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Table of Contents

History of Athletic Apparel Advertising……..…….……….………...……….........…….….. 3

Athletic Apparel Through the Years…………………...……………………………….. 6

Current Trends in Promoting Athleisure Apparel............................................................. 8

Diversification of Target Audience to Promote Inclusivity and Boost Sales................... 13

Strategies to Grow Revenue in Athletic Apparel............................................................ 16

Lululemon targets men…………………………………………………………………..... 16

Adidas ecommerce strategy……………....………………………………………...…….. 17

Outdoor Voices Activewear and Digital Strategies ………....…………………...…….. 17

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

History of Athletic Apparel Advertising


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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

athletic wear is today (Encyclopedia Britannica, 2020).

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

leggings and crop tops (Figure 1.8) (Coach.nine.com, 2016).

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

is going to accelerate” (Cheng, 2019).

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

and how it is positively affecting their revenue.


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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

advantage of the possibilities that the opportunity gap presents.

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.

Athletic Apparel Through the Years

Figure 1.1 - This is a typical outfit


that women would wear in the 20s
when competing in horse racing.
The style was conservative as
they barely had any skin showing.
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Figure 1.2 - In the 1920s, golf was a popular


sport. This is a typical outfit worn at the time.
Again, very conservative and not made
for comfort, but more for societal status.

Figure 1.3
Photograph of Suzanna Lenglen
in the late 1920s competing in the
Wimbledon Championships wearing
“risky” athletic wear.

Figure 1.4- Cotton Leotards for men


became popular in the 1940s that
showed off their physique in the gym.

Figure 1.5- Photograph of


Vince Gironda, well-known bodybuilder
in the late 50s showing off his physique
in nothing but small shorts.

Figure 1.6 - Photograph of Jane Fonda in


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the 1980s, a well-known jazzercise endorser.


Leotards with leggings and high socks were
a popular trend at this time.

Figure 1.7- Loose fitting track suits


in the 1990s were worn in
the gym
and outside of the gym by
men and
women. Often times they
had bold
colors and designs.

Figure 1.8- In the 2000s, looser and longer


shorts for men became popular. For women
we see legging and crop tops/tight tops become
a trend, this style is still worn today.

Current Trends in Promoting Athleisure Apparel

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,
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2019). Almost 100 percent of people who wear activewear say that they wear it when not

working out. (Guzzetta, 2019).

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

type of athleisure apparel that women can

wear on a grocery run, and also to run 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.

So, while their clothes promote the variation

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

intensely, but just living in their athletic wear.

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

whole new type of brand loyalty” (InvestorIdeas.com, 2019).

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

become relevant in situations they would not be, like when

Kyrie Irving makes a game winning shot in the NBA Finals

you are seeing him wearing his Nike shoes, even when the

event is not sponsored by Nike directly (Figure 2.3). This

increases Nike’s brand awareness, but also they can leverage

this event and the emotions in future advertising (Araujo,

Caldwell, DeFanti, 2018). The sub-brands and endorsements

of these athletes allow fans to be closer to

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

and political statements that can

make a difference beyond just

apparel.

Figure 2.3
Nike shares hit an all-time high in the
wake of the controversial Colin
Kaepernick ad. (Bloomberg Business,
2018)

Athletic apparel brands

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

of influencers on social media.

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

audience, companies have the

opportunity to increase their

numbers and broaden their reach

of consumers. While most sports-

wear companies sell their athletic

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

reach, but also improve your bottom line.

An additional issue to consider when advertising athleisure to consumers is to determine

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?

To begin crafting an advertisement that is intended to attract the attention of a broad

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

highlight that the reasoning behind this major

brand move, was due to the desire of enhancing

the exercise experience physically and more

importantly, mentally. Adidas decidedly

emphasized self-love on our bodies. The marketing

strategy Adidas utilized showcased photographs of

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

a wheelchair for the new OV Cotton campaign (Simmons, 2019).

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,

disabilities. Incorporating diversity in athleisure and athletica advertisements should be just as


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important to athletic-wear companies, as it is to consumers desiring that inclusion. Furthermore,

this inclusivity will not only benefit athletic-wear companies by increasing their sales, but also

their positive reputations.

Strategies to Grow Revenue in Athletic Apparel

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).

Lululemon Targets Men:

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

five years (Hall, 2019).

Adidas E-Commerce Strategy:

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

and took action.


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Outdoor Voices Activewear and Digital Strategies:

Outdoor Voices built a 100-million-dollar company by recognizing the opportunity gap

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

doing things, instead of performing a specific

kind of task. Instead of creating clothing for a

specific task such as yoga, tennis or jogging,

this clothing line was created for active people

of all kinds (Hollis, 2018).

Figure 4.1

This chart shows the diversity of ages and activities that

brought about the idea for Outdoor Voices. 

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.

With a significant chunk of revenue coming from online sales.

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
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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

is shown in their gross margins and total sales each year.

Figure 4.2

As you see in this chart, Nike’s Growth


margin has been consistent by staying
within 2.4 percent for the last 5 years.

There is a substantial amount of money to

be made from the athletic apparel industry. For

companies such as Adidas, Nike, Outdoor Voices, and Lululemon they are expanding and some

even doubling its revenue because they found a

group of potential buyers that were not being served.

By finding these opportunity gaps they are

expanding their consumer segments and increasing

revenue.

Figure 4.3

As you see in this chart, the sales growth has


dramatically increased from 2017. Athleisure Wear has become more profitable and is bringing in more revenue
than previously. 

Recommendations to a new company entering the Industry

1. Target segment that is underserved


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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

competitive in this industry, it would be beneficial to create a segmentation strategy that

identifies underserved consumer groups.The Lululemon segmentation strategy, for example,

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).

2. Develop an entire line and market for older shoppers.

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).

3. Identify consumers with different types of disabilities to serve

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

disability. There is a window available to advertise to a group of people with disabilities.

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
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doesn’t want to be bothered by allergies. Because we want you to live your life to the fullest, we

designed Athletican to suit your needs” (About Us, 2019)

4. Cater for People with a Wider Range of Body Sizes

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.

5. Have diverse influencers/bloggers/celebrities on social media to promote the brand

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

like Lizzo, who is known for her curvy body.


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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

age groups, the disabled community, ect.


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