China'S Sports Shoes Market Is Expected To Reach $10 Billion 100 Million This Year.

Chinese players failed to reach the finals of the world cup in South Africa. Investor It is hoped that more cash in the world cup and in the pockets of consumers will help promote the development of China's local sporting goods brands such as Anta and Lining.

However, local sporting goods providers are facing not only the challenge of quality but also the fierce competition from foreign brands such as Nike and Adidas.

Driven by rising government incentives and wage levels, China's domestic consumption is strong, which is a positive factor for local sporting goods providers.

China May Retail sales An increase of 18.7% over the same period, and has been growing steadily since the end of last year. Credit Suisse believes that China is expected to overtake the US in the next ten years and become the world's largest consumer market.

With basketball and so on Sports events The purchasing power of young consumers is rising, and sales of sports goods are expected to rise.

Alex Fan, director of research at ICBC International, predicts that in the next few years, the annual growth rate of China's sporting goods business will be over 20%.

According to UBS, China's sports shoes market is expected to reach 69 billion yuan (US $10 billion 100 million) this year, while the brand sports shoes market will reach nearly 300 billion yuan by 2020. Market research firm Euromonitor estimates that in 2009, China's sports shoes market reached 60 billion yuan.

As China's top sporting goods brand, Anta and Lining's orders in the fourth quarter increased by 25% and 20% respectively.

Anta's share price has risen more than 50% in the past year, and Lining's share price has risen by about 25% in the past year.

The high growth of China's two or three tier cities is conducive to the relatively small sporting goods providers such as XTEP (1368.HK: quotes), 31st degree (1361.HK: quotes), flying market (1998.HK: quotes) and so on.