East Money Securities released a research report stating that as of early April 2025, the number of outdoor sports participants in China has exceeded 400 million, indicating a participation rate of approximately 30%. New business formats, among others, collectively form a rich consumption matrix, and the loyalty of outdoor enthusiasts translates into strong purchasing power. The nationwide fitness craze in China is expected to continue intensifying, benefiting from multiple drivers including policy support, supply-side factors, and demand-side factors. The Chinese outdoor industry still possesses favorable medium-to-long-term growth prospects. Significant market gaps exist in lower-tier cities awaiting future penetration, while domestic brands offer relative cost-effectiveness and are actively pursuing strategies of "quality upgrades and brand breakthroughs," suggesting potential for further market penetration. The main views of East Money Securities are as follows:
Outdoor sports in China are gradually evolving into a lifestyle, with multiple activities forming a diverse consumption matrix. Reviewing the development of outdoor sports in China, which began with mountaineering and exploration activities in the 1950s, the sector has progressed through rapid development and periods of adjustment, transitioning from a "niche exploration" to a "mainstream daily activity." Currently, China's outdoor sports industry is undergoing a shift from "professional sports" to "lifestyle integration," evolving from a single sports category into a comprehensive lifestyle blending culture, ecology, and consumption. According to a report from the General Administration of Sport of China, the outdoor sports industry has become one of the most robust growth areas within the sports industry. As of early April 2025, the number of participants in outdoor sports in China surpassed 400 million, representing a participation rate of about 30%. In terms of consumption categories, ice and snow sports, mountain activities, water sports, suburban city projects, and new formats under the "night economy" collectively create a rich consumption matrix, with the loyalty of outdoor enthusiasts demonstrating substantial purchasing power.
High-performance outdoor apparel is the fastest-growing segment, with jackets being the largest single product category. The popularity of outdoor sports has spurred demand for related consumer goods. Apparel and footwear, combining functionality and fashion, have become the preferred consumption category for outdoor activities. Segmenting outdoor apparel further, the high-performance outdoor apparel market exhibits the highest growth rate. In 2024, the market size for high-performance outdoor apparel in mainland China exceeded 100 billion yuan, with a CAGR of 13.8% from 2019 to 2024. It is projected to grow at a CAGR of 15.5% from 2025 to 2029, reaching an estimated 215.8 billion yuan by 2029. Looking at specific product categories, jackets are the dominant item within outdoor apparel. In 2024, the market size for jackets and pants in mainland China accounted for nearly 30% of the high-performance outdoor apparel market. The jacket and pants market is forecasted to achieve a CAGR of 18.9% from 2025 to 2029. Currently, the concentration ratio in the mainland jackets and pants industry is moderately high, with a CR10 of approximately 54.9% in 2024. The leading brand held a market share of 15.9%, while the brand PELLIOT held a 3.9% share, making it the second-largest jackets and pants brand in mainland China. Concurrently, domestic brands are expanding rapidly. Their scale surpassed 10 billion yuan in 2024, increasing their proportion to 35.3%, and is expected to continue growing rapidly to nearly 15 billion yuan in 2025.
PELLIOT has risen rapidly with the outdoor trend, achieving breakthroughs through product positioning, marketing, and channel strategies. The PELLIOT brand was established in 2012, positioning itself as a Chinese high-performance outdoor lifestyle brand with products covering apparel, footwear, equipment, and accessories. In 2024, PELLIOT achieved total revenue of 1.77 billion yuan, a year-on-year increase of 94.5%, and an adjusted net profit of 300 million yuan, a year-on-year increase of 95.1%. The CAGR for revenue and adjusted net profit from 2022 to 2024 reached +116% and +232%, respectively. Despite a generally sluggish apparel consumption environment post-pandemic, PELLIOT's high growth has been driven by a combination of internal and external factors. On one hand, factors such as increased outdoor demand after the pandemic,密集出台的政策, and the influence of content platforms have collectively boosted the popularity of outdoor activities, pushing demand for functional apparel into the mainstream and providing a favorable and relatively fitting external environment for PELLIOT's rise. On the other hand, in terms of product positioning, marketing strategy, and channel strategy, PELLIOT has chosen development paths suitable for domestic brands and the domestic market environment. Its early layout of product lines, product strength, price points, and e-commerce channel foundation have helped it align well with the demand for "light outdoor sports," while the brand is also gradually advancing its upgrade strategy.
The nationwide fitness craze is expected to continue intensifying, providing domestic brands with room for penetration. East Money Securities believes that China's nationwide fitness enthusiasm will continue to heat up, benefiting from multiple drivers including policy support, supply-side factors, and demand-side factors. The Chinese outdoor industry still possesses favorable medium-to-long-term growth prospects. On one hand, China's outdoor sports participation rate, compared to the United States (approximately 57.3% in 2023), still has room to double, indicating potential for outdoor sports to become even more mainstream. On the other hand, the post-pandemic industry红利爆发期 may be nearing its end, with the industry gradually transitioning from high-speed growth to meticulous cultivation. Light participants may shift towards more in-depth or professional outdoor activities. The progression path of outdoor sports, characterized by "starting from suburban activities and penetrating multiple scenarios," is also expected to be accompanied by an increase in budgets for apparel, footwear, and equipment. In 2024, the CR3 and CR10 of the mainland China high-performance outdoor apparel market were 14.0% and 27.3%, respectively, indicating relatively low market share for individual brands. Meanwhile, domestic brands occupied 4 spots among the TOP 10. East Money believes that significant market gaps exist in lower-tier cities awaiting future penetration. Domestic brands offer relative cost-effectiveness and are actively pursuing strategies of "quality upgrades and brand breakthroughs." In recent years, domestic outdoor brands like PELLIOT have been in a rapid development phase, suggesting potential for better penetration going forward.
Looking at the running shoe segment, where multiple leading international and domestic sports brands are focusing efforts, domestic brands are also gradually rising and possess certain cost-effectiveness advantages. They continue to innovate in products and technology and actively compete for resources in events like marathons. It is expected that the supply of such events will continue to optimize, driving further growth in demand for running equipment consumption.
Investment recommendations: The overall apparel market has largely entered an era of low-speed growth. However, driven by consumption changes and demand diversification, sub-categories are expected to find new growth spaces. As outdoor/sports scenarios continue to diversify, with more niche sports gaining popularity and multi-layered interests fragmenting further, the growth potential and opportunities in the outdoor/sports industry remain promising. Looking ahead, national policies aimed at stimulating consumption are expected to continue taking effect. Furthermore, year-end promotions and consumption peaks before New Year's Day and the Spring Festival are likely to drive a continued recovery in apparel demand. It is advisable to prioritize companies with diversified brand portfolios or those having opportunities to increase market share. Attention is recommended on leading comprehensive sports brand groups listed in Hong Kong that are entering the outdoor track, such as ANTA SPORTS (02020), XTEP INT'L (01368), LI NING (02331), and 361 DEGREES (01361). Additionally, the outdoor-focused company PELLIOT completed two pre-IPO financing rounds between 2023 and 2025 and submitted a second listing application to the Hong Kong Stock Exchange in November 2025. If successfully listed in the future, PELLIOT could become the "first stock of Chinese high-performance outdoor lifestyle," and it is also recommended to continuously monitor PELLIOT's IPO progress.
Risk warnings include a sluggish macroeconomy, risks of consumption recovery falling short of expectations, changes in consumer preferences and market trends, risks of channel inventory buildup, and product promotion underperformance.
