Changjiang Securities·2025-08-01 09:12Investment Rating - The report maintains a "Positive" investment rating for the outdoor industry [11]. Core Insights - The rise of outdoor sports in China is driven by economic development, improved infrastructure, and increased leisure time, with the industry expected to continue double-digit growth over the next five years [4][8][21]. - The outdoor industry in China is currently in a high-growth phase, with significant potential for expansion compared to developed markets like the US and Japan [8][32]. - The market is characterized by a high concentration of mid-to-high-end brands, with opportunities for new niche brands to emerge as the market diversifies [9][32]. Summary by Sections Economic Factors Influencing Outdoor Development - Economic growth, infrastructure improvements, and increased leisure time are critical drivers for the outdoor sports sector [21]. - The outdoor industry in China has room for growth as its economic development level and leisure time still lag behind that of the US and Japan [21]. Growth and Market Dynamics - The outdoor market in China is experiencing a resurgence post-2020, following a period of stagnation due to inventory issues from 2015 to 2020 [8][39]. - The outdoor apparel market is projected to grow significantly, with a compound annual growth rate (CAGR) of 23% expected until 2024 [51]. - The outdoor apparel market in China is expected to reach 416 billion RMB by 2024, with further growth anticipated through 2029 [56]. Market Structure and Brand Landscape - The outdoor apparel market is currently dominated by high-end brands like Arc'teryx and Descente, while e-commerce brands focusing on cost-performance are also gaining traction [9][32]. - The outdoor apparel segment remains the largest within the outdoor products category, indicating strong consumer preference [48]. - The report highlights a trend of blending outdoor activities with traditional sports, leading to the emergence of new brands and products [9][32].