The domestic sportswear market has undergone dramatic change in the past few years. Concerns over economic growth and inflation have affected the spending behavior of Chinese consumers, who increasingly demand sportswear products that offer value-for-money. Oversupply of inventory and deep discounting have also intensified the competition and has sped up market consolidation. Although uncertainties and keen competition will continue to cast clouds over the domestic sportswear market in the short-term, we remain optimistic about the long-term development of the domestic sportswear sector. We believe that there will be sustainable growth in functional and value-for-money sportswear products in the future. We have adopted a multi-brand strategy featuring different market positions to capture the growth opportunities in various segments of the sportswear market.
Over the years, our performance-based sportswear products – and our products in the basketball, running and women sports categories in particular – have enabled us to become one of the leaders in the mass market. Thus, we are focusing on strengthening our marketing resources and the professional image in these sports with high levels of participation in China. We also utilise our sponsorship of the COC to solidify ANTA’s brand positioning as a representative of China’s sports industry. With the London Olympics, we enriched the COC licensed products series and cooperated with the IOC to integrate logos from past Olympic Games into the IOC products.
While maintaining our market position on the performance-based sportswear markets, we have also tightened our grip on the kids’ sportswear market by expanding product offerings for children aged 3-7. Our Kids sportswear series plays a strategic role in our portfolio as it builds strong brand loyalty among children aged 3-14. Meanwhile, we are further optimising our Sports Lifestyle series to extend our influence in the mass market.
In the high end sportswear segment, our Fila business has been growing steadily and gaining market awareness. Last year’s rebranding campaign has successfully strengthened the stylish image of the FILA brand. The Fila business is a key component in our portfolio as it creates synergies with our existing business in the mass market and benefits our long term growth.