We see a significant potential for our brand in India
Established in 1923, Danish sports brand Hummel has a long history within the international sportswear industry. Headquartered in Aarhus, Denmark, Hummel’s mission is to ‘change the world through sport’ based on a unique Company Karma philosophy that strives to balance running a profitable business, while maintaining a high degree of social responsibility. As a privately-owned and part of the Thornico Group, Hummel designs, produces and markets high quality clothes and sports equipment, as well as fashion and leisure sportswear for both adults and children. In an interview with Fibre2Fashion, Hummel CEO Allan Vad Nielsen discusses sportswear market, trends and sustainability both in India and global markets.
What is the size of the global sportswear market? At what rate is it growing?
The global sportswear market was valued at $172.94 billion in 2021 and it is expected to reach $268.65 billion by 2028, according to SkyQuest Technology Consulting. As a challenger brand in the industry, we are excited to be a part of this growth, and we are constantly working to innovate and improve our products to meet the demands from the consumers. Despite the current market situation with high inflation, war in Ukraine, increased freight and productions costs, we are confident in our ability to continue our growth journey in this expanding market.
Which are the major markets for Hummel globally?
Our primary focus market is Europe where we especially have seen significant growth in Scandinavia, Germany, France, Spain, and Turkey in the last few years. We also see significant growth opportunities in the US as well as markets in Asia. Right now, we are focusing on optimising our existing markets and building on our already established presence in these areas after a series of expansions over the last five years.
What is your market share?
Our market share can fluctuate, and it does not necessarily reflect the overall success and growth of our brand. However, I can say that we are working with ambitious growth goals, which we strive for in a sustainable and profitable manner. Within the last four years, we have doubled our global turnover from DKK 1 billion to DKK 2 billion, and we expect to continue our rapid growth over the next five years.
How would you describe the Indian market for sportswear?
The Indian market for sportswear is a rapidly growing and dynamic market with a high demand for innovative products. We see a significant potential for our brand in India as the country has a strong tradition for sports, and we look forward to continuing to bring our unique blend of sportswear and fashion to the Indian consumer. It is also a market that requires an approach based on market adaptation, which we are adjusting to as we believe that meeting the demands of the Indian consumers are essential for long term success in India.
What innovations and technologies today form the core deliverables of Hummel as a brand?
We are constantly researching and implementing new technologies to enhance the performance and comfort of our products. As part of our footwear programme, we are – among other things - working with the technology REACH LX and REACH LX-E that contains at least 25 per cent bio-based materials and are derived from sugar cane. Moreover, we are investing in our digital channels in areas such as personalisation, automation and UX – always with the aim to improve and optimise our customer experience. We are continuously using data to drive our decisions when it comes to product development and product engineering.
What kind of research and development are at the forefront at Hummel?
Our research and development efforts are focused on driving a sustainable and profitable business, while also ensuring that we are meeting the needs of our customers. We believe in continuous product engineering and optimisation, making our best products better year by year, combined with a steady in-flow of new products targeting new market developments. We have a consumer-centric, bottom-up strategy centred around creating commercial and relevant products that are the cool alternative to the hyped megabrands.
What kind of fabrics, fits, styles and colours are trending in sportswear?
To ensure optimal performance and comfort for our customers, we are focusing on using a variety of fabrics that are both lightweight and breathable. In terms of fits, we are seeing a trend towards more relaxed and oversized styles, as well as a renewed focus on functionality and durability. Overall, we strive to create sportswear that is both stylish and practical, with a focus on quality and fit. We will continue to monitor the latest trends in sportswear and incorporate them into our collections, while always keeping our customers’ needs and preferences in mind.
What are some of the best practices incorporated at Hummel when it comes to sustainability and reducing carbon emissions?
One of the most important steps on this journey is to increase the usage of organic, recycled, and biobased fibres in our products. In addition to this, we will also improve our supplier engagement even further and encourage all our suppliers to change to renewable energy sources and less energy- and water-demanding production processes. Finally, we want to contribute to building a circular economy in the fashion and sportswear industry with the overall aim of using and re-using the same materials over and over again.
What are your expansion plans in India and globally?
We are currently in the build-up phase for our expansion plans in India, and right now we are focused on creating a strong foundation for the future by gathering learnings and analysing market trends. So far, it looks positive, and we are continuing to grow according to plan. However, we must remember that we are still among the small players in the market and therefore it is important that we take a steady and measured approach in the coming years. We are confident that by building it right, we will be able to achieve our expansion goals and grow our presence in India.
From a global perspective, we also expect to continue our growth journey by focusing on our football sponsorships in some of the world’s biggest leagues – including Premier League, Bundesliga, and La Liga – as the main driver for our growth.
(Interviewer: Shilpi Panjabi)
Published on: 07/02/2023
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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