China is "in the grip of a government-backed exercise boom, boosting local sportswear brands" and the likes of adidas and Nike, which are gaining market share "on the back of consumer upgrading and an embrace" of the "athleisure" fashion trend, according to Tom Hancock of the FINANCIAL TIMES. Adidas this month said that its sales in greater China rose 28% last year -- the "fastest pace of any region," adding to net global profit growth of more than 60%, while Nike reported "double-digit" sales growth in China in its most recent quarter. Greater China is the "second-largest market for both brands, which together account for about a third of the country’s sportswear sales." Sportswear sales in China rose 11% last year to 187B yuan, according to consultancy Euromonitor. By contrast, sales of overall apparel climbed just 5%. Analysts said that Nike, adidas and New Balance, which "command higher prices than local brands," are viewed by Chinese consumers "more as fashion labels than sportswear." Local brands, "still widely perceived as copying design innovations from overseas, are also benefiting, with their sales increasing rapidly as more Chinese take up exercise" (FT, 3/20).
