Columbia Sportswear, the renowned American outdoor apparel brand, has successfully reversed its declining trajectory in China over the past three years. After experiencing a year-on-year drop in net sales in 2022, the company began to recover in 2023, and by 2024, China had become its fastest-growing single market.
According to the full-year 2024 financial report released in early February, Columbia’s global net sales decreased by 3% to $3.3686 billion at constant exchange rates. However, driven by strong performance in China, sales in Latin America and the Asia-Pacific region grew by 11%, the highest among all regions. This was followed by an 8% increase in the EMEA region (Europe, the Middle East, and Africa), which helped offset declines in the U.S. (-8%) and Canada (-10%).
During the earnings call, Tim Boyle, Chairman, President, and CEO of Columbia Sportswear, specifically highlighted the company’s success in China. He noted that net sales in the Chinese market achieved double-digit growth in the fourth quarter, with both wholesale and direct-to-consumer (DTC) channels showing healthy expansion. For the full year, China’s sales grew by over 20%, making it the best-performing single market.
Boyle attributed this success to the robust growth trend of the outdoor industry in China, fueled by increasing consumer interest in outdoor activities and brands. Columbia has capitalized on this trend by engaging consumers through meaningful brand campaigns, localized product offerings, and a strong digital strategy.
“China is expected to once again become our fastest-growing market by 2025,” Boyle added.
During the call, Boyle acknowledged that the company had previously underperformed in certain markets, particularly in China. He elaborated on the key factors behind the recent growth in the Chinese market:
1. A Robust Digital Strategy:
In 2024, e-commerce emerged as Columbia’s fastest-growing channel in China. The company expanded its presence on Douyin (TikTok in China), adding stores for women’s apparel and footwear. During major sales events like “Double Eleven” (Singles’ Day), Columbia executed impactful brand campaigns and participated in Tmall and Douyin’s Super Brand Day events, achieving remarkable success.
2. Localized Product Offerings:
Columbia’s Transit collection, specifically designed for Chinese consumers, performed exceptionally well. To build on this momentum, the company plans to further expand its localized product range in China this year.
3. Store Strategy Optimization:
From an operational perspective, Columbia’s leadership in China has placed a strong emphasis on high-efficiency store management. Previously, the company relied heavily on a bi-annual strategy, but the current leadership team now focuses on the monthly performance of each store. This shift has contributed significantly to the company’s success.
By leveraging these strategies, Columbia has not only regained its footing in China but also positioned itself for sustained growth in one of the world’s most dynamic markets.
