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2008 Beijing Olympics: sportswear market gets heated up
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2008 Beijing Olympics: sportswear market gets heated up

Written by: Fibre2Fashion

As the clock ticks down to the forthcoming2008 Beijing Olympics, sportswear companies are spending millions of dollars andare working excess hours. While the overall apparel market is gearing up, thecurrent year scheduled for Olympics is an important period for sports wearcompanies. Sportswear market is a highly branded area of the apparel segment. Chinesesportswear companies have an opportunity to present themselves in a globalperspective, and prove their worth for the coming decades. The countrys sportswear market is now flourishing, and so are their challenges.


Sportswear market in China can be described as a three tier structure. Nike and Adidas are on the first tierwith a strong hold in the market, while Li Ning stands on the second tier. Companieslike Anta, Peak, and Kangwei occupy the third tier. While the top most brandsare focusing on sustaining and developing their brand image and broadeningtheir market, smaller companies in the second and third tier are putting theirhard efforts to move up the value chain.


China manufactures 65 percent ofthe worlds total production of sportswear. Chinese sportswear market isexpected to grow from $3.84 billion USD in 2006, to $7.2 billion USD in 2009.During 2006, Nike and Adidas were the two giants having strong hold of thesports wear market. Nike had a strong grip in the Chinese sportswear marketcontrolling approximately 16.7 percent of the market segment followed by Adidaswith 15.6 percent. Li Ning stood third with 10.5 percent and Anta was fourthwith 4 percent. Other brands like China Hongxing Sports, Peak and Kangwei alsohave their role, and are catching up fast.

Market share of Sportswear companies in China

During 2006, Li Ning acquired agood share in the market due to its brand ambassador, Shaquille ONeill, andits lower prices. Anta spent a huge amount of money on advertisements on anational broadcaster. Currently, all brands are working aggressively to promotetheir brand image and market reputation. Millions of dollars are spent on TVcommercials featuring sports and entertainment media stars. Chinese brands areattempting to expand their market potentials. Apart from China they further look into US, and even in the Middle East, and South America. So a drasticincrease in the percentage of Chinas contribution in the sportswear market isexpected. Chinese brands are getting into a deal with international sportsstarts to market their products.

The forthcoming Olympics willprovide a golden opportunity for the sportswear companies in China. Despite these rosy hopes, the country is facing some constraints as well. As aconsequence of the increasing labor cost, the country is losing its businesswith contracts going to other countries in Southeast Asia and Pakistan. Chinese manufacturers of sports products are mostly small and medium sized, lacking behindin their technology and equipment. Moreover, there are some companies whichmake fake products that damage the brand image and reputation of the brandedmanufacturers. Goals of sportswear companies becoming a global premium brandare being thwarted by price wars. Unprecedented challenges surround the Chinesemanufacturers.


In the coming Olympics it is notjust the athletes who would face fierce competition, but the geared up sportswear companies will also play a crucial role in achieving a golden glow in thesports arena.




1)      http://www.bt.com.bn

2)      http://www.bizchina-update.com

3)      http://english.china.org.cn



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