Uneven sales growth and discount pressure are sharpening the challenge for sportswear brands as they seek to match supply with demand and give consumers reasons to buy at full price.
Recent quarterly results reveal contrasting fortunes. Some established labels faced weaker sales, while certain performance and outdoor brands continued to expand. The divergence could test companies' ability to sustain growth without sacrificing pricing power.
Anta Sports reported a mid-single-digit year-on-year decline in retail sales for its namesake brand in the third quarter, while Fila recorded a low-single-digit decline. Its other brands, including Descente and Kolon Sport, collectively grew 25 percent to 30 percent.
Consumer demand is becoming increasingly fragmented, with similar products crowding the mass market while changing lifestyles are creating opportunities for more targeted offerings, according to Cheng Weixiong, founder of Shanghai Liangqi Brand Management Co.
The results suggest a mismatch between some products reaching the market and those consumers willing to buy at full price, rather than demonstrating excess production capacity across the industry.
For mainstream brands, the availability of similar trainers, leggings and sports-inspired jackets makes it easier for shoppers to switch labels or wait for promotions. Premium prices become harder to defend without a clear advantage in performance, fit or design.
As sportswear becomes an established part of everyday wardrobe, brands may also find it harder to persuade consumers to buy another similar item, increasing the importance of product differentiation and new occasions for use.
Specialist products offer a potential route forward. Technical features that address practical needs, combined with a recognizable sporting identity, can help brands build relevance among runners, outdoor enthusiasts and other communities.
"Rising incomes and evolving lifestyles in first-tier cities, alongside changing consumption patterns in second and third-tier cities, create further opportunities," Cheng said.
Responding quickly to local preferences is another priority, he added.
For example, according to Adidas, about 95 percent of the products it sells in China are manufactured domestically, while more than 65 percent are designed by its Shanghai Creative Center. About a quarter of the products designed by the center are also sold overseas.
Cheng cited outdoor brands such as Kailas as examples of companies targeting demand tied to specific activities.
Kailas has developed its Fuga trail-running footwear line into a standalone brand. Fuga opened a store at Beijing Daxing International Airport in March and its first European store in Chamonix, France, in August.
According to the Yuerun Data Research Institute, Fuga accounted for 34.8 percent of footwear worn by participants in the Chinese trail-running races tracked in 2024, ranking first among brands.
Specialization, however, carries risks, according to Cheng. If investment in trail running, outdoor clothing or women's training outpaces growth in the customer base, categories now attracting expansion could develop similar supply imbalance, he added.
