Home advantage: Anta beats Nike and Adidas in China

What happened Chinese sportswear brands are eclipsing Nike and Adidas on their home turf, with revenues from Anta and Li-Ning breaking new records. Anta reported 33.74 billion RMB ($4.7 billion) in revenue for H1 2024, surpassing Nike China by 20% and Adidas China by 160%. That stellar performance followed Anta’s impressive 2023, when revenue climbed 16.2% YoY to 62.36 billion RMB ($80.9 billion). Similarly, China sportswear brand Li-Ning’s revenue grew 7% YoY in 2023, to $3.9 billion. Many attribute these figures to China’s growing guochao trend, where local buyers are choosing domestic labels as a symbol of their Chinese cultural pride. Jing Take The ascendancy of Chinese sportswear brands in their home market isn’t surprising – it almost seemed inevitable, with Anta Group first overtaking Nike last year and China’s government backing numerous sporting initiatives aimed at promoting outdoor activities and healthier lifestyles. Many international sportswear brands have underestimated China’s growing affinity for the guochao trend, which enables local brands to stand out in their fiercely competitive markets and target the burgeoning Gen Z consumer market. Li-Ning, founded by the Chinese Olympian gymnast of the same name, helped pioneer the trend in 2018, when it showcased Chinese elements fused with cutting-edge designs at New York Fashion Week. These Chinese sportswear giants have also demonstrated a superior ability to balance local and international strategies. They’re embedded in the Chinese market, understand the local culture and needs, yet spent years emulating strategies of global sportswear giants, all the while cultivating a strong portfolio of international brands. For instance, Anta acquired Finland-based Amer Sports (owner of Arc’Teryx, Salomon and Wilson, among others) in 2019 and revitalized struggling sportswear brand Fila after purchasing it in 2009. These strategic moves have provided Chinese brands with far-reaching insights, both locally and globally. Alongside their international strategies, many skilfully connect to domestic consumers on an authentic basis, through collaborations and partnerships that can fuel expansion in China. For example, in 2022, Arc’teryx worked with Chinese hotel group Songtsam and Fila collaborated with Tmall Sports on co-branded digital collectibles. And with China quickly climbing the global sporting ranks, winning 40 gold medals at the Paris Olympics, it’s not just Chinese sports brands that are tapping into the local market – more and more luxury brands are turning to Chinese sports stars for partnerships as brand representatives. Among numerous examples, Olympic gold-medalist skier Eileen Gu featured in campaigns for Louis Vuitton, Tiffany & Co and Victoria’s Secret, Alfa Romeo Formula One driver Zhou Guanyu was named Dior’s endorser in China, and Prada appointed basketball player Yang Shuyu as its brand ambassador. It also doesn’t help that international sportswear giants can struggle when attempting to tailor their strategies to China’s discerning market: Nike, however, found success with a 2024 Paris Olympics campaign featuring Chinese tennis sensation Zheng Qinwen, but faced a backlash for a promo video in the lead-up to the Olympics in which an Asian athlete licks a table tennis racket, which many viewers saw as an insult to China. If international brands such as Nike and Adidas are hoping to claw back their positions near the top of China’s market, it’s going to take more than the occasional collaboration with a Chinese sports celebrity – investment in local talent, acting fast on keen insights into trends appealing to younger consumers, partnerships through events and activations focused on local experiences, and most importantly, strategies tailored exclusively to the China market are all essential. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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Home advantage: Anta beats Nike and Adidas in China