SHANGHAI - Premium sportswear brands are enjoying robust growth in China as they take to directly courting their main customers, posing yet another setback to megabrands Nike and Adidas as they grapple with local competitors in the $55 billion sportswear market.
"A lot of Chinese women are new to sport, they feel a bit intimidated," said Ning Zheng, 33, a fitness model with several thousand followers on the Instagram-like platform Xiaohongshu who said she has partnered with the majority of international sports brands operating in China in some capacity. On doesn’t break out China numbers but its Asia Pacific sales growth jumped 69% in the first quarter and accounted for over 10% of global revenue for the first time. Its co-CEO said on a recent earnings call the company expects China alone to account for 10% of overall revenue before long.By comparison, Nike’s sales in the Greater China market rose 4.5% in its most recent quarter, though off a much higher base than smaller rivals.
The Canadian yoga wear maker, which relies largely on targeted marketing, reported a 45% growth in China, its second-largest globally, in the first quarter, countering a slackening demand in the United States where sales grow just 2%. Its net sales in China reached almost $1 billion last year.
"There's a lot of soul searching going on for these consumers, but it explains why they will pay a premium for brands they feel are a good fit."
China Lululemon Adidas Greater China Nike International Sports Brands Premium Brands Chinese Consumers Forecast Growth
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