Down jackets growth engine for brands

As winter approaches, sportswear brands are ramping up efforts to capture growth in the winter jacket market, particularly those targeting Generation Z consumers and in the expanding winter sports scene.

Lululemon, a leader in athleisure, doubled down on its winter jackets category to penetrate northern markets. The brand has launched a "Wunder Puff" pop-up space in Harbin, Heilongjiang province, running from Sept 11 to Oct 10, with a grand opening of its official store scheduled for Sept 30.

This follows the introduction of its first store at Yuanda Shopping Center in the city, which opened in 2022.

Harbin, known to many as the "city of ice", has become a key destination for younger generations, attracted by its rich ice and snow culture. The upcoming 2025 Asia Winter Games in Harbin are expected to further fuel this interest.

To better resonate with Gen Z, Lululemon introduced the "Wunder Puff Movement Theater" during its partnership with Tmall for a Super Brand Day event in the city, featuring top Chinese figure skaters, including Grand Slam champion Han Cong, national champion of ice dancers Ren Junfei and Xing Jianing, alongside nearly 100 Gen-Z participants.

Han Dongjun, an actor and a native of Harbin, who attended the event, said, "Ice and snow sports are a unique lifestyle in the city of Northeast China, which have recently gained popularity among young people."

Ding Dong, director of the Sports for All Department of the General Administration of Sport of China, said recently that sports events are catalysts for driving the development of the national fitness industry, and efforts should be made to increase the promotion and popularization of the three major ball sports as well as ice and snow sports projects. He called for more activities during the winter season to promote ice and snow sports among the public.

The heat of winter sports has further intensified the competitive landscape in the down jacket market. According to market observer ASKCI Corp, the Chinese down jacket market grew 15.81 percent year-on-year to 196 billion yuan ($27.8 billion) in 2023 and is projected to reach 227 billion yuan in 2024.

In addition to rising domestic brands, international players like Canada Goose, The North Face and Moncler are making significant investments in the Chinese market. Fast fashion brands like Uniqlo, and sports brands like Fila and Adidas, are also entering the space, making competition unprecedentedly fierce.

Sales data indicate that domestic brands are outpacing foreign competitors in northern China, with Fila and Adidas ranking fifth and sixth, while top outdoor sports brands trail behind, according to Mojing Marketing Intelligence.

The institute said that the third and fourth quarters of last year saw massive consumer demand for down jackets.

Bosideng, a leading domestic brand, saw its revenue for the fiscal year 2023 to 2024 reach 23.21 billion yuan, up 38.4 percent, with a 44.7 percent increase in net profit. The company's performance reflects broader changes in the Chinese market, where down jackets have evolved from seasonal items to year-round fashion staples.

Canada Goose reported strong growth in China, with a 29.7 percent increase in sales for the fourth quarter and fiscal year ending March 31,2024. The Asia-Pacific region is now the company's fastest-growing market, driven by strong demand from Chinese consumers.

Similarly, Moncler reported a 17 percent growth for 2023, with 47 percent of its market share coming from Asia. Its performance in China has been fueled by close collaborations with local partners and tailored products for the region's consumers.

Thanks to the rising demand for down jackets, the price of down, the key material for these jackets, has been on the rise this year. According to cn-down, a platform that tracks down prices, the cost of 90 percent white goose down surged by 32 percent from January to August 2024, due to supply and demand imbalances.