Besides, there are several reasons for this level of out-of-stock. It can either be a result of a stellar job and great intuition on the part of the brands’ buying team or, it could be that there is still a high level of stock not selling.
Only retailers have access to their stock speed level or stock turnover, but one question stands out: Was it a smart move to create a sports division in an already saturated market?
Creating a new collection, yes. But with innovation and differentiation.
The activewear industry is appealing for its profit possibilities — but it’s also highly competitive and fragmented. All segments, from mass-market giants to premium brands, compete for market share with low differentiation.
Moreover, new and existing fashion retailers need to offer fresh ideas, innovation, and new trends to survive and thrive against the competition. For instance, investing in sustainable activewear or plus-size market and pregnancy segment.
In the end, the activewear-collection gamble seems to be worth it since it’s a big trend — and it doesn’t seem to be going anywhere anytime soon.
However, this warrants careful consideration. Companies should define whether it is worth investing in this new department rather than curating existing assortments to optimize retailers’ collections and get the best out of their brands.