(Yicai) Feb. 24 -- Global sports brands are ramping up investment in China as rising public enthusiasm for sports fuels demand for higher-end and specialized gear, with Nike-backed All Conditions Gear opening its first global brand store in Beijing’s upscale Sanlitun shopping district.

The move underscores international brands’ efforts to tap China’s fast-growing outdoor segment and capture premium market opportunities, even as competition intensifies in certain price bands. Industry executives say demand is shifting toward higher-priced and more specialized products as consumers pursue advanced and diversified sports activities.

The Sanlitun store will be directly operated by Nike, aiming to leverage the emerging outdoor sports trend through ACG and revive the company’s market momentum in China, Yicai learned. Meanwhile, Norway’s high-end outdoor brand Norrøna, the United Kingdom’s professional running brand Soar, and Canada’s Ciele Athletics entered the Chinese market last year.

“There is still a gap between the development of China’s sports equipment market and that of mature and developed markets,” Zhang Qiang, senior vice president of sportswear retailer Topsports International Holdings, told Yicai. The growth of the Chinese market is also expected to follow a similar evolution pattern: starting with football and basketball equipment, then running and outdoor gear, and finally, a host of niche products will emerge, Zhang added.

Topsports is the exclusive operating partner for Norrøna, Soar, and Ciele in China, handling brand building, market promotion, product introduction, and sales channels.

Premium and Niche Segments Gain Momentum

“Norrøna is a high-end outdoor brand with a complete product matrix, which makes us believe there is an opportunity to expand from a single store,” Zhang said. In addition, Topsports has launched a running brand collection store, Ektos, which includes running brands such as Soar and Ciele that Top Sports has exclusively introduced, he added.

Although competition in some price segments is already intense, Zhang said, “We believe there are still some personalized market opportunities in the high-unit-price range.”

Authentic Brands Group, the parent company of Champion, established a Chinese joint venture with Belle Fashion Group in March last year to upgrade Champion’s business in China. Swiss sports brand On opened its first flagship store in China at Taikoo Li in Chengdu in April last year, while Hoka opened its first global brand experience center in Shanghai’s Xintiandi district in May.

“The sports and outdoor market in China is performing extraordinarily. 70 percent of the brands under Authentic are about outdoor sports,” Shen Jun, vice president of business development for China at Authentic, told Yicai.

Zhang said China’s sportswear market presents two major opportunities: the expansion of sports events and the upgrading of existing ones.

“People ran 10 kilometers before, but now they run 20 kilometers. People ran a half-marathon before, but now a full marathon. After completing a full marathon, people weren’t satisfied, so they started trail running. Those who still weren’t satisfied then started skiing,” Zhang said. “The more segmented the market demand becomes, the more explicit the need for equipment upgrades is, and the more necessary it is for products that precisely respond to these demands and pain points to emerge.”

Shen added that China’s sportswear market is generally expanding, with faster growth in lower-tier cities. “Compared with first-tier cities, there is still large room for improvement in fitness activities in lower-tier markets.”

If China replicates the growth trajectory seen in Europe and the US, significant potential remains for global brands, Zhang noted. Nike’s revenue in China is about one-third of its revenue in North America, while China is not Adidas’ largest market, suggesting substantial room for expansion even for established international players.

“Although the performance of products from domestic sports equipment brands in China has improved rapidly in recent years, well-known brand image and product innovation capabilities of international brands remain a deep moat,” Zhang said.

Editors: Tang Shihua, Emmi Laine