Running fans spark sportswear sales sprint

Surging enthusiasm for participatory sports such as running continues to fuel demand for sportswear in China, pushing up a healthy annual retail growth figure of 11 percent last year, according to industry insiders.

Sportswear sales in China were estimated at 165 billion yuan ($25.4 billion; 22.5 billion euros) in 2015, according to Euromonitor International.

Marathon running, which in China includes many health-conscious, well-educated participants, is an important source of sportswear sales.

Chinese sportswear brand Li-Ning - among the companies reinvigorated by China's passion for running and other sports - snapped three years of annual losses to swing back into profit in 2015, according to a recent Channel NewsAsia report.

Foreign brands also did well. With a retail value share of 21 percent in 2015, Nike (China) Inc retains the leading position in sportswear. In 2014, Nike's share was 19.2 percent, according to Euromonitor.

Nike's China earnings rose 43 percent in the quarter ending in February, with footwear growing fastest at 33 percent, the company reported.

German sportswear maker Adidas Group was No 2 with a 16 percent share in 2015, up from 15 percent in 2014. Adidas recorded 18 percent growth in sales in China last year, driven by the "performance and style" products, its annual report says. The company plans to expand from 9,000 retail stores in China to 12,000 by 2020.

Chinese brand Anta China Co Ltd also recorded strong growth to 9.9 percent, up from 9 percent in 2014, making it the third-largest player in the nation's sportswear industry.

Performance footwear, perhaps the most important equipment in marathons, is predicted to continue as sales leader, Euromonitor says. Many brands are expected to increase the importance of footwear in their product lines.

A study of Chinese marathon runners released in January by the Nielsen research company, together with the Chinese Athletic Association, says Chinese runners spend an average of 3,601 yuan ($554.70; 490.50 euros), and the more experienced runners tend to spend more to upgrade their performance. Survey data shows that core runners spend an average of 4,594 yuan, far more than 2,333 yuan of potential runners.

The study found that 70 percent of those surveyed said they are more likely to buy the products of companies that sponsor races.

wangzhuoqiong@chinadaily.com.cn

(China Daily European Weekly 04/29/2016 page7)