Core Insights - The article discusses the cost structure and pricing mechanisms in the Chinese sportswear industry, highlighting the trends in material costs, labor costs, and the overall value chain [1][2][6]. Cost Structure - In the production of sportswear, raw materials constitute the largest cost component, although their proportion has been declining in recent years. For instance, in 2024, the raw material cost for seamless sportswear from Jian Sheng Group is projected to be 49.01%, while for knitted cotton socks, it is 58.97%. Additionally, Jia Lin Jie reports a raw material cost proportion of 79.8% [1][2]. - Labor costs represent the second-largest expenditure, fluctuating between 10% and 30%, while manufacturing expenses range from 3% to 25% [1]. Pricing Mechanism - The pricing of sportswear in China is influenced by the supply side, manufacturing side, value-added premiums, and consumer demand elasticity. The cost prices on the supply side include material, equipment, technology, and labor costs, which are then transformed into production costs at the manufacturing level. These costs, along with supply-demand premiums, R&D costs, and corporate profits, determine the "manufacturing price" that is transmitted through distribution channels to the end market [6]. Value Chain - The value chain of the Chinese sportswear industry exhibits a "low-middle, high-both-ends" trend. The upstream consists of textile raw materials and equipment suppliers, while the midstream involves the production of various sportswear. The downstream primarily includes sales through online platforms and offline stores [8]. - The production process begins with designers creating concepts based on market demand and trends, followed by sourcing raw materials for production. While well-known brands often produce in-house, many opt to use authorized professional factories for manufacturing, which are then sold through specialized channels. High-end brands typically enjoy higher pricing and profit margins, whereas traditional textile manufacturers face tighter margins due to rising labor costs [10].

Group 1 - The core viewpoint of the article highlights the rapid growth and competitive landscape of the Chinese sportswear industry, driven by increasing health awareness and sports consumption upgrades [1][3]. - Anta Sports leads the industry with a projected revenue of 39.385 billion yuan in 2024, significantly ahead of its competitors [3][5]. - The second tier of competition includes Li Ning, Xtep International, and 361 Degrees, which have also made substantial investments in their sportswear businesses [1][3]. Group 2 - The analysis indicates that Anta Sports is the clear leader in revenue and growth, with a 12.31% increase in revenue for its apparel products in 2024 [3][5]. - The gross profit margins of sportswear companies vary significantly, with Anta Sports and Sanfu Outdoor exceeding 65%, while others like Xtep International and 361 Degrees hover around 41% [5][9]. - The market share of domestic brands like Anta and Li Ning has been increasing, with Anta's share rising from 15.3% in 2019 to 23.0% in 2024, while international brands like Nike and Adidas have seen a decline [9][12]. Group 3 - The market concentration in the Chinese sportswear industry shows a slight decrease in CR3 from 58.3% in 2019 to 53.1% in 2024, indicating a stable competitive environment with significant market shares held by leading companies [12]. - The regional distribution of sportswear manufacturing companies is concentrated in Liaoning, Guangdong, and Fujian, which together account for 62.2% of the total 4,543 companies in the sector [16]. - The competitive dynamics of the industry, analyzed through Porter's Five Forces model, reveal moderate supplier bargaining power, significant buyer bargaining power, and high competition among numerous brands [18].

Core Viewpoint - The export scale of Chinese sportswear has recently declined, with significant fluctuations observed over the years, influenced by global trade policies and market competition [2][6]. Export Scale and Trends - In Q1 2025, the export value of sportswear from China reached $6.97 billion, making it a significant contributor to the sports goods export sector, second only to fitness equipment and outdoor products [1]. - The export value of sportswear from China was stable at around $2 billion from 2015 to 2019, but saw a sharp decline in 2020 due to the pandemic. A notable recovery occurred in 2021-2022, followed by a downturn in 2023-2024, with a 7.54% year-on-year decrease in the first four months of 2025 [2]. Major Export Destinations - The United States remains the largest market for Chinese sportswear, with an export value of $5.97 billion in 2024, accounting for 25.82% of total exports. The UK and Germany follow with $1.40 billion (6.05%) and $1.03 billion (4.45%) respectively [6][7]. - Other countries like Spain, Australia, and the Netherlands also contribute to the export market, while exports to Russia, Japan, and France have decreased [6]. Company Performance and International Strategy - Companies in the sportswear sector show varied performance in international markets. For instance, Jiasheng Group and Jialinjie have high overseas revenue shares of 62.27% and 85.17%, respectively, while Li Ning and 361 Degrees have less than 2% [8]. - Anta has established a significant presence in Southeast Asia and is expanding into the US and Europe, with 243 overseas stores by the end of 2024. Li Ning is more cautious in its international strategy, with overseas revenue accounting for less than 10% [9][12]. - Xtep focuses on the Southeast Asian low-end market, while 361 Degrees has expanded its sales network to 1,365 locations in the Americas and Europe, launching an independent overseas e-commerce site [12][13].