HONG KONG–Sports performance brand 2XU is planning on opening 50 stores in China over the next three years via a new joint venture with fashion retailer GXG, with additional plans for wholesale and online.
“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,” 2XU ceo Paul Higgins said.
To date, its business in China has solely been conducted via wholesale, with its products sold in seven Chinese cities: Beijing, Shanghai, Shenzhen, Guangzhou, Zhengzhou, Guiyang and Changsha. The move harnesses the growing demand for sportswear in the country. By 2020, the market volume of sportswear in China is expected to reach 280.8 billion renminbi ($42.6 billion), according Euromonitor International.
Higgins also confirmed expansion targets to grow across Asia, where the brand has seen 51 percent growth over the last year.
“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,” he said.
The brand is best known for its compression wear, which makes up about 45 percent of its $75 million business.
“At the moment, we’re two to three years ahead with our compression products,” co-founder Jamie Hunt said, “and with our apparel, about a year ahead of our competitors but we’re trying to get even further ahead,” he said. “We’re always refining our products, making them lighter, faster, more cooling.”