Consumer China

Domestic sportswear brands stumble

  • Published 01 Dec 2011

Faltering demand for sportswear and intense competition both within the market and from leisure apparel is making brand development more pertinent than ever.

Domestic sportswear players have been at the forefront of China's efforts to move from a low-cost manufacturer to a generator of competitive brands. When the likes of Li Ning (2331:HKG) and Anta (2020:HKG) graduated from original equipment makers to become standalone brands, a race for scale rapidly ensued. High streets in small towns across China quickly went from being drab spots with only local necessities on show to featuring one or even two of every major sportswear brand China had to offer. But now, competition both directly in the industry, and from fashion apparel, which has become increasingly accessible and affordable, means that pressure is mounting fast. Ballooning inventory levels are driving aggressive price cutting across the industry, making the need to build strong and sustainable brands more pertinent than ever.

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