Nike & Adidas lose sales in China over forced-labour issue: Report

Anta Sports gains on Nike and Adidas in China over a consumer rival, according to The Wall Street Journal.

International sportswear brands such as Puma, Nike and Adidas have seen a big loss in sales in China. In recent months, home-grown brands such as Anta sports have seen enormous sales in their sales because of consumer boycott for international brands. This has threatened the growth of international brands.

As per the data, out of the top 10 sportswear brands, seven were domestic brands and, international brands sales have declined significantly in 2021. Anta Sports is China’s largest sportswear brand and also the worlds third-largest after Nike and Adidas.

Since March 2021, Chinese news media and social-media users started campaigns for a boycott of international brands. The major reason behind the consumer boycott campaign was the allegations on western brands for forced labour among minorities in China’s cotton-rich Xinjiang region.

The boycott has affected the sales of Adidas and Puma. Group members of Adidas and Puma reported that their sales have declined by about 15% in Chinese markets. After raising Xinjiang related concerns last year, H&M Hennes and Mauritz AB disappeared from Chinese e-commerce sites and map apps. Walmart Inc. and Intel Corp. recently faced Chinese social-media backlash over their business relationships in Xinjiang.

Whereas, the backlash and political challenges faced by the western brands have benefited the domestic brands the most specially Anta Sports. The total revenue of Anta Sports in 2021 was estimated to be 68,69,611.92 USD. Whereas, in 2020 it was 55,88,216.62 USD.

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