Which of the following could be a threat to performance-based yoga and fitness apparel brands?

The emergence of high-quality substitutes constitutes a significant threat to performance-based yoga and fitness apparel brands because it introduces alternatives that can satisfy the same consumer needs and preferences. When well-produced substitutes become available, they can lure customers away, particularly if they offer comparable or superior performance, style, or price. This competition dilutes market share for existing brands and may force them to lower their prices or increase marketing efforts to retain customers.

Furthermore, the presence of substitutes can enhance consumer bargaining power, as they can easily switch to a different brand that meets their expectations without significant friction. In an industry where quality and performance are critical factors for consumers, the emergence of new entrants with innovative products can disrupt established brands and challenge their market position.

In contrast, loyal customers represent a significant advantage for a brand, as customer loyalty generally helps to stabilize sales and reduce turnover. Increased marketing of premium brands could raise overall industry standards and awareness but does not directly undermine existing brands unless those brands fail to adapt. Similarly, higher margins on performance products suggest profitability rather than a threat, as they indicate strong sales potential that can be leveraged for competitive advantage.