China Company Transformation Indicator

Established in 2023, ’Guochao,’ a term that translates to ’national wave,’ refers to a movement in China where consumers, particularly Millennials and Generation Z, show a strong preference for domestic brands and products that incorporate traditional Chinese culture and style. Chinese companies like Anta and Li-Ning, which have capitalized on the ’Guochao’ trend, represent a shift in consumer preferences that is challenging Nike’s market position in China, but not fundamentally. 

Nike in 2023 is still the undisputed top performer in China’s apparel world. In IMD’s 2024 China Company Transformation Indicator (CCTI), we investigated the top apparel companies in China. We looked at the top 23 companies, 13 of which are foreign multinational Corporations (MNCs) like Nike and Lululemon, across eight factors with 45 variables. While Anta is the giant in terms of revenues, Nike is leading across all indicators from business success and investors’ expectations to innovations brought to the Chinese market and ESG initiatives.