Professional Documents
Culture Documents
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Table of Contents
Nike Revenue Strategy is to Develop Products that Cater to the Needs of a Wide Range
of Consumers …………………………………………………………....……...…. 18
Recommendations..........................................................................................................19
Conclusion…….……………….………...……................................................................. 22
References…….………………………………………...……............................................ 23
Athletic apparel has been a trend for decades, dating as far back as the 1920s. Athletic
wear was worn mainly for sporting events that were popular at the time such as horse racing, golf
and tennis (Figure 1.1 and 1.2). The clothes worn were not made for comfort, but more for
societal status and appropriation. For example, women would wear long heavy skirts, and tight
sleeved jackets to cover their whole body (Imadidon, 2017). Suzanne Lenglen, six-time
Wimbledon tennis champion, changed this stigma in the 1920s. Lenglen was admired for her
athleticism, but she was also equally admired for her daring fashion choices (Figure 1.3). While
most players preferred the traditional and conservative athletic wardrobe, Lenglen’s outfit
consisted of perfectly coordinated short pleated skirts, sleeveless blouses, and short-sleeved calf-
length dresses worn without a petticoat. She also wrapped her head in a bandeau secured with a
jeweled pin. Her glamorous, and risky image was adored by fans and led to the evolution of what
By the 1930s individuals started becoming concerned with living a physical lifestyle, and
most athletic apparel consisted of satin shorts and a plain cotton t-shirt. In the 1940s, men began
wearing all cotton leotards at the gym to show off their physique (Figure 1.4). Satin shorts and
tops remained in style for men and women for most of the 1950s. It wasn't until the late 50s and
early 60s that bodybuilding became a popular form of exercise for men. They would wear
nothing but small, tight shorts to show off as much of their muscles as possible (Figure 1.5). It
wasn’t until the 1970s that gym fashion truly became popular among everyday wear. Jogging
became a trend in the mid-70s and along with this came loose, fluorescent short shorts that both
women and men wore. Bill Bowerman, co-founder of Nike, is the person credited to starting the
jogging craze in America (Edwards, 2015). Contrary to this, the 1980s athletic style completely
changed from athleisure wear to neon colored leotards made of spandex worn over leggings
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while people practiced aerobics, often times at home. Jane Fonda was well-known at the time as
a celebrity endorser of jazzercise (Figure 1.6). By the 1990s group classes at the gym became
popular and individuals started wearing name brands such as Nike. Chunky shoes were worn
along with loose fitting track suits with wild designs and colors (Figure 1.7). In the 2000s, men
started wearing activewear that was more loose fitting and longer, while women started wearing
Companies like Lululemon inspired activewear style in 2010 as people became interested
in spiritual practices such as yoga. Celebrities including Reese Witherspoon, Gisele Bundchen
and Kelly Ripa became fans of Lululemon, wearing leggings and tight tops. Others were
inspired, and this style became a fashion trend for everyday wear (Baalbaki, Gilliard, Hoffman,
2019). Today, we are in the boom of athletic wear, as Adam Goldenberg, CEO of Los Angeles-
based TechStyle Fashion Group puts it, “The adoption of the athleisure trend is here to stay and
The history of athletic apparel described above, highlights that we are moving towards a
new market, athleisure. From current trends such as leggings and crop tops, we can see that
individuals are dressing for not only comfort, but style. The current trends in athletic apparel
advertising show a transition into profiting off the new market emerging and how having a more
diverse target audience can positively affect a brand’s visibility and awareness. The global sports
apparel market is expected to generate revenue of $184.6 billion in 2020 (MarketWatch, 2019),
this shows the importance of brands trying to close the opportunity gap highlighted in diversity
This paper will focus on the current trends, diversity of target audience and the revenue
of athletic apparel advertising that are affecting the direction that companies should be moving
towards. This paper offers recommendations to help the agency and athletic apparel companies
become more successful in a market that is becoming very competitive. This is important
because not only will it positively affect the bottom line of a company, but it will open up brands
and consumers to more opportunities. With many brands moving to take advantage of this gap
and new companies emerging with this intent, it is important that athletic apparel companies
evolve and adopt this new mission of diversity and inclusivity in their advertising and take
The opportunity gap in the athletic apparel market is the groups of people not being
targeted, this is those of different sizes, genders, races, disabilities and age. The opportunity gap
also includes those who are shopping for athleisure, meaning people who are wearing athletic
apparel casually, not always to work out. ‘Athleisure’ was added to the dictionary in 2016 and
just under 100 percent of people say that they wear athletic clothing when they aren’t exercising.
(Guzzetta, 2019). The current trends in athletic apparel advertising shows that brands are now
starting to profit from the trend of athleisure and are making it an integral part of their brands.
Figure 1.3
Photograph of Suzanna Lenglen
in the late 1920s competing in the
Wimbledon Championships wearing
“risky” athletic wear.
The trend of wearing athleisure has contributed heavily to the athletic apparel industry.
According to InvestorIdeas, “Athleisure has been the biggest trend in retail over the past several
years, helping put athletic apparel stocks on a fast track to big-time gains” (InvestorIdeas.com,
2019, p. 1). We start to see athletic apparel brands advertising athleisure as a lifestyle because of
the large consumer demand that is going to likely continue for a while (InvestorIdeas.com,
9
2019). Almost 100 percent of people who wear activewear say that they wear it when not
Outdoor Voices is a brand that has found the market gap where brands aren’t advertising
to the people who wear athletic wear not while working out and given into the trend of
athleisure, and the even larger cultural trend of healthy living (Hollis, 2018). The brand sells
athletic wear that is trendy and comfy but can be worn at any time, and not just for working out.
Outdoor Voices’ popular Exercise Dress (Figure 2.1) is not your normal workout gear, it is a
marathon.
Figure 2.1
Outdoor Voices Exercise Dress shows the diversity of
their audience and the apparel that can be worn during a
workout or while running errands.
of an athleisure lifestyle, does their advertising, particularly through social media and the
hashtag, #doingthings
(Figure 2.2).
Figure 2.2
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#doingthings hashtag on
Instagram with almost 200,00
posts.
There are several major trends in the promotion of athleisure, including social media
advertising, sponsorship and celebrity endorsements. Each of these trends has caused the growth
of athletic apparel to see a significant rise in sales, brand awareness and visibility. Nike has made
over $1 billion from their Jordan endorsement alone in one year, accounting for 5% of their
annual revenue (Folger, 2019). Social media has turned the idea of athleisure into something
more, there has been an “unprecedented surge in consumer awareness regarding image, health
and fitness” because consumers want to give off this appearance of having a healthy lifestyle and
athleisure apparel best fits this (InvestorIdeas.com, 2019). People want to wear clothing that
indicates they are living a healthy lifestyle (Hollis, 2018). When scrolling through the
#doingthings hashtag on Instagram, you see women of all ages wearing Outdoor Voices doing
things like hiking and running, but also hanging out with their families and walking city streets.
Outdoor Voices has turned their brand into one very different from other athletic apparel brands
by promoting the lifestyle most women are living these days, not constantly working out
Another major trend in athletic apparel promotions is the rise of sponsorships and
celebrity endorsements. Sponsorship for major events has helped brands to increase brand
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awareness and visibility which in turn develops a strong brand affinity for those in attendance
(Technavio, 2020). With the rise of the internet and social media, “companies able to work with
the right athletes/celebrities who have the right exposure will gain the potential to tap into a
Nike is well-known for many of its sub-brands with celebrity endorsements such as the
LeBron, Kyrie and KD brands. All of these brands bring large sales numbers in because people
want to associate with these basketball players. Endorsements create a tie between the brand and
athletes who are dominant in pop culture (Araujo, Caldwell, DeFanti, 2018). The brand can
you are seeing him wearing his Nike shoes, even when the
Figure 2.3
Kyrie Irving wearing his Nike shoes
gives the brand awareness to anyone watching.
their idols, those who idolize LeBron are likely to want to wear Nike LeBrons. Nike has put
itself in a position to leverage players’ stardom due to association and therefore cause a positive
brand awareness and affinity among consumers (Araujo, Caldwell, DeFanti, 2018). Nike and
other athleisure brands are targeting groups of people who are not athletes, but are just average
people who can wear athletic apparel. It’s not just Nike that is partnering with
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celebrities/athletes, other athletic apparel brands such as Fabletics, has created lines designed by
popular celebrities.
When Nike endorsed ex-NFL player Colin Kapernick, they received a lot of backlash.
Kaepernick has been a controversial figure not only in sport, but among the people after refusing
to stand during the national anthem to protest racial injustice. Nike made a statement when
choosing to be on the side of Colin Kaepernick and put him at the center of their 30th
anniversary “Just do it” campaign (Tyler, 2018). Some people began to boycott the Nike brand
and even burn their Nike apparel, but Nike is known for making profound social statements.
Despite the initial backlash, this graph shows that Nike saw a dramatic increase in shares
following the ad (Martinez, 2018) (Figure 2.4). Nike shows us that advertising can make social
apparel.
Figure 2.3
Nike shares hit an all-time high in the
wake of the controversial Colin
Kaepernick ad. (Bloomberg Business,
2018)
can also achieve endorsements of celebrities simply by diversity in their advertising. Outdoor
Voices is known for being inclusive of various body size, age, and race in its advertising. This
strategic approach has caught the attention of many celebrities including, young television star
Camila Mendes. In a post on social media Mendes said, “I really admire Outdoor Voices for
hiring models with curves, and for keeping their curves intact and on display” (Brar, 2019)
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(Figure 2.5). She shared multiple images of models who aren’t photoshopped, where you can see
a stomach bulge or love handles hanging over the sides of leggings website and praised them for
the broadness in their advertising. The positive support that Mendes shared with her 22 million
followers gives Outdoor Voices visibility and positive association that the brand couldn’t buy.
This endorsement by celebrities on social media is going to become vital, especially with the rise
Figure 2.5
Camila Mendes post on Instagram
stories highlighting her admiration
for the Outdoor Voices brand.
Diversification of Target
Audience to Promote Inclusivity
and Boost Sales
To attract a diverse
wear to a mass market of both men and women, some focus on a niche target audience.
Lululemon, for example, has a reputation for being the go-to brand for upscale, active women
who enjoy yoga. Recently, they’ve strived to rebrand their image to include menswear with the
goal of doubling their digital sales and menswear sale. By presenting themselves to be inclusive
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among genders in advertising and promotion, they have around a 20 percent penetration in men’s
wear, already outpacing women’s wear in terms of growth (Hall, 2019). This demonstrates that
branching toward a broader, more inclusive target audience can not only improve your consumer
if the message relates to the every-day consumer. According to an athleisure study done by the
MacKenzie Corporation, 55 percent of consumers relate to ads showing “people like me” and 42
percent relate to ads showing “people having fun” (Jenny, MacKenzie Corp., 2016). This
introduces important questions of who are “people like me” and how do you reach them?
target audience, categories other than just gender must be considered. What makes an average
person who they are revolves around more than simply being male and female. Demographic
information such as age, race, body type disabilities, among other characteristics, are all factors
that may be considered when promoting athletica or athleisure wear to reach a larger number of
consumers.
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Adidas has recently become the first major athletic brand to show body size inclusivity
by expanding their sizes from XXS to 4XL. In promoting size diversity, Adidas made sure to
Figure 3.1
Adidas size inclusivity marketing
advertisement with women of
different colors and sizes wearing athletic wear.
women of different colors and sizes modeling the new Adidas line (Figure 3.1). By promoting
different body types and sizes, Adidas had the opportunity of expanding their consumer reach
(Oberoi, R. K. 2019).
While there was a growing trend to incorporate different races and body size, very often
persons with disabilities were not seen advertising athletic wear. Including persons with
disabilities is vital to for truly embracing diversity and including the average person - not just
those who are physically able. Outdoor Voices does this well by emphasizing that their main
desire is to put real people at the center of everything they do, this includes featuring a model in
Athletic wear companies have the opportunity to broaden their consumer numbers and
reach by showing inclusivity to diverse ages, ethnicities, body types, sizes and in some cases,
this inclusivity will not only benefit athletic-wear companies by increasing their sales, but also
Strategically diversifying the target audience not only generates a positive attitude
towards the brand for those groups of consumers that are typically ignored, but it also generates
copious revenue for brands. The global sports apparel market is expected to generate revenue of
$184.6 billion in 2020 (2019, September 13). Athletic apparel has become a huge market, but a
difficult aspect of this insanely profitable niche clothing style is where the opportunity gaps lie in
the business. In other words, right now there is a race to find where athleisure companies can
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find new target audiences that can be equally profitable. Bill Lewis, a director at AlixPartners,
said, “If you’re struggling, it’s probably a sign that you’re not connected to your customer in the
ways that you should be.” To maximize your total revenue and net income companies have to
find new ways to attract new buyers. Companies such as Lululemon and Outdoor Voices have
recognized the opportunity gap and are taking advantage of it and are crushing it in each quarter.
Lululemon at the end of Q3 in October of 2019 posted revenues of $916.14 million (Lululemon,
2019).
While Lululemon outperformed the market last year and shot the opportunity gap when
they realized they were missing out on a target audience of men. Once they increased their
targeting efforts with men through influencers, their sales growth increased by 80 percent and
increased their share prices in 2019 by 268 percent of their previous value. By expanding its
target audience and advertising focus Lululemon is projected to double its revenue over the next
Adidas has a different approach to increase their revenue. “Our website is the most
important store we have in the world,” said Kasper Rorsted, chief executive for the German
sportswear brand. Adidas started closing stores to step up investment in digital media and
advertisements as they look to double their e-commerce sales over the next two years (Storbeck,
2018). This brings into question the importance of a company's website. The company's website
is its form of an advertisement and Adidas saw their opportunity though the e-commerce market
in athleisure wear. Outdoor Voices is bridging the gap between the existing markets by creating a
company that targeted recreationists made by recreationists. Outdoor Voices wanted to get the
world moving regardless of age or body type. The brand’s marketing focused on being active and
Figure 4.1
Outdoor Voices has predominantly been an e-commerce brand; its online business
accounts for 70 percent of sales. This focus on digital is one aspect that differentiates Outdoor
Voices from the competition; retail spaces are used more for brand building than anything else.
Nike Revenue Strategy is to Develop Products that Cater to the Needs of a Wide Range of
Consumers:
Nike has a different approach, they generated 36.4 billion dollars last year (McFarlane,
2020). Nike’s target audience caters to both men and women athletes from the ages of 15 to 40.
The reason why they are arguably the leader in the athletic apparel industry is that although they
19
have a target audience of mainly athletes, they also have departments that appeal to everyone.
Nike has different sectors of their brand that are targeted to more defined audiences. For
example, Nike has cleats for an athlete's best performance, sells tennis shoes for a marathon
runner, and skate shoes for an average skateboarder. Nike formed its brand for everyone and that
Figure 4.2
companies such as Adidas, Nike, Outdoor Voices, and Lululemon they are expanding and some
revenue.
Figure 4.3
There are many groups of people that haven’t been targeted regarding athleisure clothes.
This is called the opportunity gap, a missed group of people that have the potential to be targeted
by a certain brand. In the athletic apparel industry, there are many untouched groups. To be
benefited from broadening their female target audience to a male focus as well. From expanding
their target audience Luluemon was able to increase their sale growth by 80 percent (Hall, 2019).
According to Athletic Apparel Industry Statistics and Trends, older shoppers are 59
percent more likely to see something online and then go into the stores rather than 38 percent of
millennials just ordering online (Gaille, 2018). Due to these statistics, it would be beneficial to
focus on a storefront and in-person customer service. The companies, such as Nike, that are
creating separate lines to target certain consumers are seeing large profits (Folger, 2019).
With disabilities, create athletic clothing that gives disabled people the confidence to be
athletic in their way. In the U.S. alone, there are 48.9 million people with a moderate to severe
Furthermore, 36.7% of women in the U.S. expressed having skin sensitivity. A company saw this
window of opportunity and created a company named “Athletican Hypoallergenic Gear” for
people with skin sensitivities. On the brand’s website, the company stated “Its hypoallergenic
materials make it the best apparel for the individual who loves hitting the beach or the gym and
21
doesn’t want to be bothered by allergies. Because we want you to live your life to the fullest, we
With the hope of reaching people with different body types, the obvious recommendation
is to have various sizes available in all the clothing options. The average American woman wears
an XL (Byrdie, 2019), so I recommend having the sizes XL, XXL, and XXXL. Including models
that represent the target audience is important for customers to see themselves in the store,
website and overall, to see themself in the brand. Outdoor Voices is an example of a company
that includes a variety of body types on their website. They lack different sizes in the clothes, but
on their website, they include all different body types to model for them.
With the rise of social media and influencers, brands must have a diverse set of
influencers/bloggers posting about their brands from different races, genders, and body types.
Consumers must see themselves being represented in advertising, but also on social media where
a large number of consumers are shopping. Some recommended influencers would be, Adrianne
Ho, who is Asian-American and Fashionably Flexy, who has a curvy body type. Outdoor Voices
is an example of a brand that is already doing this with celebrities, by highlighting celebrities
Conclusion
The market is moving towards a more inclusive and diverse approach with branding and
advertising forcing competing for brands to keep up with the trends. Out of the many opportunity
gaps in the athletic-wear industry, a significant area to focus on includes those who are being
targeted and who could be targeted. There are many groups of people that aren’t being marketed
(refer to Diversification of Target Audience to Promote Inclusivity and Boost Sales section),
therefore there is a continual future opportunity to broaden the consumer reach of this industry
through inclusivity. With the popularity of athleisure, there are many companies with the
potential to market to more individuals with different body types, diverse ethnicities, a variety of
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