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Sportswear, and niche athletic apparel in particular, has become the latest visual currency in China’s athleisure tapestry. Brands such as outdoor apparel label Arc’teryx now reign Supreme in the urban scene. Ready, set, go!
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Athleisure: “A weird hybrid of business casual and athletic wear, which has essentially created an entirely new category of clothing,” Professor Of History Deirdre Clemente, University of Nevada, Las Vegas, said in a 2017 interview with Business Insider.

The late Karl Lagerfeld once famously stated: “Sweatpants are a sign of defeat.”

Temper holds the personal belief that once you start sporting (oh dear, the pun is killing us) those running tights anywhere other than your actual sports arena, you won’t make it to the actual act of running anymore.

With yoga pants stretching all the way from gym to desk, the athleisure trend has sustained its momentum in China. Contrary to some reports of those not residing in the Middle Kingdom and thus without the opportunity to cast their eye on the actual street scenery,

As Chinese consumers continue to become health conscious and embrace athleisure, the sportswear market is poised to grow. Industry forecasts project the Chinese sportswear market will reach a whopping USD 82.8 billion by 2024, according to Beijing-based marketing consultancy  Daxue Consulting, growing at an impressive annual rate of 11 percent.

sportwear

Hashtag “Arc’teryx style” has tens of thousands of posts, such as this one, on Chinese lifestyle and e-commerce app 小红书 (xiǎohóngshū| Little Red Book (LRB) ). Outdoor apparel labels reign Supreme in China’s urban wardrobes right now

Athletic Supers

Amidst the ever-changing tides of fashion, Acr’teryx, a high-performance outdoor equipment brand known for leading innovations in outdoor apparel technology and once beloved by middle-aged outdoor enthusiasts, has now secured a place as social currency for Chinese trendsetters. Salomon, once associated with the “ugly shoe” aesthetic that was exclusive to mountain climbers, has become a coveted fashion must-have that commands premium prices driven by fervent demand.

Supported by the growing popularity of yoga and Pilates in China, Canadian sportswear brand Lululemon in recent years was able to capture a niche consumer market with its functional-plus-symbolic products. It was the first company of its kind to focus on an underserved female demographic: the athletic super girl. It pioneered the athleisure category with the introduction of its first pair of Boogie Pants, long and flaired at the bottom, in 1998. However, the brand still considers itself a technical streetwear player where fashion never overtakes function.

In addition, as the Lululemon brand continues to evolve from its origins as a body-conscious fit for yoga enthusiasts to a versatile wardrobe staple for commuters, a significant shift is taking place in the broader Chinese consumer landscape. This shift reflects the gradual mainstream acceptance of niche sportswear, which is now an integral part of China’s contemporary fashion scene.

In recent years, a wave of specialized sportswear brands have begun to cater to everyday scenarios, broadening the wardrobe from sports activities to leisure and daily wear. These brands have successfully broadened their consumer base and made sports and outdoor apparel a promising new frontier by balancing functionality with an emphasis on trendy aesthetics.

sportswear

Designer Chen Peng X ANTA in 2022. Chen, the designer behind all the performance outfits for the opening ceremony of the Beijing 2022 Winter Olympics, pushed puffers into the world of high-end design. Image via LRB

Upping the ANTA

Wang Yixin has always liked to be dressed to impress. About 10 years ago, when she was still a student, Wang bought her first performance jacket. On one of her desert adventures, she was struck by the scene unfolding before her. The entire expanse of the yellow desert was dotted with people wearing pink outdoor jackets, and she was one of them.

“At that time, people’s main consideration when buying outdoor gear was performance, and the colors and styles available on the market were limited,” the now 32-year-old told the author. She never wore the jacket again.

With the growing popularity of gorpcore, or hiking-inspired clothing, in China over the past two years, Wang was drawn to the style and bought several more high-performance jackets. Most recently, she decided to spend more than RMB 4,000 (USD 549) on an Acr’teryx jacket, a must-have for gorpcore enthusiasts.

“I know the price has been artificially inflated by the market, but I really like the design,” Wang said.

Her jacket from The North Face, an American outdoor clothing brand, which she bought last year, has become her most worn item this year.

Working at a traditional telecommunications company, the jacket provides a modest look for her daily commute. On weekends, she pairs it with leggings for outdoor activities, effortlessly balancing fashion and performance. “It is a very cost-effective investment because it is suitable for all seasons except summer, and its excellent quality ensures long wear. That’s why I’m willing to buy similar products again,” she said.

And it seems that more and more people agree with Wang. According to data from the e-commerce channel of China’s wildly popular short-video platform Douyin, sales of high-performance jackets exceeded 2 billion yuan ($274.7 million) last year, up 459.57 percent from the previous year. What’s more, in the first three quarters of this year alone, sales have already surpassed last year’s total.

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Casual cool keeps you warm. Chinese supermodel Liu Wen for Arc’teryx. FYI: Liu is the brand’s ambassador. Image via the official Arc’teryx LRB account

“The potential of the outdoor apparel market has been unleashed,” said Liu Zhen, president of domestic outdoor brand PELLIOT, at an outdoor sports industry conference in southwest China’s Yunnan Province in October. He added that his company’s popular windbreaker sells several hundred thousand units a month and even ran out of stock in September. The growth of sun-protective clothing tailored for outdoor activities is also promising.

He said that before 2019, the company’s overall annual sales growth was around 10 percent, but that figure has jumped to 70 to 80 percent in the past three years.” Our projected growth target this year is 100 percent. By the end of the third quarter of this year, sales growth has already exceeded expectations,” he added.

“The boom in sportswear brands is driven by several factors,” Yuan Shuai, deputy secretary-general of the Rural Revitalization and Construction Committee of the China Culture Administration Association, told Beijing Review.

As people’s health awareness grows, consumer demand for fitness and outdoor activities increases, and activities such as hiking, camping and jogging become more popular. Sportswear, with its lightweight, practical and comfortable nature, meets this market demand. Meanwhile, social media promotion, the celebrity and influencer effect, brand marketing strategies and product innovation are all contributing to the emerging trend, he said.”

Capital has been a key factor in accelerating market expansion and product innovation. The successful acquisitions made by leading domestic sports brand ANTA prove that capital flowing into the sportswear industry has accelerated the development of the sportswear sector,” he added.

In 2009, ANTA acquired the Italian sportswear brand FILA. At that time, ANTA’s revenue was RMB 5.9 billion (USD 825 million). However, by late 2022, its total revenue had skyrocketed to  RMB 53.6 billion (USD 7.5 billion). In the same year, FILA’s total revenue was RMB 21.5 billion (USD 3 billion), accounting for nearly 50 percent of ANTA’s total revenue.

In the following years, ANTA acquired British casual sports brand Sprandi, South Korean premium outdoor brand Kolon Sport, Japanese outdoor brand DESCENTE, and Amer Sports, which owns Arc’teryx and Salomon.

These brands, once known only to niche audiences, are becoming mainstream favorites. And behind that is the power of ANTA’s capital commitment, Yuan explained.

sportswear

Climbing its way into couture. Chinese supermodel Liu Wen for Arc’teryx. Image via the brand’s official LRB account

An Ocean of Sportswear

On October 16, ANTA announced the acquisition of domestic women’s yoga apparel brand MAIA ACTIVE, whose product advantages lie in technologically advanced sports fabrics and designs tailored to better fit the Asian female physique.

The acquisition serves as a significant addition to ANTA’s women’s business sector, enhancing its ability to meet diverse consumer demands and further strengthening its brand portfolio, according to a statement from the group.

According to Grand View Research, the global sports and leisure market is expected to reach $662.56 billion by 2030. In terms of apparel categories, flagship products such as yoga wear and leggings account for the largest share at around 44 percent. ANTA’s latest move shows its ambition to tap into the market.

According to an outdoor sports industry plan jointly issued by eight government departments, the number of outdoor sports participants in China will reach 400 million by 2021, with a market penetration rate of about 28 percent. This rate still leaves significant room for improvement, considering that the penetration rate in developed countries is over 50 percent.

“With rising living standards and increased health consciousness, the demand for sports and outdoor products among Chinese consumers, especially young consumers, continues to grow, providing even greater market opportunities for relevant brands,” said Yuan.

As the middle class continues to expand, consumer purchasing power is increasing. Meanwhile, in emerging markets such as second- and third-tier cities and rural areas, there is still significant development potential for sports and outdoor brands, he added.

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Healthy Competition

Recognizing the huge opportunities, domestic sportswear brands have gradually emerged in recent years. They’ve joined international counterparts in fierce competition for the Chinese market. ANTA’s latest move marks a new attempt to acquire a domestic brand that has gained momentum as a robust competitor to the internationally renowned Lululemon.

“Competition in the Chinese sports and outdoor market is fierce, with both domestic and international brands vying for market share. As a result, sports and outdoor brands must have unique product features and effective marketing strategies to stand out in this competitive landscape,” said Yuan.

Domestic brands need to continuously improve their innovation capabilities, closely monitor market trends and make timely adjustments to their product lines and marketing strategies, he suggested.

“There are many domestic sports and outdoor apparel brands, but their branding effect is still limited, especially in the high-end market segment where there are few options,” Pan Jun, a global product strategy adviser at management consulting firm Bain & Company, told the author.

He said the future of the outdoor sports industry is shifting from a focus on customer traffic to customer retention. Brands that offer cost-effective products will undoubtedly lead the market. Carbon-neutral products will become more popular. The market will be further segmented into high, medium and low-end segments with different styles, requiring each brand to establish more precise product positioning.

“It is crucial to build brand awareness and determination in response to competition. If a company excels in brand strength, product strength, marketing ability, data capability and image presentation, it will naturally become a leading brand in the industry,” he said.

 

Sportswear, a sign of defeat?

Seems to be more a matter of courtside conquering catwalk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THIS IS AN EDITED VERSION OF Zhang Shasha’S ARTICLE FIRST PUBLISHED IN BEIJING REVIEW, VOL 66, NO. 46
FEATURED IMAGE: LRB COLLAGE (ANTA/ ARC’TERYX)
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© THE CHINA TEMPER, 2023. ALL RIGHTS RESERVED.
DO NOT REPRODUCE TEMPER CONTENT WITHOUT CONSENT -– YOU CAN CONTACT US AT INFO@CHINATEMPER.COM

 

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