In the first half of 2026, China's sportswear market did not see the expected full recovery. The performance of the four local giants—Anta, Li-Ning, Xtep, and 361 Degrees—showed unprecedented divergence. Anta, leveraging its multi-brand matrix, especially the strong growth of high-end outdoor brands, is estimated to have exceeded 41 billion yuan in revenue, firmly holding the top spot. Meanwhile, 361 Degrees surged across all segments, becoming the biggest dark horse of the half-year period. This reveals a core trend: the ceiling for mass-market sportswear brands has been reached, and niche segments and refined channel operations are the keys to breaking through.
Performance Divergence: Anta Leads, 361 Degrees Rises
In terms of revenue scale, Anta's leading position has further solidified. Based on the 38.544 billion yuan base in H1 2025, and considering the mid-single-digit growth of Anta's main brand and FILA, plus 35%-40% growth from new brands like Descente and Kolon in H1 2026, industry estimates place Anta Group's H1 2026 revenue in the range of 41-43 billion yuan. Li-Ning's main brand faced offline pressure, with a low single-digit decline in Q2 flow, while overall brand flow remained flat, leading to an estimated revenue of 14.5-14.8 billion yuan, ranking second. Xtep and 361 Degrees are close in scale, with estimated revenues of 6.7-6.9 billion yuan and 6.1-6.3 billion yuan respectively, forming the second tier.
A common feature across all brands was a sequential slowdown in Q2 growth. Weak macro consumer confidence, extreme weather impacting offline traffic, and intensified price competition were shared pressures. However, each company navigated differently based on brand structure and channel strategy. Anta's multi-brand strategy, especially its high-end outdoor portfolio, successfully hedged against cyclical downturns. Descente and Kolon saw retail scale surge 35%-40% year-on-year in H1, maintaining 25%-30% high growth in Q2, with Kolon's single-quarter growth exceeding 40%. This indicates that the outdoor segment has become a new growth engine amid a slowing overall market.
361 Degrees was the only brand among the four to maintain high prosperity across all segments. Its main brand and children's wear both recorded mid-to-high single-digit growth in offline retail, with e-commerce flow rising by high single digits, all built on a high base from H1 2025. On the channel side, 361 Degrees accelerated superstore expansion, reaching 187 stores by end-June, with a net addition of 45 stores in Q2. The management also saw a major shakeup, with a former Nike Greater China executive joining, potentially upgrading brand operations and global expansion. 361 Degrees' performance shows that precise niche positioning and aggressive channel expansion can achieve counter-trend growth even in a down market.
Channel Transformation: From Quantity to Quality
In H1 2026, the era of extensive store expansion officially ended. All brands are optimizing their channel structures. Li-Ning's main brand stores saw a net closure of 28 stores year-to-date, totaling 6,063 by end-June, while its children's wear stores expanded by 52 in Q2. Xtep accelerated its DTC channel reform, reclaiming over 200 stores in H1 and planning to reclaim another 400 in H2. Anta focused on improving terminal operation quality through strict inventory and discount control; FILA's inventory-to-sales ratio has long been below 5 months, with offline discounts consistently at 27% off.
These actions share a common logic: companies no longer simply pursue store count but instead focus on inventory turnover, terminal discounts, and per-store profitability. For buyers and factories, this sends a clear signal that brands will demand more from their supply chains—faster response times, more accurate order forecasts, and more flexible capacity. The traditional 'large batch, long lead time' order model will gradually be replaced by 'small batch, fast response' models.
Niche Segments: Outdoor, Kids' Wear, and Professional Running as Growth Engines
Looking at the growth drivers for each brand, the ceiling for single mass-market brands is evident. Anta's outdoor brands, Xtep's Saucony, Li-Ning's YOUNG kids' line, and 361 Degrees' children's wear all validate the dividends of niche segments. Xtep's main brand saw a slight decline in retail sales year-on-year in H1, but its professional running brand Saucony achieved low double-digit growth, with Q1 growth exceeding 20%. Its cross-border e-commerce business also doubled. This suggests that future competition will center on 'professionalism' and 'niche' rather than generic brand marketing.
For upstream fabric and yarn suppliers, this means product development directions need to adjust. Demand for outdoor functional fabrics, children's-specific materials, and professional running shoe components will continue to grow. Companies that can offer differentiated, high-performance materials will gain higher pricing power and order stability.