China's sportswear market is evolving with international brands like Adidas and Nike losing market share, while Chinese consumers start to embrace rival domestic brands such as Anta and Li Ning. The trend further intensified in recent months, with several domestic companies witnessing rapid market growth, while overseas brands' revenues stagnate. Nike's overall revenues surged by 5% to USD10.87 billion in the three months ending February, but its revenues in the Greater China Region dropped by 5% year-on-year to USD2.16 billion. However the decline narrowed from a 24% drop registered in the previous quarter. Nike said that the company's business performance in the Greater China region this past quarter is in line with expectations, and that performance might get better in the next quarter.
German sportswear brand Adidas also saw its fourth-quarter revenue ending December 31 fall 24% year-on-year in the Chinese mainland, Hong Kong and Taiwan, which the company attributed to a “challenging” market environment.
In contrast, domestic sportswear companies are experiencing a boom as they see stronger growth of revenues and profits as a result of market sentiment shifting to domestic brands. Chinese sports and fashion brand Li Ning saw its profits in 2021 rise 136% to reach CNY4 billion, while its revenues increased by 56% to CNY22.57 billion in 2021, according to the company's financial report. Anta saw its revenues grow 52.5% to CNY24 billion in 2021, while its gross profit in the region surged 78.1% on a yearly basis. Overseas brands are losing prestige among young Chinese consumers, who now opt to support Chinese products in a new wave of patriotism. A number of domestic brands including Li Ning and Anta have taken action to support the cotton grown in Xinjiang after some Western clothing brands announced a boycott of Xinjiang cotton, the Global Times reports.
