Core Insights - The importance of the "14th Five-Year Plan": The upcoming "14th Five-Year Plan" is expected to significantly impact China's economic and social development over the next five years, shifting focus from production to a balance between production and consumption due to the current issue of insufficient effective demand [1] - Strengthening consumption policies: Starting in 2024, consumption policies will be significantly enhanced, including the allocation of special government bond funds to support consumption upgrades. Continued funding is expected in 2025 and 2026 [1] - Potential of service consumption: China's service consumption still lags behind developed economies, indicating a substantial opportunity for growth in this sector to stimulate consumer interest and optimize the consumption environment [1] - Rise of technology consumption: With a rapid technological development and an engineering talent surplus, products like robotic vacuum cleaners and drones are gaining market attention, likely creating new consumer demand [1] - Optimization of the overall consumption mechanism: Measures such as consumption tax reform will encourage local governments to transition from production-oriented to service-oriented, promoting the internationalization of quality consumption companies and enhancing residents' consumption capacity [1] Investment Recommendations - Food and Beverage: Recommended companies include Dongpeng Beverage and Lihigh Food, with a focus on Youran Dairy and Bairun Co [2] - Service Sector: Recommended companies include Guming, Mixue Group, and Bubugao, with a focus on Zhongsheng Holdings [2] - Light Industry: Companies to watch include Hengfeng Paper and Xilinmen [3] - Trendy Toys: Recommended companies include Pop Mart and Blokus [4] - Home Appliances: Recommended companies include Midea Group, Haier Smart Home, TCL Electronics H, Roborock, and Ecovacs, with a focus on Yingshi Innovation [5] - Agriculture: Recommended companies include Zhongchong Co, Petty Co, Muyuan Foods, and Haida Group [11] - Textile and Apparel: Recommended companies include Anta Sports, Xtep International, 361 Degrees, and Hailan Home, with a focus on Li Ning and Sanfu Outdoor [11] Report Content Analysis - Expanding consumption share: The report emphasizes that expanding consumption share is essential for achieving Chinese-style modernization, as China's consumption rate is significantly lower than that of developed countries [9] - Shift in fiscal spending: During the "14th Five-Year Plan" period, fiscal spending will shift from material investments to human capital investments, increasing support for education, healthcare, and housing [9] - Promotion of common prosperity: The report highlights the need for income distribution reform and the promotion of the Zhejiang common prosperity model to achieve balanced development [9] - Consumption tax reform: The report suggests that consumption tax reform will help local governments transition from production-oriented to service-oriented, enhancing the consumption environment [9] - Transition from traditional to new consumption: The report analyzes the maturation of traditional consumption markets and the rise of new consumption, which is characterized by a focus on quality and personal satisfaction [9] - Stimulating interest in service consumption: The report indicates that the shift from physical to service consumption is crucial for expanding domestic demand, with growing demand for events and performances benefiting local consumption [9]

Market Overview - The textile and apparel sector has shown resilience in mid-term performance, with the sports segment leading apparel consumption [1][12] - In August, the A-share textile and apparel sector slightly underperformed the broader market, but has shown stable performance since September, with brand apparel outperforming textile manufacturing [1][12] Brand Apparel Insights - Retail sales of clothing in July grew by 1.8% year-on-year, with a slight deceleration compared to the previous month [1] - E-commerce growth in July rebounded significantly, with outdoor sports leading the way; growth rates for various segments included sports apparel at +11%, outdoor apparel at +26%, and home textiles at +10% [1] - Notable brand performances included Decathlon with +63%, Puma with +41%, and Lululemon with +39% in sports apparel; outdoor brands like Kailas and Arc'teryx also showed strong growth [1] Textile Manufacturing Insights - In August, Vietnam's textile exports fell by 4.5% year-on-year, while China's textile exports improved slightly with a growth rate of 1.4% [2] - The export performance of apparel and footwear from China was poor, with declines of 10.1% and 17.1% respectively [2] - The price of cotton showed slight fluctuations in August, with a small decline noted in September [2] Sector Performance Summary - For the first half of 2025, textile manufacturing revenue grew by 7.8% year-on-year, while the apparel and home textile sector faced a decline of 6.4% [3] - The gross margin for the textile manufacturing sector remained stable at 19.4%, while the apparel and home textile sector's gross margin increased slightly to 46.1% [3] - Key players in the apparel sector, such as Anta and Xtep, maintained steady growth in revenue and profit, while non-sports apparel faced significant challenges [3] Investment Recommendations - Focus on undervalued leaders with strong fundamentals in brand apparel, particularly in the sports segment, with recommendations for Anta Sports, Xtep International, and Li Ning [6] - In textile manufacturing, recommend companies with significant rebound potential and strong fundamentals, such as Shenzhou International and Huayi Group [6]

Core Insights - ONEWAY, a Finnish outdoor brand, opened its first store in Zhengzhou, China, showcasing a new Nordic design style and the 2025 autumn/winter product line [1] - The brand aims to cater to the growing demand for specialized outdoor equipment in China's first-tier cities, reflecting confidence in the outdoor consumer market [1] - ONEWAY is part of the 361° Group, which demonstrates strategic capabilities in the outdoor segment and aims to provide high-quality, professional sports products and services [1] Company Overview - ONEWAY originated in Finland and began operations in the Greater China region in 2013 under the 361° Group [1] - The brand is set to undergo a complete rebranding by 2024, emphasizing its Nordic outdoor sports heritage [1] Industry Trends - The outdoor sports market in China is experiencing significant growth, with an increasing demand for specialized equipment [1] - ONEWAY's professional design and Nordic heritage position it well to offer diverse options to consumers, promoting the professionalization of the outdoor equipment market [1]

Group 1 - Zhang Shuihua, a nurse from Fujian Medical University First Affiliated Hospital, won the domestic women's group championship at the Harbin Marathon and subsequently expressed a desire for leadership support to take time off for marathon running, which sparked controversy [1][3] - 361° announced the termination of its contract with Zhang Shuihua during a live broadcast on September 3, indicating the brand's response to significant social pressure [3][4] - The financial report released by 361° on August 12 showed a revenue increase of 11% year-on-year to 5.705 billion yuan, with a net profit of 858 million yuan, reflecting an 8.6% growth [3][4] Group 2 - 361° has signed 29 endorsers across various sports, with 13 specifically in the running category, highlighting the brand's focus on marketing within the running sector [4] - The types of marathon runners that sports brands typically collaborate with include top runners, elite runners like Zhang Shuihua, and running influencers, with elite runners having limited commercial value compared to influencers [4][5] - The potential for Zhang Shuihua to sign with other sports brands is considered low due to the abundance of elite runners available for brands to choose from [5]

Core Viewpoint - The recent controversy surrounding 361° and its endorsement of marathon runner Zhang Shuihua has led to a significant backlash, resulting in the termination of their partnership and raising concerns about the brand's reputation and sales performance [2][4][7]. Company Performance - 361° reported a revenue of 5.705 billion RMB for the first half of 2025, marking an 11.0% year-on-year increase, and a net profit of 858 million RMB, up 8.6% [15][16]. - Despite the positive financial results, the company's stock price fell over 12% following the earnings announcement, leading to a market value loss of approximately 1.2 billion HKD [5][15][17]. - The company's gross margin increased by 0.2 percentage points to 41.5%, while the operating profit margin decreased by 0.7 percentage points to 19.9% [16][19]. Market Position and Strategy - 361° has adopted a cost-effective strategy, with 52.2% of its products priced below 200 RMB, which has helped it achieve significant revenue growth in previous years [25][26]. - The brand's focus on value-for-money has been challenged by competitors who are moving towards high-end and diversified product lines, raising questions about 361°'s long-term growth potential [28][29][32]. - The company has not engaged in any recent acquisitions to diversify its offerings, which contrasts with competitors like Anta and Xtep that are expanding into high-end markets [29][31]. Brand Image and Consumer Perception - The choice to endorse a "grassroots" athlete like Zhang Shuihua was initially seen as a way to connect with consumers, but the subsequent controversy has damaged the brand's image [12][14]. - The incident has highlighted the risks associated with using non-celebrity endorsements, as public perception can quickly shift and impact brand reputation [12][14]. - 361°'s brand identity is heavily tied to its value proposition, making it difficult to pivot towards higher-end products without losing its established consumer base [28][32].

Core Viewpoint - The incident involving "fastest nurse" Zhang Shuihua and her contract termination with 361 Degrees has sparked significant public discussion, highlighting the brand's marketing strategies and the implications of athlete endorsements in the sports industry [1][3][4]. Group 1: Incident Overview - Zhang Shuihua won the women's group championship at the 2025 Harbin Marathon, but expressed difficulty in taking leave from her nursing job to participate in the event, calling for support from her superiors [1][4]. - Following the incident, 361 Degrees displayed a message in their live stream indicating the termination of their contract with Zhang Shuihua, emphasizing their commitment to promoting sports and a healthy lifestyle [1][3]. - The brand has not issued a formal statement regarding the contract termination, leading to speculation about their marketing approach and athlete selection criteria [1][4]. Group 2: Endorsement Strategy - 361 Degrees has signed a total of 29 endorsers in the first half of 2025, including prominent athletes from various sports, indicating a diverse endorsement strategy [6][12]. - The brand's endorsement roster includes 13 runners, as well as notable figures from basketball, such as NBA stars Nikola Jokic and Aaron Gordon, showcasing a broad appeal across different sports [6][12]. - The company aims to enhance brand influence and sales through partnerships with athletes, leveraging their professional image to connect with consumers [10][12]. Group 3: Advertising and Sponsorship Expenditure - 361 Degrees has consistently increased its advertising and promotional spending, surpassing 1 billion yuan annually in recent years, reflecting a growing investment in brand visibility [13][14]. - The advertising expenditure ratio reached 10.1% in the first half of 2025, marking a 6.4% year-on-year increase, indicating a strategic focus on enhancing brand presence [14]. - The brand's sponsorship of major sporting events, including the Asian Games and World Swimming Championships, further illustrates its commitment to expanding market reach and brand recognition [13][14].

Core Viewpoint - The article discusses the business strategy of 361 Degrees in leveraging sports stars as brand ambassadors, highlighting the recent controversy surrounding the "fastest nurse" Zhang Shuihua and the company's response to her contract termination [2][3]. Brand Strategy - 361 Degrees has disclosed a total of 29 brand ambassadors in the first half of 2025, including international NBA stars, Olympic champions, and elite athletes, with 13 specifically in the running category [5][6]. - The company aims to enhance brand influence and sales through collaborations with professional athletes, often opting for short-term endorsement contracts during events [7]. Advertising and Promotion Expenditure - 361 Degrees has significantly increased its advertising and promotion spending, surpassing 1 billion yuan in both 2023 and 2024, with a ratio of 10.1% in the first half of 2025, reflecting a year-on-year growth of 6.4% [10][11]. - The brand's advertising expenditure has shown a consistent upward trend, with a notable increase from 4.95 billion yuan in 2020 to 10.72 billion yuan in 2023 [11]. Athlete Endorsement Impact - The choice of brand ambassadors is influenced by their commercial value, image alignment with the brand, reputation, and collaboration costs, with a focus on enhancing customer retention and attracting new clients [9][12]. - The strategy includes diversifying endorsements across various sports, such as swimming, gymnastics, and e-sports, to reach different consumer segments [8][9].

Core Points - The collaboration between the sports brand 361 Degrees and marathon runner Zhang Shuihua, known as the "fastest female nurse," has ended after a brief period due to public controversy [1][2] - The decision to terminate the partnership was mutual and reached after friendly negotiations between both parties [1] Group 1: Background and Performance - Zhang Shuihua achieved a remarkable time of 2 hours, 35 minutes, and 27 seconds, winning the women's group at the Harbin Marathon on August 31 [1] - Her performance was notable as she completed the race in adverse conditions, including running during her menstrual period [1] Group 2: Public Reaction and Controversy - Following the marathon, Zhang expressed her desire for her hospital leadership to support her in taking weekends off to participate in marathons, which sparked a heated online debate [2] - Supporters argued that employers should encourage employees' personal development, while critics contended that personal interests should not burden colleagues [2] - The controversy intensified when viewers noticed Zhang's affiliation with 361 Degrees, leading to a surge of comments in the brand's live stream, including jokes about the situation [2] Group 3: Company Response - In response to the public backlash, 361 Degrees decided to terminate its contract with Zhang Shuihua, although no formal announcement was made [2] - The change in partnership was subtly indicated during a live stream on September 3, where the host displayed a printed news report about the termination [2] - Zhang has since removed all references to her partnership with 361 Degrees from her social media accounts [2]

Core Insights - The innovative retail model "361° Super Product" has successfully integrated online and offline sales through Douyin's local life service platform, creating an efficient O2O shopping experience [2][6][7] Group 1: Store Opening Success - The first "361° Super Product" store opened in Shijiazhuang on December 27, achieving over 6,000 customer visits and sales exceeding 250,000 yuan on the opening day [3][6] - Prior to the opening, significant resources were allocated to Douyin for promotions, resulting in pre-sales of vouchers worth hundreds of thousands of yuan [6][7] - The store's opening attracted over 30% new customers through Douyin's local life services [7] Group 2: Marketing and Customer Engagement - The company utilizes high-density live streaming and influencer promotions to effectively communicate store opening information, contrasting with traditional marketing methods [6][12] - Monthly strategy meetings are held to review data and set future strategies, ensuring continuous engagement and promotional activities [12] Group 3: Operational Efficiency - The "361° Super Product" model transforms traditional retail by actively seeking customers online, thus reducing reliance on foot traffic [9][14] - The store operates efficiently with a small team, leveraging digital tools for customer engagement and reducing labor costs [14][16] - The introduction of a "zero commission" policy by Douyin has further incentivized retail operations, leading to significant growth in the number of apparel brands joining the platform [16]

Group 1: Event Overview - 361 Degrees has terminated its partnership with "fastest nurse" Zhang Shuihua, leading to significant public backlash and media coverage [2][3][11] - The termination was perceived by many as a result of Zhang's comments during a post-race interview, which sparked controversy regarding her work-life balance and the ethics of her dual career as a nurse and athlete [9][11] Group 2: Company Performance - As of June 30, 2025, 361 Degrees reported revenue of 5.705 billion RMB, an increase of 11% year-on-year, and a net profit of 858 million RMB, up 8.6% [12][14] - The company has a total of 5,669 stores, with 76% located in third-tier and lower cities, indicating a strong foothold in lower-tier markets but a need to enhance its presence in first and second-tier cities [12][14] Group 3: Research and Development - 361 Degrees has invested 2.8% of its revenue in research and development, with plans to increase this to between 3% and 4% in the current year [13][15] - The company has achieved 870 patents and employs 832 technical staff, focusing on innovative products such as running shoes and sports apparel [15] Group 4: Market Strategy - The company aims to expand its market share in both domestic mid-to-high-end segments and international markets, despite facing challenges [15][16] - The Chinese sports industry is projected to exceed 7 trillion RMB by 2030, presenting significant growth opportunities for companies like 361 Degrees [16]