China: Fitness boom gets sportswear firms take a growing interest
US is the biggest market for sportswear, but right now athletic wear companies are shifting focus to cater to the growing market of China. In the last quarter Nike recorded a 9.5% growth, Adidas' sales jumped 22% in China in 2016. China is a huge market in volume and the demand is increasing. Here is how China suddenly became the darling of sportswear firms.
The perfect balance of age and income ratio
Millennials in China are already more than 415 million says a 2015 report, which is more than the entire working population of the US and Western Europe combined. China also has the world's largest middle class population. According to a study, average income of China will be $3 trillion by the next decade, which means more disposable income for gym classes and so on.
Gen-Y more informed and aware than predecessors
Since all the sports companies are mainly targeting the millennials for their success, information are being made available to them via new apps, campaigns etc. The number of marathons taking place in the country has increased six fold over the last five years, noted Nike, which proves the growing awareness in the youth.
The red government encouraging the growing trend
To accomplish the goal of becoming a global soccer superpower, Chinese President has announced plans to expand country's sport economy to $850 million by 2025. In June, 2016 the State Counsel of China unveiled a five-year fitness plan which aims to spend around $225 billion. In partnership with government, Nike has also launched a 3-year initiative to spread out physical education in Chinese youth.
Carry that fitness craze with style
Sportswear in China is now part of people's daily wears and is also considered to be a part of fashion in the country. Sportswear sales in China rose 11% compared to previous years, while overall apparel sales jumped only a mere 5% said reports. According to some, the craze is immense and people are even wearing sportswear in weddings. .
Food still plays the main adversary
Although, Chinese people have hit the gym, international fast-food giants are still expanding in China and luring consumers to the unhealthy side. China has already bumped over the US and topped the list of having the largest number of overweight people in the world, 10.8% of men and 14.9% of women in a nation of 1.4 billion people are overweight.
Brands are picking up the pace to rule the market
Adidas has said that it will open at least 3000 new stores across China by 2020. Under Armour announced its plans to establish 120 new stores in Greater China. Nike plans to generate a whopping $50 billion in sales revenue and keeping Chinese concentrated on them by promoting the famous Jordan line of sportswear.
The Chinese fat camps
Nearly 100 million Chinese people are now obese to keep a check on that, China now has fat camps where obese children enlist their names and go through extensive trainings to lose weight. These camps charge around $1000 per child.
