Morgan Stanley reports that Canadian yoga brand Lululemon has become the third-largest foreign sportswear brand in China. The brand currently has more than 130 stores in the country, with annual revenue surpassing $1 billion for the first time. HSBC forecasts that by 2026, the Chinese market will contribute 20% of the brand’s revenue, becoming an important source of profit. Despite facing economic slowdown and market challenges, Lululemon has achieved growth in China, with a 40% revenue increase in the first two quarters of this year. The average selling price in China is 20% higher than in the US.