China’s running craze could spawn sportswear unicorn, says Kappa’s owner

The pastime of running is growing rapidly in China as a burgeoning middle class with higher disposable incomes takes up exercise as part of a healthier lifestyle.

According to the Chinese Athletics Association (CAA), about five million runners took part in more than 1,000 competitive events in the mainland last year, roughly double the number in 2016.

But the numbers are still small when compared to many western countries, leaving plenty of room for growth.

That creates a golden opportunity for the makers and vendors of running gear, according to Zhang Zhiyong, CEO of China Dongxiang, which owns the Italian sportswear brand Kappa in mainland China. He said a domestic unicorn – a company valued at more than US$1 billion – is likely to emerge in the sector before too long.

“Running as a segment in the whole sportswear industry is far from being fully developed in China,” said Zhang, an industry veteran of more than 20 years who has previously served as CEO of Lining, China’s best known domestic sports brand.

“China now has hundreds of marathons being held every year, so the base of customers is enormous. If someone could dig deeply into the running category and do things properly, it’s very likely we will see the emergence of a domestic firm with a scale of more than US$1 billion in this segment.”

China only hosted 22 road running races nationwide seven years ago, a mere fraction of the 1,102 events recorded by the CAA in 2017.