Warm winter no match: China’s sportswear sector posts surprise growth

AI Summary
China's sportswear sector experienced unexpected growth in the first two months of 2026, defying soft consumer spending and a warm winter. Analysts attribute this to policy support, Chinese New Year demand, and increased visibility of domestic brands like Li Ning and Anta during the Winter Olympics. Jefferies analysts forecast over 5% year-on-year growth in sportswear retail sales, a significant increase from the previous quarter. Chinese brands have been gaining market share, partly due to some consumers trading down to lower-priced domestic options and a shift that accelerated in 2021 after some global brands faced backlash over Xinjiang cotton concerns. This growth marks a positive turn for the industry after a period of slower spending.
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