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The global sportswear market has continued expanding in recent years, with running and yoga showing the fastest growth in Asia and North America. The running market grows at approximately 6.2 per cent annually, while yoga, despite its smaller scale of about $54bn, posts annual growth of 8.3 per cent, with North America particularly prominent. Investment analyst Eick Fong noted in a recent episode of radio programme "Detached from Earth" that major brands like Nike are beginning to decline, while small brands focused on single markets with unique positioning are achieving marketing growth far exceeding that of major brands.
Old and new brand transition: major manufacturers slow growth, new brands rise rapidly
Eick Fong's analysis indicates that traditional major brands such as Nike, Adidas and Puma still command substantial market share, but growth has slowed markedly in recent years while positioning has become increasingly blurred. Nike's push for direct-to-consumer strategy has improved gross margins but cost the company part of its retail partner network, creating short-term sales impact. Puma's situation is more pronounced, with its share price falling from over €100 to around €19.
In stark contrast, emerging brands are rising rapidly. Brands like On and Vuori largely adopt a "single category plus high premium" model — for example, focusing exclusively on running shoes, yoga, or high-end men's sportswear, trading focus for professional image. These brands leverage social media niche marketing to quickly build voice within core communities, achieving growth rates far exceeding traditional giants. Major brands rely on scale and distribution to maintain their position but lack growth momentum, while new brands capture growth space through focus on single sports categories and community marketing.
Eick Fong believes the core reason for brand deceleration is often "over-popularisation or loss of scarcity appeal". Jordan shoes were once hard to obtain with high resale prices, but heat has declined due to oversupply and excessive collaborations. In contrast, emerging brands excel at using social media to create community belonging and personalisation, making products not merely "sports equipment" but identity symbols. Eick Fong notes: "Sports brands have yet to fully replicate this structure, with most giants still oscillating between premium image and mass sales volume, resulting in unclear brand definition while losing the middle-class market." For sports brands, the future key lies in how to maintain positioning while expanding market reach to attract consumers.
China's petit bourgeoisie more willing to purchase "lightweight luxury" goods
Worth noting is that sports brand marketing performance reflects changes in the Chinese market. While major brands' sales performance in China has clearly fallen short of expectations, with both Nike and Adidas experiencing growth deceleration, this does not represent what traditional analysis suggests: that China's economic deflation means consumers are unwilling to purchase sports products. The rapid development of small brands reflects another side of reality. In tier-one cities, considerable numbers of "petit bourgeoisie" groups remain willing to purchase lightweight luxury sports products, particularly in emerging running, yoga and outdoor categories.
For example, sports brand Geographic's annual report shows that in the first half of 2025 compared with the same period last year, Greater China market sales volume increased 42 per cent. Swiss sports brand On recorded 38 per cent year-on-year sales growth in the second quarter of 2025, with Greater China market growth reaching 110 per cent, indicating that the Chinese market has become an important growth engine for lightweight luxury sportswear.
