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PRC outdoor gear market projected to be $100 bn by 2025

Nov '19
Pic: Shutterstock
Pic: Shutterstock
As people earn more, the pursuit of spiritual growth and health is boosting the outdoor gear market in China, whose size was more than $60 billion—up over 15 per cent year-on-year (YoY)—in 2018 and is expected to be worth $67.8 billion in 2019 and at least $100 billion in 2025, according to a report released recently by Dublin-based Research and Markets.

As a major consumer of outdoor gears worldwide, China in 2018 saw total retail sales of outdoor gears edge up 2.1 per cent YoY to $3.77 billion, showing a compounded annual growth rate (CAGR) of 4 per cent between 2015 and 2018, far lower than a rate of 29.5 per cent from 2010 to 2014, said the ‘China Outdoor Gear Industry Report, 2019-2025’.

As the Chinese outdoor gear market levels off, it will sustain an average annual growth rate (AAGR) of 3-5 per cent during 2019-2025.

Apparel still prevailed in the market, accounting for 45.3 per cent of total outdoor gear sales in 2018; camping equipment and shoes made up over 10 per cent. As consumers know more about outdoor sports and grow mature for the years, tools and apparatus has been developing faster, with a market share of more than 20 per cent in 2018; bedsides, these products using new technology offer new improvements, which in turn fuel consumption.

Brick-and-mortar retail stores were still a mainstay but grew slowly; e-commerce channels occupied the most, or virtually 41.4 per cent of total sales in 2018, albeit in the smallest number. As mainstream e-commerce platforms cost more and become less competitive, new media platforms begin to come to the fore, or will even be a key stimulus for the growth of e-commerce channels.

Of the roughly 935 outdoor gear brands globally in 2018, Chinese brands swept a combined 52.4 per cent, around 40 percentage points higher than that in 2000. Yet, the dislocation and compatibility among outdoor gear brands in China led to a high and almost unchanged industry concentration, though there had been a surge in number of brands. The collective market share of the top ten Chinese brands hovered at 55 per cent after 2014.

In 2018, there were 142 million people going in for pan-outdoor sports in China, an increase of 12 million compared with 2013 when 130 million did, with a CAGR of 1.8 per cent from 2013 to 2018.

The popularity of sports items such as cross country running, self-driving trip and skiing will give outdoor gear market a big boost. In 2018, a 9.1 per cent increase in a number of skiers in China contributed to a 25 per cent jump in sales of snowboards. Sales of leisure and camping equipment and outdoor sticks in the country soared by over 60 per cent in 2018.

Fibre2Fashion News Desk (DS)

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