In contrast to the sluggish performance of traditional shoe and apparel companies, outdoor products have been booming over the past two years. According to the *2012 China Outdoor Products Market Survey Report* recently released by the Outdoor Products Branch of the China Textile Commerce Association, in 2012, the total retail sales of China’s outdoor brands reached 14.5 billion yuan, marking a year-on-year increase of 34.94%, with an average annual growth rate exceeding 40% since 2010. The vast outdoor products market has also attracted competition from numerous traditional clothing enterprises.
With more and more people taking to outdoor activities such as hiking and self-driving tours, the outdoor market has maintained strong growth momentum over the past two years.
On April 3, Toread, China’s first listed outdoor products company, released its Q1 performance forecast for this year, estimating net profits of 57–61 million yuan for the quarter, up 40%–50% from the same period last year. Its 2012 annual report also showed that the company achieved 46.68% year-on-year growth in total operating revenue and 58.91% year-on-year growth in net profit compared to the previous year.
Meanwhile, according to the *2012 China Outdoor Products Market Survey Report* recently released by the Outdoor Products Branch of the China Textile Commerce Association, in 2012, the total retail sales of China’s outdoor brands reached 14.5 billion yuan, up 34.94% year-on-year. The total brand shipment value was 7.39 billion yuan, with an annual growth rate of 36.1%. In recent years, the domestic outdoor industry has seen an average annual growth rate exceeding 40%.
“Outdoor products are still a classic sunrise industry,” Mr. Wei from Chongqing Yuanshan Outdoor Products Store told a business reporter. Yuanshan Outdoor currently represents over 40 brands, with annual sales maintaining double-digit growth. Mr. Wei explained that in recent years, the concept of “outdoor” has expanded beyond just a niche group of professionals like mountaineers—general spring outing and hiking enthusiasts are also driving demand for outdoor gear. The product positioning has broadened, shifting toward “general outdoor” products, which has also expanded the sales market for outdoor goods.
The rapidly growing outdoor products market stands in stark contrast to the recent downturn in traditional clothing enterprises. This has also drawn competition from many traditional clothing brands. In February of this year, Shandong Yelia Garment Group Co., Ltd. acquired the permanent usage rights for the famous French outdoor brand CIMALP (also known as Himart) in the Chinese market.
Prior to that, brands such as Li-Ning, 361 Degrees, and Anta had already launched their own outdoor product lines. In July last year, Adidas announced the high-profile opening of its first standalone outdoor products store in China. Puma, the world’s third-largest sportswear brand, also stated that it would focus on outdoor sports products in 2013.
The Outdoor Products Branch of the China Textile Commerce Association reported that in 2012, there were 823 outdoor brands in the domestic market, a 14.78% increase from 717 in 2011. Of these, 405 were domestic brands, up 18.08% from 343 in 2011. “In 2012, brands like Li-Ning, Peak, and Anta all experienced declining performance. Venturing into the outdoor market is a new path for traditional shoe and apparel companies facing slowing growth and increasingly fierce competition,” said Sun Liwu, a textile and apparel industry analyst at Zhuochuang Information.