Next Wave of Fitness Brands — The Time Has Come

The fitness apparel industry, like so many other things in the world, is in a state of major flux. On the one hand, you have strong incumbents that keep getting stronger. On the other, you have major changes happening beneath their feet, leading to increased competition and opportunities for innovation and disruption. Time will tell whether the incumbents or the new class of upstarts will take things to the next level, but one thing is clear: the next era of fitness brands will look very different than the last.

What is contributing to this shift? Here’s what I see as the major forces at work:

Changing demographics

Once upon a time, fitness brands were built primarily with serious enthusiasts in mind, who were primarily male, and valued performance above all else. Professional athletes were the only obvious choice for being the faces of those brands. Fast forward to today, and as fitness oozes into mainstream consciousness and everyday lifestyle, the demographics are shifting quite a bit. See the below chart on race registration growth, as one data point. You can see that while marathon growth is flat and half-marathon growth is linear, growth in non-traditional events like Color Run is off the charts. It should be noted that 60% of Color Run entrants have never run a 5K.

Not only is there is more balanced participation from men and women, but as participation in fitness overall has grown, a higher percentage of participants are beginners who have a different set of needs and wants than longtime enthusiasts. As a result, the performance- and testosterone-focused brand positioning of the past, which was built with a different persona in mind, doesn’t necessarily resonate with this new kind of fitness participant.

Evolving consumer buying patterns

The primary customer for fitness brands is shifting from the retailer to the individual consumer. It used to be that you would show up at a specialty retail store and buy your running gear based on what the salesperson pointed you towards, what was on sale, what had premium placement in the store, and so on. It is not that these things don’t matter now, but when consumers show up at the store today, they are coming in much more educated and with stronger brand preferences than they have in the past. Car dealerships are a good corollary: while most cars are still getting purchased at the dealership, the level of homework a customer has done before showing up is markedly different. And of course, in the fitness apparel world, the percentage of purchases happening in the stores also continues to decrease, as online purchasing grows. As a result, it is more important than ever to have an ongoing dialogue and relationship with the consumer — not just a point-of-sale transaction.

The rise of online (particularly mobile) tools

It’s clear the more empowered consumer mentioned above exists because of the wealth of information online today. Mobile technology changes the game even further, particularly as more and more people embrace apps and wearables to help them track and improve their fitness. For one, the app creates a space for a natural, ongoing relationship with that consumer, where a brand can bring them continual value over time, not just at the point of sale. Two, this relationship enables a slew of possible points for interaction between the consumer and brand, such as physical and digital events, integrated loyalty programs, or data collection that can further inform purchasing decisions (like a shoe tracker that tells people when to replace their gear). There are also ripe opportunities for integrating commerce elegantly and directly into the core product experience in ways that make the consumer experience better, versus being intrusive. Lastly, these platforms not only enable not only widespread user community scale, but also widespread data scale, meaning interactions across each of these spectrums can be personalized for each consumer. In addition, the aggregate (anonymized) data can also be used to help build better products and create richer experences for all. Imagine a shoe built with an understanding of what millions of beginner runners need out of their equipment, for example. Or a routes database that can surface the most popular routes in a given area that are specifically tailored to the kind of run you are aiming to do (for example, a hilly, scenic 5-miler). And as the underlying methods of tracking continue to evolve, the possibilities here become even more exciting.

Introduction of 3D printing

This is the area that is the newest and the least proven out, but the drumbeat has been consistently getting louder for 3D printing and its application for making fitness shoes and apparel. We are at the beginning of this journey, but we are starting to see some of the major brands get on board, and I expect this trend to accelerate in the coming months, which could have big implications on the speed, quality, and personalization of fitness apparel production globally. Imagine if your shoes could be custom made specifically for you, in-store, while you wait.

Fitness brands of the future

Given these changes, the timing is right for a new class of fitness brands to emerge.

These brands will:

• Be built with the every man and woman and their needs in mind, versus only building for and speaking to the serious enthusiasts.
• Be embedded in your daily life, as a journal, buddy, coach, and supporter, helping you stick with your fitness routine and achieve your goals throughout your journey.
• Surface the right tools at the right times to maximize your enjoyment of the sport. You shouldn’t have to keep track of how many miles are on your shoes — your fitness brand of choice should know based on the tracking you’re already doing. You shouldn’t have to research cold weather gear as winter approaches, your fitness brand should anticipate your individual needs and help outfit you appropriately, before you even know to worry about it.
• Provide a system of motivation that rewards longevity and improvement, so your incentives are directly aligned with the behaviors you are trying to facilitate for yourself.
• Be a connector, by better integrating you with like-minded people around the globe. Whether it be through virtual events, physical run clubs, collective goals, or other innovative ways to bring people together, you are not in this alone, and your brand of choice should help foster this camaraderie.
• Be personalized in every way. While it fosters a truly global community, your fitness brand of choice should make you feel like it was built for you specifically at every touch point, both with its products and services and how those are delivered throughout your journey.

This is my dream, and our dream at Runkeeper. And apparently, from the moves some of the larger players have been making, it is a dream that some others may share as well. The hard part isn’t the vision, it’s in the execution to fulfill it. And while it is unclear yet whether the incumbents or emerging upstarts will make up the next great class of fitness brands, I couldn’t imagine a more exciting challenge to work towards tackling in the years to come.