Can Outdoor Apparel Lead the Clothing Market Out of the Downturn?

In 1911, an avid outdoor sports enthusiast named LeonLeonwoodBean returned from a hunting trip with cold, wet feet. So, he asked a local cobbler to sew leather uppers onto the rubber boots worn by workers, revolutionarily creating highly comfortable shoes. These innovative hunting shoes permanently changed the face of outdoor products. As a result, people began to pay more attention to how clothing could perform best in special environments, and more enthusiasts became loyal customers of such products. The true origins of outdoor gear lie in Northern Europe, home to numerous skiing and mountaineering enthusiasts. But today, the world’s largest outdoor products consumer market is not there—it’s in China.

It’s not hard to notice that when summer arrives, fashion-conscious women enjoy wearing colorful yet sheer skin layers over their summer clothes, while men have replaced cotton T-shirts in their closets with more breathable quick-dry tops. Families lounging on the grass often bring along equipment like moisture-proof mats, tents, and folding chairs, and wear gear such as windbreakers and quick-dry pants. In recent years, outdoor products have swept into Chinese households like a sudden spring breeze.

Liu Yongmei, Secretary-General of the Liaoning Provincial Garment Association, explains: “Currently, the main purposes for purchasing outdoor products are still leisure activities like travel and vacation. While professional consumer groups such as members of outdoor clubs show high loyalty, they are not the main buyers. Therefore, mass-market outdoor products are more popular. This is partly because residents’ incomes in our province have risen, increasing purchasing power—the price of a single piece of outdoor apparel is generally not low, usually over a thousand yuan. On the other hand, people’s growing desire to connect with nature has also driven the popularity of outdoor goods.”

Zhang Ruifeng, manager of the Sports Department at Jinzhou Qiansheng Department Store, notes: “Currently, the store has 16 outdoor brands, with monthly profits ranging between 100,000 and 500,000 yuan. Since 2010, outdoor product sales in the store have been growing at a rate of 50% per year. Industry data shows that outdoor retail has seen nearly 40% growth for four consecutive years.”

Currently, the main sales channels for outdoor products are brand agency, exclusive stores and mall sales, wholesale markets, and e-commerce. The marketing approach is gradually forming its own unique sales channels, with business and marketing methods also evolving.

According to the Liaoning Provincial Garment Association, large malls are the primary places where consumers choose and buy products, and outdoor sportswear is also an important category. Surveys show that 30% of consumers purchase outdoor sportswear in large malls. Regular malls and clothing stores mainly sell mid-to-low-end outdoor sportswear, attracting mostly working-class consumers. These malls often use counter or self-service sales methods. Many shop owners who previously sold casual wear have sensed the momentum of outdoor sports and started introducing such items into their stores. Many claim to sell overstocked foreign goods—brands like Shanghai’s Hotwind have taken this development path. About 40% of consumers prefer to buy their favorite brands at exclusive stores. China’s outdoor sportswear exclusive stores started late and have not yet formed large-scale operations. Business formats such as supermarkets and chain stores, which benefit from low operating costs and price advantages, have seen the fastest growth in recent years. These formats adopt open-shelf sales for outdoor sportswear, offering low prices and mainly mid-to-low-end products, serving as a good supplement to department store models. Individual outdoor sportswear retail stores supported by large wholesale markets currently hold a smaller share of China’s outdoor sportswear sales. With fewer intermediaries, lower prices, and quick responses to market changes, their prospects are very promising. Profit margins decrease progressively from department stores to large wholesale markets.

The popularity of outdoor products has mainly diverted customers from the traditional sports market. Zhang Ruifeng says: “Having discussed with many peers, in recent years, under the impact of outdoor products, traditional sports market sales have shrunk by about 50%. Even big brands like Adidas and Nike are no exception. But traditional sports apparel will definitely not be replaced by outdoor gear. Once the market moves past the hot sales period, sports brands and outdoor products should each take up about half of the market share.”

The rise of outdoor products is unstoppable, and sports brands won’t just sit idle. A manager at a sporting goods store in Shenyang’s Wuhuan Mall told us: “2008 was the Olympic year and also the peak of sporting goods sales. Thanks to the Olympics, every brand made a fortune. But the extremely high sales back then were abnormal, and since 2009, they’ve been shrinking. Outdoor products took advantage of this sales gap. Relying solely on discounts and promotions would only hurt the brand’s reputation, so we plan to develop some products with certain outdoor functions without giving up our original characteristics, in order to compete in the outdoor market.”

Li-Ning was among the first domestic sports brands to sense the potential of the outdoor market. Its outdoor series, Li-Ning Adventure, has made a striking debut, surprising the industry. With the entry of brands like Li-Ning and Anta, the outdoor products industry is bound to continue heating up.

Not only traditional sports brands, but also some apparel brands want to dip their toes into the outdoor market, with domestic brands emerging one after another. What do industry professionals think about this? Wang, manager of the Marketing Department at Shenyang Outlets, believes: “Although outdoor apparel is popular, apparel companies still need to think twice before producing outdoor wear. First, outdoor apparel differs from traditional clothing in production and design. Foreign companies have years of research experience and design accumulation. In terms of functionality and quality, local companies can hardly compare with foreign brands. Moreover, the current popularity of outdoor apparel will inevitably attract a flood of hot money, and newly converted companies will soon face fierce market competition. Outdoor product sales may continue to rise this year, but if apparel companies adopt a ‘make a quick buck’ attitude, it may actually slow down their output value growth. Therefore, choices need to be made cautiously.”

“Even if shifting to outdoor, apparel companies must decide whether to act as OEMs or build their own brands,” said Lu Xin, Deputy Director of the Provincial Outdoor Apparel R&D Center. “OEM production may yield small profits, but it’s not a long-term strategy for business growth, while building a brand requires significant investment and a long nurturing period. He suggests that apparel companies start by importing advanced production management, business operation, and marketing expertise from coastal regions, make good use of e-commerce and other channels, improve logistics, start with OEM production, and gradually move toward branded, intensive development.”

Survey

Zhang Ruifeng states, “One of the main reasons outdoor products have successfully captured the mass apparel market is their 'differentiation' strategy. The styles of outdoor products don’t vary much, but their functions are constantly evolving. Outdoor brands without strong R&D capabilities will eventually be weeded out by the market. Only those that continuously roll out new functional products will stay popular. High technological content is the core competitiveness of the products.”

Xiao Chen, a stock clerk at Shenyang’s Wuhuan Sports Goods Mall, says: “Consumers pay the most attention to the functionality of outdoor products. Compared to traditional clothing, outdoor gear has unparalleled advantages in functionality, as these products are designed to handle extreme weather and complex terrains. Even if people might not encounter such extreme conditions in daily life, they still want clothing with these capabilities. For example, the fabric of this windbreaker uses GORE-TEX membrane with microporous structure, offering comprehensive performance in waterproofing, breathability, and windproofing. The comfort level is noticeably better than ordinary fabrics. On humid days, a quick-dry T-shirt dries completely indoors within two hours after washing and spinning, whereas regular clothes take at least two days.”

Reporters interviewed some consumers picking out clothes at Wuhuan Mall. Ms. Liu, a citizen, said: “With my child’s college entrance exams over, I’m planning to take him out. To protect his skin, I’m especially paying attention to sunglasses and hats with UV protection.” University student Xiao Liu said that for weekend hiking, he pays more attention to safety when selecting apparel.

Words like “DuPont,” “3M,” “bamboo charcoal fiber,” “cooling jade fiber,” “Toray,” and “Sympatex”—which many consumers have never even heard of—are key technologies behind many functional outdoor products. Some research-intensive brands have even turned ever-evolving technical terms into a kind of fashion—a trend of chasing the latest technology. Of course, such technology comes with a high price tag. Zhang Li, manager of the Marmot outdoor brand store at Shenyang’s Plaza 66, says: “Our clothing materials are constantly being updated, with innovations in every new season. As salespeople, we also have to constantly memorize these specialized terms and explain their functions. We even have to describe what each zipper is for, to help customers understand why a 4000-yuan jacket is worth the price. Not just domestic consumers—even in mature markets like Europe and America, similar promotional efforts continue. Because things change so fast.”

If outdoor products were designed purely for specialization, the market would undoubtedly be very niche. Therefore, outdoor products will adopt mass-market functionality to reduce costs and take a more accessible, people-friendly approach.

Reporters learned that some outdoor brands—for example, a single pair of hiking shoes may cost over a thousand yuan, while small items like lamps and water bottles are priced at around one or two hundred yuan. Roughly estimated, a full set of gear can cost at least several thousand yuan, and if fully equipped, may exceed ten thousand. The prices of these gears mainly depend on the technological content of the materials and the investment in design. But for casual outings or visits to scenic spots, the requirements may not be as high. Therefore, some manufacturers also produce lower-end products that meet people’s outdoor needs while saving costs and reducing prices. Zhang Li pointed to two windbreakers that looked almost identical and said: “Both perform very well, but the price difference is several thousand yuan. One can be worn at altitudes of 8000 meters, the other only below 3000 meters. But the latter is more than sufficient for winter—waterproof, windproof, and breathable—so it sells much better. The former has fewer buyers, but it serves as a great ‘decoy,’ proving our technology is top-notch, with high technological content, which attracts consumers.”

Zhang Ruifeng explains: “One characteristic of outdoor product sales is that discounts are rare. This is both a marketing tactic and a point of frustration for retailers. Take Qiansheng Department Store as an example. For well-known outdoor brands, the purchase price is typically between 50% and 55% off. Due to high R&D costs, prices can’t be lowered much. Compared to other apparel that can be bought at 20–30% off, the room for price adjustment is very small. After deducting logistics, staffing, and the mall’s 20% commission, a profit margin of around 10% is already good—so discounts are hard to offer. Many retailers might offer up to 20–30% off just to clear inventory, and since outdoor brands don’t change styles often, leftover stock also sells relatively well.”

The promising outdoor apparel market has attracted quick money, making quality hard to guarantee—especially among manufacturers without product heritage or manufacturing experience that have rapidly shifted production. It is even more difficult to ensure product quality under such circumstances. According to reports, relevant authorities have already begun efforts to establish standards for outdoor clothing. Until these standards are in place or fully developed, it seems that the only factors that can earn consumer trust and confidence in quality are the “brand” of the product and the “reputation” of the company.

Currently, there are no national standards specifically for outdoor sportswear in China, which to some extent hinders the healthy and orderly development of the industry. Most domestic outdoor apparel companies are OEM-oriented, and brand-focused outdoor apparel businesses lack a high degree of specialization—particularly in protective functionality. This is not only due to lagging material science and technology but also relatively backward design, pattern-making, and manufacturing techniques.

“Faced with these gaps, we can only strive to break through by increasing exchanges and learning from abroad, sending designers and technical personnel to study at overseas companies. We should establish relevant majors in specialized colleges, invite experts from both home and abroad to give lectures, and cultivate professional talent. Expanding the development space for outdoor gear and strengthening independent innovation and R&D capabilities are essential for domestic brands to stand out and break the monopoly of foreign brands in the high-end market,” said Lu Xin.

Simplicity is a consistent design philosophy in outdoor gear. In fact, whether it’s a GPS device, flashlight, ski bindings, or outdoor cookware, products are required to be multifunctional yet simple and easy to use. As the saying goes: less is more, and simplicity is beauty. At the same time, many outdoor enthusiasts are also tech enthusiasts who demand high-quality, multifunctional products.

Overall, professionalism, functionality, and technological content remain the advantages of outdoor sportswear compared to other types of clothing, and these will continue to be emphasized in the future. Lu Xin said, “However, in the face of competition within the industry, besides continuous functional innovation, meeting consumers’ lifestyle needs and providing urban dwellers with the comfort of being in nature is also an important direction for outdoor brands to keep improving.” Looking ahead, many industry insiders believe that a combination of diversification and mass appeal will be the future trend in outdoor product design.

Outdoor products will offer modern urbanites a variety of different experiences—suitable for outdoor use as well as urban leisure, while also catering to people’s aesthetic needs. They should fulfill multidimensional demands such as the emotional appeal for harmony with nature, the product experience of an “urban forest,” and the practical value of convenience and comfort.

Liu Yongmei said, “Most of the younger generation—post-80s and post-90s—are not urban escapists. They want convenience and comfort; they are open-minded and eager to embrace new technology, innovation, and services. From windproof jackets to heated sleeping bags, the outdoor market must consider what potential service value each product can provide in order to attract more consumers and turn them into highly loyal, regular customers.”

According to the “2012 China Outdoor Products Market Survey Report” released by the China Textile Commerce Association, retail sales of both domestic and international outdoor brands reached 14.5 billion yuan last year, a year-on-year increase of 34.94%. Meanwhile, the overall growth rate of China’s textile and apparel enterprises was only about 5% last year. From 2010 to 2012, the number of active outdoor brands in the Chinese market reached 717, an increase of 29%. Among them, the number of domestic brands reached 334, an increase of nearly 46%, while the number of international brands reached 367, an increase of 13%.

The data shows that in the persistently sluggish apparel market, outdoor products are truly a bright spot. Last September, the province’s first outdoor products production base was established in Dandong, and more and more manufacturers are entering the outdoor business. How big is the domestic outdoor products market really? Why are outdoor products attracting so many customers? Why are apparel companies trying their hand in this field? Is the outdoor trend a short-lived fad or here to stay? Can outdoor apparel lead the apparel market out of its downturn?