First, there was the "618" promotion, and the sales of many outdoor sports brands increased by 100%. Then, the same jacket as "The Story of Rose" was purchased by more than 4,000 people in 3 days, and it became a hot topic.
There is no doubt that the outdoor sports that have been popular since 2020 have not only not subsided, but also shown a trend of "continued popularity". According to the "China Outdoor Sports Industry Development Report (2022-2023)", in 2022, the market size of China's outdoor products industry is 197.1 billion yuan, and it is expected to grow to 240 billion yuan in 2025.
The opening of the trillion-dollar market has brought new opportunities to domestic outdoor brands, but it has also plunged outdoor players into a more intense "battle". They have to face issues such as how to accurately expand product categories and build long-term brand value.
"The most difficult 618" cannot stop the frenzy of outdoor consumption
Transaction volume declined and price wars escalated, making it what netizens jokingly called the "most difficult" "618" in history. However, the outdoor sports industry became an exception with its "soaring" sales.
Platform data shows that during the "618" period, more than 70 sports and outdoor categories such as hiking shoes and jackets on JD.com increased by more than 100% year-on-year. Tmall's outdoor sports brands had sales exceeding 100 million yuan, among which lululemon, KOLONSPORT, and Pelliot saw sales increase by more than 100% year-on-year.
In 2020, the domestic outdoor market began to show its potential. By 2023, driven by multiple factors including the recovery of outdoor consumption, the spread of social media, and the explosion of the cultural and tourism economy, the domestic outdoor market will be completely released.
It is worth mentioning that according to the "2023 Outdoor Life Trend Report" released by Xiaohongshu, the growth rate of notes published on camping, fishing, diving, surfing, and skiing reached 100%-150%. With the recommendation of Internet celebrities, niche outdoor sports have become part of daily life and popular among the public, making sun protection clothing, jackets, and river tracing shoes popular items.
The redefined "outdoor sports" is also reshaping the brand landscape.
Old players such as Arc'teryx, Decathlon, and The North Face, new players such as Uniqlo, Banana, and Bosideng, and cross-border players such as Heilan Home and Woodpecker have all entered into niche scenarios such as sun protection and camping, and launched products such as quick-drying clothes and jackets.
The surge in domestic outdoor consumption even made up for the growth shortfall of international brands. Financial reports of several international outdoor brands showed that among a host of declining data, "Greater China" became the only growth point in performance.
This also explains why Lululemon replaced H&M this year and became neighbors with Anta, Adidas, and Descente, opening its largest store in North China in Sanlitun, Beijing; Swedish outdoor brand Klattermusen opened its first Family Store in China; and American outdoor equipment brand NEMO is about to enter the Chinese mainland market...
Entering a “reshuffle”, brands begin to compete for long-term value
Compared with the international outdoor market, although the domestic industry and brands started late and the market education is not perfect, they are developing rapidly and have a high market share. Data shows that in 2023, the market share of the top ten outdoor sports brands in China has reached 80%.
As the industry moves toward centralization, brands will inevitably need to adjust their market strategies to face fierce competition. Even Decathlon, Arc’teryx, and Under Armour, which have a fixed consumer base, are thinking about how to find growth in the “downstream market.”
Comparing the long-term value of brands has become a brand consensus.
One type of representatives include Jiaoxia and Lululemon, which, based on their advantageous product categories, focus on segmented consumer scenarios, expand product category lines, and cover more diverse consumer demands.
A relevant person in charge of Jiaoxia said that this year, Jiaoxia launched five major product lines for five major scenarios, including the light and easy-to-store series, the full mesh breathable series, the sports and hot training series, the cloud cooling series, and the double-sided sun protection series. "Every time Jiaoxia expands its product categories, it focuses on the scenario as the core, and integrates the scenario, the crowd, and the product consistency."
A relevant person in charge of Lululemon also stated that in the first half of this year, lululemon launched a variety of golf, hiking series, running equipment, etc. It is reported that starting in 2022, lululemon will successively launch many product series suitable for outdoor scenes, which currently cover outdoor series such as running, hiking, tennis, and golf.
Another type of representatives, such as Pathfinder and Camel, based on the professional outdoor brand attributes, strengthen their product technology advantages and high-end positioning.
This year, Pathfinder released the HIMEX series of Chinese outdoor jackets. According to the relevant person in charge, the HIMEX 33 PRO in this series uses high-end technological fabric GORE-TEX PRO 100D. Compared with conventional jackets, the waterproof performance is improved by 75%, and the windproof performance is increased by 5 times. At the same time, Pathfinder also injects the technology used in manned spaceflight, polar scientific research, and high-altitude climbing into daily outdoor clothing and equipment, using technological research and development to build a brand moat.
In addition, Camel launched a new brand "Himalaya" this year. The relevant person in charge said that the launch of "Himalaya" is an important step in Camel's high-end strategy, aiming to meet the needs of professional outdoor sports enthusiasts for high-quality and high-performance equipment.
The person in charge also pointed out that while Himalaya meets the high standards of professional outdoor athletes, it has also further enriched Camel's brand matrix. In the short term, it hopes to expand brand awareness, increase market share, and penetrate the high-end market.
"White label" competition, homogeneous products, long-term development takes time
There is no shortage of brands and consumers in the Chinese outdoor market, but why has the “next Arc’teryx” not arrived yet?
First of all, domestic outdoor brands lack the ability to tell stories.
According to industry insiders, the technology and product strength of domestic outdoor brands are comparable to those of international brands, but in terms of marketing, they lack long-term storytelling and have low consumer stickiness. Many people buy Arc'teryx and Lululemon because of social needs, social needs, and then sports needs. The outdoor market is more willing to "buy stories", which is the next issue to be considered by the outdoor industry with oversupply.
The person in charge of Pathfinder pointed out that the outdoor sports brands that are currently popular are not only focusing on selling products, but are also working hard to build a complete lifestyle and provide emotional value. Outdoor sports are becoming more and more "elegant" and "decent."
The relevant person in charge of Camel also pointed out that strengthening the connection with consumers and forming a unique brand culture is one aspect of forming brand advantages. For example, Camel will join brand members to participate in outdoor hiking, camping and other activities.
Secondly, the excessively low entry threshold allows outdoor brands to quickly gain popularity in the early stages by relying on big products and strong marketing. However, after the traffic dividend is exhausted, they will inevitably face the impact of "white-label" and "substitute" products.
"xxx is so cheap that it is indistinguishable from the real thing", "xxx is losing its middle class", and "high-net-worth people are abandoning xxx" are hurting some outdoor sports brands. The differentiation of the original consumer circles, the renewal of consumer channels and retail environment have made the domestic outdoor industry take a very different direction from the international one, and the brand's ability to understand the market is higher.
A Lululemon official shared, "In the Chinese market, we have noticed that customers pay attention to the comfort of products, and expect that products can meet the needs of daily life while being functional, and can be switched freely in various scenarios from sports to leisure, so as to create a comfortable look."
Finally, the biggest difference between outdoor sports brands and ordinary clothing is that they have stronger technological attributes. Brands need to build their own core technologies and break out of the "involution".
It is unknown how long it will take for the "next Arc'teryx" to appear in the domestic outdoor market, but for now, brands are moving towards more valuable competition and exploring longer-term outdoor market paths.