The "K-shaped differentiation" of the footwear and apparel industry in 2026: the sports and outdoor sector is "hot", while the mass casualwear sector is "cold"
As the semi-annual report disclosure for the footwear and apparel industry draws to a close, SHEIN (00625.HK) was officially listed on the Main Board of the Hong Kong Stock Exchange on September 1, becoming the largest fashion brand IPO on the Hong Kong stock market in 2026: it offered approximately 280 million Class B shares globally, with a final issue price of HK$48.56 per share, and the net proceeds raised amounted to approximately HK$13.214 billion.
Judging from the disclosed performance reports, sports and outdoor brands represented by ANTA (02020.HK), Li-Ning (02331.HK), and Amer Sports (NYSE:AS) continue to lead the pack; mass casualty apparel brands and some manufacturing enterprises are generally facing the dilemma of declining revenue and pressured profits.
Liu Yiyi, team leader and chief analyst of the Light Industry & Textile Apparel Group of Huachuang Securities, stated that the footwear and apparel industry presents a dual trend of "K-shaped differentiation" and "cross-sector survival": high-end outdoor, sports fashion and other niche tracks are seeing strong growth, while the mass casualty and manufacturing segments remain under sustained pressure, and some enterprises have begun to target incremental space outside their core businesses.
Performance Differentiation
Sports brands are the standout segment in the footwear and apparel industry in the first half of the year.
ANTA Group recorded a revenue of RMB 43.507 billion in the first half of the year, representing a year-on-year increase of 12.9%. Compared with the 4.8% growth rate of the core brand, FILA's revenue increased by 6.1% to RMB 15 billion, breaking the RMB 15 billion mark for the first time; revenue from other brands including Descente and KOLON SPORT increased by 44.2% to RMB 10.7 billion.
Li-Ning achieved a revenue of RMB 15.235 billion in the first half of the year, up 2.8% year on year, with the overall gross margin rising from 50% to 50.9%. Among them, the outdoor category delivered outstanding performance, with omni-channel sales exceeding the set target. Li-Ning mentioned in its semi-annual report that it increased investment in outdoor and other niche markets in the first half of the year. In the past two years, Li-Ning has successively opened independent outdoor stores, and supplemented its product matrix around trail running, light short-distance hiking, urban functionality and women's outdoor activities.
Amer Sports posted more notable growth, with revenue reaching USD 3.578 billion in the first half of the year, up about 32% year on year. Revenue in the second quarter increased by 32% year on year to USD 1.633 billion, of which the outdoor functional apparel business grew by 32%, mountain outdoor apparel and equipment grew by 37%, and the Salomon footwear and apparel business delivered outstanding performance.
Compared with sports and outdoor brands, mass casualty apparel enterprises face more direct operational pressure.
Metersbonwe (002269.SZ) saw its revenue drop by 8.78% year on year in the first half of the year, and the net profit attributable to shareholders of listed companies recorded a loss of RMB 42.28 million, while it still made a profit in the same period last year. By the end of the reporting period, the company had a total of 575 offline stores, with 27 new stores opened and 227 stores closed. The store closures were mainly related to channel structure optimization and adjustment of low-efficiency stores.
Hongdou Co., Ltd. (600400.SH) realized an operating revenue of RMB 1.029 billion in the first half of the year, down 10.79% year on year; the net profit attributable to parent company recorded a loss of RMB 94.39 million. The company stated in its semi-annual report that its performance was affected by multiple factors including intensified industry competition, periodic weakness in market demand, and the active closure of low-efficiency stores. During the reporting period, the number of Hongdou Men's Wear stores decreased from 903 to 818.
Within the same company, obvious differentiation has also emerged among different brands. The semi-annual report of Xtep International (01368.HK) reflects this trend: in the first half of the year, Xtep achieved a revenue of RMB 6.795 billion, a slight year-on-year decrease of 0.6%; net profit reached RMB 818 million, down 10.5% year on year. The revenue of Xtep's core brand slightly decreased by 2.2% to RMB 5.920 billion; the revenue of the professional sports division where Saucony belongs increased by 11.4% to RMB 875 million, and the division's operating profit rose by 15.5%.
Liu Yiyi said there are three reasons for category differentiation: first, the segmentation of consumption scenarios. Outdoor professional sports categories that emphasize functional and emotional value are more likely to open up the market through vertical hit products, while the mass market is trapped in a stock game of cost performance. Second, the difference in category life cycles. China's outdoor penetration rate is still significantly lower than that of overseas markets, and niche categories such as professional running, skiing and golf are continuing to attract new customer groups, while traditional mass casualty apparel is already facing oversupply and homogeneous competition. Third, product technical barriers determine the brand premium capability. High-end outdoor brands have core technical authorization thresholds in fabrics, craftsmanship and other aspects, which can support higher pricing, while mass casualty apparel suffers from severe homogenization and is more likely to slip into price wars.
In addition to performance differentiation, some enterprises are also trying to find a second growth curve outside their core businesses, making the industry show the other side of cross-sector survival.
Some enterprises that originally took footwear and apparel as their core business have entered the fields of chips, new energy materials, precision manufacturing and other sectors through acquisitions or industrial investment. For example, Toread (300005.SZ) recorded external transaction revenue of RMB 359 million from its chip business in the first half of the year, and the profit of the chip business division reached RMB 82.577 million, which has become an important source of profit; Puyuan Materials (603196.SH, formerly known as "Ribu Fashion") recorded revenue of RMB 426 million from its lithium battery binder business in the first half of the year, exceeding the RMB 346 million revenue of its apparel business. For these enterprises, the second growth curve has moved from concept to financial statements, but the synergy between new and old businesses still varies.
Changes in Demand and Production Methods
The change in consumer demand is first reflected in wearing habits. In the past, office workers were used to the formal outfit of suit paired with leather shoes. Nowadays, sports shoes, sun-protective clothing and quick-dry pants have become the standard for urban commuting.
Data from the White Paper on Lightweight Outdoor Activities shows that the number of lightweight outdoor participants in China has reached 500 million at present, among which the post-90s generation is the absolute main force, accounting for 49.1%, and the post-00s generation accounts for 16%. On the subway during the morning rush hour in Hangzhou, light sun-protective clothing paired with waterproof quick-dry pants has become the most common outfit for young commuters. The "light outdoor" dressing style is blurring the boundary between commuting and outdoor activities.
Behind the change is consumers' pursuit of comfort and relaxation. In the spring of 2026, workplace commuting, vacation travel and sports outdoor activities are the three core scenarios for dressing, among which the cumulative views of notes related to the commuting scenario on Xiaohongshu have reached 1.86 billion. Consumers' dressing demands are shifting from "proving themselves to the outside world" to "exploring themselves inward and embracing authenticity".
High-end outdoor brands are also actively responding to this trend. A Norwegian high-end outdoor brand announced its further expansion into China this year, and its CEO Jørgen Jørgensen said in an interview that the brand adheres to the model of "extreme user-driven product development", and every product is tested and verified in extreme environments.
In addition to changes in consumer demand, production methods are also changing.
Liu Yiyi said that the flexible supply chain model represented by SHEIN is reshaping the apparel manufacturing ecosystem. China has complete traditional apparel manufacturing capacity. SHEIN wins not by relying on its own production capacity, but by virtue of its extremely strong resource integration capability, as well as insight into forward-looking design and global consumer demands, to build a "Large-scale Automation Trial Small-batch Quick Return (LATR)" flexible system: the first order of new products is only 100-200 pieces for online trial sales, and then it is decided whether to place additional orders according to feedback from the global terminal market. According to SHEIN's listing documents submitted to the Hong Kong Stock Exchange, the company's revenue exceeded USD 41.8 billion in 2025, serving 273 million active consumers worldwide.
SHEIN's listing also provides an observation sample for the flexible supply chain model: small-batch trial sales, data feedback, quick replenishment and global fulfillment are connected into a complete system. The competition of apparel enterprises is no longer only about production capacity, but also about the capability to identify, respond to and organize resources for demand changes.
Jialinjie (002486.SZ) is the same case, whose main business covers medium and high-grade knitted weft-knitted functional fabrics and ready-to-wear garments. In the first half of the year, its fabric revenue increased by 12.9% and ready-to-wear revenue increased by 5.7%. The company is simultaneously promoting AI design, intelligent color matching and digital production to shorten the proofing cycle and improve production efficiency.
In the second half of the year, Li-Ning will supplement its product matrix around trail running, light short-distance hiking, urban functionality and women's outdoor activities; Amer Sports will continue to expand stores and omni-channel business of brands such as Arc'teryx and Salomon; ANTA relies on its multi-brand matrix to disperse the fluctuation of a single brand. Traditional apparel enterprises mostly start with internal adjustment, closing low-efficiency stores, optimizing channel structure, and improving response speed through small-batch quick response, AI design and digital supply chain at the same time.
Liu Yiyi said that the total volume of the footwear and apparel industry will maintain moderate growth in the second half of the year, and the differentiation between sports outdoor and mass casualty segments will continue.
This article is from the WeChat Official Account "The Economic Observer", written by Zheng Yuxin & Fan Xinqi, and published by 36Kr with authorization.