"Ground snake" challenge "strong dragon": sports brand campaign children's wear market

At the end of last month, the children's wear brand Crane Emperor finally revealed its collaboration with the sports giant Li Ning. The two well-known domestic brands in Beijing had secretly signed a joint venture to launch the "LiNing Kids" line, which is expected to hit the market next year. This move marks a significant step for both companies as they expand into the growing children's apparel sector. "Little Li Ning" isn't alone in this race—Anta, another major Chinese sports brand, is also set to enter the children’s clothing market in the first quarter of next year. This means that both "Xiao Li Ning" and Anta will soon be competing against global giants like Nike and Adidas, who have already established a strong presence in the children’s sportswear segment. The competition is intense: Li Ning and Anta are leading local sports brands, while Nike and Adidas represent international powerhouses. According to Li Ning's recent semi-annual report, the company saw a 32.4% revenue increase to 4.052 billion yuan in the first half of the year, with net profit rising by 41.6% to 477 million yuan. For the first time, Li Ning surpassed Adidas in operating profit. The brand also expanded its retail network, adding 564 new stores, bringing the total to 6,809. Anta, which started from a small home workshop, has grown rapidly over the past two decades. In the first half of 2009, it achieved sales revenue of 2.82 billion yuan through 6,129 distributors. If this growth continues, Anta’s annual sales could exceed 6 billion yuan, making it the top Chinese sports brand. Meanwhile, Nike and Adidas still dominate the high-end market, but their performance has slowed. In the third quarter of this year, Adidas reported a 29% drop in operating profit and a 7% decline in sales compared to the previous year. Nike’s sub-brands, such as Converse, also experienced declining sales. Major retailers like Daphne, which represents both Nike and Adidas in China, have even announced plans to exit the sports brand agency business. Despite these challenges, the children’s clothing market remains an attractive opportunity. With the fourth peak in newborns expected in 2010 and a stable birth rate until 2030, the market is poised for long-term growth. Experts estimate that the children’s wear industry could become a key growth driver for the entire apparel sector in the coming decades. Currently, the children’s wear market is still in its early stages, with only about 10% of total national garment output dedicated to this segment. However, it has attracted not only traditional children’s wear brands but also non-apparel companies like Haier, which are now entering the space. According to Luo Jianfan, president of Crane Emperor, the children’s clothing segment is still a small category within the broader sports brand landscape. He noted that the market is in its initial phase and has great potential for future development. As competition intensifies, brands will need to focus on innovation, market segmentation, and long-term positioning to capture a share of this promising sector.

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