That world-leading compression apparel brand, 2XU, has entered China. Here are three things you should know...

At 2:00 PM Beijing time on November 2, 2XU held a launch event in Shanghai, officially announcing its entry into mainland China. Prior to this, some of 2XU’s products were available through daigou channels in the country, including at Lane Crawford, but this marks the brand’s official launch and the commencement of its formal China strategy. On September 1 of this year, 2XU had already launched its Tmall flagship store, making the upcoming “Double 11” a major test and opportunity for the brand.

Note: The correct pronunciation of 2XU is “Two Times You,” not as the letters themselves, meaning “two times you.” This stems from 2XU’s corporate mission of “enhancing human athletic performance,” upon which its flagship compression apparel line is based.

As a young company founded in 2005, 2XU has quickly become a world-leading sports brand, especially with its compression product line favored by stars across various sports fields—its professional functionality speaks for itself. One of the 2XU co-founders present was Jamie Hunt, a former world champion in triathlon. When it comes to understanding what athletes need in a product, 2XU’s team has deeper insight. And creating products that even a world champion like himself is satisfied with naturally means supporting athletes of similar caliber in other fields as well.

In addition, here are three more things about this launch event and the 2XU brand that can give you a more comprehensive understanding of 2XU.

1. Backed by investment from LVMH, with impressive coverage in the professional field

In 2013, 2XU received a $75 million investment from L Capital Asia, a private equity fund backed by LVMH Group, and now LVMH Group owns 40% of 2XU’s shares.This is relatively limited exposure for a traditional luxury group in the sports sector—but that makes it even more significant that they see potential in 2XU and the future of the sports products it represents.

The investment seems quite worthwhile, as 2XU has maintained double-digit average growth for many years, with a sales network covering the globe and 3,000 retail stores in over 70 countries and regions. Beyond store sales staff, the group already employs over 200 people. Moreover, as the global middle class—and people everywhere—become increasingly health-conscious, the future in this direction is boundless.

From another perspective, aside from triathlon, 2XU’s “core domain,” nearly all 30 NBA teams have purchased 2XU products to help players recover. Military forces such as the Royal Australian Navy and the U.S. Marine Corps also use 2XU as functional gear, and various celebrities wear 2XU during sports and even daily life. Though it’s a functional item, 2XU has made it quite fashionable.

2. Led by a legendary Chinese CEO, aiming to sell 140,000 pairs of compression pants in China within three years

At the launch event, in addition to brand founders Jamie Hunt and Global President Paul Higgins, the Chinese regional management team was also a highlight—specifically, the credentials of China Region President Li Shujun. During the 2010 “Double 11,” GXG achieved astonishing sales of 10.05 million RMB in a single day, with Li Shujun serving as the brand’s general manager at the time. Later, in 2014, Li Shujun joined Alibaba as General Manager of Tmall Fashion, overseeing an even larger market. Now, after leaving Alibaba, Li Shujun has taken the reins of a brand again—choosing 2XU speaks volumes.

It’s worth mentioning that 2XU’s entry into mainland China is being realized through a joint venture with Chinese apparel retail company Zhongzhe Mushang Holdings Co., Ltd.—the parent company of GXG. Li Shujun, together with Zhongzhe Mushang, co-established a new company, which, along with 2XU Hong Kong, forms Tuxun Sporting Goods Co., Ltd., the registered entity for 2XU in mainland China. In short,although it’s a newly registered company, the team consists of seasoned industry veterans, making this team configuration absolutely top-tier domestically.

One small detail: Li Shujun directly announced at the launch eventthe goals for the China company over the next three years: to be the market leader in its segment, cover 30 cities in China, and sell 140,000 pairs of compression pants. Few brands would make such announcements at a launch event, which also reflects their working style quite well.

3. Despite its professional functionality, 2XU tells us it’s still pursuing a fashion-sports route

As 2XU’s most core and representative product line, compression pants are also highly anticipated by the brand. The outdoor section of the launch event mainly featured compression pants.The four current flagship series—REFLECT, ICE X, MCS, and GHSTeach emphasize their unique features. For example, REFLECT features 360-degree full reflective technology to enhance visibility and safety; the ICE X series uses PWX fabric to control skin surface temperature and improve comfort. These series ultimatelyprovide effective support for the body and help alleviate muscle fatigue.

In other words,wearing compression pants (including the entire compression apparel line such as compression tops) during exercise can scientifically adjust muscle groups to enhance performance, while also greatly benefiting comfort and safety. They can also be worn daily to relieve muscle fatigue and promote blood circulation. This is why you often see celebrities wearing compression pants in everyday settings, especially in street style photos from Europe and America.

From our further understanding, a few pieces of information are particularly interesting. First, in 2XU’s own view,their main competitors in the market are not purely functional brands, but rather brands like UA that straddle the line between professional sports and fashion trends.This can alleviate the concerns of many students—not because it’s a specialized field does it mean it’s out of reach. Moreover, there will later be a special series specifically targeting the Chinese market and audience.

The second point is the pricing of 2XU in China, which is of greater interest to many. 2XU has chosen to “cut the price in half” in China (compared to many brands that might actually double their prices in China…). For example, taking the flagship graduated compression tights as an example, the price of 499 RMB is quite sincere, and the functionality is not compromised at all. Such a pricing strategy will have a direct positive impact on the development of 2XU in China.

Source: Ideal Life Lab