Summary of Expert Call on China Sportswear Industry Industry Overview - The expert call focused on the sportswear distribution industry in Eastern China, highlighting recent sales trends and future outlooks for major brands like Nike, Li Ning, and Anta [1][3]. Key Points Sales Trends - Sales in October and November were generally lukewarm but showed sequential improvement from September's low levels [1][7]. - The first half of December saw a deterioration in sales due to unfavorable weather conditions, although a recent drop in temperature is expected to help sales recover [1][7]. Discounts and Inventory - Discounts in regular stores have remained stable or improved year-over-year, attributed to the distributor's self-help efforts [1][9]. - Inventory levels by November were not optimal, remaining flat to slightly higher year-over-year [1][9]. 2026 Outlook - The expert expressed a cautious outlook for large brands in 2026, indicating disciplined procurement plans and highlighting ongoing discount risks from outlets and online channels [1][9]. - Nike's retail sales are expected to decline further in the distribution region due to several factors, including persistent store closure risks and fierce competition from local brands [1][9]. - Li Ning is expected to maintain brand momentum with new product launches, although procurement will remain disciplined [1][9]. - Anta is noted for its strong execution capabilities, which allow it to respond quickly to market slowdowns, with outdoor product momentum expected to continue into 2026 [1][9]. Brand-Specific Insights - **Nike**: Anticipated continued decline in retail sales due to demand weakness and competition from local brands offering better value [1][9]. - **Li Ning**: Lower risk of store closures due to realistic channel targets; potential for brand momentum with new product series [1][9]. - **Anta**: Strong execution in lower-tier cities may pressure Tier 2 brands; outdoor products performing well [1][9]. Category Performance - Running and outdoor categories are experiencing high growth, leading to increased orders from distributors [1][9]. - Basketball category shows reduced in-store exhibition and expected lingering demand weakness [1][9]. Additional Observations - The expert noted that the upcoming longer Chinese New Year selling period could benefit winter inventory sell-out, although spring collections may face sales pressure due to a squeezed selling window [1][9]. - The expert's insights reflect a broader trend of cautious optimism tempered by competitive pressures and changing consumer behavior in the sportswear market [1][9].