Domestic outdoor apparel and gear companies are steadily entering the Chinese market. Unlike Korea, where the outdoor market's growth has stalled, China's outdoor industry is expanding in line with the government's health and leisure promotion policies.
On 16th, Kolon Industries FnC (hereafter Kolon FnC)'s Kolon Sports said it entered the Chinese market in 2017 through a joint venture with Chinese sportswear company Anta Group. Its China sales, which were 70.3 billion won in 2021, surged to 503.2 billion won last year, more than sixfold.
According to Anta Group's semiannual report issued 4th, first-half sales this year in the other segment, which includes Kolon Sports and Descente (Japan), were 7.412 billion yuan (about 1.4859 trillion won), up 61% from a year earlier. Anta Group said, "Among the group's brands in the first half, Kolon Sports recorded the largest sales increase." Some in the industry expect Kolon Sports' China sales to approach 1 trillion won this year.
Kolon Sports is regarded as having established itself as a high-end (premium) brand in China's outdoor market. Product prices are higher than in Korea. The brand's "evergreen logo" is perceived by Chinese consumers as a symbol of luck, boosting its favorability. Chinese outlet 36KR reported, "The Kolon Sports logo resembles six upward-pointing arrows," adding, "Chinese people consider this logo auspicious."
Kolon FnC also won the apparel business rights last year for Helinox, a homegrown outdoor camping gear brand. It will unveil "Helinox Wear" products this month and open a pop-up store (temporary shop). Online sales will also begin. Kolon FnC currently handles the China distribution of Helinox camping gear. It is expected to continue with apparel distribution in China as well.
K2 Korea's outdoor brand Eider also opened its first store on 20th at the Global Harbor shopping mall in Shanghai, China. Next month, it will open a second store at the Caifu Shopping Center in Jilin province. It signed a license agreement with a local company for planning, production, and distribution, and plans to introduce products tailored to Chinese commercial districts.
K2 Korea began operating the brand in 2006 after acquiring the domestic business rights to the French outdoor brand Eider. In 2020, it acquired the global trademark rights. It currently does business in Europe and Taiwan. A K2 Korea official said, "We will expand our local influence through a strategy that fits Chinese lifestyles."
F&F, which grew MLB into a 1 trillion won-class brand in China, signed a deal last July with U.S. company Warner Bros., which owns the Discovery brand, to enter China, Japan, and Southeast Asia. As of September this year, it operates 19 related stores in China.
The Nature Holdings, which operates National Geographic Apparel, also established a joint venture (VC) with Danish company Bestseller for its China business. GAMSUNG Corporation, which develops Snow Peak Apparel, signed a strategic partnership with Chinese golfwear company Beinlefen (比音勒芬) and plans to expand stores centered on key Chinese commercial districts.
The reason domestic outdoor companies are accelerating their push into China is that sluggish domestic sales have dragged on. According to the industry, among the top 10 outdoor brands by revenue last year, only three—The North Face, Snow Peak, and Arc'teryx—saw sales rise from the previous year. Of these, the only brand with annual sales exceeding 500 billion won was The North Face, which posted 1.1 trillion won.
By contrast, China's outdoor market is seen as having relatively strong growth potential. According to the "China Outdoor Industry Development Report" released by the China Tourism Academy, the local outdoor apparel market is projected to grow from 197.1 billion yuan (about 39.5383 trillion won) in 2022 to 241 billion yuan (about 48.3446 trillion won) in 2025.
In particular, because the Chinese government plans to grow sports industries such as health and leisure through 2030 to spur domestic demand, the outdoor industry's growth is expected to accelerate. Euromonitor forecasts that China's sportswear sales will reach 542.3 billion yuan (about 108.6769 trillion won) in 2029.