How Tier 2 and Tier 3 cities are driving high growth in athleisure market in India

The athleisure market in India is undergoing a transformation as brands expand their presence beyond urban markets into Tier 2 and Tier 3 cities, leveraging new growth areas. Factors such as the rising popularity of fitness, increased disposable income, and the digital boom have made athleisure wear more accessible across the country. To capture this opportunity, athleisure brands are turning to innovative retail strategies, influencer collaborations, and technological advancements that appeal to a wide range of consumers.

As per Statista, the sports and athleisure retail market in India was valued at Rs 158 billion in FY2021, and is estimated to grow to Rs 402 billion by FY2025. IMARC India projects athleisure market size in India to exhibit a growth rate (CAGR) of 5.70% during 2024-2032.

Adgully takes a look at how athleisure brands are navigating new markets, leveraging influencers, and integrating technology to cater to both younger and older audiences. The shift towards a healthy and active lifestyle, coupled with the rise of e-commerce, is driving athleisure brands to expand their presence in Tier 2 and 3 cities.

Ravi Kukreja, Co-Founder, playR, noted, “During COVID, the work-from-home trend started, and then, again courtesy of COVID, people began focusing on health and fitness, which gave a boost to athleisure wear in India. Today, people are looking at a healthy and fit lifestyle, and this has created a huge demand for comfortable and functional clothing for an active lifestyle. People want an amalgamation of comfort and fashion, and athleisure wear offers great fabric with the latest designs. With the increase in disposable income, growing interest in fitness, and the e-commerce boom, the digital India story is making athleisure wear accessible to a wider audience in Tier 2 and Tier 3 cities.”

Kukreja also highlighted how digital advancements have broadened the reach of athleisure brands, stating, “Cashless payments have witnessed steady growth and acceptance in Tier 2 and 3 markets, driving an increase in online shopping and widening the scope for e-commerce to penetrate these geographies to gain a larger share. Social media influencers are also playing an important role in the shopping behavior of consumers in these cities.”

Echoing these views, Deepika Deepti, Head of Marketing, Bata India, spoke about how the globalization of sneaker culture is transforming the athleisure landscape in smaller cities. She said, “The globalization of sneaker culture is rapidly expanding beyond urban centers, as Tier 2 and Tier 3 cities emerge as hotbeds for a growing demand for high-quality athleisure products. Responding to the trend of fitness and casualization, Power by Bata is democratizing fitness by making international, technology-led performance footwear accessible to all at affordable prices. With our latest launch of Power Energy Collection and EasySlides, our hands-free in-and-out shoes, we’ve combined technology and style, keeping in mind the demands of Indian consumers.”

Nihal Rajan, CMO, Jockey India, saw an enormous potential for athleisure in smaller cities, driven by localized campaigns and targeted communication. He noted, “Athleisure as a category is already mainstream now, and our boom towns are no exception! Brands are actively leveraging the increased inclination towards health and fitness, coupled with the influence of social media trends, to earn wardrobe share. It is now easier to reach this audience, thanks to the feasibility to do localized campaigns and targeted communication via influencers.”

Rajan also highlighted e-commerce as a crucial avenue, saying, “Offering affordable yet stylish options using E-commerce and Q-Commerce are other lucrative avenues on the table for many brands.”

The celeb factor

The influence of celebrities and social media figures has been pivotal in shaping the athleisure market in India. Ravi Kukreja explained how Bollywood celebrities have become powerful ambassadors for the category. “Bollywood actors and celebrities have become the ultimate athleisure ambassadors. Their sporty, healthy styles on social media help them collaborate with athleisure brands and connect with the audience. Today, celebrities are not just brand ambassadors; we’ve seen celebrity-owned athleisure brands as well in India, focusing on fashion and functionality in workout wear,” he added.

Kukreja also highlighted the role of social media influencers, saying, “Social media has become the breeding platform for health enthusiasts and fitness, fashion, and health bloggers to showcase their healthy lifestyle and athleisure look, influencing millions across the country.”

At Bata India, Deepika Deepti sees influencer collaborations as more than just marketing tools. “While collaborations with influencers and celebrities bring huge reach for the brand, at Bata, we’re committed to more than just collaborating with them one-off – we’re creating communities of like-minded individuals who share a passion for fitness. We’re also exploring partnerships with running groups across the country to truly empower people to lead an active and healthy lifestyle,” she said.

Deepti further added, “Ahead of the Paris Olympics 2024, we collaborated with wrestler Nisha Dahiya for Power, fueling her Olympic dream. The collaboration presented a powerful narrative of grit, resilience, and inner strength that mirrors the brand’s philosophy, ‘Stronger Inside’.”

Highlighting the importance of leveraging local influencers to build emotional connections with audiences in Tier 2 and 3 cities, Nihal Rajan said, “Using influencers and celebrities to enhance brand visibility is not a new phenomenon when it comes to marketing. While global names help build credibility and trust, local celebrities and influencers allow brands to establish an emotional connection with a new audience.”

Push for innovation

To appeal to both younger and older consumers, athleisure brands are embracing innovations in fabric technology and design to enhance comfort, performance, and style.

Ravi Kukreja believes that comfort and style are the key drivers of demand across demographics. He said, “An amalgamation of comfort and style/ fashion is what audiences across age groups are looking for. People want accessibility to the latest trends without compromising on quality and comfort. At playR, we believe in advanced materials that enhance comfort and performance, appealing to fitness enthusiasts of all ages.”

Bata India is also pushing the envelope when it comes to innovation. Deepika Deepti explained how Bata’s Power range incorporates cutting-edge technology, stating, “With Power, we are bringing international technology and global innovation from our design labs in Canada to appeal to the new generation of consumers. For those who prioritize comfort and energy return in their daily runs, the Power Energy 500 provides both durability and breathability, thanks to its 4D engineered tech mesh upper.”

She added, “The Power Energy 300 is the ideal choice for active enthusiasts who prefer stable, responsive training shoes, equipped with advanced technology like Ortholite and XORise+ for versatile workouts. Additionally, the Power Acti-Wear range features innovations like Qik-Dry and Acti-Vent, ensuring quick sweat absorption and enhanced air circulation.”

Nihal Rajan of Jockey India highlighted how brands are incorporating smart fabrics that seamlessly transition from workout wear to casual outings. “Since comfort and functionality are key for this audience and a key differentiator for this category, we are seeing brands embrace innovation by using smart fabrics that seamlessly transition from workout to casual outings,” he said.

Athleisure brands are making strategic moves to capture the growing demand in India’s Tier 2 and Tier 3 cities, fueled by fitness trends, influencer power, and technological advancements. By offering products that balance comfort, performance, and style, these brands are well-positioned to cater to a diverse range of consumers across the country. As the market continues to evolve, the future of athleisure in India holds exciting possibilities for both consumers and brands alike.