In just three or four years, the domestic outdoor sports industry has evolved from a handful of brands to dozens, with more and more brands riding the wave. Established brands are gaining momentum, new ones are emerging constantly, and the industry widely believes that in the near future, a clear tiered structure among domestic outdoor brands will emerge, along with signs of product diversification and segmentation. In this pre-consolidation struggle, brands need to identify niche markets, precisely position and market themselves, and innovate with differentiated marketing strategies amid fierce competition.
Rooted in Life
Outdoor activities, as a healthy and joyful lifestyle, have become a way to relieve stress under immense pressure. In fact, the concept of outdoor living has long been common abroad. By comparison, the outdoor industry occupies a significant share of the industrial sector overseas, while domestically, it is still in its early stages. However, China’s huge population base has led to a growing demand for outdoor gear. The "broad outdoor" philosophy promoted by the outdoor industry coincides perfectly with this latent market demand. In other words, the "broad outdoor" concept—distinct from professional outdoor gear and geared toward mass-market, lifestyle-oriented use—that has emerged from the domestic outdoor industry is well-timed, as the outdoor industry ultimately stems from life’s needs. The key lies in how to put it into practice.
While slogans come first, actions often lag far behind, creating a major bottleneck in the development of the footwear and apparel industry. This is no exception for the developing outdoor industry. According to Jin Haiyan, marketing director of the Kaidishi brand, “At present, many companies in the outdoor industry risk being accused of following trends, hyping their presence without any market research, claiming they will make their mark in the outdoor sector.” The result? All gloss, no substance.
It’s not hard to see that many companies in the domestic outdoor industry show signs of weak brand foundation, making progress increasingly difficult. The outdoor industry isn’t a one-time performance; solid groundwork through thorough market research and planning is a prerequisite for entering the field.
In fact, looking at the development of the professional outdoor industry in recent years, from an industry attribute perspective, the professional outdoor market targets a limited consumer base. In terms of brand style, many professional outdoor brands have gradually shifted from rigid fashion combinations toward a broader, lifestyle-oriented outdoor approach.
As the outdoor industry enters a phase of rapid growth, it also reaches a critical period of competition for businesses. At this stage, competition is not solely market-driven but more about internal strength. This should be a key focus for domestic outdoor companies. With intensifying industry competition, innovative thinking and niche market development have become essential strategies for rapid brand emergence—and only through innovation can these brands carve out new territory swiftly.
Yet for these brands, ensuring that innovation consistently aligns with consumer needs is the most fundamental challenge. How can they avoid the trap of having great products but poor market performance? How can they guarantee that products deliver fresh experiences to consumers without causing inventory issues or cash flow problems? All these uncertainties require new brands to continuously reflect and improve based on market feedback.
Winning the Voice
Consumer perception is a formidable hurdle. Once consumer opinions are formed, they are hard to change—for instance, Gree means air conditioners, Galanz means microwaves, and herbal tea instantly brings Wanglaoji to mind. Gree, Galanz, and Wanglaoji have become synonymous with their categories. This alone demonstrates the importance of focusing on a specific niche market for a brand.
Especially in the still-maturing outdoor industry, outdoor brands must establish a concept in consumers’ minds that matches their targeted niche market. This requires precise niche positioning, highlighting core products, and letting quality speak for itself. Not only does this help gain a foothold in the market, but it also lays the foundation for future diversification.
For a niche brand, its own culture is paramount to its development. The multiple layers of culture require careful consideration by outdoor companies. “Category, taste, and quality are three essential elements every brand must have,” said Xiang Guohan, assistant general manager and operations vice president of Lidao Company. “When the Longde International Group officially launched its strategy to bring the British outdoor brand Lidao into the Chinese market, it promoted a lifestyle-oriented outdoor approach—casual yet professional, stylish, and competitively priced—with high standards from the start.”
Whether it’s category, taste, or quality, all serve the brand and ultimately come down to product performance, focusing on product competition. Quality is the core essence of a product. Only with assured quality can a brand produce standout products, engage confidently with consumers, and secure repeat customers.
The nature of the outdoor industry demands that its products excel in functionality, safety, and comfort. Represented by the sports goods industry in Jinjiang, years of shoe manufacturing expertise have earned a certain level of recognition for craftsmanship. These factors provide some support for the product quality of outdoor enterprises.
Generally, consumers go through stages of awareness, acceptance, and loyalty to a brand. Awareness relies on both hype and product quality. Years ago in Jinjiang, splashing cash on marketing was a common tactic to build a brand, sparking a wave of ambitious branding efforts. Today, relying solely on hype is naive. A rational approach is taking root among both industry players and consumers. Hype is important, but so is the product. Meanwhile, brand upgrading demands further self-improvement. Yet the brand strength of the domestic outdoor industry remains relatively weak, with no dominant competitive edges yet formed in unique brand culture, high-value merchandise, or retail outlets.
As an offshoot of sports, outdoor activities are often compared to the sports industry. Undeniably, adult sports have reached a mature and stable phase, while the outdoor industry is still in its early stages. Capital, resources, and information are all far less abundant in comparison. One domestic business owner revealed that seven or eight years ago, startup capital of tens of millions was enough to grow a sports brand, whereas today, tens of millions invested in the outdoor industry barely makes a dent.
In terms of resources, as the saying goes, spiders thrive thanks to their web of connections. Currently, personal networks and human resources are closely tied to the development of outdoor enterprises. Domestic outdoor companies constantly face a shortage of industry-savvy talent, and the industry as a whole still lacks experts. Moreover, as the outdoor industry grows, many companies adopt a wait-and-see attitude, wondering, “What are my competitors doing?”
With strong backing from capital and resources, outdoor companies must also maintain constant communication with the outside world and peers, staying up-to-date and promptly accessing relevant industry information. Only through shared insights and collision of ideas can more sparks of innovation emerge.
Aligning with Profit Points
After precise brand and market positioning, outdoor sports companies move on to channel expansion. Unlike adult sports brands competing en masse in street-side stores, the outdoor industry’s channel battle plays out on a different stage. The nature of the outdoor industry dictates that malls and large multi-brand stores are its primary channels, supplemented by specialty shops, while street-side stores remain few. Many malls now designate areas for outdoor brands, and consumers tend to shop for outdoor gear in department stores.
A brand’s positioning determines its channel strategy. In the outdoor industry, due to the high average transaction value of outdoor products, malls offer better profit margins compared to sports products. Given the same sales thresholds set by malls, outdoor products require fewer units sold to meet targets. Typically, premium brands target first- and second-tier malls in first-tier cities and first-tier malls in second- and third-tier cities, aligning with their target demographics and purchasing power. However, operating costs in first-tier cities are high, and most are dominated by international outdoor brands.
Domestic outdoor brands aiming to emulate the channel-down strategy of adult sports brands need time and space—not to mention that the cost-performance ratio of outdoor products isn’t suited for such moves, and brand image could be affected. Therefore, in channel selection, outdoor brands must base decisions on their own positioning and avoid blind expansion.
Regardless of where the outdoor industry’s profit points lie, it’s essential to choose high-quality channels, find the right fit, and execute precise marketing. At the same time, let data guide decisions—channel strategy is data-driven. Beyond the product, brands should add social value and enhance brand equity through patents, ultimately driving effective sales.