Chinese sportswear brands: the vanguard of the “domestic turn”
Business & Technology
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As geopolitical turbulence and domestic consumption initiatives get underway, Chinese sportswear giants Li Ning and Anta Sports have had a booming year:
- Each company had about $10 billion yuan ($1.6 billion) in sales, each up 60% from the previous year, in the first six months of 2021.
- Within China, they’re rapidly closing in on foreign competitors: Anta and Li Ning now rank third and fifth for market share behind Nike and Adidas, according to one survey.
The context: Foreign sportswear brands, long dominant in China, have suffered recently from counter-boycotts responding to their bans on Xinjiang cotton:
- Mainly younger Chinese consumers are rallying behind Chinese brands in a phenomenon called “guócháo” 国潮 (“national trend”).
- The hype is also tied to “common prosperity”: Goldman Sachs included Li Ning in its list of 50 stocks that are expected to benefit in the coming years as state leaders emphasize clean energy, elements of the “real economy,” and domestic consumption.
What’s next: As with Manner Coffee and Shein, Chinese domestic brands are likely to enjoy a good harvest in the coming years as anti-foreign sentiment grows and self-sufficiency priorities take shape in Beijing.
