The 14th Asia Outdoor Show 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, 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 presents a clear picture. 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, it is an inevitable phase of gradual self-improvement leading to the next stage of growth.

Since 2016, the outdoor industry has largely shown signs of recovery and adjustment, with major brands finding their strategic positioning, and emerging small and medium-sized brands identifying their own paths for development. The distribution channel landscape has also become more rational and refined following adjustments in online sales. Meanwhile, the scope of the outdoor industry continues to expand, bringing in a broader base of consumer groups.

Current conditions indicate that China’s outdoor industry has entered the final phase of its adjustment period, which is expected to conclude in the autumn and winter of 2019. Specific industry data for 2018 further confirms this view.

1.Composition of the Outdoor Products Market

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

1) The core outdoor market, composed of professional outdoor brands. Professional outdoor brands are those rooted in outdoor activities, with the majority of their revenue derived from the outdoor industry.

2) Sports brands with outdoor products: These are brands whose main product lines are traditional sports goods, but a portion of their offerings now includes outdoor products, though not yet as their dominant category. Examples include Adidas, Nike, Li-Ning, and Anta.

3) Fashion and leisure brands with outdoor products: These are brands whose primary focus is on fashion and leisure items, but a part of their product range includes outdoor products, although not as their main offering. 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 these four parts helps us analyze and study market changes, gain a comprehensive view of the outdoor market, especially for investors—“only statistically defined boundaries offer meaningful reference value.”

This report focuses on the core outdoor products market for research and analysis; for ease of reader distinction, 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, a prominent feature of the 2018 broad outdoor market was the upward trend in the share of the “sports outdoor market,” closely linked to the domestic sports goods 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 increased significantly, accounting for 30%.

2.Core Outdoor Products Market

The core outdoor products market is a part of the entire outdoor market and represents the core strength of the outdoor industry. The significance of in-depth research into this segment for the industry goes without saying.

2000–2018 Domestic Core Outdoor Market Size

In 2018, the domestic core outdoor market size reached 19.8 billion yuan, up 4.1% from the previous year. Although the growth rate showed a slight uptick, it remains modest, signaling that the industry is about to emerge from its adjustment period and enter the next upswing.

Similar to the situation in 2017, the contribution to growth in 2018 from traditionally large brands remained limited. Most individual brands saw 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 brands that adjusted their strategies more successfully in specific markets.

3.Market Concentration

Through continuous tracking of 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 for various reasons, the resulting gaps are often quickly filled by new brands—not other major players. The primary reason for this is the strategically differentiated yet compatible market positioning of the major brands. This dynamic has largely helped 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 clarification:

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 brand count does not fully reflect the number of actively operating brands in the market.

Third, for brands with international presence, 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 Channels and Evolution Trends

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

The process of channel evolution continues 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 "visionary" players who seized opportunities early, enabling their brands to grow rapidly.

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

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

Sales Channel Market Share (2017–2018)

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

Since the vast majority of outdoor products fall under the “grab-and-go” shopping model, they adapt well to online sales. The proportion of online sales will continue to grow, though the growth rate may slow somewhat as online sales costs rise.

However, looking at broader retail trends in the industry, China’s first- and second-tier cities largely completed the shift in commercial district patterns by the end of 2015—from core business districts to community-oriented commercial areas. This brought subtle changes to outdoor retail. On one hand, it led to a modest increase in the number of stores, but on the other, it did not result in an overall boost in per-store retail sales.

As commercial district patterns stabilize, the experiential aspect of outdoor products will gradually become more prominent. This leaves some room for the future development of street-side shop models, though it will require comprehensive adjustments to the business model and resource integration.

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, apparel remained the dominant category in China’s outdoor market, accounting for 45.3% of total sales. Camping equipment made up 15.9%, and footwear 12.1%. With the expanding concept of outdoor activities and growing consumer maturity, tools and gear have seen relatively high growth in recent years, accounting for 23.5% of sales in 2018. New technologies have been prominently applied in this category, driving product upgrades and fueling consumer enthusiasm.

Outdoor Product Category Sales Share (2018)

IV.Consumers

In 2018, the Asia Outdoor Trade Show conducted market research targeting consumers across all demographics through collaboration with multiple institutions, aiming to provide relevant reference data for the industry. Moving forward, we will continue this work and gradually expand the scope of our survey respondents to eliminate bias in the interviewee pool, 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 in 2018 reached 1.39 billion, marking a 1.68% increase compared to 2013. While China’s population growth has slowed noticeably, the overall population base remains massive, indicating considerable consumer potential. In 2018, the national per capita disposable income was 28,228 yuan, reflecting a real-year-on-year growth of 6.5%. The growth rate of disposable income significantly outpaced the natural population growth rate, further highlighting this trend.

Data from the General Administration of Sport of China shows that China’s sports-active population in 2018 reached 434 million, accounting for 31% of the total population—up 14.21% from 2013, demonstrating a very clear upward trend. According to data from the Chinese Mountaineering Association, the country’s broadly defined outdoor sports population in 2018 was 145 million, making up 33% of the sports-active population. In other words, over 30% of those engaged in sports participated 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 particularly notable. This category naturally includes traditional core outdoor activities like mountaineering, hiking, and rock climbing, but also encompasses more mass-participation outdoor sports such as cycling, trail running, and recreational camping.

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

2.Basic Attributes of China’s Outdoor Products Consumers

The following statistics reveal the basic attributes of consumers of outdoor products in China. The key traits include strong male participation, 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 demands of outdoor sports, they are less accessible to consumers under the age of 25. However, as consumers’ purchasing power and available leisure time increase, their enthusiasm for participating in outdoor activities remains strong. Additionally, with the flourishing development of various domestic outdoor sports events, consumer options have become increasingly diverse, allowing individuals to engage in a variety of activities based on their financial capacity and free time. Overall, the hypothesis of an “aging Chinese outdoor sports demographic” does not hold true—it is merely that the nature of the sports themselves creates certain illusions of an “older” participant base due to requirements in ability and time cost. Once these two factors are met, consumers still show strong desire for both the sports and related products.

Gender Composition of Consumers

Age Composition of Consumers

Education Level Composition of Consumers

Monthly Income Level Composition of Consumers

3.Sports Characteristics of China’s Outdoor Products Consumers

The following data reflects some characteristics of how Chinese outdoor sports consumers participate in activities. It should be noted that, due to the randomized approach of this survey and the voluntary nature of participation, the data carries a certain degree of bias. In future ongoing research, we will collect more responses from passive participants to help balance this bias.

In terms of exercise frequency, the mainstream consists of those who exercise at least once a week or 1–3 times a month, maintaining a relatively high activity level. Among them, 40% of respondents exercise at least once a week, which can be categorized as a “lifestyle-based” sports group.

Consumer Exercise Frequency

In interviews about types of sports, hiking/walking, leisure fitness-oriented mountaineering, and camping are 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 Participated in by Consumers

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

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

Scope of Peer Influence on Joint Sports Participation

4.Consumption Preferences of China’s Outdoor Products Consumers

Research into consumer spending behavior involves a degree of subjectivity and is therefore also affected by limitations in the surveyed population. The following data is based solely on this survey and does not fully represent the preferences of all Chinese consumers regarding outdoor products.

In the product category research, consumer questionnaire data largely aligns with actual market data. Considering that consumers may lack the ability to classify product categories as market researchers do, the survey used a more generalized method for categorizing products. Among these, apparel and footwear remain the dominant categories.

Consumer Expenditure Ratios by Product Category

Regarding purchasing channels, we segmented online purchasing channels and provided explanations and examples of different 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 market sales share. 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, professional outdoor e-commerce platforms have a significantly higher share, 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, and 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 in the context of celebrity endorsements, Chinese outdoor sports consumers did not show particularly high enthusiasm. This differs markedly from the data related to sports goods and fashion products.

Factors influencing consumer purchasing decisions

Consumer preferences for the influence of advertising and promotion

After more than 20 years of development, domestic outdoor brands in China have grown increasingly strong, and Chinese consumers’ awareness of the origin of outdoor product brands has also 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 domestic Chinese brands.

Consumer preferences for domestic vs. international brands

Regarding consumer preference for product usage scenarios, there is a stronger inclination toward products that can serve both sports and everyday use. This also corresponds to the data on factors influencing purchasing decisions and the impact of advertising. Compared to consumers in Europe and America, Chinese consumers place greater emphasis on the versatility of products.

Consumer tendencies regarding the intended use of purchased products