Moving along nicely
China is pushing ahead with its five-year national fitness plan, announced two years ago, after a less-than-certain start in the midst of national and international covid-19 lockdowns.
A circular issued by China’s State Council in August 2021, heralded the beginning of a mass fitness programme to coincide with the country’s 14th five-year plan (2021-2025) for social, economic and “green” environmental development. The broader guidelines had already been endorsed by its National People’s Congress that March. Specific objectives include engaging 38.5% of the population in regular physical activity and growing the sports industry to a value of more than $715 billion per year, plus either constructing or expanding more than 2,000 public sports parks, fitness centres and stadia, all before the end of 2025. Everybody, down to those living in administrative villages and communities, will be living within a 15-minute walk of a “full-coverage” exercise facility by then, according to the plan.
Doors to all school stadia must be open to the public in a covid-safe manner and physical education should extend to an hour of sports, both on and off campus, every day. Active lifestyles will be presented as an essential tool for tackling widespread health challenges such as myopia and obesity, in addition to enhancing mental wellbeing. There should also be increased integration between higher-end manufacturing and services, to bring about “a modern sports industry system”. The young, elderly and disabled alike should experience improved access to “barrier-free fitness facilities” and China will initiate a campaign to encourage sports participation, targeted at its youth.
To this end, sports brand adidas notably signed a three-year strategic deal with the China Literature and Art Foundation in Beijing last November, as part of celebrations to mark 50 years since their two countries officially established diplomatic relations. Targets include staging health-and-fitness-themed cultural activities aimed at the 18-22 age group, using the concept of “century masters” to build brand awareness and loyalty, as well as connecting with 10,000 Chinese schools annually and developing exclusive university programming. The company expects to further ramp up sales of locally designed adidas products to around one-third of all articles it sells in China over time.
Official state news agency Xinhua revealed in November 2019 that China’s General Admin- istration of Sport, the National Development and Reform Commission and other departments had formally discussed whether a dedicated sports investment fund might be introduced around the time of the 2021-2025 plan, in line with efforts to “turn the industry into one of the pillars of the national economy”, but this does not appear to have materialised as yet.
Steady progress
Not disregarding covid’s long shadow, overseas suppliers of sports textiles and performance wear applications have already noticed a change in appetite among their China-based customers, says general manager at Messe Frankfurt (HK), Wilmet Shea. The trade show organiser wrapped up the latest editions of its International Shanghai Apparel Fabrics (Intertextile Apparel) and Yarn Expo fairs in March; neither event took place in spring 2022. Messe Frankfurt runs its in-country events in partnership with China’s Textile Industry Sub-Council (CCPIT) and the China Textile Information Centre.
Momentum towards healthier, more active lifestyles has really been growing since the 2008 Summer Olympics in Beijing, Ms Shea acknowledges, but the goals of the 2021-2025 plan do tie in with what she has seen on the ground, walking the halls of major exhibition centres across the country. Citizens’ increased pursuit of health and fitness has noticeably stimulated improvements in functional coatings and treatments such as waterproofing, ultraviolet (UV) protection and antimicrobial applications, she tells us, on top of a wider array of sportswear and comfort-oriented athletic leisurewear styles, including from some luxury brands. The rise in local consumers’ disposable income over the years has certainly helped.
Conversations with multiple exhibitors at concurrently-run Intertextile Apparel and Yarn Expo indicated that domestic buyers were keen to discover innovative performance fibres, yarns and fabrics, especially those blended with sustainable elements, Ms Shea continues. She singles out Chinese manmade cellulosic fibre producer Sateri and Austria’s Lenzing as two important destinations for supply chain decision-makers seeking out eco-friendlier material at its shows, which also include technical textile trade fair Cinte Techtextil China. From speaking to representatives from Swiss materials innovation specialists HeiQ in Shanghai, the Messe Frankfurt (HK) team learned that, from the supplier’s perspective, China’s sports and outdoor market “still has room to grow”. US-headquartered Ascend Performance Materials told them it had observed “a trend towards Chinese consumers purchasing more athleisure and sportswear, especially since the pandemic”.
Pole position
General manager at Yinshan Sportswear, Evan Qiu, is similarly confident. Yinshan, based in the city of Ningbo, Zhejiang province, had been solely focused on manufacturing white-label or OEM performance wear for export on behalf of overseas customers such as Formula One, Formula E, MotoGP, Nascar, Boston Marathon and Basketball Queensland for the past 20 years. Yet, despite four design studios, five factories and 25 production lines dedicated to OEM exports, the domestic sportswear market’s upward trajectory convinced the business to explore opportunities closer to home, too. Mr Qiu says the demand for fitness apparel in China is booming.
Even among his own friends, he says, most have now adopted the habit of going jogging, exercising at the gym or playing ball games. Yinshan has therefore been working to develop its relationships with local universities, colleges and textile technology labs accordingly.
The company has already made great strides towards establishing itself in China, not only as a supply partner, but as a recognised consumer- facing sports brand itself, having recently launched its own label, InPace. The aim is to start relatively small, working on honing brand management and small-batch manufacturing skills that would similarly make sense for international customers, Mr Qiu tells WSA.
Chinese shoppers will be able to choose from at least 300 new InPace activewear styles a year to begin with. Only several years ago, he recalls, it was not uncommon to see locals wearing casual tees or even polo shirts to practice “all sports exercises”. Now, people wish to always have the right kit to hand, no matter the activity. Research published by investment firm Goldman Sachs in early May projects that the Chinese market’s biggest players, Anta and Li-Ning among them, could see a 15-21% rise in income this year alone.
Emboldened by top-down backing from the national government, the future looks bright for sportswear consumption in China. It is not insignificant that today’s market leaders are homegrown, however, nor that the country’s younger generation has formed particularly strong bonds with their more culturally nuanced branding. This segment typically demonstrates “more confidence” in their buying behaviour when it comes to the likes of Anta, Li-Ning, Peak Sport and others, in Mr Qiu’s words. But, as adidas, whose group-level revenues declined by 36% in China last fiscal year, would surely concur, the Chinese customer is no monolith. Time-honoured tactics such as patience, longer-term planning and heritage-minded investment are most likely to pay off for those who stay the course.
Picking out a clear path forward within a soon-to-be ¥5 trillion sports market presents both a challenge and an opportunity.
All CREDITS: Messe Frankfurt (HK)
