Clothing retailer Hennes & Mauritz "is launching a new sportswear line with the help of Sochi-bound Swedish Olympians in a bid to outpace discounters like Primark that are snapping at its heels," according to Thomasson & Bryan of REUTERS. The global sportswear market will grow more than 7% in '14, outpacing 5.8% growth for broader apparel, according to Euromonitor. H&M hopes that by muscling into a market seen to be worth $220B this year it can "move away from the cut-throat budget fashion area and towards higher-margin products could help it copy the success of Inditex's mid-market fashion chain Zara." H&M is "unlikely to pose a serious challenge to pricey performance gear" dominated by Nike and adidas. Euromonitor analyst Ashma Kunde said, "Consumers, particularly female, are looking for fashionable, yet functional apparel. Players like Nike and adidas should be wary. H&M doesn't have the same technology but it has a price advantage." H&M's new line might also be dangerous for more fashion-oriented Puma and Lululemon Athletica Inc. -- the Vancouver-based yoga wear firm "whose soaring profits over the last decade have dramatically illustrated the popularity and potential of fitness fashion" (REUTERS, 1/9). The AFP reported athletes on the Swedish Olympic Team "took part in the design process for each item in the collection, ensuring that each piece meets the highest standards of functionality." The Go Gold line "includes light and portable down jackets, quick-drying jerseys and pants for running, a reversible down jacket for women and a quilted bomber jacket for men." Sneakers, backpacks and sunglasses "round out the collection" (AFP, 1/10).
