Rich Chinese splurge on sportswear as luxury's luster dims
By Donny Kwok and Farah Master
HONG KONG (Reuters) - GPS sport watches, compression leggings and hydration packs are the new must-haves for wealthy Chinese, pumping up the multi-billion dollar sportswear industry at a time when China's elite are reining in spending on more traditional luxury brands.
Extreme sports apparel and expensive active wear is in vogue thanks in part to government promotion of sport ahead of the 2022 Winter Olympics in Beijing, and the purchase of the Ironman brand by China's richest tycoon last year.
The market is also forecast to grow with the government's decision to relax its one-child policy after 36 years, and companies like U.S.-listed Under Armour and Canada's Lululemon Athletica Inc are lining up to cash in.
"It is huge - that wellness and healthy lifestyle opportunity in the whole of China," said Colin Grant, chief executive of the Hong Kong-headquartered Pure Group, an operator of gyms, yoga, retail and nutrition businesses across Asia.
"Luxury has its challenges but active wear is a bright spot in the industry. Some people wear it to weddings in China."
China will host its first ever Ironman events this year after billionaire property developer Wang Jianlin bought World Triathlon Corp for $650 million. The deal is set to capitalize on a growing fitness craze which saw 134 marathon and road-running races held across the country last year, up 160 percent from 2014, according to the Chinese Athletic Association.
As part of its promotion of sport and healthier living generally, the government says that by 2025, more than 900,000 stadiums and gyms will have been built across the country.
For Under Armour and Lululemon Athletica, two of the Western brands already active in China, the country offers an opportunity to grow outside the mature markets of the United States and Europe. Continued...