Chinese sportswear heavyweights hit their stride on the back of a national health kick
But foreign rivals are also operating flat-out to win and retain the hearts of customers, making for a battle royale in the sector
China’s sportswear industry has hit a rare sweet spot that appears unaffected by the lingering economic downturn.
Most of Hong Kong’s listed domestic sports firms posted double-digit growth in their first-half sales recently, as Chinese consumers strive for a healthier lifestyle, with Beijing’s official blessing.
But with foreign rivals Nike, Adidas and Under Armour Inc making an all-out China expansion effort, too, the intensifying battle to win and retain the hearts of customers is only likely to become a lot more costly.
While the bulk of general apparel retailers still grapple with tepid demand, the first half of 2016 saw domestic athletic brands stage a concrete comeback following years of painstaking inventory clearances, led by the home-grown market leader, Anta.
The kit supplier for the Chinese team at the Rio de Janeiro Olympic Games registered a better-than-expected 17 per cent surge in net profit for the first six months of the year to 1.13 billion yuan, with sales leaping by 20 per cent.