Apparel is probably one of the toughest markets to crack. When done successfully the margins are amazing. When it’s done wrong you can end up with so much inventory that it can damage your overhead. adidas is showing excellent growth and right before Yeezy Season 4, they launch “Athletics” a new category that appears to focus on apparel.
The trend of the season is athleisure, or casual athletic inspired clothing. The move to capture some of this market is a natural progression considering how many pair of trainers are flying off the shelves for adidas. Will the Athletics category sustain? Most people who dress in a casual athletic attire aren’t doing so at a premium price point, so it seems to me that adidas’ move into a bigger clothing category being successful will be of course the cost. Should be interesting to watch considering a lot of streetwear brands are being marked down heavily at clothing stores everywhere. Click the source link for more pics and info on the event launch.