BAOZUN(US:BZUN) 3 6 Ke·2025-07-16 03:28Core Insights - Sweaty Betty, a UK yoga apparel brand, is ending its direct operation model in China and transferring its operational rights to Baozun, marking it as the third international brand under Baozun's management after GAP and Hunter [1][5][9] Group 1: Company Transition - The operational rights of Sweaty Betty in China have been handed over to Baozun, which is actively recruiting for roles related to sports community and product operations [1][5] - The team managing Sweaty Betty will share resources with the teams handling GAP and Hunter, indicating a streamlined operational approach [7][11] - The decision to transfer the operational rights comes after Sweaty Betty faced challenges in the Chinese market, struggling to compete with lululemon, which has seen over 50% growth in the region [3][5] Group 2: Market Performance - Sweaty Betty's products are priced similarly to lululemon, with training leggings priced between 750 to 1180 RMB and training tops between 480 to 750 RMB [3] - The brand's revenue for the year was reported at $199 million, reflecting a decline of 2.4%, with expectations of low single-digit revenue decline in 2025 [9][15] - The overall high-end yoga apparel market in China is experiencing a slowdown, with lululemon's growth in the region dropping to around 20% [15][18] Group 3: Competitive Landscape - The competitive landscape includes not only lululemon but also emerging brands like Vuori and alo, which are expanding their presence in China [15][18] - Baozun's strategy may need to focus on differentiation and brand positioning to effectively compete against established players like lululemon [13][14] - The success of Baozun in managing Sweaty Betty will depend on its ability to navigate the challenges posed by both local and international competitors in the high-end yoga apparel market [18]