The Business of Sportswear: The Industry's Growth and Challenges

INTIMASIA | south asia's largest trade show
16/11/2023

With 2023 sports events in favour of India, from chess, and football to the recent cricket World Cup, talking about India’s sportswear glory just comes out naturally. India as a developing country is reaching all heights from every segment, one of them being sportswear. 

The Indian sportswear market was worth USD 673.34 million in 2022 and is expected to rise to USD 1926.10 million by 2029, at a CAGR of 16.2%. 

This is the largest growth recorded in the apparel segment, much larger than innerwear! 

The sports industry is proving to be profitable in various aspects, including marketing, apparel, management, sponsorship, and overseas sales! 

This year is the prime time for sportswear brands to up their marketing game to gain long-term benefits! 

Factors Fueling India’s Sportswear Industry

  • Fashion and Fitness Concerns- With increasing desk jobs and sedentary lifestyle patterns, the only physical activity people engage in is daily workouts. This has led to an increase in demand for fitness wear like Polo shirts, shorts, T-shirts, and tracksuits. 

On the other hand, people also prefer to workout and do house chores in style, thus leading to the surge of athleisure fashion. 

  • Comfort- With softer, moisture-wicking, sweat-proof, materials used for making sportswear, the demand for T-shirts and track pants is on the rise. Today's customers, especially women, choose comfort over style, thus providing this industry a surging boost!

Brands such as Fila, Adidas, Puma, and Shiv-Naresh Sports have already recognized this demand and have started investing in material research and quality testing.

  • Pandemic Demand- Even during the lockdown when people were confined to their homes and worked remotely, the demand for athleisure and home wear surged by 8-10%. Despite the ease of restrictions, online purchases of athleisure continued to soar.

  • Social Media Influence- Today, the growing influence of social media on consumer’s buying decisions has led to 80% of the population shopping online. Many brands like Puma, and Nike, have effectively used this opportunity by investing in celebrity and influencer marketing. 

  • Sport’s Fanbase- In India, sports hold a special place in people's hearts, and this emotional connection makes fans exceptionally loyal to their favorite sports players. This is what drives the increasing demand for sportswear and related merchandise.

  • Government Funding- The Indian government has recently increased its sports funding by USD 7.103 million, leading to a surge in sportswear fashion. These government funds are allocated to finance sports events, and sports brands, and help sports start-ups. 

Challenges in the Indian Sportswear Industry

Cost-Pressure- The material, making, transportation and export costs for sportswear are on the rise. This is more of an overseas challenge, as India remains a cost-effective country to invest in, and manufacture sportswear. 

Competition- The competition between well-established brands and new-emerging businesses is soaring. Brands like Nike and Under Armour today compete with Lululemon and Fabletics for athleisure sales. 

Intellectual Property- IP issues are pretty prominent in sportswear fashion. Recently Nike sued many brands for selling counterfeit products that infringe on their trademarks and copyrights. 

To conclude, the only way out in the sportswear segment lies in continuous business collaborations, technological innovations, and well-timed marketing campaigns. These strategies are crucial for staying competitive and meeting customer demands!