Core Viewpoint - The article highlights the growth of China's sports industry, emphasizing the increasing integration of sports into the economy and the positive performance of sports goods companies, particularly in footwear and specialized sports categories [3][4]. Industry Overview - In July 2025, China's retail sales of goods grew by 4.0% year-on-year, with significant growth in upgraded products, particularly sports and entertainment goods, which saw a 13.7% increase [3]. - The sports industry has experienced an average annual growth rate of over 10% in the past five years, contributing to national economic growth and local economic transformation [3]. Company Performance - Multiple sports goods companies reported positive performance trends, with Li Ning's stock rising nearly 9% to a 10-month high, and Anta Sports increasing by over 3% [5]. - Li Ning's mid-year report showed total revenue of 14.817 billion yuan, a slight increase of 3.3% year-on-year, while net profit fell by 11% to 1.737 billion yuan [7]. - Amer Sports reported a 23% year-on-year revenue increase to $1.236 billion, returning to profitability with a net profit of $18 million, driven by a 42% revenue growth in the Greater China region [8]. - 361 Degrees reported a revenue of 5.705 billion yuan, an 11% increase year-on-year, with net profit rising by 8.6% to 858 million yuan [8]. Product Focus - Footwear is a major focus for sports companies, with Li Ning's footwear products accounting for 56% of total revenue. The running category has seen a compound annual growth rate of approximately 9.5%, while Li Ning's running category has exceeded 20% [8]. - Amer Sports' brand Arc'teryx has also seen significant growth in footwear, with a three-digit growth rate last year, and plans to launch new footwear products in the second half of 2025 [9]. - The trend towards specialized and segmented consumption in sports is evident, with Li Ning's badminton business showing strong growth, accounting for 7% of total revenue [12]. Market Trends - The article notes a growing trend towards professionalization and segmentation in sports consumption, with companies like Li Ning expanding into new categories such as tennis, influenced by recent successes of Chinese athletes [12][13]. - 361 Degrees is also focusing on women's tennis products as a key area for future growth [13]. - The established tennis brand Wilson under Amer Sports has seen strong growth, with plans to open approximately 50 new tennis stores in China [15].