The shift towards casual and comfortable attire in professional settings has led to a surge in the popularity of sports and athleisure (S&A) footwear. This trend, driven by changing dressing styles post-Covid, is expected to witness a significant growth trajectory over the next decade. Let’s delve into the factors contributing to this paradigm shift and the opportunities it presents for both domestic and international footwear players.
Structural Growth in Sports and Athleisure Footwear
According to Goldman Sachs, the demand for athleisure footwear is structurally growing, fueled by the increasing acceptance of casual clothing in workplaces. This shift is accompanied by a preference for comfortable footwear, with sports shoes offering unmatched comfort through features like cushioning, ergonomic designs, and supportive materials. As consumers prioritize comfort in their daily lives, sports shoes have emerged as a preferred choice over formal footwear options.
Catering to Active Lifestyles
Another key driver of the growing demand for sports shoes is the adoption of active lifestyles among young Indians. Activities such as running, gym workouts, tennis, cricket, badminton, football, trekking, and more are becoming increasingly popular, especially among the youth and middle-aged demographic. This trend towards a healthier and more active lifestyle contributes significantly to the growth of the sports and athleisure footwear segment.
Industry Response and Expansion
In response to this burgeoning demand, both Indian and international footwear players are capitalizing on the opportunity for growth. Brands like Relaxo and Bata have expanded their offerings in the sports footwear segment, with Bata launching the Sneaker Studio and enhancing its sports shoes collection. Metro Brands has also made strategic acquisitions, adding global brands like FILA and Footlocker to its portfolio.
Shifting Market Dynamics
The market dynamics in the footwear industry are also witnessing a transformation, with consumers gravitating towards branded products. Over the past decade, the market share of unbranded and small brands in the footwear segment has decreased, highlighting the increasing preference for established brands. Rising per capita discretionary incomes further fuel this trend, attracting more first-time consumers to the sports and athleisure footwear category.
Growth Potential and Market Positioning
The sports and athleisure footwear category not only drives higher unit sales but also boasts a higher average selling price (ASP) compared to casual footwear. This significant price differential presents substantial growth potential for the overall footwear industry, making S&A footwear a lucrative opportunity for brands and retailers alike.
In conclusion, the rise of casual sneakers and sports shoes in workplaces and everyday life reflects a broader shift towards comfort, style, and active living. With evolving consumer preferences and market dynamics, the sports and athleisure footwear segment is poised for sustained growth in the coming years, offering promising prospects for industry players to capitalize on this trend.
