Nice peice on alphastox this weekendDear Alphastox Subscribers, The activewear market is growing incredibly fast as the fitness trend has now become mainstream and permanently entrenched into our society. People are expecting to have fashionable, yet functional options to be active in: just talk to Lululemon. The overall market is growing tremendously fast as other smaller brands are growing in popularity like Lole and Athleta. The global sports apparel market is expected to be worth US $171 billion by 2018 (according to statista.com), which is a huge growth from the $132 billion in 2011. Now that people are becoming more health conscious, the need for a choice in active wear is growing to fit everyone’s lifestyle choices. Additionally sales have increased due to brands broadening their target market. For example, Nike and Under Armour are focusing on female consumers, and Lululemon has been working on including men in their apparel lines. All people of all activity levels, are looking for comfy, functional and fashionable wear and I think we may have found the next gem. The one I would like to introduce you to is a lesser known but just as powerful brand Respect Your Universe (TSX.V:RYU). RYU is a Vancouver based athletic tech-style apparel brand engineered for the fitness, training and performance of the multi-discipline athlete. Designed without compromise, RYU exists to facilitate human performance, not just during physical activities, but also to be worn 24/7. The company first started in Portland, Oregon, but soon fell into debt as the business model crumbled. The management team was replaced with proven successful industry leaders, and a new outlook for the brand has started. The first step in the rebuilding process was to move its headquarters to Vancouver, BC where other active wear companies have seen major success. With these successes it was easy to see the talent pool is deep in that city. RYU supports a healthy lifestyle and is developing a line targeting exactly those people who want performance wear that works and can be worn for all parts of their daily lives. The team behind the company, led by Mr. Marcello Leone, is fully loaded with experience and knowledge of the industry with backgrounds in Lululemon, Arcteryx, Polartec, Helly Hansen, Swany, EA Sports and MEC. The management team that is now in place is a huge step up from the Portland days of RYU. When they realized their investment was dwindling to practically nothing, Mr. Leone and his family turned the game around by getting involved. Being a large shareholder already, Mr. Leone began to build a totally new, motivated and passionate team of industry experts. When times got tough, instead of folding tent and walking away (as weaker people would have done) he took strong action, which is very commendable and shows his passion and commitment to the brand. He’s striving to build a global iconic performance athletic tech style brand that will become a legacy for many years in the future. He’s not a rookie in this category; Mr. Leone and his family owned and operated (sold in January, 2015) a very successful luxury clothing company in Vancouver called Leone which has been around for many decades. Leone’s, as you can imagine, was the first store to carry RYU and saw the opportunity when it began to run off the shelves. RYU has been re-directed to be designed and developed for the multi-discipline athlete, to be with them from morning until night. The company has developed an innovated game changing and well-designed apparel line that includes outerwear, performance, compression, training, and revolutionary fitness accessories for both men and women. Unlike other brands that are associated with singular sports (Lululemon you think of yoga, Nike you think of basketball, Adidas-soccer), RYU is positioning itself as the brand of everyday active people of all fitness levels. From the couples that like to take evening walks around the park, to extreme cross-fit junkies, they have the right outfit for you. Nowadays, especially in big metropolitan cities, the way you present yourself and dress in the gym matters just as much as it does out of it. RYU’s sole goal is to dress you when you go to the gym, take a hike, and hit the grocery store all in the same outfit; while making you feel sexy and cool without sacrificing performance or quality. Their mission is to fill the gaps in the sector and that’s exactly what they plan to do. Where can you get your hands on RYU? They will be launching its first flagship retail store in Vancouver sometime this fall, with 3 more stores opening 2016. At the same time, a global website will be launched for on-line sales (www.ryu.com) Having just completed a straight equity financing for $4.8 million at $0.30, the company is perfectly positioned to take advantage of this growing market. Just look at how well Lululemon has done over the years. RYU has done the research and is targeting the right audience to position themselves for major potential success. With a new image and brand coming to the market, things are just starting to get going so make sure you keep RYU on your ticker right now! Best, Etienne