Functionality, but also fashion. Comfort but also chic. Priority checklists for buying shoes, watches and even apparel for the gym have evolved, and the brands are ramping up their game to cater for this dynamic market.
‘Sneaker-heads’ and ‘fitness freaks’ have most certainly transcended into the trend of premiumisation as they are now seeking quality, exclusivity, and a deeper connection with the brands they wear. This change in demand is reflected in the premium options offered by Adidas & Myntra on the latter’s website, which has gone up by 30-40 per cent.
Neelendra Singh, General Manager of Adidas India, appears to have tapped into this emerging trend. Speaking to ET, Singh stated that India, with its large population aspiring for better products, exhibits a natural consumer behaviour of constantly seeking improvement.
“Think about it – your first car. Was your next car a downgrade or upgrade? It’s the same with houses, phones, and sneakers – most of us, with increasing affluence over time, tend to trade up. The question then becomes: in each category, what do you trade up to, and where do you find those products?” he explained.
Bharat goes international
Singh emphasized that India is ready to embrace global product lines. “We’re willing to bring all our global lines to India.” Premiumisation, according to the Adidas India chief, is a general trend in both segments – the upper end and even the mid-market.
The Myntra trend index indicates that in the sneaker segment, premium shoes, typically ranging from Rs 5,000 to Rs 12,000 and above, such as Adidas Originals, Nike Jordans, Converse All Stars, and New Balance BB550, are highly popular. Additionally, the Nike Dunk Low Retro Panda edition sold out within three minutes, showcasing the high demand for coveted releases by these brands.
“It’s like a sneaker stampede, highlighting the insatiable appetite for the most coveted releases on Myntra,” the marketplace said. As per a Statista report, the sneakers segment in India, in 2024, is forecasted to generate a revenue of $2.80 billion.
India’s $2.5 billion sneaker market has only recently gained momentum and appears to be on a steady growth trajectory according to multiple industry forecasts. Moreover, with over 50 per cent of the population under the age of 25, the demand for stylish and comfortable footwear has only been inching higher.
Notably, Adidas India clocked a revenue of Rs 2,578.1 crore in FY23, up 2.5 times from FY21 when the company’s revenue stood at Rs 945.1 crore. With initiatives like Sneaker Clubs and Sneaker Saturdays, Adidas and Myntra are extensively filling their shelves to build a certain ‘sneaker culture’.
The e-tailer has expanded its sneaker collection with 10,000 styles and 300+ high heats in order to fulfil Gen-Z’s needs.
The Adidas Samba, in particular, has become a standout hit on the platform, mirroring its status as the sneaker of the year globally, they said.
“With the merchandise they have shaped conversations, pop culture conversation. And it’s the access to global fashion trends that has truly come alive in the form of sneakers. I think that’s something we’re seeing in the country,” Myntra’s Chief Business Officer, Sharon Pais told ET.
Highlighting a demand for sports and fashion in a ‘tal-mel’ (sync) is emerging, Pais and Singh noted that this trend is here to stay.
“A lot of consumers have sneakers as a footwear of choice as they walk into their work wear along with their formal wear, athleisure every day. When you travel, you want to look good, but you want to be comfortable. So sports have a defined moment and sports and trends are coming together. The lines are blurring,” she said.
Three stripes on a jersey, yes!
Sneakers, termed by some as part of athleisure, are not the only ones that are going off the shelves.
From a time when jerseys were almost inaccessible with international sports teams getting famous in India, and were often expensive, to today, when a World Cup saw 30,000 jerseys being sold on Myntra alone.
Thanks to rising disposable incomes and expanding e-commerce, more people can afford and access these products.
India’s sport apparel market was valued at $673.34 million in 2022 as per a report by Maximize Research. It is expected to reach $1,926.10 million by 2029 at 16.2 per cent CAGR.
Myntra’s Pais noted that the sports category is picking up, especially as India witnesses a post-COVID rise in wellness and sports activities.
“To quote a number to illustrate this: we have achieved a 50% CAGR with the brand (Adidas) in the last 3 years,” she said.
Pricing is key
However, Singh feels that for jerseys to turn into a culture, India needs the right products and he believes that Adidas was able to achieve the same with their partnership with the Board of Control for Cricket in India (BCCI).
“In India, of course, there’s a huge love for cricket, but the right products haven’t always been available. Consumers, or should I say fans, want to wear something that connects them to their teams. Earlier, there was an evident lack of credible sporting brand, creating jerseys for the Indian cricket team and its loyal fans. So, I would say getting a superior product for the athlete and for the fan is the starting point for creating a jersey culture, beyond just the sport and the fandom itself,” said Neelendra Singh.
Adidas, according to Singh, has been successful in solving the accessibility problem with its three-tier pricing strategy.
“We created a three-tier pricing strategy. There was the official product, the top tier. Then there was a takedown line, and finally, a line of fan jerseys at 999 rupees. Affordability made the products much more accessible to cricket fans across India and was much appreciated,” Singh explained.
In all, For the Adidas executive, jersey culture will truly reach its moment when people start flaunting jerseys and take pride in their national teams on non-match days as well.
“I’ll be truly satisfied the day I see consumers wearing national team jerseys on non-match days. When you go to the market, people are proudly sporting jerseys – the national team jersey, you see people taking pride in Indian victories, wearing a basic jersey to the office even when the team isn’t playing. So, I think it’s a good start, something we can credit ourselves for, but I guess we’re still a bit far from seeing India where we just cease to work in the evening and simply celebrate our close proximity to the sport,” Singh concluded.
