Nike, Adidas thrive as luxury goods feel pinch of austerity

For Beijing resident Alex He, the cost of a trip to the mall can easily top $3,000. He, 29, works in the finance industry and while he doesn't regularly go shopping for clothes, "when I do shop," he said in an interview, "I buy a lot." Recent purchases include several pairs of Adidas shoes that he found at an outlet mall. He also fancies Under Armour shorts and shirts. "I used to buy a lot of luxury brands but in the last year or so I've been purchasing more of the sports brands because they are more comfortable and more fashionable," said He.

Chinese consumers like He, who want to make statements when they go shopping, are turning more to Western sports brands. President Xi Jinping's multi-year campaign to reduce conspicuous consumption of luxury goods by public officials has hurt sales of Pernod Ricard, Hugo Boss and BMW. Even as sales of luxury fashion, cars and other prestige products suffer, sportswear brands are robust. Nike's sales in the Chinese mainland, Hong Kong and Macao are strong, with orders from September to April up between 27 and 35 percent. On June 6, the company announced it will work with the Ministry of Education to train up to 7,000 physical education teachers.

"Today's generation is the least physically active in history and we can help change that," Nike President and CEO Mark Parker said in a statement.