The intimate fashion chain from Inditex reinforces its bet on the sportswear segment with the launch of the new brand Oysho Sport. The category brings more than 50% of the chain sales.
Sport becomes the lever for Oysho’s growth. The Inditex intimate fashion chain is firmly committed to the sport clothing business with the launch of Oysho Sport, a brand that will be at the same level as the main one and will serve to differentiate the two product categories of the chain. Although the launch begins online, the concept could evolve in the future with the development of an independent store network.
With this transformation, Oysho moves further into the field of sports fashion, where it competes with both giants of the sector (such as Nike) and major distribution groups (such as H&M or Decathlon). Since its entry into the segment in 2011, sportswear has gained such importance in Oysho that nowadays more than 50% of its sales comes from that segment, as close sources to the company explained to Mdes.
As an evidence of the potential for this market segment we can recall that since 2006 Spain has gained five million sports consumers, according to the data provided by the National Institute of Statistics (INE). Overall, in 2016 Spanish companies spent 1.37 billion euros on sports goods and services, twice as much as ten years ago.
Oysho got into sport in 2011 and today it brings more than 50% of the total sales
From today, the Oysho website will split its offer into two categories, Oysho and Oysho Sport, with the aim of giving the sports line its own universe and separating it from the rest of the offer, like lingerie, pyjamas or swimwear. The division will be included both on the website and on the chain's app and the launch of Oysho Sport is seen within the group as the creation of a male or child line.
This separation already exists, in fact, in the physical stores of the chain, where sport has gradually gained ground, to the point of covering the bulk of the surface and the shop windows.
In this way, according to sources from the company, the development of an independent sports fashion chain will be a natural evolution for the concept and is a project that is already pondered.
The Inditex chain launches the brand Oysho Sport to increase the weight of its sports segment
Oysho got into the sports business in 2011 with the launch of its first collection of gym clothes. Over the years, the chain started launching collections that have become increasingly technical, jumping into disciplines such as boxing, surfing, skiing or trekking.
The Inditex chain is positioned, by product, in direct competition with Under Armor, although by price it is located next to more brands, since its offer covers more segments, just like Zara does with its offer.
The importance of sport for Oysho’s business is a consequence of the higher average price of sportswear compared to intimate wear, although it is also due to the fact that the category occupies, in many cases, more than half of the sales area at the stores.
With a network of 666 stores in the world, Oysho is one of the fastest growing Inditex chains. The intimate chain of Inditex closed 2017 with 570 million euros in sales, which represented an increase of 12% over the previous year. The operating income, meanwhile, stood at 87 million, 15% more than in 2016.