2XU ANNOUNCES CHINA EXPANSION WITH GXG
2XU announces china expansion with GXG.
Leading Australian compression and high performance sportswear brand 2XU will today formally announce plans to multiply its retail presence throughout Asia, spearheaded by a landmark joint venture with major Chinese fashion retailer GXG.
Fuelled by China’s unprecedented growth in the gym and fitness industry, which has increased at an annualised rate of 11.8 per cent since 2011 and generated close to AUD$6 billion in revenue last year alone, the agreement will see 2XU retail its world leading compression and apparel to more than one billion Chinese consumers. Additional apparel lines will be designed by 2XU exclusively for the China market.
The Australian-based sportswear brand will announce plans to open up to 50 retail stores throughout mainland China in the next three years, in addition to its online and wholesale presence.
2XU CEO Paul Higgins said the joint venture with GXG represented a significant move for the business.
“Today marks the start of another exciting chapter for 2XU. The company was started in Melbourne just 12 years ago and to now be partnering with one of the world’s biggest fashion retailers to formally launch 2XU China is a real milestone,” he said.
“2XU first entered Asia in 2008 with a wholesale presence in Hong Kong and Singapore, and is now present in 13 markets across the Asia Pacific region with plans to grow our retail presence from 22 to 50 stores in the next 12 months and to 100 in the next three years.
“The joint venture is an exciting opportunity for 2XU to share the world’s best sports compression and high performance apparel with Chinese consumers, who are embracing sport and physical activity like never before.”
Growth in the local sportswear market has been driven by an upswing in sports participation rates in China. In 2016 some 2.8 million runners participated in organised running events according to the Chinese Athletic Association, more than twice the number in 2015.
But it’s the Western concept of gym-based training that has seen the biggest increase, with the total number of gym attendees across 70 major Chinese cities increasing by four to five million every year since 2011*.
For Australian-based 2XU, with a strong heritage in running and a rapidly-expanding presence in the high intensity training market, the move into China comes at the right time.
Newly active Chinese consumers have driven the predicted market volume of sportswear in the world’s most populous nation to ¥280.8 billion (AUD$41 billion) by 2020.
The projected growth is mirrored by 2XU’s already-strong results in the Asian region, generating 51 per cent year-on-year growth in the past 12 months.
2XU is currently available in mainland China via concept storesn seven major cities: Beijing, Shanghai, Shenzhen, Guangzhou, Zhengzhou, Guiyang and Changsha. Beyond mainland China 2XU is present in 10 markets via retail and wholesale channels: Hong Kong, Singapore, Malaysia, Indonesia, the Philippines, Thailand, Vietnam, Taiwan, South Korea and Japan.
The agreement with GXG, one of China’s leading retail businesses with more than 2000 stores in market, will see dedicated 2XU Performance Centres open in major Chinese cities from early next year.
2XU China General Manager Ms. Vivian Li said the Chinese sportswear market presents significant development opportunities.
“We are delighted to officially launch 2XU China and look forward to introducing the brand to Chinese consumers,” she said.
“2XU's world leading innovation, product technology and strong global strategy provide a great platform for the brand in China and we look forward to a very successful future.”
GXG CEO Mr. Yuyong Yu said: “The joint venture between GXG and 2XU is an exciting opportunity for our business and for Chinese athletes and consumers, who will soon be able to experience the 2XU brand and its world leading product innovation first hand at 2XU retail stores throughout China.”
Founded in Australia in 2005, 2XU is the global leader in sports compression and high performance apparel. 2XU has 26 retail and outlet stores in Australia and is present in more than 70 overseas markets via 34 retail stores and more than 4000 wholesale doors. The company employs more than 300 staff worldwide.
2XU is the official compression partner of leading sports organisations including the Australian Institute of Sport and Australian Football League, and the compression brand of choice for the world’s top athletes and sports teams including 29 out of 30 NBA teams, 80 per cent of NFL teams and the US Navy SEALs. Lifestyle influencers including Kanye West, Pippa Middleton, Victoria Beckham and Sofia Vergara are also fans of the brand.