The sportswear market is the most demanding market, and it is not going to wane at any cost. As the peoples are more conscious about their health and wellness and the trend will continue to grow with each passing year. Also, the government is aiding the initiative to promote healthy lifestyles. Singapore’s pro-activeness in every domain of the market makes it a capital centre in the South East Asia zone, which is highly and easily adaptable to the changes. Globally, the sportswear industry market is expected to reach $184.6 billion by 2020. Singapore’s total revenue in the sportswear market amount to the US$70 million in 2018 and the market is expected to grow 1.6% annually (CAGR 2018-2021).
Sportswear industry has witnessed a significant growth over the period of the time due to increasing health awareness and fitness activities, such as aerobics, swimming, running, and yoga, etc. And mainly this is because of the participation of women in sports and fitness activities are increasing. In the global sportswear industry based on geographical location, the largest revenue-generating region was North America and it is expected that by 2020 the Asia-Pacific would be the leading revenue-generating region. Singapore’s sportswear industry is the growing segment of the apparel industry owing to increasing disposable income and improving the living standards of the country.
Athleisure: The Hottest Trend in the Sportswear Industry:
Athleisure, in simple words “athletic” and “leisure”, refers more than just a gym wear that one can wear all day, includes sneakers, outerwear, and even men’s dress shirts and blazers, etc. The value growth of the sportswear observed a strong market trend in 2017 supported by the general improvement in the economy than the previous year. Customers are now more attracted towards the comfort, style and practicality of sports apparel and footwear, with athleisure remaining the hottest trend. The sportswear industry market has restricted the growth of low quality and counterfeit products availability. The sportswear is worn during physical movements, workout sessions or while playing sports is designed in a style that it provides comfort and agility.
Health and wellness are on the continuous expansion in Singapore with lots of international brands entering the market of the country, such as Virgin Active, F45, Lululemon, Nike, Adidas, Under Armour Inc, etc. Presence of such vibrant wellness brand in Singapore, the growth opportunities for entrepreneurs has been palpable. According to the Singaporean government’s statistics, the overall demand for gym visiting has on the rise in 2015 from 1.8m to 2.5m in the five years.
Consumer’s rising interest in Physical Activities:
Singapore’s Health Promotion Board designed physical activity programs to generate awareness in Singaporeans, such as National Steps Challenge, Lose to Win and Sundays @The Park to make them more active. More programs initiated by Singapore Health Promotion Board are Active Living, Healthy Eating, Mental Wellbeing, Chronic Disease Management, Capacity Building and healthy eating behaviour with changes in physical activity levels. In addition to that to stay fit and healthy participation in local marathons and cycling has become more popular and people are actively accepting the change.
Now people are more aware of their health and actively associating with the physical activities. The raising consciousness of their health in women is the major reason that the sector is highly boosting. Earlier only men are the active participators and more conscious for their health. With the population of 5.8 million in Singapore, the companies are shifting in the market from the US, UK and Australia and from other regions of Asia too. F45, the Australian fitness franchise entered the market and opened its first studio in 2016, whereas, Virgin Active has launched in 2013 and successfully running its two clubs.
The Mode of Sale in the Sportswear Industry:
Mode of sale is based on the two market segment which is retail stores and online stores specifically, other than these two, supermarkets, brand outlets and discount stores are other modes. The ruling mode of sale is retail stores, the most common channel of sale for market players. The boost in the sports apparel market is due to the favourable demographics and rising inclination towards trendy sportswear. Many of the companies are trying to enter the region of Asia because of the rise in the disposable personal income of the consumers. Singapore is one of the highly emerging countries and a significant hub for the adoption of the latest trend. Currently, selling through retail stores are the dominating mode of sale in the market. But with the fastest changing technological era the mode of sale is also shifting from retail stores to the online stores.
Online mode of sale has witnessed a dynamic growth in the past few years as the penetration of internet and increased popularity and the influential part is the availability of a wide range of products at a discounted price. Consumers in Singapore are more brands conscious and prefer quality goods rather than going with an average product plus trend is all that they required. Through the online mode, they get any deal very quickly with lots of designs availability at a single click, also if they do not like any product they can easily switch from one store to another one.
Competitive Landscape for the Brands in Singapore in the Sportswear Industry:
The penetration of the brands in Singapore has far higher barriers to entry, proferring leading brands an edge over lower-quality competitors. Sportswear and shoes usually high-performance products and required an extensive market research and development that makes difficult for the other brands to knockout that particular brand from the race. Innovative campaigns running through the brands are making those brands an extraordinary one from others. This is what Skechers imply in 2017 and seen a huge increase in its value share and also the brand’s range of sports footwear becomes increasingly popular among others.
With the increasing awareness of the importance of health and fitness, the sports apparel is in the rapid demand. Globally recognised brands listed in the race to cover the sports apparel market of Singapore. New Balance, the American sportswear brand, possesses eleven stores in the country, since 2014, after the launch Lululemon owned three stores. Lorna Jane, Australian activewear brand initiated a store in the island whereas Triple Pte, exclusive distribution rights for Under Armour in Asia has also penetrated in the country and running five stores across the city.
Nike and Adidas the dominating leader worldwide has seen an increase in their value shares in 2017, also both are enjoying strong brand awareness and loyalty as well as widespread distribution. Both the dominating players of the market are strongly investing in the development of the innovative products. Puma, Lululemon and Skechers are following the trend of the leading leaders in the industry, such as Nike and Adidas. The competition among all the top brands going to be a cutthroat since each of the company is trying to one-up everyone else.
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