Celebrity appeal, small towns boost appetite for athleisure brands in India

Backing by celebrities like film stars and sports personalities as well as growing demand in small towns is bolstering the rise of athleisure–a combination of athletic and leisure wear—brands in India, with startups like actor Hrithik Roshan’s HRX, XYXX, and Tego Fit leading the wave.

Athleisure, which refers to apparel and accessories meant for both fitness as well as everyday wear, has moved from being simply a pandemic-led phenomenon to more of a lifestyle choice, industry executives said, betting that the trend will reshape the fashion industry.

“Athleisure is certainly among the fastest growing fashion categories in India. Given the increase in travel and fitness activities, athleisure wear such as jackets, sweatpants, and sneakers are top-of-mind options for all, especially younger, digitally-savvy users,” Siddhartha Gondal, co-founder and chief sales officer at DSG Consumer Partners-backed XYXX, told Mint.

Larger, listed players are grabbing the opportunity, too. Reliance Retail reportedly plans to introduce an athleisure line under the Superdry brand, making India the British brand’s first country for its athleisure foray.

Page Industries, which licenses Jockey and Speedo brands in India, saw its revenue surge 30% in the September quarter, driven by growing demand in the premium athleisure category. Jockey India opened its first physical retail store for athleisure wear in Kochi last month.

A Goldman Sachs report from March said that the rise of sports and athleisure footwear has become a significant trend, thanks to increased adoption of an active lifestyle and acceptance of casual attire in workplaces.

Shivaraj Jayakumar, practice leader (consumer and internet) at consulting firm Praxis Global Alliance, said that the category is poised for sustained growth with several cultural reasons driving the optimism.

“Increasing focus towards comfort and wellness along with hybrid work models is expected to fuel the demand for functional and stylish apparel. Athleisure is also expanding to newer demographics such as older generations, children as well as non-fitness focused population, driven by comfort and versatility,” Jayakumar told Mint.

Glitz and glamour

Celebrity endorsements and backing play a key role in driving popularity and adoption, especially in the mass and mass-premium categories, setting off cultural phenomena.

Earlier this month, former Swiggy executive Karthik Gurumurthy announced the brand name – Ten X You – for the new athleisure venture he has co-founded with cricket icon Sachin Tendulkar.

A key differentiator in having the sports icon is how closely Tendulkar has been involved, from product development to brand building.

“Sachin has played at the highest level. Along with drawing insights from his personal experiences and from the sports world, he also remains a keen observer who looks for inspiration from many arenas. This enables our brand to motivate common people in taking up sport. We have solid 25 years of experience of the biggest sportsman of India, who has played the sport at the highest level. You don’t just get technical inputs, but also get insights from various sports that solve comfort issues and enhance the feel, which we use, in turn, to design our products,” Gurumurthy said.

Ten x You is currently in the product development phase, and the first set of products, starting with footwear, is set to go live mid-next year, Gurumurthy said.

The push from celebrities and social media influencers help attract young and older audiences alike, making a category like athleisure age-agnostic, XYXX’s Gondal said.

“People generally look for authenticity when they see a celebrity or an influencer-led brand. An athleisure brand should look for credible celebrities who promote relevant themes like fitness and travel to resonate with the target audience,” Gondal added.

XYXX has executed several marketing campaigns with its brand ambassador and investor cricketer KL Rahul.

Small towns go big

With an increasing number of tier 2 and tier 3 cities mimicking consumption trends of metros, athleisure startups are finding a gold mine of growth opportunities in these regions.

Smaller cities like Nagpur, Vijayawada, and Jodhpur account for 60-65% of XYXX’s sales, while Mumbai-based firm Tego Fit, which sells premium activewear and fitness accessories like yoga mats and water bottles, sees non-metro cities as a rapidly growing market.

“We are seeing the massive growth in demand from tier 2 and tier 3 regions in the last 18-24 months. As cities are growing, people are spending more time taking to fitness than those in urban areas,” Krishna Chandak, co-founder of Tego Fit, said.

Moreover, increasing e-commerce penetration has led to early success in these markets, triggering hope that the momentum will continue, according to XYXX’s Gondal.

The availability of slightly affordable options during e-commerce sale events is driving athleisure presence in tier 2 and tier 3 towns, Praxis Global Alliance’s Jayakumar added.

Moreover, value retail store chains are growing in these regions, with more entry-level price options to get customers to drive sales.

In metro cities, the key demand drivers are lifestyle apparel, with a strong preference for global brands, for high-performance wear along with experimentation with bold designs and patterns. However, tier 2 and 3 cities are tilting towards fitness and health, driving demand for versatile, multi-purpose apparel, Jayakumar said.