China offers great prospects for sports brands. Adidas has more than 11,000 retail outlets across China. It is also expanding operations in China, with some 1000 new store openings a year. Adidas saw a year-on-year sales growth of 29 per cent in 2017 in China. It also saw sales grow by 26 per cent on an annual basis in the third quarter this year.
Decathlon, a France-based sporting goods and equipment retailer, had 267 stores in China by the end of 2017. The rapid growth of overseas sports brands in China has been spurred by increased spending on sporting goods, whether sportswear and active wear, fitness facilities or products like protein powers for body builders. Consumers are spending more and more on sports products as they pursue more outdoor hobbies like diving, kayaking and paragliding. They are buying outdoor gear like clothes, shoes, professional watches, socks and so forth.
Overseas sports brands are flourishing at a time when many other overseas brands are facing a tough time with Chinese consumers, due to the country’s economic downward pressure, fiercer competition from domestic brands, and tough global trade environment.