China's Sportswear and Fashion Market: Strategic Investment Opportunities Amid Rising Domestic Demand
South Korea's leading fashion platform MUSINSA has entered the Chinese market through a strategic joint venture with ANTA Sports, China's largest sportswear group. The venture, MUSINSA China, is set to complete by September 2025, pending regulatory approval, with MUSINSA holding a 60% stake and ANTA 40%. The joint venture will oversee the expansion of MUSINSA STANDARD and Musinsa Store across online and offline channels, targeting China's younger, style-conscious consumers.
The partnership illustrates a broader trend: China's sportswear and lifestyle sector is experiencing sustained growth, driven by rising health awareness, post-pandemic outdoor activity, and increasing disposable income among younger demographics. ANTA Sports reported first-half 2025 revenue of 38.5 billion yuan ($5.38 billion), up 14% year-on-year, exceeding analyst expectations, while operating margin improved to 26.3%. Net profit declined 8.9% to 7.03 billion yuan, reflecting ongoing investments in brand expansion and acquisitions, including Germany's Jack Wolfskin.
For investors, the sector presents multiple strategic levers. ANTA's multi-brand strategy spans performance sportswear, athleisure, and lifestyle segments, enabling broad market coverage from premium to mass-market consumers. The convergence of fashion and sportswear, exemplified by MUSINSA China, highlights opportunities for brands to differentiate offerings and capture niche consumer segments.
Bloomberg Intelligence analyst Catherine Lim notes that ANTA's ambition to close the revenue gap with Nike and Adidas by 2030 will continue to drive acquisitions and product innovation. Coupled with favorable domestic trends—rising outdoor activity, expanding middle-class consumption, and a growing youth-oriented fashion market—China's sports and lifestyle sector offers scalable investment potential.
For international investors, the entry of foreign brands via partnerships like MUSINSA China demonstrates a feasible path to leverage local expertise while tapping into the evolving Chinese consumer landscape. With strategic positioning in multi-brand retail, operational capabilities, and an expanding consumer base, China's sportswear and lifestyle market represents one of the most dynamic sectors for cross-border investment in the coming decade.
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