Does Steph Curry's Trip to China Signal Rising Competition for Sportswear Giants?

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NBA superstar Steph Curry was in China this week on a multi-city tour to promote his brand (and latest sneaker drop), with stops in Beijing, Dongguan, Shenzhen, and Hong Kong. Curry signed with Li-Ning in June, reportedly a 10-year $400 million deal in which the likely future Hall of Famer moved his Curry Brand of apparel (spanning basketball, golf, and athleisure wear) under the Li-Ning umbrella. Importantly, the deal not only gives Curry autonomy to recruit and sign other athletes to the brand, it gives Li-Ning a sort of backdoor retail toehold in the U.S. The Curry Brand plans to launch standalone Curry Brand brick-and-mortar stores across the U.S. (and China). 

Curry’s departure from Under Armour (UAA) and subsequent signing with a Chinese brand is not entirely groundbreaking. Dwyane Wade and his “Way of Wade” brand signed with Li-Ning in 2012 and agreed to a lifetime contract in 2018, and before that, there was Shaquille O’Neal (2006). More recently, Kyrie Irving in 2023 signed a five-year deal with China’s Anta that came with the title of Chief Creative Officer, signing other NBA players to Anta sneaker deals. 

What’s telling for all of these is this: in each case mentioned above (except for Shaq), the athlete in question left a well-established U.S. brand to partner with a Chinese one: Curry had previously partnered with Under Armour (UAA), Irving with Nike (NKE), and Wade with the Jordan Brand (i.e., Nike). Other such defections include Kevin Garnett and Klay Thompson leaving Adidas and Nike (respectively) for Anta.

Both Anta and Li-Ning started out as Chinese brands offering a more affordable homegrown alternative to imported prestige brands like Nike, benefiting in particular from a recent wave of patriotism or nationalism. Li-Ning was founded in 1990 by Chinese Olympic gymnast Li Ning, while Anta started up just a year later, in 1991. They have since moved on beyond that: within China, neither is still seen as a choice for those of limited financial means or merely those prioritizing national pride. Anta’s share of the Chinese market has overtaken Nike’s, and while Li-Ning lags behind Nike, its market share is larger than Adidas’.

Though Li-Ning (the company) undoubtedly benefited in the beginning from its founder’s status as a national sports hero, a strong case can be made that Anta has overtaken its elder brother. In fact, it is now the third-largest sportswear company in the world by revenue (and that doesn’t count revenue from its stake in the Western sportswear brands listed below), and just this year it opened a flagship standalone store in Beverly Hills. (It’s worth noting that Anta is roughly tied for Lululemon LULU, depending on currency fluctuations.)

In 2010, Li-Ning briefly attempted to enter the U.S. market with a retail flagship in Portland, Ore. While Li-Ning quickly beat a retreat, the size of its latest deal with one of the most popular athletes in the U.S. possibly signals an intent to give it another try. Li-Ning and Anta, are amping up their attempts to move beyond China. Both brands have built a respected following in the die-hard sneakerhead community, with a presence on GOAT, Flight Club, and others. A few Anta offerings can be found at U.S. chains like Foot Locker (and Dick’s Sporting Goods (DKS). Meanwhile, Anta has been upping its exposure to – and its revenue from Europe through acquisitions: Through its majority stake in the conglomerate AmerSports (AS), Anta effectively owns non-Chinese brands like Arc’teryx, Salomon, and Wilson. (It also has a pending deal to acquire a minority stake in Puma.) Meanwhile, Li-Ning has built a presence as a luxury fashion/sportswear line, complete with Paris Fashion Week shows. 

It’s unclear whether these brands are looking to take advantage of a recent youth trend in the West of “Chinamaxxing.” However, the growing number of top U.S. athletes with whom the brands are signing deals might suggest that the companies are eyeing a challenge to the still largely undisputed champs, companies like Nike and Adidas. 

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