Core Insights - Merino wool is experiencing a resurgence in popularity, being utilized in various clothing items from base layers to outdoor apparel, appealing to middle-class consumers [1][3][5] - The unique properties of Merino wool, such as moisture-wicking, temperature regulation, and odor resistance, contribute to its growing market presence [3][18][20] Market Trends - Sales of Merino wool apparel are projected to grow by 18% by July 2025, with a 58% increase in outdoor sportswear GMV, and a remarkable 119% growth in Merino wool products [8] - Brands like icebreaker and Smartwool are leveraging Merino wool as a core material, with average product prices ranging from 500 to 2000 yuan [8][10] Consumer Preferences - Chinese consumers show a strong preference for finer Merino wool, which is perceived as more comfortable, leading to higher price points for finer fibers [22][24] - The perception of Merino wool as a premium product aligns with the identity of middle-class consumers seeking quality and exclusivity [24] Product Performance and Challenges - Despite its advantages, there are concerns regarding the durability of Merino wool products, with reports of pilling, wear, and damage after limited use [29][33] - The high expectations for performance and durability may challenge brands as they expand in the Chinese market [37][44] Brand Strategies - Icebreaker is actively expanding its presence in China, with plans to open over 40 stores by the end of 2025 and introducing new product lines, including a Merino wool-based outdoor jacket [39][41] - The brand aims to enhance its market position by addressing consumer concerns and expanding its product offerings beyond base layers [37][39]