As 2024 draws to a close, the sneaker and sportswear industries have endured a tumultuous year characterized by significant challenges and striking transformations. Leading the charge, Nike, the once-unquestioned titan of this domain, encountered a sharp decline in sales and brand fervor, ultimately resulting in the ousting of CEO John Donahoe. The upheaval at Nike coincided with a revitalization of its main competitor, Adidas, which has made a remarkable comeback under CEO Bjorn Gulden’s adept leadership.
The landscape for footwear and activewear brands in 2024 highlights how disruptive forces can reshape markets. After a decade at the pinnacle, Nike is struggling to maintain its preeminent position as newer brands like On and Hoka seize the moment, targeting a demographic eager for fresh perspectives in the activewear segment. New Nike CEO Elliott Hill names enhancing consumer experiences, innovative products, and relevant marketing as central to his strategy, particularly as challengers such as New Balance gain ground.
Adidas has rebound impressively since the early 2020 crisis following its split with Kanye West’s Yeezy brand. With a focus on core products, particularly the resurgent Samba sneaker, the brand has clawed back market share and revitalized its image. Gulden’s concerted efforts to engage with consumers through stylish collaborations and community-focused initiatives proved successful in rekindling interest.
This year also marked a crucial juncture for fashion’s growing fascination with sport, brought into sharper focus during the Paris Olympics. Major luxury players like LVMH have made bold moves, including a substantial sponsorship of the Games and a pivotal 10-year partnership with Formula 1, demonstrating their intent to tie high fashion with the high stakes of international sport. Chanel’s sponsorship of the historic Oxford-Cambridge boat race signaled a shift toward recognizing the influential role of female athletes. Young stars like Angel Reese of the WNBA are becoming icons beyond the court, exemplifying the convergence of sports, style, and culture.
Fashion collaborations with athletes have proliferated, yet the saturation of brand partnerships poses a unique challenge. Amid the clamor, brands need to establish distinct identities to resonate with consumers. Notably, Reese has emerged as a prominent figure in this landscape, earning her “Bayou Barbie” moniker due to her striking style during games and red-carpet appearances, attracting major endorsements in beauty and fashion.
Despite a challenging year, some brands are capitalizing on changing consumer preferences. The sneaker resale market has witnessed volatility, with oversaturation leading to plummeting prices for previously coveted models. As lesser-known brands gain traction, platforms servicing the resale of athletic footwear must adapt swiftly to retain relevance.
In a notable shift, younger athletes increasingly favor partnerships with independent or niche brands over established names like Nike and Adidas. By aligning with brands that echo their values and provide them creative control, these athletes are redefining sponsorship in sports. The rise of challenger brands, combined with a growing appetite for unique, story-driven collaborations, signals a significant shift in the dynamics of sports marketing.
From a broader perspective, traditional sports entities are learning crucial lessons from fashion’s playbook. For instance, AC Milan has integrated fashion into its brand strategy through collaborations with streetwear entities such as Off-White and Puma, fostering a buzz that elevates both the sport and the fashion involved.
Yet, the rise of new sports, like padel, has introduced a fascinating dimension to this market. Padel’s growing visibility, backed by luxe brands such as Valentino and Prada, illustrates an aspiration to embed sporting culture within luxury fashion. The community surrounding padel boasts an affluent demographic, creating ample opportunity for brands to align their identity with an active lifestyle.
As brands navigate these shifts and challenges, the future holds promise for those willing to innovate and adapt. New Balance’s ambition to become a $10 billion juggernaut is backed by strategic collaborations and a commitment to authenticity, demonstrating that an ever-evolving marketplace can still yield tremendous opportunities for growth and success. Meanwhile, Adidas’s resurgence offers a blueprint for re-engagement with consumers through product focus and effective storytelling.
The influence of the Olympics and rising athlete-entrepreneurs ensures that sport and fashion remain intertwined, with both spheres continuing to provide vibrant and compelling narratives for marketers and consumers alike. Thus, as we approach the new year, the sportswear landscape is primed for exciting developments worth watching.
