Core Insights - Decathlon plans to sell approximately 30% of its Chinese subsidiary, with an estimated valuation of €10-15 billion (around ¥100 billion), marking the first significant equity transfer in nearly 50 years [1][2] - The decision is driven by competitive pressures in the Chinese market and the need for strategic restructuring amid declining profitability [2][4] Group 1: Strategic Rationale - The equity sale is a response to increasing competition from local brands like Anta and Li Ning, which have been capturing market share through localized designs and digital marketing [2][3] - The move towards a mixed strategy of "capital increase and share transfer" allows Decathlon to optimize its asset structure while maintaining control over its core supply chain [3][4] - The funds from the equity sale may support Decathlon's supply chain diversification strategy, particularly as it shifts some procurement focus to India [3][7] Group 2: Market Position and Challenges - Decathlon China has a localized supply chain with a design center in Suzhou and factories in Shandong, enabling it to maintain competitive pricing [4][5] - Digital sales in China account for 25% of total sales, surpassing the global average of 20%, indicating a successful transition towards digitalization [4][6] - However, Decathlon faces structural challenges, including pressure from local brands and a need to enhance customer experience compared to competitors [5][6] Group 3: Future Outlook - The equity sale could lead to two potential transformation paths: collaboration with local retail partners for deeper market penetration or a more aggressive digital transformation led by financial investors [7][8] - Regardless of the outcome, maintaining control over the strategic direction remains a priority for Decathlon's founding family [7][8] - The equity experiment reflects a broader trend of multinational companies adapting to local market dynamics and consumer preferences in China [8]