• Loading stock data...
Saturday, October 18, 2025

Nike and Adidas Are Losing Sportswear Share in China

The sportswear market is one of the few pockets of consumer growth in China. But Nike and Adidas, once reliably at the top, are facing fierce competition.

April 13, 2019; Oakland, CA, USA; Detail view of Anta shoes worn by Golden State Warriors guard Klay Thompson (11) during the second quarter in game one of the first round of the 2019 NBA Playoffs against the LA Clippers at Oracle Arena.
Kyle Terada-Imagn Images

Nike is still the top dog in the China sneaker market—for now. But its market share isn’t as big as it was a decade ago.

As China’s sportswear market gets increasingly fragmented, yesterday’s market leaders are losing share to domestic sportswear competitors like Anta, Li-Ning, and Xtep, as well as smaller premium names like Lululemon and Swiss brand On. 

Nike still ranks near the top among all brands for quality and performance among Chinese consumers. But its long dominance is waning. 

“We think Nike apparel will stagnate over the next few years and we don’t see growth in Nike China for the next few years across the apparel and footwear offering,” BNP Paribas analyst Laurent Vasilescu says. “We think it’s stemming from competition with the local and international players … Hoka, On, Lululemon, Salomon and Asics.” 

What’s more, while the biggest international brands might bounce back a bit in the near term, they won’t be returning to their previous highs, analysts say.

China’s sportswear market—which was worth $61 billion as of 2023—currently accounts for 15% of global demand. Analysts at Bernstein anticipate that share will continue to grow as sales of sportswear outpaces regular apparel. The equity research firm forecasts 5% growth in China’s sportswear market in 2025.

The amount each Chinese consumer spends on sportswear is “growing quickly,” Bernstein wrote in an October note, having doubled over the past decade. 

Who’s Losing Market Share in China

In the 2010s, international brands grew their market share in China by around 10% every year. Now the script has flipped, says Bernstein retail analyst Aneesha Sherman. In the last five years, China’s domestic brands stole share from mega-brands like Nike and Adidas. Adidas has slipped from second- to fourth-biggest sports apparel player in the Chinese market.

Local brands have always been a popular and cheaper alternative in China. What’s changed is that domestic names are no longer viewed as being lower quality. Products are better designed and brand equity strengthened. Nike is still strong, but the gap is closing, says Sherman.

For instance, Chinese sports equipment company Anta’s share of sportswear rose from 14% in 2019 to 19% in 2023, while Li-Ning’s slice grew from 6% to 9% over the same period, Bernstein said. Changes in market share are similar when it comes to footwear. Nike’s share dropped slightly (from 25% to 24%), and Adidas’s share dived from 19% to 10% over the same period. 

Anta shoes worn by Dallas Mavericks guard Kyrie Irving (11), who has a sponsorship deal with the company. Credit: Jerome Miron-Imagn Images

Nike still has the No. 1 share in sports apparel in China, but Anta isn’t far behind now, says Morningstar retail analyst David Swartz. 

As for Under Armour, a top-10 sportswear brand in the U.S., it doesn’t rank in the top 10 in China. Under Armour doesn’t break out China specifically, but reported 11% lower revenue in the Asia-Pacific region in its second-quarter earnings Thursday.

Amid China’s economic headwinds, sportswear is a notable pocket of growth. “Sectors such as sportswear, urban outdoor apparel, and consumer health have seen double-digit growth, reflecting the continued strength of these markets,” a September McKinsey report noted.

Several factors are creating the conditions for healthy spending on sportswear. For one, consumers are getting more casual, as more people wear sneakers and sports apparel for non-sports occasions. The Chinese government has been instrumental in propelling this trend: In 2021 it established a National Fitness Plan, which focuses on promoting sports and fitness activities. Bernstein analysts say the health initiatives should “drive further growth of sportswear” in the next decade.

“Running has exploded in China,” says Swartz, adding that there are more marathons in China than anywhere else in the world. “Twenty-five years ago the Chinese sportswear market was irrelevant. It was tiny. Now it’s the second-biggest behind the U.S. And per capita spending is still much lower than Western Europe and the U.S.”

Smaller, Premium Brands Growing Rapidly

In the story of China’s increasing fragmentation, Nike and Adidas are probably keeping one eye on the local competition and another eye on less entrenched and newer brands. Take the Swiss brand On, which was founded in 2010. China represents 5% of On Holdings’ global sales, Sherman says. But she expects On’s apparel offerings to “grow rapidly off a very small base.” (On’s total market share in China is under 1%, most of which comes from footwear.)

Lululemon is a particular bright spot, and like On, continues to grow at double-digit rates. Net revenue from China surged 34% in the fiscal second quarter, compared with a 1% gain for the Americas region.

Bernstein expects the athleisure brand to outpace the general sportswear market’s growth. The brand has quadrupled its market share in China since 2019—fueled in part by store openings. Lulu has 132 stores in mainland China, up from 29 in 2019. And revenue has grown there by 67% in 2023 and 39% in the first half of 2024, according to a November Bank of America report.

“Market leaders Nike and Adidas should be able to gain back some share,” Bernstein analysts wrote, “but will not be able to return to their previous competitive strength.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

May 27, 2025; Indianapolis, Indiana, USA; Indiana Pacers guard T.J. McConnell (9) shoots a three point basket over New York Knicks guard Josh Hart (3) during the third quarter of game four of the eastern conference finals for the 2025 NBA Playoffs at Gainbridge Fieldhouse

NBA Stars Swap Wine With League Friends and Foes

A wine-exchange tradition emerged from the bubble season’s close quarters.
Hansi Flick

Barcelona Players, Coach ‘Not Happy’ About Miami Game

La Liga is on the verge of relocating a December match.
Jon Ledecky

Islanders Owner Warns WNBA Against Labor Strife: ‘No Bueno’

Jon Ledecky drew a stark contrast between the two leagues.
Dave Checketts

Ex-Knicks President: When David Stern Accused Me of Skirting Cap

The Knicks walked away clean when accused of cap circumvention in the 1990s.

Featured Today

May 25, 2025; Indianapolis, Indiana, USA; Derek Jeter walks the red carpet on Sunday, May 25, 2025, ahead of the 109th running of the Indianapolis 500 at Indianapolis Motor Speedway

The Players’ Tribune Is Still Kicking 11 Years Later

Founder Derek Jeter is still closely involved in the publication.
Las Vegas Aces center A'ja Wilson (22) celebrates with her teammates after her last second shot to take the lead 90-88 against the Phoenix Mercury in Game 3 of the WNBA Finals at Mortgage Matchup Center in Phoenix on Oct. 8, 2025.
exclusive
October 10, 2025

Standoff Over WNBA’s Future Has Dominated Finals

CBA negotiations have stolen the spotlight from the Aces’ dominant performance.
Paul Cartier
October 5, 2025

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Sep 27, 2025; Milwaukee, Wisconsin, USA; Milwaukee Brewers center fielder Jackson Chourio (11) rounds the bases after hitting a home run during the sixth inning against the Cincinnati Reds at American Family Field.
October 4, 2025

Milwaukee Moneyball: Brewers Are Beating MLB’s Deeper Pockets

Milwaukee is holding its own against big-budget competitors.
Limited Hype
July 27, 2025

Sneaker Reselling Was Once Easy Money. Success Is Now Complicated

Vendors need to evolve what they’re selling and how they do it.
August 12, 2025

‘We Have Pricing Power’: On Smashes Earnings Expectations

U.S. tariffs haven’t cooled demand for On’s high-priced sneakers and apparel.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
Happy Gilmore 2 hockey stick putter
July 21, 2025

Callaway’s $500 ‘Happy Gilmore’ Putter Booming on Resale Market

Callaway released a limited-edition Odyssey-branded hockey stick putter.
A Lululemon store at Freehold Raceway Mall in Freehold Township, New Jersey on Nov. 30, 2023
July 2, 2025

Sportswear Stocks Rise as Trump Touts Vietnam Trade Deal

Tariffs on Vietnam imports will be 20%, down from a prior threat of 46%.
From vintage to unique collaborations, various Nike and Jordan shoes are displayed on a wall at Saved Soles inside West Ridge Mall.
June 26, 2025

Nike Stumbles Less Than Expected, Giving Wall Street Hope

The sports apparel and footwear giant beats Wall Street expectations.
Jun 20, 2024; Eugene, OR, USA; Detailed view of Nike Alphafly 3 racing flat at the Nike by Eugene store.
June 25, 2025

Investors Hunt for Signs Nike Has Regained Its Footing

Nike’s fundamentals are “still challenged.”