In the first half of 2026, the Chinese sportswear market bid farewell to the era of universal growth. Retail data from the four leading domestic brands—Anta, Li-Ning, Xtep, and 361°—revealed clear divergence, with multi-brand strategies and niche segment penetration becoming the key differentiators. Industry data shows a common slowdown in Q2 growth rates, but structural differences are far more significant than aggregate changes.
Multi-Brand Portfolios Hedge Cyclical Pressures
Anta Group's H1 revenue is estimated at RMB 41-43 billion, maintaining its top position. Its resilience stems from a balanced brand portfolio: the core Anta brand and FILA posted mid-single-digit growth, while premium outdoor brands Descente and Kolon surged 35-40% year-on-year, maintaining 25-30% growth in Q2. Kolon even exceeded 40% in a single quarter. As mass-market sportswear growth plateaus, the outdoor niche has become Anta's strongest growth engine. FILA's inventory management also stood out, with inventory-to-sales ratios consistently below five months and offline discounts uniformly at 7.3% off, leading the industry in operational quality.
Li-Ning Group's H1 revenue is estimated at RMB 14.5-14.8 billion, ranking second. However, its core brand saw low-single-digit declines in Q2 across all channels, with offline direct and wholesale channels both weak; only e-commerce posted mid-single-digit positive growth. The Li-Ning YOUNG children's wear line acted as a stabilizer, offsetting the core brand's decline. On the channel front, Li-Ning net closed 28 core-brand stores in H1, while children's wear stores net added 52, indicating a proactive shift to eliminate underperforming outlets and improve channel quality.
Xtep and 361° have similar revenue scales, estimated at RMB 6.7-6.9 billion and RMB 6.1-6.3 billion respectively, but their growth trajectories diverged sharply. Xtep's core brand posted a slight year-on-year decline, which widened in Q2, with only Saucony's low-double-digit growth and a doubling of cross-border e-commerce supporting group performance. In contrast, 361° achieved broad-based high growth: its core brand and children's wear saw mid-to-high single-digit offline growth, and e-commerce grew at a high single-digit rate, all built on a high base from the same period in 2025.
Niche Segment Dividends and Channel Refinement Become the New Normal
Two core industry trends emerge from H1 2026 data.
First, the growth ceiling for single mass-market sportswear brands has been reached. Anta's outdoor portfolio, Xtep's Saucony, and the children's wear lines of Li-Ning and 361° all validate the high growth potential of niche segments. For buyers and factories, this means fabric order structures are fundamentally changing—demand for outdoor functional fabrics, children's sportswear materials, and professional running shoe components will outpace that of traditional mass-market sportswear fabrics over the long term.
Second, the era of extensive store expansion is over. Li-Ning is actively closing stores, Xtep is accelerating its DTC transformation, 361° is expanding its superstore format, and Anta is strictly controlling inventory and discounts. Brands are no longer chasing store count but focusing on inventory turnover, terminal discounts, and per-store profitability. For upstream suppliers, channel refinement translates into more fragmented orders, shorter lead times, and higher quality requirements, demanding flexible production capabilities from OEMs.
Practical Recommendations
For Buyers - Focus on capacity for outdoor functional fabrics (e.g., waterproof breathable, lightweight warm) as Anta's outdoor segment growth signals sustained strong demand. - Children's wear fabric orders offer greater stability than adult sportswear, as seen in the resilient growth of Li-Ning YOUNG and 361° Kids. - Be cautious about order volatility from core brands; Li-Ning and Xtep's offline channels are still adjusting, leading to potentially more unpredictable order cycles and volumes.
For Textile Factories - Invest in flexible production and quick-response capabilities for small batches, as brand channel refinement shifts orders from large-volume, few-batch to small-volume, many-batch patterns. - Develop R&D for outdoor and professional sportswear fabrics; the growth of Saucony and Descente proves that specialty categories offer higher profit margins. - Monitor demand for fabrics supporting cross-border e-commerce; Xtep's doubling of cross-border sales suggests growing overseas demand for domestic sportswear materials.
The Chinese sportswear industry has officially transitioned from a scale-expansion phase to a new stage of high-quality, refined operation. For the entire supply chain, understanding the logic behind brand divergence is more critical than chasing aggregate growth.