How Sports Brands Are Leveraging Generative AI to Capture the Youth Market

On September 24, the German sports brand PUMA announced an expanded partnership with Google Cloud, aiming to enhance consumers' digital shopping experiences using generative AI. This collaboration enables PUMA to create personalized dynamic background images tailored to various products and regions, allowing marketers to customize content according to specific market needs and ultimately boosting click-through rates. With this initiative, PUMA becomes the first sports company to deploy AI-generated images at scale in its online store. Following its migration to Google Cloud, PUMA reported a significant efficiency boost in its e-commerce ecosystem. Looking ahead, the company plans to utilize additional Google Cloud tools to increase average order value (AOV) and accelerate product market entry.

As new technologies like AI gain traction, sports apparel companies are increasingly focusing on innovation. In the past two years, the NBA has invested in over 30 enterprises, predominantly within the sports tech sector. In January alone, the NBA backed six startups, including DIMension Studio, Reboot Motion, Tonsser, and platforms such as Fastbreak.ai, Plantiga, and TextQL, with five of these focusing on AI technology. These startups cover a range of segments, from sneaker sensor research to fan data analytics. The NBA aims to leverage AI to enhance league operations, including player performance analysis and team management, while fostering closer connections with fans.

Meanwhile, industry giant Nike is embracing blockchain technology, being the first sports brand to integrate NFC (near-field communication) and blockchain for product traceability. Consumers can simply tap their phones against NFC chips embedded in products to access blockchain-verified information on styles, warehouses, and shipping details, enhancing the shopping experience and protecting consumer rights. This traceability tech has been applied to approximately 130,000 pairs of 17 popular Nike shoe models.

The growing emphasis on technology among sports apparel brands is partly driven by a desire to capture the attention of younger consumers. Nike's Vice President and General Manager for Greater China, Men Lijun, noted that younger users typically show a high level of interest in new technologies and trends, making them more inclined to try innovative products.

Generation Z, often referred to as digital natives born between 1995 and 2009, represents approximately 27% of the global population. In China alone, there were about 291 million Gen Z individuals by the end of 2021, accounting for about 20% of the total population. Compared to previous generations, Gen Z exhibits stronger purchasing power, particularly in the fashion and lifestyle sectors, making them a coveted demographic for footwear and apparel brands.

To attract this consumer group, Nike launched a digital transformation plan in China in 2022, reintegrating its digital platforms like Nike APP, SNKRS, and its official website. Similarly, Adidas debuted its new sportswear brand, inviting Jenna Ortega, the star of the TV series "Wednesday," as its ambassador, capitalizing on her substantial youth following on social media.