October 7, 2024
BEIJING – Among them, 308 are marathon games, including 175 in full distance and 127 in half distance.
The steady expansion of China’s running market has also led to the development of the running shoe market.
According to the “2023-28 Investment Forecast Report of China’s Running Shoe Industry” released by ChinaIRN, the Chinese sports shoe market reached $30.3 billion in 2021. According to the “China Running White Paper” by Joyun, a data platform for the running sector, over 83 percent of runners have purchased two or more pairs of running shoes, with 78.5 percent of their spending on purchasing running equipment (mainly running shoes). More than 70 percent of runners have an annual consumption amount exceeding 1,000 yuan, of which 32.3 percent are between 2,000-5,000 yuan.
ASICS has delivered a strong financial performance in the first half of 2024, with sales growing by 18 percent to 342.2 billion yen ($2.37 billion), according to the company’s recent financial report.
A major contributor to this growth has been the robust performance of its professional running shoe P.RUN, which saw a 15.6 percent year-on-year increase, reaching 170.9 billion yen.
ASICS’s running shoe portfolio is categorized into four main types: protective, cushioning, rebound, and racing, contributing to the brand’s wider consumer coverage.
The company has also deepened its community engagement efforts. In early 2024, the company opened two running bases in Beijing and Shanghai.
This platform integrates sports spaces with community activities, offering a variety of training programs designed for runners of all levels. The company is positioning itself as a leader in the running shoe market and also as a community-driven brand that fosters a healthier, active lifestyles.
ASICS plans to expand its reach within the running community by partnering with various local lifestyle and sports communities. The goal is to create a vibrant platform for sports enthusiasts from diverse cultural backgrounds to connect and engage in a range of activities.
Meanwhile, Swiss sportswear producer On Holding AG in August 2024, released its second-quarter report, highlighting impressive growth. ON recorded revenue of 567.7 million Swiss francs ($668.4 million) in the second quarter, a year-on-year increase of 27.8 percent. The brand’s first-half revenue reached 1.1 billion Swiss francs, up 24.4 percent year-on-year. The Asia-Pacific region, including China, experienced a 73.7 percent surge in sales during the second quarter.
ON’s global footprint remains dominated by the Americas, while the Asia-Pacific market, including China, plays a key role.
Despite the global slowdown in the growth of many sports brands, ON maintained a growth rate of nearly 30 percent, down from over 40 percent last year. However, with an annual volume of around $2.5 billion, ON remains a niche player in the running shoe market, competing against brands like HOKA and Brooks.
These brands are challenging the dominance of global giants such as Nike and Adidas, which remain heavily invested in the segment. Other sports brands like New Balance and Puma also compete aggressively in the market.
ON’s Co-CEO and CFO Martin Hoffmann said during a recent earnings call that the company plans to expand its presence in China, with the number of self-operated stores expected to reach 30 by the end of this year.
Brooks Running, a subsidiary of Berkshire Hathaway Inc and headquartered in Seattle, Washington, launched a retail store in Shanghai in August, its first in China.
The second store in Shanghai is planned for later this year, in addition to first-ever storefronts in Beijing and Guangzhou, Guangdong province.
With the latest running shoes, the company hopes to grab more market share in the booming sector.
Zhang Qing, founder of Beijing-based sports marketing consultancy Key-Solution, the running shoe market in China holds immense growth potential due to the rising purchasing power of middle-income families. However, he cautioned that competition is becoming increasingly fierce.
“At the Paris Olympics this year, everyone was paying close attention to the brands athletes were wearing during the marathon,” he said.
“To stay competitive, brands will need to heavily invest in athlete endorsements and continuously innovate to differentiate themselves,” Zhang said.