price points and opening stores in similar real estate,\u201d Needham analysts led by Tom Nikic said in emailed comments in September. \u201cWith brands such as Alo, Vuori, Fabletics, Athleta, and others all providing \u2018athleisure\u2019 options for consumers, we believe it is stifling [Lululemon\u2019s] growth.\u201d\u00a0<\/p>\n
Needham analysts also mentioned rising competition from traditional apparel brands, including lines like Free People Movement and Offline by Aerie.<\/p>\n
Shoppers are getting more discerning the longer athleisure is around. Fans on Reddit have bemoaned higher prices and lower quality at Lululemon and Vuori over the years. Alo Yoga, too, gets its fair share of complaints around high prices versus quality. And Outdoor Voices, which relaunched to much fanfare earlier this year, has faced similar complaints around its new products compared to the brand\u2019s older lines.<\/p>\n\nIn response, a Lululemon spokesperson said that product quality and innovation is \u201cat the heart of everything we do, and our priority is to ensure that every single piece of gear that we create performs at the highest level for our guests.\u201d The spokesperson added that Lululemon\u2019s pricing strategy \u201creflects this ongoing commitment\u201d and that the brand listens closely to shopper feedback.<\/p>\n
None of the other brands responded to a request for comment about these complaints.<\/p>\n
It\u2019s important to address quality concerns upfront, otherwise shoppers will begin questioning why they\u2019re paying so much for these products, according to Davidkhanian, who referenced Lululemon\u2019s challenges with see-through leggings in the past. But broader apparel trends are also shifting, which threatens not just Lululemon, but the whole swath of its athleisure competitors.<\/p>\n
\u201cYounger consumers have clearly gravitated to wide-leg jeans in recent years, potentially at the expense of [Lululemon]’s core product (women’s tight-fitting leggings),\u201d Nikic wrote in September.<\/p>\n
Indeed, a recent report by Competitoor found denim was in high demand, with prices of denim jackets, for example, rising 34% in the 12 months ended Sept. 5. Davidkhanian noted that during athleisure\u2019s rise, many people were buying leggings to replace their jeans. Now, there\u2019s more innovation going on in the jeans world than in the leggings world \u2014 and so trends are shifting again.<\/p>\n
\u201cSkinny jeans were big, everybody bought them \u2014 and then nobody needed more blue ones, so then they came in every color under the sun,\u201d Davidkhanian said. That worked for a while and then it became tired and shoppers shifted their spending elsewhere when the innovation stopped. \u201cNow they’re seeing new fun denim and not so much new fun leggings. And so they’re moving on.\u201d\u00a0<\/p>\n\n\u2018It looks like chaos\u2019<\/h3>\n As shoppers move beyond leggings, athleisure brands are increasingly following.\u00a0<\/p>\n
Athleisure has toed the line between performancewear and lifestyle garb for years \u2014 especially as it\u2019s become more acceptable to sport casual styles for more serious events \u2014 but those efforts are going even further these days. Vuori, for example, is now selling denim for $188 and Outdoor Voices is doing the same for $168, alongside cardigans that retail for just shy of $150.<\/p>\n
Furthering the category\u2019s luxury ties, Alo Yoga even launched its first luxury bag collection this year, featuring a travel duffle priced at $3,600 and a drawstring bucket bag priced at $2,000, among other items.<\/p>\n\n\n
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\nAlo Yoga\u2019s luxury bag collection includes leather duffles.<\/p>\n
Courtesy of Alo Yoga<\/p>\n
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\u201cAre we going to Vuori for denim?\u201d Amlani asked of that effort, adding that the denim looks relatively basic.\u00a0<\/p>\n
Vuori didn\u2019t respond to questions from Retail Dive <\/strong>about what the reasoning behind the recent denim launch was, though 30 reviews on the retailer\u2019s site so far have given the product 3.5 stars. Among those reviews were a few complaints over the fabric being too heavy and the fit being too baggy.<\/p>\nOutdoor Voices pitches its own jeans as a \u201ccowgirl\u201d style designed for equestrians, part of a broader collection that also includes <\/strong>$188 riding pants and $108 polos. The brand\u2019s community on Reddit\u00a0features customers questioning the move or confused about the brand\u2019s new approach. Outdoor Voices did not immediately respond to a request for comment on the reasoning behind the launch or the online commentary around the products.<\/p>\n\u201cYou can totally extend your category \u2014 that’s totally fine,\u201d Jessica Ram\u00edrez, co-founder and managing director of The Consumer Collective, said. \u201cYou have to do it carefully if it’s not in your wheelhouse and you have to test, and as you’re testing, understand what is resonating with the consumer.\u201d\u00a0<\/p>\n
Ram\u00edrez added that developing apparel-based silhouettes using performance fabrics introduces additional challenges because those fabrics don\u2019t always sit on the body the same way. That can be particularly hard for items like dresses, and bottoms can be \u201chit or miss,\u201d she said.<\/p>\n
Sharon Zackfia, a research analyst at William Blair, also warned that markdowns are likely to be higher the more fashion-oriented apparel a brand offers.<\/p>\n
\u201cI think the question on how broad a brand goes \u2026 first, it’s what permission does the consumer give you to go there? Do you have any credibility in that space? Do you bring anything new to that space?\u201d Zackfia said. \u201cIs there a reason why the consumer would want you to be there?\u201d<\/p>\n
That\u2019s the harder part. Alo\u2019s bag launch, for example, garnered criticism from some on Reddit for its high prices and luxury appeal. Alo Yoga did not immediately respond to a request for comment about the reasoning behind the launch and the customer response to the collection.\u00a0<\/p>\n
Outdoor Voices\u2019 whole relaunch \u2014 cowgirl jeans notwithstanding \u2014 has found some consumers questioning the cost of items and generally lamenting the loss of what the brand once was.\u00a0<\/p>\n
According to Amlani, some of Outdoor Voices\u2019 problems come down to an assortment that doesn\u2019t mesh well together, including colors and styles that don\u2019t pair well.<\/p>\n
\u201cWhen you think of how a merchant will source a collection \u2014 they look at outfits, colors, categories that can either sit together or that can layer on top of each other. This assortment makes no sense to me,\u201d Amlani said of Outdoor Voices\u2019 recent collection. \u201cIt looks like chaos.\u201d\u00a0<\/p>\n
In some cases, customers agree. Complaints abound on the brand\u2019s Reddit page around items like the Boulder Dress and the styling decisions on Outdoor Voices\u2019 website. Others are more complimentary of the direction of the business, with many on Instagram praising the equestrian launch and items like the Diamant\u00e9 Doing Things Hoodie.<\/p>\n
To Amlani, some of the misfires mean the brand doesn\u2019t have the right feedback loop in place.\u00a0<\/p>\n
Fixing that and focusing on retail fundamentals may be the answer for any athleisure brands that find themselves too far astray.<\/p>\n
\u201cI doubt that the bottom is going to fall out from under any athletic or athleisure brand,\u201d Amlani said. \u201cThe problem is, can each of these brands demonstrate the appropriate product development, merchandising and process discipline to deliver a compelling assortment?\u201d<\/p>\n<\/p><\/div>\n
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