Summary of Key Points
The current fitness craze in China has evolved from a nationwide "running boom" to a diverse range of activities. The HYROX Comprehensive Fitness Competition has attracted over ten thousand participants, with new forms of hiking, rock climbing, and urban outdoor activities emerging in droves, turning cities into large-scale centers for adult sports enthusiasts. However, despite the seemingly thriving market, the performance of the leading sports brands has followed very different trajectories: Anta saw double-digit growth in the first half of 2026, Li Ning experienced slight growth, while Xtep even saw a slight decline in revenue. The reason behind this is that the three brands have chosen three distinct growth paths. Anta has adopted a multi-brand strategy to cater to various sports needs; Xtep aims to transform its reputation as the "number one in professional running" into commercial success that appeals to a broader audience; Li Ning, on the other hand, has focused all its resources on the Li Ning brand, leveraging its basketball and sports IP to expand into new categories such as outdoor sports. The industry consensus is that the fitness boom is no longer a easy opportunity to profit from just producing sports apparel. For every new market segment, it is essential to first determine whether the additional revenue can cover the additional costs.
Detailed Explanation
Why do so many people engage in sports, yet brand profits vary so much?
Many assume that the rise in sports activity will benefit all brands, but consumers today are no longer satisfied with just any pair of sports shoes. For example:
- Professional runners require shoes that can help them break records and are as light as possible;
- People who walk for exercise at night want shoes that are comfortable and not tiring after long distances;
- Those who wear shoes to work need them to match their jeans and look good on social media;
- Outdoor enthusiasts need shoes that are waterproof and durable, even in snowy conditions.
The old model of producing one set of products for all consumers and opening stores nationwide no longer works. A brand that makes affordable sports clothing will not be taken seriously if it offers expensive professional skiing gear, and vice versa. Consumer demands have become highly segmented. Only those who can accurately meet specific needs will make a profit; those who fail to do so will see declining performance.
Anta's high growth is due to its early occupation of various niche markets
Anta is no longer just a single sports brand but rather a "sports brand conglomerate." For professional skiing and triathlon, it has the high-end brand Desant; for outdoor camping and hiking, it has Kelong and JACK WOLFSKIN; for comfortable and stylish yoga clothing for women, it has MAIA ACTIVE; and for everyday, stylish sports wear, it has FILA. As a result, whenever a new sport becomes popular, consumers are likely to think of Anta's brands first, without the need to rush into the trend. These niche brands have seen a 44% increase in revenue this year, contributing 30% of the total profits—more than the main brand. Anta has also diversified its stores, with Desant opening "Glacier Realm" concept stores for skiing, Kelong opening outdoor lifestyle stores, and the main Anta brand opening trendy sports stores. This ensures that consumers with different needs can find what they want without confusion, effectively capturing the money from all segments of the market.
Xtep is stuck in the dilemma of converting its professional reputation into profits
Xtep's status in the running community is undeniable: it has the most runners using its shoes in domestic marathons, and its 160X series is almost a standard among professional runners. Its professional reputation, built over years of sponsorship, is its greatest asset. However, aside from its core running audience, most consumers see Xtep mainly as a brand for running shoes. Xtep's strategy is to expand its range, making its high-end running products more accessible to a broader audience and to attract younger consumers through partnerships and online sales. However, the high costs of e-commerce, endorsements, and new stores have not yet covered these additional expenses. Its "most professional running" brand image has not translated into substantial consumer spending.
Li Ning is betting on a single-brand approach
Unlike Anta, Li Ning has focused all its resources on the Li Ning brand, exploring new categories through multiple products and channels. While it used to profit heavily from basketball and running, these categories saw declines this year. To overcome this, Li Ning has shifted to outdoor sports, increasing the outdoor product segment's share from 4% to 10% and signing partnerships with top athletes like Stephen Curry and the Chinese Olympic team. However, marketing costs have risen to 11.2%, and the costs of opening new stores have become a burden. Whether the new outdoor products will attract consumers remains uncertain. Li Ning's success depends on whether it can convert these investments into profits.
The fitness boom is not a passive opportunity; every growth strategy requires careful cost-benefit analysis
There is no absolute right or wrong choice among the three brands. Anta needs to balance its multi-brand strategy to avoid competition among different brands. Xtep must balance its professional image with appeal to the general public. Li Ning must integrate its sports IP into product design and pricing. The industry consensus is that no opportunity comes for free; to capitalize on new trends, brands must invest in relevant products, experience stores, and marketing. Whether the new revenue can cover the costs is uncertain. While the fitness boom offers opportunities to all, only those who manage the details effectively can turn them into profits.