Amid the ever-changing tides of fashion, Arc'teryx, a high-performance outdoor equipment brand known for leading innovations in outdoor apparel tech and once beloved by middle-aged outdoor enthusiasts, has now secured a place as social currency for Chinese trendsetters. Salomon, once associated with the "ugly shoe" aesthetic exclusive to mountaineers, has become a coveted fashion essential, commanding premium prices driven by fervent demand.

In addition, as the Lululemon brand evolves from its body-conscious fit origins for yoga enthusiasts to a versatile wardrobe staple for commuters, a significant shift is occurring in the broader consumer landscape. This shift reflects the gradual mainstream acceptance of niche sportswear, which is now an integral part of China's fashion scene.

In recent years, a wave of specialized sportswear brands have begun to cater to everyday scenarios, expanding their wardrobe range from sports activities to leisure and daily wear. By balancing functionality with an emphasis on trendy aesthetics, these brands have successfully broadened their consumer base, making sports and outdoor apparel a promising new frontier.

The rise of athleisure

Wang Yixin has always had a penchant for dressing with care. About 10 years ago, when she was still a student, Wang bought her first high-performance jacket. On one of her desert adventures, she was struck by the scene unfolding before her. The entire expanse of the yellow desert was dotted with people wearing pink outdoor jackets, and she was one of them.

"At that time, people's main consideration when buying outdoor gear was performance, and the colors and styles available on the market were limited," the now 32-year-old told Beijing Review. She never wore the jacket again.

With the growing popularity of gorpcore, or hiking-inspired, clothing in China over the past two years, Wang was drawn to the style and bought several more high-performance jackets. Most recently, she decided to spend more than 4,000 yuan ($549) on an Arc'teryx jacket, a must-have for gorpcore enthusiasts.

"I know the price has been artificially inflated by the market, but I really like its design," Wang said.

Her jacket from The North Face, an American outdoor apparel brand, she bought last year, has become her most worn item this year.

Working at a telecommunications company, the jacket offers a modest look for her daily commute. On weekends, she pairs it with leggings for outdoor activities, effortlessly balancing fashion and performance. "It is a very cost-effective investment, as it is suitable for all seasons, except summer, and its excellent quality ensures long wear. That's why I'm willing to buy similar products again," Wang said.

And it seems more and more people are agreeing with Wang's ideas. According to data from the e-commerce channel of wildly popular short video platform Douyin, the Chinese version of TikTok, sales of high-performance jackets exceeded 2 billion yuan ($274.7 million) last year, up 459.57 percent from the previous year. What's more, in the first three quarters of this year alone, sales had already surpassed last year's total.

"The potential of the outdoor apparel market has been unleashed," said Liu Zhen, President of domestic outdoor brand PELLIOT, at an outdoor sports industry conference in October. He added his company's popular windbreaker was selling several hundred thousand units a month, and that it had even run out of stock in September. Also promising is the growth of sun-protective clothing tailored for outdoor activities.

Liu said prior to 2019, the company's annual sales growth was around 10 percent, but that figure jumped to 70 to 80 percent in the past three years. "Our projected growth target this year is 100 percent. By the end of the third quarter of this year, revenue growth has already exceeded expectations," he added.

"The boom in sportswear brands is driven by multiple factors," Yuan Shuai, Deputy Secretary General of the Rural Revitalization and Construction Committee of the China Culture Administration Association, told Beijing Review.

As people's health awareness grows, consumer demand for fitness and outdoor activities increases, and activities such as hiking, camping and jogging become more popular. Sportswear, with its lightweight, practical and comfortable nature exactly meets this market demand. Meanwhile, social media promotion, the celebrity and influencer effect, brand marketing strategies as well as product innovation all contribute to the emerging trend, he said.

"Capital has been a key factor in the acceleration of market expansion and product innovation. The successful acquisitions made by leading domestic sportswear brand ANTA has accelerated the development of the athletic apparel sector in China," he added.

In 2009, ANTA acquired Italian sportswear brand FILA. At that time, ANTA's revenue was 5.875 billion yuan ($806.6 million). However, by late 2022, its total revenue had skyrocketed to 53.6 billion yuan ($7.36 billion). That same year, FILA's total revenue came to 21.5 billion yuan ($2.95 billion), accounting for nearly 50 percent of ANTA's total revenue.

In the following years, ANTA went on to acquire British casual sports brand Sprandi, the Republic of Korea's premium outdoor brand Kolon Sport, Japanese outdoor brand DESCENTE, and Amer Sports, which owns Arc'teryx and Salomon.

These brands, once known only to niche audiences, are becoming mainstream favorites. And behind this is the power of ANTA's capital commitment, Yuan explained.

A blue ocean market

On October 16, ANTA announced the acquisition of domestic women's yoga wear brand MAIA ACTIVE, whose product advantages lie in technologically advanced sports fabrics and designs tailored to better fit the Asian female physique.

The acquisition serves as a significant addition to ANTA's women's wear lineup, enhancing its ability to meet diverse consumer demands and further strengthening its brand portfolio, according to a statement from the group.

Grand View Research, a U.S.-based market research and consulting company, projected the global sports and leisure market to reach $662.56 billion by 2030. In terms of apparel categories, flagship products such as yoga wear and leggings hold the highest share at around 44 percent. ANTA's latest move shows its ambition to tap into the market.

According to an outdoor sports industry plan jointly issued by eight government departments, the number of participants in outdoor sports in China stood at 400 million in 2021, with a market penetration rate of approximately 28 percent. This rate still leaves significant room for improvement, considering the penetration rates of over 50 percent in developed countries.

"With rising living standards and increased health consciousness, the demand for sports and outdoor products among Chinese consumers, especially young people, continues to grow, providing even greater market opportunities for relevant brands," Yuan said.

As the middle-income group continues to expand, consumer purchasing power is increasing. Meanwhile, in emerging markets such as small and medium-sized cities and rural areas, there is still significant development potential for sports and outdoor brands, he added.

Eyeing the huge opportunities, domestic sportswear brands have joined international counterparts in fierce competition for the Chinese market. ANTA's acquisition of MAIA ACTIVE, for example, marks its new attempt to challenge the internationally renowned Lululemon.

"Competition in the Chinese sports and outdoor market is fierce, with both domestic and international brands vying for market share. As a result, sports and outdoor brands need to have unique product features and effective marketing strategies to stand out in this competitive landscape," Yuan said.

Domestic brands need to continuously improve their innovation capabilities, closely monitor market trends and make timely adjustments to their product lines and marketing strategies, he suggested.

"There are many domestic sports and outdoor apparel brands, but their branding effect is still limited, especially in the high-end market segment where there are few options," Pan Jun, a global product strategy advisor with Bain & Co. management consultancy, told Beijing Review.

He said the outdoor sports industry is shifting from a focus on customer traffic to customer retention. Brands that offer cost-effective products will undoubtedly lead the market. Carbon-neutral products will become increasingly popular. The market will be further segmented into high-, medium- and low-end segments with different styles, requiring each brand to establish more precise product positioning.

"It is crucial to build brand awareness and resolve in response to competition. When a company excels in brand strength, product strength, marketing prowess, data capabilities, and image presentation, it will naturally become a leading brand in the industry," he said. 

(Print Edition: Courtside to Catwalk)

Copyedited by Elsbeth van Paridon

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