Leading Sportswear of China Xstep International will receive a $129.4 million capital infusion from private equity firm Hillhouse Capital, which will go towards promoting its foreign brands including K-Swiss and Palladium internationally, according to International reports
In 2020 Xtep’s profit dropped 30 percent due to pandemic and growing competition from homegrown rivals like Anta Sports and Li Ning, both of which have grown in popularity. Earlier global players like Nike and Adidas denounced the use of Xinjiang cotton, due to Chinese Government policy on Uighur Muslims. drawing backlash in mainland China.
All three firms are listed on the Hong Kong Stock Exchange, Anta Sports’, Li Ning’s market capitalizations have grown at least 30 percent this year; the firms are worth $56.1 billion and $24.5 respectively, while X step lags behind at $3.9 billion.