People Wear More And More Casual Clothes In The Office. Sports Brands Have A Good Market In China

A fitness boom supported by the government has sprung up in China, which has boosted the performance of local sportswear brands and foreign brands such as Adidas and Nike, which have expanded their market share driven by consumers' upgrading and embracing the fashion trend of "sportswear".

Adidas said this month that its sales in Greater China grew by 28% last year - the fastest growth among all regions - driving global net profit growth of more than 60%. Nike reported that its sales in China in the latest quarter achieved "double-digit" growth. For Adidas and Nike, Greater China is their second largest market. Together, these two brands account for one third of China's sportswear sales.

It was reported that in the middle of March, it was reported on China Central Television Nike After false promotion of some products - involving 300 pairs of shoes - Nike expressed "sincere apology". The move highlights the importance of the Chinese market to Nike. According to Euromonitor, a consultancy, sales of sportswear in China increased by 11% to 187 billion yuan last year. In contrast, the overall sales of clothing increased by only 5%.

Analysts said that in the eyes of Chinese consumers, Nike, Adidas and New Bailun are not only sports brands, but also fashion labels - the prices of these brands are higher than those of local brands. Liang Yuchang, an analyst at UBS, said: "International brands are still very strong in shaping fashion trends, especially in the female market." Their sales growth is due to the upgrading of consumer income after growth, and consumers increasingly accept wearing sports clothing in leisure and workplaces.

According to the report, ordinary fashion companies have felt this change. Belle International Holdings, the second largest shoe company in China by sales, said that in 2016, the sales of shoes fell by 9% year on year, while the sales revenue of sports shoes increased by 16%. Sheng Baijiao, Chairman of Belle, said: "Only sports Casual shoes Growth against the trend. " He added that people are increasingly casually dressed in the office.

Local brands, which are still widely regarded as imitating overseas design innovation, are also beneficiaries of this boom. As more Chinese people begin to exercise, the sales of local brands grow rapidly.

According to the data of a research institution, last year, the number of fitness members in China doubled from 2008 to 6.6 million. Running has become a popular leisure activity. Last year, China held more than 100 marathons, compared with 51 in 2014. Today, the number of yoga practitioners is estimated to have increased from 4 million in 2009 to more than 10 million.

The Chinese government has also promoted the movement craze. Matthew Crabbe, an analyst at the research institute Mintel, said: "People have started to take part in sports, so the government's initiatives have really helped to promote this trend." Analysts said that the fitness craze has brought greater benefits to the mid-range local brand market, because consumers value price and practicality more than fashion symbols when exercising.

It was reported that last month, Anta said that its net profit in 2016 increased by 17% to a record 2.4 billion yuan. Anta's operating profit margin last year was 24%, compared with about 14% for Nike and 8% for Adidas. Anta has increased its popularity by sponsoring the Chinese delegation for the 2016 Olympic Games, while selling Italian well-known brands Sports brand FILA (Anta obtained the distribution right of the brand in China in 2009) also boosted Anta's revenue.

Chen Ke, a partner of Roland Berger, a consulting company, said that low-end local brands will become relative losers in this trend of upgrading consumers and increasing exercise. He predicted that in the next five years, the annual growth rate of such enterprises would be less than 3%, while the overall market is expected to grow by 8% annually.

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