Introduction:
The sportswear industry in 2023 offers significant investment prospects. With a relatively low per capita consumption of sportswear in mainland China compared to other countries, there is ample room for growth. Furthermore, rapid advancements in raw material technology, such as health-care functional fibers, smart fibers, and protective and easy-care functional fibers, have revolutionized fabric production. Innovations like the extraction and dyeing of traditional Chinese medicine and the adoption of plant-printed knitted fabrics and eco-friendly dyeing processes have expanded the functionalities and sustainability of sportswear, making it an attractive market for investors.
National Fitness-for-All Strategy and Increased Market Potential:
China has been diligently implementing the National Fitness-for-All Strategy, resulting in significant improvements in fitness venues, increased participation in sports events, and the establishment of a comprehensive public service system for fitness. As the population becomes more health-conscious, the demand for sportswear continues to rise. However, the Chinese sportswear market is still in its early stages compared to mature markets like Japan, South Korea, the United States, Norway, and Sweden. The current penetration rate and per capita consumption of sportswear in China are relatively low, indicating a vast untapped market potential.
Brand Focus and Marketing Strategies:
Major sportswear brands, including international leaders, are prioritizing brand value, product design, and marketing strategies. They collaborate with specialized manufacturers to ensure high-quality production. In the foreseeable future, third-tier and lower-tier cities will become the main targets for major platforms. Live streaming, although not as an independent business form, will play a crucial role as a marketing tool within the brand value chain, enabling merchants to effectively communicate with consumers and build brand awareness.
Optimized Competition Pattern and Shifting Brand Preference:
China’s sportswear industry is witnessing an optimized competition pattern, with leading enterprises consistently maintaining their strong positions. Nike currently holds the top spot with a market share of 25.2%, closely followed by Anta, Adidas, Li-Ning, Skechers, and Xtep. The combined market share of the top ten brands reaches 83.5%, significantly higher than the global average of 44.6%. Notably, only Anta, Li-Ning, Xtep, and 360 are domestic brands among the top ten. With China’s increasing economic strength and growing confidence in Chinese culture, consumers are showing greater attention and recognition for domestic sportswear brands. The recent Xinjiang cotton incident has further tilted the brand structure towards local sports brands, as reflected in Baidu search data. Chinese brand search interest has increased from 45% to 75% in the past five years, three times that of foreign brands. Within this category, domestic clothing brands have seen a remarkable 56% increase in search popularity, ranking second among all categories.
Production Clusters and Market Size:
Fujian, Zhejiang, Guangdong, Jiangsu, and other provinces and cities serve as major production areas for sportswear. These regions have developed regional industrial clusters focused on sportswear production for both professional markets and export processing. China’s sportswear industry has achieved remarkable growth in just over a decade, reflecting its potential and competitiveness.
Market Growth and Future Outlook:
The overall size of China’s sportswear market has continued to grow steadily, expanding from 221.5 billion yuan to 387.1 billion yuan, with an average annual compound growth rate of 14.98%. Although the industry faced a slight setback in 2020 due to the pandemic, it is projected to experience significant growth in 2021 and beyond, presenting substantial market opportunities. It is estimated that the market size will reach 438.4 billion yuan in 2022. The total sales of sportswear in China reached 371.8 billion yuan, showing a two-year compound growth rate of 7.8% compared to 2019. The penetration rate of sportswear in the overall apparel industry has increased to 13.4% (compared to 8.8% in 2016), with a penetration rate of 52%. Looking ahead, there is great potential for the proportion of sportswear sales in China to further increase, closing the gap with the United States’ 37.7% penetration rate. As China’s per capita GDP continues to rise, the sportswear industry is expected to experience further development and expansion.
With the government’s goal of reaching a 38.5% participation rate in regular physical exercise by 2025, the total scale of the national sports industry is projected to reach 5 trillion yuan. This growth target will continue to drive the expansion of the sports category market, including sportswear, creating new opportunities for businesses in the industry.
In conclusion, the sportswear industry in China holds significant investment potential. The market is still in its early stages, with low per capita consumption and a relatively low penetration rate compared to mature markets. Advancements in technology and growing interest in fitness and health present opportunities for growth. Domestic brands have been gaining recognition and are gradually tilting the brand structure in favor of local sportswear brands. As the market expands and consumer preferences shift, businesses can leverage these trends to capitalize on the increasing demand for sportswear in China.
