Haitong International released a research report stating that the global sportswear and footwear sector may have reached a ceiling in terms of gaining market share from casualwear and casual footwear. This trend is particularly evident in North America. In 2025, the North American sportswear sector gained a mere 0.1 percentage point of market share, while the share of casual apparel increased year-on-year, and the share of casual footwear still experienced a slight decline. In China, casualwear and footwear still accounted for over 70% of the market in 2025, indicating that sportswear brands still have considerable room for market share growth. The report is optimistic about Crystal International Group Limited (02332), an OEM benefiting from the global trend of apparel integration due to its full-category offerings. It also favors Chinese sportswear brands LI NING (02331) and ANTA SPORTS (02020), which still have potential for market share gains. However, athleisure is gradually becoming a new competitive front; capturing the athleisure segment is key to gaining share. The main points from Haitong International are as follows.
The global sportswear sector's ability to capture market share from casualwear and footwear may have peaked, a trend more pronounced in North America. According to Euromonitor data, over the past decade, the global sportswear and footwear industry collectively gained 4.4 percentage points of market share from casualwear and casual footwear, increasing its overall share from 14.1% to 18.5%. Post-pandemic, the growth rate differential between the sportswear industry and the casualwear/footwear sectors has narrowed significantly. In 2025, global sportswear gained only 0.2% share from casual apparel and 0.1% from casual footwear. This trend is more noticeable in North America, where the sportswear sector gained just 0.1 percentage point of share in 2025. Meanwhile, the share of casual apparel increased year-on-year, while the share of casual footwear continued to decline slightly.
In China, casualwear and footwear still accounted for over 70% of the market in 2025, indicating sportswear brands still have room for share gains. Euromonitor data shows that casual apparel accounted for 70.6% of the Chinese market in 2025. This figure is significantly higher than the global average of 64.4% and North America's 58.9%, suggesting considerable potential for decline. The trend of Chinese sportswear gaining share from casual apparel continues. However, the market share for casual footwear is already close to North American levels, leaving limited room for further decline.
Overseas casual apparel brands have experienced a revival since 2022/23, with the resurgence of millennial aesthetics providing an additional boost. Gap, once a national brand for the American middle class, faced prolonged operational pressure since 2010. In 2023, Richard Dickson, who previously led the brand culture revival for Barbie and propelled the success of the "Barbie" movie, became Gap's new CEO, spearheading the brand's comeback. Both the Gap and Old Navy brands have achieved sustained comparable store sales growth since mid-2023. Victoria's Secret returned to growth starting in 2023, driven by its casual, comfortable lingerie and loungewear. Superdry began a brand repositioning in 2025, returning to British heritage classics, sustainability, and full-price sales while abandoning Japanese-inspired elements. The company returned to profit before tax in FY25, with improved comparable store sales. Levi's, as the dominant global leader in jeans, has maintained steady growth and a strong position in its sub-category, positioning it as a major beneficiary of the strong millennial style resurgence in 2025-2026.
The shift towards athleisure is becoming a new battleground for sportswear brands. Since 2022, Adidas has found success with its Adidas Originals casual footwear and apparel line. Successive launches of shoe models like the Samba, Gazelle, Campus, SL72, and shell-toe sneakers have built momentum. Multiple series within the Originals classic reissue line have also successfully contributed to the brand's revival. Lululemon has expanded its categories into pure casualwear series and work-commute collections. On Running launched a casual series in 2023 and increased in-store display space to boost sales.
Regarding investment targets, the report is optimistic about Crystal International Group Limited (02332), an OEM poised to benefit from the global apparel integration trend due to its comprehensive product range across categories. It also favors Chinese sportswear brands LI NING (02331) and ANTA SPORTS (02020), which still have room for market share expansion. However, as athleisure gradually becomes the new competitive frontier, success in this segment will be crucial for gaining share. Key risk factors include intensifying competition, shifts in fashion trends and consumer demand, high inventory levels, and technological iteration.
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