The 14th Asia Outdoor Exhibition released the "2018 China Outdoor Products Market Report"

On June 27, 2019, on the first day of the 14th Asia Outdoor Exhibition (Asia Outdoor Trade Show), the Asia Outdoor Summit Forum was held in Hall B, Booth M9700, at the Nanjing International Exhibition Center. Mr. Zhang Jida, General Manager of Beijing Demans Exhibition & Consulting Co., Ltd., released the "2018 China Outdoor Products Market Report."

Mr. Zhang Jida discussed the changes in China's outdoor industry in 2018, authoritative industry data, and future development trends. He mentioned that among various outdoor reports, this one serves as foundational industry data and is a clear report. Nowadays, market changes are happening very rapidly, and the boundaries between the outdoor products industry, the sports industry, leisure, and even travel are becoming increasingly blurred. This is a report with both strengths and limitations.

I. Market Overview

Since 2014, China's outdoor products market has been undergoing an industrial adjustment period, during which both brands and distribution channels have experienced varying degrees of reshuffling and restructuring. Some industry players were impacted to different extents during this process, but from the perspective of overall industry development, this is an inevitable process of the industry gradually improving itself and moving into the next stage of development.

Since 2016, the outdoor industry has largely shown signs of recovery and adjustment. Major brands have found their strategic positioning, and emerging small and medium-sized brands have also found their own paths for development. In terms of distribution channels, adjustments in online sales have led to a more rational and improved overall structure. At the same time, the scope of the outdoor industry continues to expand, bringing more basic consumer groups to the market.

The current situation shows that China's outdoor industry has entered the final phase of the adjustment period, which is expected to conclude in the autumn and winter of 2019. The specific industry data for 2018 also supports the above viewpoint.

1.Composition of the Outdoor Products Market

Based on the relevance of products to outdoor activities, we divide the outdoor products market into four parts:

1) The core outdoor market, consisting of professional outdoor brands. Professional outdoor brands refer to those rooted in outdoor activities, with their main revenue derived from the outdoor industry.

2) Sports brands with outdoor products: These are brands whose main product lines are traditional sports products, but part of their product offerings now include outdoor products, though these have not yet become their dominant products. Examples include Adidas, Nike, Li-Ning, and Anta.

3) Fashion and leisure brands with outdoor products: These are brands whose main product lines are fashion and leisure items, but part of their product offerings now include outdoor products, though these have not yet become their dominant products. Examples include Lotto, Jeep, and Camel Active.

4) Low-end consumer market brands with outdoor products. Examples include Quechua under Decathlon, as well as many outdoor brands sold in supermarkets such as Metro and Walmart.

Dividing the outdoor products market into four parts helps us analyze and study market changes, gain a comprehensive view of the outdoor market, and especially for market investors, “statistical data with clear boundaries is the only kind that holds reference value.”

This report focuses on the core outdoor products market for analysis and research. For the convenience of readers, we refer to the overall outdoor market as the “broad outdoor market.”

In 2018, the domestic broad outdoor market reached a scale of 59.59 billion yuan

Compared to 2017, the standout feature of the 2018 broad outdoor market is the upward trend in the share of the “sports outdoor market,” which is closely related to the domestic sports products market ending its adjustment phase since 2013 and entering a new growth cycle.

In 2018, the overall share of the low-end outdoor market remained roughly the same as the previous year. However, due to Decathlon’s rapid growth over the past two years, its share within the low-end outdoor market has significantly increased, accounting for 30%.

2.Core Outdoor Products Market

The core outdoor products market is part of the entire outdoor market and represents the core strength of the outdoor industry. The significance of in-depth research into this market segment for the industry is self-evident.

2000–2018 Domestic Core Outdoor Market Size

In 2018, the domestic core outdoor market size reached 19.8 billion yuan, an increase of 4.1% over the previous year. Although the growth rate has slightly risen, it remains modest. This indicates that the industry is about to emerge from the adjustment period and enter the next upward phase.

Similar to the situation in 2017, the contribution of traditionally large brands to the 2018 growth remains limited. Most individual brands showed growth close to zero, with some even experiencing slight negative growth. The increase came partly from emerging brands primarily focused on online channels and partly from individual brands that adjusted their strategies more successfully.

3.Market Concentration

Through continuous statistics on major brands in the core market, we found that market concentration has not changed significantly in recent years. To some extent, this reflects a tendency toward market limitation.

Although individual brands have lost some market share due to various reasons, the resulting gaps are often quickly filled by new brands—not other major players. The primary reason for this phenomenon lies in the strategically differentiated yet compatible market positioning of the major brands. This current state largely helps maintain relatively stable market concentration in China’s outdoor industry for an extended period, with overall product development maintaining a steady trajectory.

Market Concentration Statistics

II.Brands

Regarding statistics on Chinese outdoor brands, the following points need to be clarified:

First, we currently only track core outdoor market brands to ensure historical consistency and fairness in the data;

Second, since most brands do not officially withdraw from the market in a formal capacity, and some inventory remains on sale, the specific count of brands does not fully reflect the number of actively operating brands in the market;

Third, for certain brands with international identities, we generally classify them by their primary market location.

Trends in the Number of Core Outdoor Brands

In 2018, the total number of core outdoor brands reached 903, including 454 domestic brands and 449 international brands.

III.Channels

1.Composition of Outdoor Sales Channels and Their Evolutionary Trends

Outdoor product sales channels mainly consist of three parts: department store channels, specialty outdoor stores (street-side shops), and online sales channels.

The process of channel transformation is still ongoing and has had a profound impact on the market.

Over the past two decades, the market first experienced the rapid rise of department store retail, followed by the emergence of online sales. In both instances, there were “visionaries” who seized opportunities early, enabling their brands to grow rapidly.

In the next phase of channel development, the types of channels will become even more diverse and varied. Cross-industry collaborations of different kinds will also give rise to more diversified sales models, leading to a more complex competitive landscape.

However, overall, online channels will continue to encroach on the market share of street-side shops and department stores for quite some time. Yet, no fundamental or drastic changes are expected. For details, please refer to the chart below:

Market Share of Various Sales Channels in 2017–2018

In 2018, street-side shops accounted for 11.72%, department stores for 45.1%, and online channels for 37.1%.

Since the vast majority of outdoor products fall under the “grab-and-go” shopping model, they are well-suited for online sales. The proportion of online sales will continue to rise, although the growth rate may slow down as the costs of online sales increase.

However, looking at overall retail industry changes, first- and second-tier cities in China largely completed the shift in commercial district models by the end of 2015—from a core commercial area model to a community-oriented commercial district model. This brought some subtle changes to the outdoor retail landscape. On one hand, it led to a modest increase in the number of retail outlets, but on the other hand, it did not result in an overall boost in per-store retail sales.

As the commercial district model stabilizes, the experiential aspect of outdoor products will gradually come to the forefront. This leaves some room for the future development of the street-side shop model, though it will require comprehensive adjustments to the business model and integration of resources.

2.Sales Performance of Various Outdoor Product Categories

According to our research methodology, outdoor products are divided into five main categories: apparel, footwear, camping equipment, outdoor furniture, and other products. In 2018, within China’s outdoor products market, apparel remained the leading category in terms of sales, accounting for 45.3% of total revenue; camping equipment made up 15.9%, and footwear 12.1%. With the expansion of the concept of outdoor sports and the growing maturity of consumers, tool and equipment products have seen relatively high growth rates in recent years, accounting for 23.5% in 2018. Within this category, the application of new technologies has been particularly prominent, driving product upgrades and stimulating consumer enthusiasm.

Sales Share of Various Outdoor Product Categories in 2018

IV.Consumers

In 2018, the Asia Outdoor Trade Show conducted market research targeting consumers across all demographics through collaboration with various institutions, aiming to provide relevant reference data for the industry. Moving forward, we will continue this work and gradually expand the scope of our research subjects to eliminate respondent bias, striving to deliver the most representative consumer research report on outdoor products in China.

1.Overview of China’s Outdoor Sports Population

According to data from the National Bureau of Statistics, China’s total population reached 1.39 billion in 2018, an increase of 1.68% compared to 2013. While China’s population growth has slowed markedly, the overall population base remains large, indicating considerable consumption potential. In 2018, the per capita disposable income of Chinese residents was 28,228 yuan, representing a real-year-on-year growth of 6.5%. The growth rate of disposable income is significantly higher than the natural population growth rate, further underscoring this point.

Data from the General Administration of Sport of China shows that China’s sports-active population reached 434 million in 2018, accounting for 31% of the total population, marking a 14.21% increase compared to 2013 — a very noticeable upward trend. According to data from the Chinese Mountaineering Association, the broadly defined outdoor sports population in China reached 145 million in 2018, making up 33% of the sports-active population. In other words, over 30% of those engaged in sports participate in broadly defined outdoor activities. Compared to more populous sports such as ball games and indoor fitness, the growth rate of the broadly defined outdoor sports population is relatively more pronounced. This includes not only core outdoor sports in the traditional sense such as mountaineering, hiking, and rock climbing, but also more widely participated-in outdoor activities like cycling, trail running, and leisure camping.

Comparison of China’s Sports-Active Population Between 2013 and 2018

2.Basic Attributes of China’s Outdoor Products Consumers

The following statistics illustrate the basic attributes of China’s outdoor products consumers. Key traits include a higher proportion of male participants, a tendency toward a more mature age group, relatively higher education levels, and relatively higher income levels.

Due to the relatively high time and cost requirements of outdoor sports, the activity is less accessible to consumers under 25. However, as consumers’ spending power and available leisure time increase, their enthusiasm for participating in outdoor sports remains strong. Additionally, with the growing variety of domestic outdoor sporting events, consumer options have become more diverse, allowing participation in different types of sports according to individual income and available time. Overall, the hypothesis of an “aging Chinese outdoor sports demographic” does not hold true. What appears as an “ageing” trend is largely due to the inherent characteristics of these sports, which demand certain levels of ability and time investment. Once those requirements are met, consumers’ desire for both the activity and related products remains robust.

Consumer Gender Composition

Consumer Age Composition

Consumer Education Level Composition

Consumer Monthly Income Level Composition

3.Sports Characteristics of China’s Outdoor Products Consumers

The following data reflect some characteristics of how China’s outdoor sports consumers engage in physical activity. It should be noted that, as this survey employed a random sampling method and relied on voluntary participation, the data may carry certain biases. In future ongoing research, we will collect more responses from passive respondents to help balance these biases.

In terms of exercise frequency, the mainstream patterns are once a week or more, and 1–3 times per month, maintaining a relatively high level of activity. Among respondents, 40% exercise at least once a week, and can be categorized as having integrated sports into their “lifestyle.”

Consumer Exercise Frequency

In interviews regarding types of sports activities, hiking/walking, leisure fitness hiking, and camping were the most popular. These three types share common traits: moderate intensity, low requirements for venues and equipment, and relatively low time commitment.

Types of Sports Activities Participated in by Consumers

Regarding social influence, friends had the greatest impact on respondents’ participation, followed by classmates. With the development of mobile social networking technologies in recent years, relationships with friends and classmates have become less constrained by geography, making them a primary component of consumers’ influence circles.

On the other hand, family-based sports activities remain an area with potential for further development.

Scope of Influence Among Consumers’ Exercise Companions

4.Consumption Preferences of China’s Outdoor Products Consumers

Research on consumer behavior preferences involves certain subjective factors, and is therefore also influenced by the limitations of the surveyed population. The following data are based solely on this survey and do not fully represent the preferences of all Chinese consumers regarding outdoor products.

In consumer surveys regarding product categories, the questionnaire data largely aligned with actual market data. Considering that consumers may lack the ability to categorize products as market researchers do, the survey employed a more generalized approach to product classification. Clothing and footwear remained the dominant categories.

Consumer Expenditure Ratio by Product Category

Regarding purchasing channels, we broke down online shopping channels and provided explanations and examples of various platform types in the survey questionnaire to help consumers offer clearer data references.

Overall, online shopping channels account for over 42% of all purchasing channels, slightly higher than their share in market sales. This is mainly due to data bias introduced by conducting research via online methods, but it does not affect the specific analysis of macro-level data. Notably, the proportion of specialized outdoor e-commerce platforms is significantly higher, which aligns with the overall trend of online shopping behavior in China. In today’s mature online shopping environment, specialized and targeted e-commerce platforms are better able to meet the personalized needs of specific consumer groups for particular products.

Consumer Preferences for Purchasing Channels

Since outdoor sports products place greater emphasis on functionality, as consumers become more sophisticated, they increasingly value product functionality. On the other hand, in terms of promotional influence, product design has a greater impact, reflecting consumers' desire for the next level of product appeal beyond basic functional needs.

It is worth noting that, regarding options related to celebrity endorsements, Chinese outdoor sports consumers did not show high enthusiasm. This differs markedly from data related to sports goods and fashion products.

Factors Influencing Consumer Purchase Decisions

Consumer Preferences for the Influence of Advertising and Promotion

After more than 20 years of development, China’s domestic outdoor brands have grown increasingly strong, and Chinese consumers’ awareness of the origin of outdoor product brands has become more blurred. Ultimately, 64% of respondents stated that they do not care about the brand origin of the products. This is relatively favorable for the development of China’s domestic brands.

Consumer Preferences for Domestic vs. International Brands

Regarding preferences for product usage scenarios, consumers tend to favor products that can serve both sports and everyday use. This also corresponds to the data on factors influencing consumer purchase decisions and the impact of advertising. Compared to consumers in Europe and America, Chinese consumers place greater emphasis on the versatility of products.

Consumer Preferences for Product Usage Purposes