China's sports goods market projected to grow significantly

Emerging Markets Economy, Dec 10, 2003

China's sports goods market has posted an annual growth rate of 10 percent in recent years. Within the next 10 years, some industry officials expect China to become the world's largest consumer of sports goods.

It seems Japanese manufacturers understand the potential of the Chinese market. Thus, in the lead-up to the Olympic Games to be hosted by Beijing in 2008, Japan's Descente Ltd., Mizuno Corp. and other leading industry players are expanding their China operations, The Asahi Shimbun reported.

In the chase for market share, hundreds of new outlets will be opened in Chinese cities. But the Japanese strategy will be emphasizing class over muscle, the report said.

For instance, Descente, Japan's largest sportswear manufacturer, is positioning its Munsingwear golf clothing and Arena swimwear to capitalize on the increasing incomes of urban Chinese. The company's 32 outlets use stylish layouts and lots of glass to promote their upmarket image.

Descente established a directly operated outlet in Beijing in 1995. Since then, sports have rapidly become a lifestyle statement for Chinese. The company's sales in fiscal 2002 totalled 30 million yuan (about 500 million yen).