In case you missed it, Asia‘s Most Read Publications: 16 Jun to 22 Jun 2026

Research evidence excerpt

In case you missed it, Asia‘s Most Read Publications: 16 Jun to 22 Jun 2026

Aditya Srinath AC Asia Pacific Equity Research

(65) 6882-7138 26 June 2026 J P M O R G A N

aditya.srinath@jpmorgan.com

A quick response to consumer demand is one of the key success factors in the rapidly changing China sportswear market, in

our view. The recent Adidas (covered by Chiara Battistini, Wendy Liu) ‘Urban Errands’ incident showcased the importance of a

quick response that turned a translation mistake into a viral marketing campaign. We attribute such outcome to Adidas’

localization strategy in China. However, we believe local brands have maintained their edge vs international brands, in terms of

localized communication and rapid market reaction, given their deep understanding of Chinese culture, closer proximity to end

consumers and shorter decision-making chains. Anta is our top pick in the China sportswear sector, as we believe Anta’s well-

executed multi-brand portfolio and its greater-than-peers’ potential for overseas expansion should position it to seize more

opportunities. We are also OW on HLA for its strategic partnership with Adidas, including: 1) the joint build-up of the ‘Sports

Plus’ ecosystem; and 2) as the exclusive distributor of Adidas Future City Concept business in mainland China.

China Consumer Strategy (Jessie X)

May retail sales down 0.6% YoY, a consecutive miss

China’s May 2026 retail sales fell by 0.6% YoY (the first decline since Dec-22), a sequential deterioration from Apr (+0.2%) and

Mar (+1.7%), missing Bloomberg consensus (down 0.2%). Durable goods continued to be the drag, including home durables

(down 15% on a high base); gold & jewelry (down 9%) - reflecting recent volatility in gold prices (though narrowing from down

21% in Apr); and autos (down 16%).