虎嗅APP·2025-06-15 10:35Core Viewpoint - The competition between On and Lululemon in the Chinese market is intensifying, with On showing significant growth and Lululemon facing challenges, particularly in profitability and market guidance [4][11]. Group 1: Company Performance - On's revenue in the Asia-Pacific region grew by 130.1% year-on-year in Q1 2025, with expectations for the Chinese market to reach approximately 4.17 billion USD by 2026 [7][8]. - Lululemon's international revenue increased by 19% year-on-year, with the Chinese market showing a growth rate of 21%, although this is a slowdown compared to previous quarters [8][10]. - Lululemon's global net revenue for Q1 was 2.4 billion USD, while On's net sales reached approximately 894 million USD [11][12]. Group 2: Market Strategy - On is expanding its direct store strategy in China, aiming to increase its store count to 100 by 2026, with a focus on flagship stores and online channels [8][10]. - Lululemon plans to increase its store count in China to 220 by 2026, with a strategy to optimize store layouts and enhance digital marketing efforts [10][11]. - Both companies are targeting second and third-tier cities for expansion, with Lululemon already having a significant presence in these markets [10][19]. Group 3: Product Offering and Consumer Base - On is focusing on diversifying its product range, particularly in apparel, which saw a 93.1% year-on-year growth in Q1 2025, while footwear grew by 40.5% [17]. - Lululemon's men's apparel segment is growing but remains a smaller part of its overall business, with a focus on high-end consumers [19][20]. - Both brands are competing for the same consumer base of young, affluent individuals who are interested in fitness and lifestyle products [14][20]. Group 4: Competitive Landscape - The competition between On and Lululemon is characterized by overlapping consumer demographics, with both brands leveraging community engagement and digital platforms for marketing [14][20]. - The market is becoming increasingly fragmented, with other international brands also vying for market share in China, indicating a competitive environment for both On and Lululemon [21][22]. - The potential for future clashes in product categories, particularly in footwear and apparel, is anticipated as both brands continue to expand their offerings [20][22].