Down jackets are a growth engine for brands

As winter approaches, sportswear brands are stepping up their efforts to capitalize on the growth potential of the winter jacket market, especially those targeting Gen Z consumers and the burgeoning winter sports scene.

Lululemon, a leader in the sportswear category, has doubled down on its winter jackets to expand into northern markets. The brand has launched a “Wunder Puff” pop-up space in Harbin, Heilongjiang Province, from Sept. 11 to Oct. 10, with a grand opening of its official store scheduled for Sept. 30.

This follows the opening of its first store at the city’s Yuanda Shopping Centre, which is scheduled to open in 2022.

Harbin, known to many as the “City of Ice,” has become a key destination for younger generations drawn to its rich ice and snow culture. The upcoming 2025 Asian Winter Games in Harbin are expected to fuel this interest even further.

To better reach Gen Z, Lululemon introduced the “Wunder Puff Movement Theater” in partnership with Tmall as part of the city’s Super Brand Day event, which featured top Chinese figure skaters, including Grand Slam champion Han Cong, national ice dancing champions Ren Junfei and Xing Jianing, and nearly 100 Gen Z participants.

Han Dongjun, an actor from Harbin who attended the event, said: “Ice and snow sports are a unique lifestyle in the northeastern Chinese city that has recently gained popularity among young people.”

Ding Dong, director of the Sports for All Department of the General Administration of Sport of China, recently said that sports events are the catalysts 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 in the winter season to promote ice and snow sports to the public.

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

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

Sales data shows domestic brands are outpacing foreign competitors in northern China, with Fila and Adidas in fifth and sixth place, while top outdoor sports equipment brands lag far behind, according to Mojing Marketing Intelligence.

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

Bosideng, a leading domestic brand, reported fiscal year 2023-24 revenue of 23.21 billion yuan, up 38.4%, with net profit up 44.7%. The company’s performance reflects broader changes in the Chinese market, where down jackets have evolved from seasonal items to year-round fashion items.

Canada Goose saw strong growth in China, with sales increasing 29.7% in the fourth quarter and fiscal year ending March 31, 2024. The Asia-Pacific region is currently the company’s fastest-growing market, driven by strong demand from Chinese consumers.

Similarly, Moncler saw 17 percent growth in 2023, with 47 percent of its market share coming from Asia. Its performance in China was driven by close collaboration with local partners and tailored products for consumers in the region.

Thanks to rising demand for down jackets, the price of down, a key material used to make them, has surged this year. According to cn-down, a price-tracking platform, the cost of 90 percent white goose down rose 32 percent from January to August 2024 due to a supply-demand imbalance.