2018

The Athleisure Atlas

In 2012, Tim Gunn said “When it comes to dressing, comfort is overrated. A little discomfort probably means your clothes fit and they're not pajamas.” With utmost respect, he could not have been more wrong. Fast forward a few months later, the athleisure boom had begun. Workout clothes were no longer just workout clothes — but an entirely new (and lucrative) segment of activewear. Athleisure: multifunctional fashions to wear not only to the gym, but to the supermarket, family events, and/or even to the office. As certain players emerged athleisure powerhouses, competition from brands has heated profusely. Today, there is still scramble to break into or increase brand’s slice of the market. Luxury fashion designer Tory Burch said herself “I’m trying to figure it out…” The Athleisure Atlas seeks to do just that. Through analysis of product quality and market strategy — to provide the greater public insight and direction as to how to navigate this new world.  

2.0 Atlas Score

#8 Fabletics

Not a stranger to controversy and in the midst of launching in the UK, Kate Hudson’s Fabletics is the only subscription-based brand across the set. Fabletics is unique in its business model, enticing consumers with a $50 “VIP membership” that unlocks highly discounted athleisure, in addition to personally curated items for the member to purchase each month. The small print, however (and root of thousands of member’s fury, leading them to call the company a scam), is that unless members “opt out” of purchasing the personalized outfits within the first five days of the month, they are then charged $50. In short, Fabletics leverages very low prices and money held, essentially in escrow, to draw members back. Business practices aside, there are some interesting things about Fabletics. They leverage massive AI infrastructure to curate personalized outfits for its members and have a constant stream of new apparel. Their data allows them to make extremely informed decisions about their inventory and what to market their members. From a quality standpoint, however, pieces are fair at best. As Fabletics makes its way to the UK, the verdict is that if you can absolutely be on top of opting out of your monthly deal when needed and quality is not of concern, Fabletics may be your cup of tea.

2.5 Atlas Score

#7 Gap

Despite being under the same corporate umbrella as Athleta and Old Navy (both enjoying stronger scores and financial performance), Gap athleisure falls notably flat. In considering nearly every variable, Gap’s athleisure (called GapFit) line comes off as a hodgepodge of trends found effective for other brands, yet not executed in the right fashion or order. For example: loud prints lacking cohesion, “sculpt” compression pants using what looks and feels like seatbelt or pregnancy jean elastic as a waistband. As for compression pants? They compress, but to the point of limiting movement. GapFit markets its line as “studio to street”. In order to find its way in this market and to be successful, thoughtfully chosen and curated strategies from its sister brands can indeed be employed. That said, focusing on studio or street separately, before combining the two, would potentially be an effective tactic and help the brand find its voice in this market.

3.0 Atlas Score

#6 Old Navy

With Old Navy, you get what you pay for. And with fantastic prices and constantly evolving inventory, that is nothing to be disappointed about. Over the past five years, Old Navy has developed a stronger sense of self. This sense of self has not only guarded them from growing retail apocalypse, but also allowed them to take more risks. Quality of apparel is variable. Neoprene-esque jackets look tailored and sleek, while work out tank tops are almost always on the flimsier side, shrinking with a few washes. Old Navy has a little bit of everything and one can have it without major investment. For both that reason and their keen eye for trends that translate well onto cheaper fabric, it has been able to successfully integrate lucrative trends from other brands. If you’re on a budget, or simply like to have a vast array of options, Old Navy is just fine.

3.0 Atlas Score

#5 Nike

Nike is not only one of the most recognizable brands worldwide, it is also one of the most consistent. While rarely recognized, Nike actually played an active role in planting the seeds of athleisure, with its wildly popular Women’s Tempo shorts (a line of running shorts made popular around 2006 that became a mainstay on American college campuses). Today, however, Nike’s athleisure falls short of the success enjoyed by other departments. Nike has struggled to evolve with the athleisure movement, procuring logo ridden clothing, with extraneous utilities, most often catered to straighter athletic builds. In fact, former Creative Concept Director, Kristin Hildebrand, left the company to start Wone, a collection of activewear separates that “embraces minimalism, quality and refinement” . What is most interesting about Nike right now is that solving its current cultural moguls regarding women in the workplace is, arguably, the key to its success. The fact that Nike has a deep bench of well-qualified female talent like Hildebrand also presents an incredible opportunity. Women know how to style for women’s bodies.If Nike can appropriately address shifting cultural tides in their organization and empower their female leaders through unmatched global reach and deep pockets, it may be their key to athleisure success.

3.5 Atlas Score

#4 Outdoor Voices

Outdoor Voices has done a fantastic job carving out a unique niche in a highly saturated market. With its quintessential, bubblegum pastel, color-blocking, Outdoor Voices leans heavily on its lifestyle brand qualities more than any brand across the set. Outdoor Voices apparel, while unequivocally esthetically pleasing (if not calming), has historically been somewhat limited to yoga, barre and general leisure. They have recently released “Tech Sweat”, a line that aims to balance athleisure with utility for more intense workouts, like running or spin classes. When talking about the marketing of the new tech apparel, Founder Tyler Haney notes “We don’t want to over-techify it”, which suggests the company is extremely purposeful in its wish to express lifestyle over sport. What’s more, Haney refuses to identify her brand with athleisure, expressing that OV’s north star is “making apparel for those who make activity fun.” When it comes to quality, their fabric is both soft thick. It’s level of compression can be somewhat constricting, requiring most women to size up at least one or two sizes. Witnessing the success of OV, several competitors have taken to the sketch board, creating designs that emulate its iconic color-blocking, sparking the company (and its strong fan base) to raise its own voice. OV boasts a highly devoted following, one of the absolute biggest key performance indicators of brand success and staying power. That said, in order to stay relevant, not fade into fad, or lose market share, OV must continue to innovate at increased velocity, while maintaining its strong identity, and nurturing its customer base.

3.5 Atlas Score

#3 Aerie

Having recently expanded their repertoire beyond lingerie, Aerie is the definition of an up-and-comer in athleisure, building momentum and a solid brand story. Despite being somewhat more geared towards the millennial spectrum, Aerie is anything but exclusive. Its brand message and designs are structured around promoting a healthy body image for today’s women. Aerie makes it their mission to portray real, unphotoshopped models. They reinforce this with #AerieReal as their mantra and feature user-generated content with their apparel right on their website. Similarly to Athleta, they carry extended sizes and lengths to cater to the largest set of women possible - all the while maintaining reasonable prices.  With relatively lower prices also comes the flexibility to experiment with style. The brand carries basics but leans more towards the trendy side. While Aerie notes their apparel is appropriate for different levels of activity, its pieces thus far are best used for their comfort and athletic focused pieces can fall short on utility.

4.0 Atlas Score

#2 Lululemon Athletica

Despite its sheer pants debacle of 2013, followed by declining sales and founder noting that the brand had “lost its way”, Lululemon lands high rankings through its having successfully traveled back to its north star over the past few years. Lululemon rose to prominence by not only creating comfortable workout gear, but gear that made women want to be seen, in and out of the gym. Today, Lululemon is by no means the shoe-in for best athleisure. Its turbulent years did open the door for consumers to look to other competitors, who were prepared for them with open arms and lighter grips on wallets. Lululemon’s prices continue to be substantially higher than most competitors. That said, Lululemon’s quality and styles are back on track and still seem to be the blueprint that other brands look to for inspiration. Lululemon has learned from its mistakes -- now focusing on the more simple styles that propelled it from a small Canadian brand to international success. Today, Lululemon’s biggest obstacle is, actually, itself.  While Lululemon’s market share has increased by 25% over the past year, flags for the company wave in the background. With its latest CEO leaving abruptly in February (the seat is still open), the company is vulnerable to losing focus and the momentum is has accumulated, especially should changing of the guard bring about massive changes or distraction.

4.5 Atlas Score

#1 Athleta

Landing the number one spot in the Athleisure Atlas is Athleta, who has proven that unwavering dedication to a range of customer profiles wins the race. Athleta has been able to consistently do what so many brands have struggled to for the past 10 years: identify and commit to style, demographics, levels of quality and comfort across all products. Athleta products remain laser focused on one thing: women of all ages, shapes and sizes. This focus is threaded not only through their fabrics, but also market approach. Athleta promotes a level of inclusivity and continuity that many competitors shy away from. For example, the brand continues to offer fan favorites and a depth of sizing options, while competitors opt to leverage exclusivity in sizing and foster an environment of scarcity of product, in order to promote an upper echelon brand. Athleta CEO, Nancy Green, speaks openly about this purposeful approach. “We inspire her [the customer] to keep living this full, healthy, active, rich life, no matter what her body type is, no matter her age.” Proof is in the product. Quality is consistent, catered to almost as many types of workouts as they are to types of bodies. Styles are versatile and leverage intermittent experimentation with trends, all the while staying on brand. Athleta’s advantages do not merely lie in its inclusive branding, high quality product or versatile styles -- but rather in that the combination of these purposeful choices fuel customer retention and return rates across the lifecycle of women.

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