Demand for aspirational sportswear has remained robust as consumers' brand loyalty trumps pressure on disposable incomes.
The local market, dominated by global brands such as Nike, adidas, Reebok and Puma, continues to grow and this can be attributed to strong brand heritage and wide accessibility, said Euromonitor research associate Kauthar Jakoet.
“Many consumers in South Africa view these brands as a status symbol and are willing to purchase them on credit and pay for them over 12 months. This suggests [they] prioritise branded sportswear over more affordable options,” she said.
Niche categories such as basketball gear are also gaining traction, with the US National Basketball Association (NBA) last year opening its first store on the continent, at Johannesburg's Sandton City.
Hoops, another retailer specialising in such gear, has a store at The Zone in Rosebank, Johannesburg.
Both partnered with local premium retailer Shesha, which sells exclusive footwear, apparel and accessories.
Anthony Garstang, NBA Africa vice-president and head of business development and partnerships, said basketball was increasing in popularity in South Africa and “we have seen this through the incredible foot traffic” since the launch of the store three months ago.
He said the NBA would add further outlets. In the coming months it would also launch an e-commerce site “as we strive to make the NBA one of the top sports lifestyle brands on the continent ... and elevate the culture around the game in South Africa”.
The store's most popular items are NBA team jerseys, caps and headwear.
“Fans have loved coming to the store to personalise jerseys of their favourite teams with their names and nicknames, which has been amazing to see,” Garstang said. “Many African players are dominating the league and we believe demand for their jerseys is going to grow.”
The NBA was also working on producing some apparel locally.
Jakoet said due to South Africa's developed retail landscape, many global brands such as the NBA saw the country as a gateway to the region. As global apparel brands continued to expand and sought to increase their consumer base, it was likely more niche stores would open.
“These will provide fans with convenient access to league merchandise, which is typically only available by travelling outside the continent. However, these niche stores will likely remain a small market share, as consumers will still prefer to shop at mainstream sportswear stores due to their accessibility and availability of purchasing options, such as lay-byes and credit,” she said.
Niche stores would mainly attract fans and those with high disposable incomes who were looking for limited-edition items, said Jakoet.
Many African players are dominating the league and we believe demand for their jerseys is going to grow.
— Anthony Garstang, NBA Africa
According to Euromonitor, South Africa's sportswear industry — categorised as performance apparel and footwear, outdoor apparel and footwear, and sports-inspired apparel and footwear — is worth R80bn.
“Performance apparel” refers to items specifically designed for various sporting activities, except outdoor sports; “outdoor apparel and footwear” refers to activities such as hiking, mountaineering and watersports, and clothing items made with durable materials and features that protect against harsh weather conditions; and “sports-inspired apparel and footwear” refers to items that are not designed for actually participating in sporting activity.
Jakoet said the health and wellness trend, especially since the outbreak of Covid, had been a major driver for the industry. Consumers were increasingly engaging in low-cost or free activities such as hiking and walking, and were willing to spend money on the right gear. This trend was expected to continue, benefiting the sector, she said.
Also fuelling sales of top sportswear brands were collaborations with influencers, said Jakoet. “These are often positioned as limited-edition, ‘sports-luxe’ apparel and footwear items,” for which consumers were willing to pay more.
Frederik Zietsman, CEO of takealot.com, South Africa's biggest e-commerce retailer, said “everyone” loved a good deal on Nike and adidas products, and demand in the wider clothing and footwear category continued to grow.
The value of the sportswear industry in South Africa.
— IN NUMBERS: R80bn
Specialist products such as trail shoes and vests for “mountain goats” or gear for the rugby enthusiast were all top performers on takealot.com. He said despite the global supply chain issues caused by the pandemic, the retailer’s sales were healthy, “with the potential to grow even more”.
Brett Bellinger, head of marketing for Puma, said the brand was aimed at the youth market and others interested in sport, but its products were for everyone.
Puma has 31 stores and an online platform. It planned to open more outlets “if the financials make sense”.
The brand's apparel and footwear are also sold by third parties, including mainstream department stores and online platforms.
Bellinger said Puma “purposely has a strategy to keep the split between wholesalers and our own retail to a specific ratio. With this, our wholesale accounts remain our most important sales channel and one of the key ways people can find our products.”
He said “hot styles vary every year”, but Mayze, Slipstream and RS-X were currently popular. In apparel, ranges such as Downtown, Uptown and Dare were driving interest.
“But our core business is also very important. Sport continues to be a major focus, especially running, training and team sports as everyone shakes off the Covid blues and gets back to playing and competing,” said Bellinger.
Regarding 2023 trends, he said classic styles, bulky footwear and wide-leg pants across genders were among the features driving the market.
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