“International brands must significantly elevate their game in terms of product innovation, localized marketing, and consumer engagement.”

• How China’s Active Lifestyle Trends Are Shaping Sports Retail
• Five Major Trends Driving China’s Active Lifestyle Segment
• The Rise of Premium Active Lifestyle Products in China
• How Douyin is Reshaping Sports & Outdoor Sales in China
• Competing with Chinese Powerhouses: Strategies for International Brands
• China Offers Chances for Niche Brands
• Creating Immersive Brand Experiences in China’s Active Lifestyle Market
• Opportunities and Challenges for International Brands Entering China
• Health, Outdoors and Fitness Trends
• Creating Memorable In-Store Experiences Beyond E-Commerce
• What Makes Leading Brands Successful in China’s Market
• The Unstoppable Rise of Active China: Key Trends and Untapped Opportunities
• Key Takeaways: Opportunities for Global Brands in China

ISPO.com: As a commerce expert for China, what would you describe as the most outstanding trends in the active lifestyle segment in China right now?

Adam Sandzer: The first thing to reference is the growth of relevant categories and subcategories within the active lifestyle segment. At Hot Pot China we have access to the sell-out data from the 3 major e-commerce platforms: Tmall, JD.com & Douyin. Across the 3 there has been growth across all the key categories and subcategories within the Sports & Outdoor department. This accelerated in 2024 and continued into H1 2025. Given that e-commerce is often 50% or more of total net sales, it is a good proxy for overall performance. For example, in the sportswear and outdoor categories (inc. apparel, footwear & equipment), net sales have increased 4% and 26% respectively in H1 2025 versus H1 2024. In a more challenging market, such growth is not universal across all sectors with fashion apparel (-4%) in particular slowing down. It is a true reflection of the value that consumers are placing on an active lifestyle. They want to live a better, healthier, longer life and sports and fitness are viewed as enablers of this. Life is the new luxury.

Aside from e-commerce data, it’s also important to monitor key digital platforms to identify major trends and engage with consumers. As you have your ”own proprietary community” you observe the market pretty closely. Could you highlight the major trends?

Sandzer:  We see currently five interesting developments:

• Premiumisation & value: Trading up for a healthier life
• Shift to Douyin & seller fragmentation: The live-commerce revolution
• Local brand leadership: the rise of domestic powerhouses
• Specialist brands & innovation: The niche-capturing share
• Offline experience & community: building connection beyond the transaction

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Let’s dive a bit deeper here and start with the first. What do you mean by Premiumisation & Value: Trading up for a healthier life?

Sandzer: In a typical economic slowdown, consumers often "trade down," opting for more affordable alternatives. However, our e-commerce data from H1 2025 in China's active lifestyle segment defies this conventional wisdom. We observe a distinct premiumisation trend, where consumers are actively "trading up" within these categories.

This is not a blanket luxury spending spree, but a calculated investment in value. When consumers do spend, they demand the best: superior materials, cutting-edge technology, innovative design, and brands that align with their aspirational, healthier lifestyles. The significant growth in higher price segments underscores this. For instance, athleisure wear priced at $80+ saw a 20% growth in H1 2025 on Tmall, Jd.com & Douyin, while outdoor jackets priced $220+ surged by 57%. These are the highest growth rates across all price tiers in their respective categories, clearly demonstrating that consumers are willing to pay for perceived quality and performance.

Brands that embody this "premium value" proposition are thriving. Hoka One, with over 95% of its running shoes sold above $100, achieved an astonishing 112% growth in H1 2025. Similarly, Descente, a brand where 70% of products are sold above $135, saw its outdoor apparel sales leap by 142%. This indicates that consumers perceive a strong price-value equation in these premium offerings; the investment is justified by the enhanced performance, comfort, style, and ultimately, the contribution to their well-being.

A key driver behind this phenomenon is the reallocation of consumer spending. As traditional luxury purchases (e.g., high-end fashion garments) face cutbacks, a portion of that discretionary budget is being redirected towards active lifestyle products. The cost, even at the premium end of activewear, is still significantly lower than a high-fashion item, making it an accessible form of "new luxury" that directly contributes to personal health and self-improvement. It's a reflection of a deeper societal shift where wellness and self-care are becoming the ultimate status symbols.

That’s an insightful finding. What about the second finding: Shift to Douyin & Seller Fragmentation: The Live-Commerce Revolution?

Sandzer: The shift in sales from Alibaba’s Tmall to Bytedance’s Douyin over the last 2-3 years has been well documented in China. This has continued into 2025 with Douyin taking the leading share across many categories and sub-categories within the active lifestyle segment. In sportswear and outdoor overall, Douyin commanded 39% and 52% share respectively in H1 2025. Likewise, in more specific products like running shoes and down jackets, Douyin has 38% and 73% share, respectively. In all cases, Douyin share was negligible versus Tmall and even JD.com just 3 years ago!

Douyin's success is rooted in its seamless shopper journey, transforming entertainment into instant purchase. Its short-video and livestreaming format creates an immersive, engaging, and highly conversion-driven environment. Consumers discover products through compelling content, often via livestreams, and can make impulse purchases with minimal friction.

However, a deeper analysis of sales by store reveals a crucial emerging nuance: significant seller fragmentation on Douyin compared to Tmall. Indeed, across the majority of categories & sub-categories the top 10 stores are generally established brands Tmall flagships. For example, in athleisure wear and outdoor apparel, 7 out of the top 10 stores were on Tmall with only 1 on Douyin. Indeed, Douyin exhibits a far more diverse and decentralized seller landscape - a brand's presence there often involves numerous, more segmented stores (e.g., "Nike Footwear" vs. "Nike Official Flagship Store"). This also indicates that many more sellers, including smaller merchants e.g., livestream KOLs, are finding success on this platform.

Additionally, this fragmentation suggests that the traditional "brand-first" search and discovery model prevalent on Tmall is evolving on Douyin. Consumers are being presented with products from various sellers concurrently during their browsing and content consumption. This demands a different approach for brands: they need to adapt to a more fluid, competitive environment where "in-the-moment" decision-making is paramount, and brands are positioned directly alongside competitors. Adopting strategies akin to multi-brand retail, where product visibility and immediate appeal are key, becomes crucial for optimizing Douyin presence. It's an exciting, yet challenging, dynamic for market players.

And it seems to be harder for foreign brands right? 

Sandzer: Yes. This is what we call: “Local Brand Leadership: The Rise of Domestic Powerhouses”. The days when Nike and Adidas unequivocally dominated China's active lifestyle market are fading. A profound shift towards local brand leadership is firmly established, with Chinese giants like Anta Sportswear and Li-Ning now dominating key sub-categories. In H1 2025, our data shows that 6 out of the top 10 running shoe brands across Tmall, JD.com, and Douyin were local, with 12 out of the top 25 also being Chinese brands.

This ascent is not merely due to nationalistic sentiment, though that plays a part. These local brands have matured significantly, becoming highly innovative, technologically advanced, and incredibly agile in their go-to-market strategies. They possess a deep understanding of the unique preferences, cultural nuances, and evolving lifestyle trends of the young Chinese consumer base. Furthermore, they often offer better price-value propositions without compromising on quality or style. Anta, for instance, has leveraged its comprehensive portfolio (including brands like Fila and Descente) to build significant market share.

The success of these local powerhouses signifies that for global brands, simply relying on a recognized logo is no longer sufficient. To maintain relevance and market share, international brands must significantly elevate their game in terms of product innovation, localised marketing, and consumer engagement. The competitive landscape is intense, and neglecting the strength and ambition of these Chinese competitors could lead to being left behind, not just in China but potentially on the global stage as these brands increasingly expand internationally.

But small brands also play more and more a significant role?

Sandzer: Yes, that’s the “Specialist Brands & Innovation” Topic: “The Niche-Capturing Share”. While established global brands like Nike and Adidas still command significant presence due to their maturity and broad platform reach, their growth rates have noticeably slowed. Conversely, challenger brands, often highly specialized and innovation-driven, are experiencing robust, double-digit growth. This trend directly ties into the premiumisation phenomenon, as discerning Chinese consumers are actively seeking out unique offerings.

Our data from H1 2025 clearly illustrates this: Brooks running shoes, a specialized brand, saw a phenomenal 187% growth compared to H1 2024. This indicates a strong consumer hunger for brands that bring something truly different and specific to the market. Consumers are looking for performance, design, and technology that caters to their evolving interests in various active pursuits, from specific running styles (e.g., trail running, road racing) to niche outdoor activities.

For new market entrants or smaller global brands, this presents a significant opportunity. While China remains a challenging market to enter due to its complexity and intense competition, a highly unique product, a strong innovation story, and a focused specialization can provide a crucial competitive edge. The key is to strategically identify these market gaps, effectively communicate the unique value proposition, and ensure products reach the "right people" through targeted channels and authentic community engagement. This approach can unlock substantial growth and incremental revenue, demonstrating that differentiation is paramount for success.

Let’s jump to the fifths Trend: Offline Experience & Community: Building Connection Beyond the Transaction.

Sandzer: In an increasingly digital-first commerce landscape, the significance of physical, offline experiences and community building remains fundamental to brand success in China's active lifestyle segment. Consumers are prioritizing "lifestyle" more than ever, and this extends beyond product ownership to encompass participation, connection, and shared experiences. While a strategy of rolling out hundreds of generic retail touchpoints may be outdated, strategic, meaningful offline engagement is vital.

We've observed incredible brand activations in the past six months that exemplify this. On Running's transformation of its Shanghai Xintiandi store into a "cushioned oasis" in March, demonstrating its CloudTec Phase technology, is a prime example. Beyond the in-store spectacle, their strategy extends to hosting over 50 running events across 20+ cities, even partnering with local eateries and florists in Shanghai for unique "edible steamed bun medals" and flower prizes. This bespoke blend of sport and local culture fosters deep engagement.

Similarly, nutritional supplement brand Swisse's collaboration with Chinese gym chain Super Monkey in April across 53 locations in seven cities showcased a synergistic approach. Their high-energy outdoor fitness event in Shanghai, featuring influencers and trainers, distributed samples and gym coupons, seamlessly blending wellness, community, and brand experience.

In June, German footwear brand Birkenstock's immersive pop-up at Shanghai’s West Bund brought its heritage of foot health to life. The "sand walking zone" and interactive displays on its footbed system provided a unique, educational, and sensory experience. Collaborations with local community groups for city walks, handpan music, and foot yoga further localized the brand, resonating with Shanghai's evolving wellness culture.

These initiatives highlight that offline presence is no longer just about sales; it's about creating engaging, entertaining, and "Rednote-worthy" (出片) moments that consumers want to share. This directly addresses the deep-seated desire for belonging and connection that is core to Chinese culture. The explosion of running, hiking, cycling clubs, and specialized facilities underscores this. Brands like Lululemon, Hoka One, and Arc'teryx have mastered this by leveraging both online and offline touchpoints to build vibrant communities that extend the consumer experience far beyond the initial product purchase. Their loyalty programs, sometimes even offering non-traditional activities like art classes (as seen with Arc'teryx), exemplify a holistic approach to fostering deep emotional connections with their members.

As you said, local brands are on the rise. What is your general advice for foreign brands? Is there still enough room for Western brands that are not established there yet?

Sandzer: Do not underestimate them! They are no longer copycat brands offering inferior products. As above, they are innovative, technologically advanced, faster to market, and often offer better prices. Indeed, have the humility to see what you can learn from them and even consider collaborating with them. They are not only your competitors in China they are coming for your market share on a global level too. 

Despite this, I still feel optimistic about Western Brands prospects in China. There is still enough room for new market entrants but you are going to need to work much harder to succeed. As referenced, the key is going to be having innovative products that offer something unique to the market and Chinese active lifestyle consumers. They are looking to elevate their performance as well as look & feel. This not only applies to the product itself but also the experience you offer. Can you help them with a sense of belonging and providing a platform for community and even learning. Arcteryx loyalty program is a great example of this - they even offer art classes to their members!

The other thing I believe remains important is authenticity. If a brand is performing well globally then this can still translate well into China. In this case, staying true to your DNA, in recognition that the world is more borderless than ever is important for new market entrants.

Since Covid, active lifestyle, the great outdoors and healthy living seem to be on the upswing in China. Can you give us some insights here?

Sandzer: Absolutely. Actually the wheels were put in motion for this upswing long before COVID. The government has actively been encouraging healthier lifestyles for the best part of 20 years. Levels of obesity and poor health were becoming intolerable for an aging nation so policies to encourage people to be active and get outdoors have been implemented and accelerated over the last few years. Usually when the government pushes something in China it comes to fruition and much of the growth seen within this sector can be attributed to it. That said, of course, self-motivation and social encouragement has played its part. Platforms like Rednote & Douyin provide so much content and inspiration whilst product accessibility is at an all time high.

We also see employers taking a more pro-active role in recent years. The 996 work culture (in 9am to 9pm, 6 days per week) is well documented in China but staff are increasingly encouraged and feel confident to live a more balanced and healthier lifestyle.

I also mentioned infrastructure and this has really developed positively in the past few years. The volume and quality of gyms, running tracks, cycling tracks, parks, trails etc. if accelerating day-by-day. Evidently this is a great stimulant for participation. It’s much easier to be active if there is a location in close proximity to one's home or place of work.

What about the offline retail experience, China seems to be pretty into e-com, is it worth investing in the offline world?

Sandzer: There is little doubt that offline has lost significant purchase share to e-commerce. However, as referenced above, there is still no substitute for a tangible experience. Offline remains a core component of any brand's China strategy. This is especially the case within the active lifestyle segment where consumers want to try new brands and products as well as get a sense for whether a brand is relevant ‘for me’.

These days, it’s less about flagship stores in malls, concessions in department stores or volume franchise counters and more about creating an experience. If you have the budget then a whizz bang flagship in a premier location is of course relevant but even if you don’t a series of pop-ups or events can very much do the job. The key is to create something engaging, entertaining and ‘instagrammable’ or 出片 (chupian) in Chinese. Consumers want to tell the world when they have enjoyed an unforgettable experience. This cannot be replicated online, even if livestreams are becoming more engaging with out of studio locations becoming popular.

What are examples of brands that do a good job and why?

Sandzer: The ultimate test of performance lies in the ability to generate incremental revenue and growth but in a profitable way. Profitability is hard to fully determine but regardless there are several global brands within the active lifestyle segment that standout.

Throughout my responses I have referenced many brands that appear to be performing very well in the active lifestyle segment: Lululemon, Hoka One, On, Brooks, Descente etc. The common threads for success have also already been referenced. To summarise:

1. Clear understanding of the target audiences and relevant localised brand positioning to appeal to then
2. Specialist focus on brand and product core competence and optimal areas of credibility
3. Superior and unique technology and products marketed in a way that is easily understood and appealing to Chinese audiences with pricing that represents value, especially over established brands
4. Strong digital presence across core and emerging channels for both brand building and e-commerce
5. Engaging offline activations and community building that elevates the brand and product offering and help create an emotional connection

It’s also worth shouting out the local brands again. They have done an incredible job of shifting the narrative domestically and I have a strong belief that they will start to do so internationally. 

Additionally, make no mistake - the established global sportswear giants are reacting and we have seen some strong product launches and activations in recent months. Whether it’s too late will become clear over the next 12-18 months.

China’s active lifestyle segment is booming, driven by premiumisation, digital innovation, and the rise of local powerhouses. For international sports brands, this market offers significant opportunities but success requires more than a recognizable logo. Brands that understand local consumer behaviors, invest in product innovation, leverage both online and offline channels, and create authentic, engaging experiences can capture attention and build loyalty. With the right strategies, global players can establish a strong foothold, differentiate themselves from domestic competitors, and tap into China’s growing demand for health, wellness, and premium active lifestyle products. This means: adapt, innovate and connect deeply with consumers to thrive in one of the world’s most dynamic sports markets.

Discover the latest retail concepts, innovations, and business opportunities for your brand at ISPO 2025. As the global sports industry’s leading event, ISPO offers an in-depth look at China’s retail strategies and best practices. Together with market expert Oliver Wang, we’ll explore key market shifts and how brands can successfully adapt. From 30. NOV. – 02. DEC. in Munich.