Q2 2024 Whitepaper: China's Li Ning Sportswear Market Analysis

Key Finding 1

China's sportswear market reached CN¥ 385.8 billion in 2023, sustaining growth even as pandemic-era tailwinds faded and the online sportswear channel delivered CN¥ 143.46 billion in sales (+5.0% YoY) across 570 million units (+13.3% YoY) -- while per-capita sportswear consumption of US$ 38.3 remains well below developed nations, signalling substantial untapped potential.

Our analysis reveals a market in transition. China's sportswear industry continues to benefit from rising health awareness, the domestic brand trend (guochao), and increasing penetration rates that climbed from 9% in 2015 to 14% in 2022 -- still far below the 20-25% benchmark set by Japan, South Korea, and Western Europe. Online channels now account for 38.2% of total sportswear sales, with offline remaining the primary battleground at 61.8%. However, the channel landscape is shifting rapidly: Douyin (抖音) expanded its sportswear market share from 20.8% in 2022 to 27.4% in 2023, growing +38.2% YoY, while traditional e-commerce platforms including Tmall (天猫) and JD.com (京东) saw share contraction. The market's CR5 remained stable at 40-55%, and while new brand entries rebounded to early 2022 levels, they posed limited threat to established leaders. The competitive dynamics favour brands that can execute across both traditional and emerging channels while targeting the growing specialisation and scenario-based consumption trends reshaping consumer demand.

Key Finding 2

FILA surpassed ANTA in full-year 2023 online sales, reaching CN¥ 10.2 billion (+38.4% YoY) versus ANTA's CN¥ 9.68 billion (-0.4% YoY) -- a dramatic reversal from 2022 when ANTA led in both sales and volume, driven by FILA's successful chunky sneaker strategy and premium positioning at CN¥ 600-800 average price points.

Nike maintained its overall market leadership as the only brand exceeding 10% market share in 2023, while Adidas experienced a notable -21.5% YoY decline. Among domestic brands, Li Ning held 8.4% market share (down from 9.0% in 2022) with a -2.0% YoY change, distinguished by its basketball shoe focus versus competitors' emphasis on casual athletic shoes. The brand landscape reveals a clear premiumisation trend: New Balance and FILA are the only top brands with average prices exceeding CN¥ 600, while domestic brands generally hover around CN¥ 200. Chunky sneakers emerged as the breakout category across brands, with +142% YoY growth driven by FILA, Skechers, and MLB, while walking shoes grew +76.2% YoY through innovative elderly-focused marketing on Douyin livestream channels.

Key Finding 3

Women's dedicated sportswear reached CN¥ 29.80 billion in online sales (+8.4% YoY) in 2023, with growth significantly outpacing men's across all quarters -- while the women's apparel share of 43.1% meaningfully exceeded the overall market average of 33.1%, confirming female consumers as the primary growth engine for China's sportswear industry.

The gender dynamics of China's sportswear market are undergoing structural change. Men's dedicated market share declined from 41.9% to 39.4% between Q1 2022 and Q4 2023, while unisex products expanded from 37.9% to 41.5%. Lululemon emerged as the notable newcomer among women's leading brands, expanding market presence in an otherwise stable top-3 competitive landscape. Consumer sentiment analysis reveals that women prioritise design for hiking and mountaineering scenarios, with mountaineering leading outdoor sports preferences ahead of racquet sports. Li Ning faces specific challenges in the women's segment, where sizing and comfort negative review rates exceed the industry average, with oversized fit complaints comprising more than 50% of negative mentions -- representing a clear product-development opportunity.

Key Finding 4

Running shoes emerged as the strongest performer among major athletic shoe categories in 2023, delivering +12.2% YoY growth with the CN¥ 600-800 price segment seeing the largest share increase -- while basketball shoes contracted -19.5% YoY with the CN¥ 1,000+ segment declining most sharply, creating fundamentally different strategic imperatives for brands operating across these segments.

The running footwear market rewards both scale leaders and specialist challengers. 361 Degrees delivered the most impressive growth at nearly +50% YoY, exceeding market growth every single month of 2023, with its running shoes concentrated in the accessible CN¥ 0-200 segment. ASICS sustained rapid double-digit growth led by the Kayano 30 post-launch surge, anchored at CN¥ 400-600. In basketball, Jordan Brand grew against the market trend, while PEAK's Wiggins series maintained sales leadership despite the broader category decline. The divergence between running and basketball suggests a market shifting from performance-basketball aspiration toward everyday running and fitness utility -- a structural change with implications for brand portfolio and investment allocation.