Xtep's Strategic Move into Experiential Retail with the Launch of Its First Asian Running Club Store

In September 2025, Xtep International, the Chinese sportswear giant, opened its first Asian Running Club Store in Singapore, marking a bold step into experiential retail. This initiative, part of its Xtep Running Club (XRC) ecosystem, transcends traditional retail by integrating product sales with community-driven activities, professional athlete engagement, and localized partnerships. The store's launch, which included a 200-participant community run and collaborations with Malaysian running clubs like The PACEMAKERS, underscores Xtep's ambition to redefine how consumers interact with its brand. This move is not an isolated experiment but a strategic alignment with a broader transformation in China's sportswear market, where brands increasingly prioritize community engagement, digital integration, and experiential retail to capture a generation of health-conscious, digitally savvy consumers.

The Rise of Community-Driven Retail in China's Sportswear Market

China's sportswear industry is undergoing a profound shift. According to a report by Savills, the market is being reshaped by “integrated outdoor sports zones” and multi-functional retail formats that blend commerce with social interaction. This trend is driven by rising health consciousness, government-backed initiatives like “Healthy China 2030,” and the growing influence of social media, which has turned sportswear into a lifestyle statement.

Xtep's Singapore store exemplifies this shift. By creating a physical space that doubles as a running community hub—complete with gait analysis services, training workshops, and post-race recovery programs—the company is fostering a sense of belonging among runners. This mirrors the strategies of domestic rivals like Anta Sports and Li-Ning, which have long emphasized localized product design and digital engagement. For instance, Anta's 35.1% online sales contribution in 2025 reflects its omnichannel approach, while Li-Ning's anti-slip outsole innovations address regional pain points. However, Xtep's focus on running-specific services and global marathon sponsorships (44 races in 2024 alone) positions it uniquely in the market.

Xtep's Dual Strategy: Performance Innovation and Brand Premiumisation

Xtep's success lies in its dual emphasis on technological innovation and brand-led community building. Its flagship 160X running shoe series, praised for advanced carbon plate technology and cushioning, has achieved a dominant wearing rate in Chinese marathons. This product-centric approach is complemented by its experiential retail model, which reinforces brand loyalty through shared values.

The company's financials further validate this strategy. In 2024, Xtep's Saucony brand, acquired as part of its international expansion, saw over 60% year-on-year retail sell-through growth, driven by new store openings and same-store sales improvements. Meanwhile, the core Xtep brand achieved high single-digit growth in China, fueled by premiumisation trends. As noted by HotPot China, consumers are increasingly willing to pay for high-quality, long-lasting sportswear, with Tmall remaining a key platform for premium positioning. Xtep's investment in sustainable materials and winter-focused outerwear also aligns with seasonal demand, ensuring relevance across product cycles.

Competing with Global and Domestic Rivals

While Xtep faces competition from both international giants like Nike and domestic peers such as Anta, its niche focus on running has allowed it to carve out a distinct identity. Anta's broader product diversification and multi-brand strategy (e.g., Descente, K-Swiss) cater to a wider audience, but Xtep's marathon-centric ecosystem—spanning product trials, athlete mentorship, and post-race recovery—creates a sticky, runner-first experience. Similarly, Li-Ning's cultural nostalgia-driven campaigns (e.g., retro designs) appeal to younger consumers but lack the performance-centric depth of Xtep's offerings.

The global running shoe market, where Xtep now holds the top sales volume, further insulates it from domestic competition. Frost & Sullivan's recognition of Xtep as the “Global Leading Brand in terms of Sales Volume of Running Shoes” highlights its international reach. This global footprint, combined with localized community initiatives, positions Xtep to capitalize on the athleisure boom, which is projected to grow at a 10.14% CAGR in China until 2035.

Investment Implications: A Model for the Future

Xtep's Singapore store is more than a retail outlet—it is a blueprint for the future of sportswear in China. By merging product innovation with community-driven engagement, the company is addressing the evolving needs of a market where consumers demand both functional excellence and emotional resonance. For investors, this strategy signals a brand that is not only adapting to market trends but actively shaping them.

As the athleisure market expands, Xtep's ability to balance premiumisation with accessibility—through initiatives like its 160X series and marathon sponsorships—will be critical. The company's recent foray into Southeast Asia, with stores in Malaysia and Singapore, also hints at a scalable model that can replicate its domestic success internationally. In a sector where differentiation is key, Xtep's experiential retail approach offers a compelling edge.