Consumer China

Xtep steps up its game in fashion sportswear

  • Published 11 Jun 2009

Demand for fashion sports apparel more than doubled Xtep's profits last year.

Developing its own branded fashion sportswear to target the domestic market was a good step for Xtep International Holdings (1368: HKG). Initially founded as an original equipment manufacturer (OEM) over 10 years ago, the company launched its own brand at home in 2001. Xtep and its other branded sports clothing and footwear now account for 99% of revenues, which leapt 110% year-on-year in 2008 to reach Rmb 2.87bn ($420m, €303bn, £264bn). Net profits increased a mighty129% to Rmb 508m. In the second quarter, volume of sales orders have grown between 20% and 30% while the average order price has experienced single-digit growth. In fact, it has been doing so well that with waning demand for sportswear abroad, some Fujian OEMs, including those that produce for major international brands such as Nike, are now manufacturing products for Xtep.

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