Sneakernomics Revisited

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This file was generated by Descript
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Dez Morgan, we meet again so soon.
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How’s it going?
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Not bad at all, Skip.
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I have to say that the weather here in
Changsha is certainly warmer than it was
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in Scotland on my recent visit there.
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Well, that’s good to hear.
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Japan is warming up too,
which I am very happy about.
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Weather can be such a limiting
factor in a person’s life, especially
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when it comes to getting out of
the house and doing things outside.
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True enough.
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And as I told you the last time
we met, I want to start leading a
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healthier life and get a bit fitter.
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So, I’m getting outdoors and
enjoying the warmer weather.
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I take it you’ve been taking walks or
going for rides on that bike of yours.
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I have been out cycling several times,
but before I can really go walking I need
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to get myself a new pair of trainers.
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Trainers?
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Otherwise called ‘sneakers’
in American English.
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Well, whatever you call them
— ‘sneakers’, ‘trainers’ — I really
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need to get a new pair for the
extended walks I’m planning on taking.
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You know, here in Tokyo, ‘sneakers’ have
become regular, everyday business wear.
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Is that right?
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Yes.
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It’s quite common for people
to wear them in the office.
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In fact, I think for a lot of
people, sneakers have become
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very much a fashion statement.
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Well call me old school, but I
will be wearing mine for walking.
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Yeah, that doesn’t surprise me.
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But I know what you mean about people
wearing sneakers for all sorts of
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occasions, not just for running or sports.
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The market is huge.
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Even in China?
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I’m glad you asked.
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Oh, why’s that?
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Well, with me in the market for
a new pair of trainers, I had
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the sportswear market on my mind.
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I thought it would be a good
business sector to report on today.
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Haven’t we reported on this topic before?
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Yes, we have.
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But that was way back in February
2019 — D2B 154: Sneakernomics.
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Over six years ago.
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Yeah, I suppose the landscape has
changed quite a bit since then.
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It makes sense to revisit this topic.
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I agree.
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So let’s do it, let’s get D2B … Down to
Business with Sneakernomics revisited.
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It might be a good idea to
give us a bit of background.
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For example, who are the biggest
players in the sportswear market?
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That’s a good place to start.
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Nike still leads the global sportswear
market with 18.7% market share,
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but that is down from 20.1 in 2024.
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Adidas holds 11.3% of the
market, slightly up from 2024.
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After that comes the Chinese brand Anta
Sports Group with 11.1, followed by a
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relatively new player, Lululemon with 8.1%
market share, and then Puma with 5.3%.
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Hmm, well that’s an extensive rundown.
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So the two biggest brands are
still on top, but they do seem
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to be under some pressure.
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Yes.
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They remain the dominant players,
but they do not look quite
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as secure as they once did.
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Nike in particular seems
to be facing headwinds.
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That does seem to be true.
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That’s surprising.
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What is behind that?
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One argument comes from Mike
Sykes, editor of the sneaker
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newsletter The Kicks You Wear.
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He argues that Nike was at its most
innovative between 2000 and 2015, but
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since then it’s lost some of its edge.
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Lost some of its edge?
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What’s the reason for that?
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Well, one view is that Nike moved
too far towards celebrity and
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fashion culture, and a bit too far
away from pure sports performance.
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Collaborations with figures like American
rapper and consumer influencer Travis
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Scott and late designer Virgil Abloh
kept the brand culturally relevant of
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course, but they may also have pulled
Nike away from the core identity that
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made it so strong in the first place.
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So what you are really saying is
that Nike may have lost its way a
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little — that at its heart it's a
sportswear company, not a fashion label.
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That is very well put.
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Nike may have become a little
too focused on being fashionable,
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and not focused enough on being
innovative in the sportswear sense.
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And if memory serves me, basketball
player LeBron James was also at his
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height during that earlier period.
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He was.
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He signed a lifetime sponsorship deal
with Nike in 2015, and although he’s still
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playing, he’s now much closer to the end
of his career than he is at the beginning.
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So in a way, he also represents
that earlier era when Nike
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felt especially dominant.
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And Adidas went down a
similar road, didn’t they?
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They had that partnership with Kanye
West — or Ye, as he is now known.
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Yes, they did.
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Adidas partnered with him in 2013,
expanded their relationship in
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2015, but then dissolved it by 2022.
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So both Nike and Adidas, in different
ways, became closely tied to
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celebrity culture and fashion trends.
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Would you say Nike’s sales have
fallen simply because it lost focus?
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I’d say yes and no.
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That may be part of the story, but
it’s definitely not the whole story.
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Go on.
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While Nike has maintained slight growth in
North America, Europe, and Africa, their
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sales have fallen 17% in one key market.
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And I’m guessing that
would be Mainland China.
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And you would be correct.
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China is a very important
part of this story.
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Of course, there is the cyclical issue
that China is in a bit of a slump
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right now, with falling real estate
prices, high youth unemployment,
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and weak consumer spending.
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But I think it may go
a bit deeper than that.
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Mm, what do you mean?
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It’s not just that people have less money
to spend — it’s that they have become
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much more intentional about which brands
get their remaining hard earned yuan.
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They’re looking for more than just a logo,
they’re looking for cultural resonance.
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So, it’s a shift in loyalty.
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Are you talking about rising nationalism
and a growing ‘buy local’ sentiment?
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There’s a specific name for it
— Guochao, or the ‘National Trend’.
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It’s this massive movement where younger
Chinese consumers are prioritizing
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products that blend modern tech
with traditional Chinese design.
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It has turned ‘Made in China’ from a
budget label into a badge of pride.
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Hm.
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And I assume that’s showing
up in sales numbers?
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It really is.
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Looking at the two domestic
leaders, Anta Sports and Li-Ning,
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the story is quite interesting.
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On one hand Anta’s revenue
surged by over 13% in 2025,
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hitting a record CN¥ 80 billion.
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While on the other hand, Li-Ning has
been a bit more flat as it struggles
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to keep up with that momentum.
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That tells me there is more to it
than just being a Chinese brand.
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Yeah, it’s not so cut and dry.
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Regardless, there does seem to be a
trend towards buying domestic products.
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Clearly.
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Does that mean this Guochao,
this ‘National Trend’ is
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hurting the American giants?
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You took the words right out of my mouth.
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There’s indeed a sense that
anti-American feelings are pushing
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Chinese consumers away from brands
like Nike, whose market share in the
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country has slipped to around 18%.
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A result of consumers buying Anta Sports.
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And if you want more evidence — sales
of iPhones and Tesla have been
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facing headwinds in China as well.
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While Adidas — a German
company — actually saw its sales
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in China grow by 13% last year.
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So, foreign brands are not
being rejected equally.
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Precisely.
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The data suggests that sentiment is more
anti-American than it is anti-foreign.
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Interesting.
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But putting the Chinese market aside,
big names like Nike are not exactly
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enjoying smooth sailing in the
rest of the world either, are they?
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No, they aren’t — and that brings us
to another important part of the story.
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While established giants have been
struggling to maintain momentum, newer
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brands like Hoka and On have been taking
market share from the bigger players.
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Hoka?
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On?
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I have to admit, I have not
heard of either of those brands.
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Hoka is a California-based
company, while On is Swiss.
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On has none other than Roger Federer
as an investor and brand ambassador.
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So what is so special
about these two companies?
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They both seem to have established
very clear identities and more
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importantly stuck with them.
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Rather than chasing every new trend,
they have developed their own look and
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their own performance story, and then
waited for the market to come to them.
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Hm.
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In contrast to Nike and Adidas, who may
have focused too much on being trendy.
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Exactly.
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Hoka, for example, began with the
mindset of making shoes for runners.
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Their products were performance-driven,
but also extremely comfortable.
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That combination of quality and
comfort helped Hoka move from the
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running world into the mainstream.
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And On followed a similar path?
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From what I can see, yes.
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They also built a strong identity
around a distinct design.
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Their shoes were chunkier and
less sleek than the look Nike had
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popularized, but they stuck with it.
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And then, over time, what once
looked uncool started to look cool.
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So, in other words, a victory
for the so-called ‘Dad sneaker’.
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The Dad sneaker?
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What is a Dad sneaker?
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Er, you know, it’s that kind of
chunky-soled shoe that younger people
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once mocked as unfashionable and
associated with middle-aged men.
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But now they’re quite popular.
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I did not know that they were called that.
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Okay, taking a step back, what we’re
really seeing is a more fragmented market.
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The big players are still big, but
they’re no longer controlling the
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conversation in quite the same way.
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That’s right.
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And when markets become more
competitive and fragmented, companies
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don’t just respond with new products.
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They also look to deals and partnerships.
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Which brings us to the
Anta Sports Group story.
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The Chinese sportswear
company you mentioned earlier.
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Yes.
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Anta is set to acquire a 29%
stake in Puma for €1.5 billion.
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Just below the 30% threshold
that would have forced Anta
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to announce a full takeover.
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Why would they want to
avoid having to do that?
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At 29%, Anta will become Puma’s largest
single shareholder and have a strong
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voice on the board, while avoiding the
scrutiny that can come with antitrust
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and foreign-investment reviews.
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Of course.
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A large minority stake is much easier
to get approved than a full takeover.
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That’s right.
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And this could prove to be a very
useful partnership for both sides.
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Meaning Anta’s experience in the
Chinese market could help Puma
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become more successful there.
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That is one of the hoped-for outcomes.
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And of course, the reverse is true.
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Anta is looking to gain greater
exposure to markets outside of China
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through its connection with Puma.
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The deal would also give Anta
more exposure to football and
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motorsports, two areas where Puma
has a much stronger presence.
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I suppose not everyone
is convinced though.
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No.
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There are skeptics.
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Puma’s sales were down 10.5% in
2025, and some experts see this as
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a sign of poor management and think
Anta is taking a big financial risk
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that Puma can turn things around.
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Well, that is a legitimate concern.
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Time will tell.
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It always does.
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In any case, it’s clear that the
sportswear landscape is changing.
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Legacy giants like Nike and Adidas are
facing more pressure from challenger
00:14:20.127 --> 00:14:27.097
brands like Hoka and On, and Chinese firms
like Anta are becoming more influential
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not just at home, but globally as well.
00:14:30.507 --> 00:14:36.577
In other words, this is no longer a market
shaped by just one or two dominant names.
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Exactly.
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It’s a far more competitive and
complicated landscape than it was when we
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first covered this topic way back in 2019.
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And on that note, I think it is time
for us to get D2V … Down to Vocabulary.
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The first item on our D2V list
is the adjective ‘old school’.
00:15:13.407 --> 00:15:17.857
When we call someone or something
‘old school, we mean they
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have a more traditional way
of thinking or doing things.
00:15:21.817 --> 00:15:26.097
And depending on the context, it
can be either positive or negative.
00:15:26.637 --> 00:15:31.702
Something being ‘old school’
suggests something a bit outdated.
00:15:32.372 --> 00:15:36.727
But other times it suggests that
someone values the more classic or
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traditional way of doing things.
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Dez used this expression in the
introduction of today’s episode when
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we were talking about how sneakers — or
trainers, if you prefer, were being
00:15:48.397 --> 00:15:51.277
worn in business and social situations.
00:15:51.737 --> 00:15:55.247
He said that he might be old
school, but would only be
00:15:55.247 --> 00:15:57.107
wearing his trainers for walking.
00:15:57.717 --> 00:16:01.907
In other words, I was saying that
I think of sneakers in the more
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traditional way — something you use for
exercising or walking, rather than as
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a fashion item or everyday office wear.
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And that made perfect sense in
the context of our conversation.
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How could ‘old-school’ be used
in a business context, Dez?
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Er, in a business context, you might hear
something like this in a meeting: “Our
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sales director is a bit old school — he
still prefers face-to-face client meetings
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over video calls and automated outreach”.
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A very realistic example.
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I know several people who
are old school in that way.
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Moving on, next on our D2V list is
the verb phrase ‘to face headwinds’.
00:16:51.317 --> 00:16:57.487
When a company or industry, or
market faces headwinds, it means it’s
00:16:57.487 --> 00:17:01.907
dealing with problems or pressures
that make progress difficult.
00:17:02.167 --> 00:17:05.907
You hear this expression all
the time in business settings.
00:17:06.597 --> 00:17:10.737
The image comes from sailing,
or flying into a strong wind.
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When you are moving into a headwind,
it takes more effort and more
00:17:16.377 --> 00:17:18.747
energy to keep moving forward.
00:17:19.177 --> 00:17:23.397
In today’s episode, when we were
talking about Nike’s position in
00:17:23.397 --> 00:17:29.117
the global sportswear market, Skip
commented that Nike in particular
00:17:29.127 --> 00:17:31.017
seemed to be facing headwinds.
00:17:31.547 --> 00:17:36.597
In other words, he was saying that Nike
was dealing with business conditions
00:17:36.637 --> 00:17:38.647
that were making growth more difficult.
00:17:39.087 --> 00:17:44.277
And later in the report, Dez used
the same expression again when he
00:17:44.277 --> 00:17:50.087
said that sales of iPhones and Tesla
had also faced headwinds in China.
00:17:50.837 --> 00:17:55.117
In both cases, we were talking
about companies experiencing
00:17:55.177 --> 00:17:56.797
difficulties in the market.
00:17:57.187 --> 00:18:02.167
The idea is not that these
companies were failing, but that
00:18:02.167 --> 00:18:06.557
conditions had become more difficult
and were pushing against them.
00:18:07.217 --> 00:18:10.027
Much like sailing into the wind.
00:18:10.207 --> 00:18:14.671
How might we use this
in a B2B context, Skip?
00:18:14.907 --> 00:18:18.987
You might hear a salesperson say
something like this when explaining why
00:18:19.127 --> 00:18:25.107
his department didn’t meet the quarterly
sales target: “We faced headwinds in
00:18:25.107 --> 00:18:31.007
Southeast Asia because two major clients
delayed their capital investment”.
00:18:31.457 --> 00:18:33.357
Oh, that’s a strong example.
00:18:33.957 --> 00:18:40.027
It shows how the expression is often
used when external conditions, or
00:18:40.057 --> 00:18:44.737
conditions outside your control,
are making business more difficult.
00:18:44.857 --> 00:18:51.047
And that is why ‘face headwinds’ is such
a useful expression in business English.
00:18:51.782 --> 00:18:52.752
What's our next word?
00:18:53.427 --> 00:18:55.517
Let’s look at the noun ‘momentum’.
00:18:56.487 --> 00:19:01.847
In general, momentum means
the force or energy that keeps
00:19:01.867 --> 00:19:03.477
something moving forward.
00:19:03.937 --> 00:19:10.327
In a business context, momentum refers to
progress or success that builds up over
00:19:10.327 --> 00:19:17.227
time and helps a company, a project, or a
trend keep moving in a positive direction.
00:19:17.427 --> 00:19:22.117
It’s common to hear phrases
like ‘gain momentum’, ‘build
00:19:22.147 --> 00:19:24.587
momentum’, and ‘lose momentum’.
00:19:25.417 --> 00:19:30.917
If a company gains or builds momentum,
it’s starting to move forward strongly.
00:19:31.447 --> 00:19:35.927
If it loses momentum, then
progress begins to slow down.
00:19:36.577 --> 00:19:41.197
In today’s episode, Dez used
this word when he was comparing
00:19:41.247 --> 00:19:43.187
Anta Sports with Li-Ning.
00:19:43.987 --> 00:19:50.747
He said that Anta’s revenue had surged
in 2025, while Li-Ning struggled
00:19:50.777 --> 00:19:53.197
to keep up with that momentum.
00:19:53.617 --> 00:19:59.787
In other words, Anta was making strong
progress in the market, while Li-Ning
00:19:59.797 --> 00:20:05.137
was finding it difficult to match
that same growth and forward momentum.
00:20:05.617 --> 00:20:09.547
Here, ‘momentum’ referred to Anta’s
strong business performance and
00:20:09.547 --> 00:20:12.237
its continuing forward progress.
00:20:12.857 --> 00:20:17.327
How might we use ‘momentum’ in
a professional context, Skip?
00:20:17.477 --> 00:20:21.687
You might hear this in a sales
meeting: "We have built strong
00:20:21.697 --> 00:20:28.007
momentum in Japan over the last 18
months or so, so right now is the time
00:20:28.007 --> 00:20:30.667
to open a second office in Osaka".
00:20:30.917 --> 00:20:32.017
Great example.
00:20:32.317 --> 00:20:37.307
It shows how ‘momentum’ is often
used when a company has had some
00:20:37.327 --> 00:20:39.817
success and wants to build on it.
00:20:39.897 --> 00:20:40.607
Exactly.
00:20:41.467 --> 00:20:46.967
But once a business has gained momentum,
the challenge is to maintain it.
00:20:48.157 --> 00:20:49.437
What’s next on the list?
00:20:49.657 --> 00:20:55.797
The final item on our D2V list
is the adjective ‘fragmented’.
00:20:56.727 --> 00:21:02.777
If something is fragmented, it is
broken into many smaller parts rather
00:21:02.777 --> 00:21:05.067
than being a whole or in one piece.
00:21:05.687 --> 00:21:10.097
In business, we often use this word
to describe a market or an industry.
00:21:10.307 --> 00:21:10.847
Right.
00:21:11.037 --> 00:21:16.457
A fragmented market is one where
there are many competitors, and no
00:21:16.547 --> 00:21:19.007
single company has complete control.
00:21:19.277 --> 00:21:23.447
And that is exactly how this
word was used in today’s episode.
00:21:24.147 --> 00:21:28.567
At one point, Skip said that
what we were seeing is a more
00:21:28.567 --> 00:21:30.737
fragmented sportswear market.
00:21:31.277 --> 00:21:35.917
He was saying that the big sportswear
brands are still important, but they
00:21:35.917 --> 00:21:38.227
are not the only players in the market.
00:21:38.457 --> 00:21:44.167
In other words, the market has become more
divided among a larger number of brands.
00:21:44.807 --> 00:21:50.337
Market share is spread more widely
now, instead of being concentrated
00:21:50.347 --> 00:21:52.577
in just a few dominant companies.
00:21:53.497 --> 00:21:55.487
Can you give us another example, Dez?
00:21:55.647 --> 00:21:56.147
Sure.
00:21:56.857 --> 00:22:02.197
The market for language-learning
apps is highly fragmented, so
00:22:02.197 --> 00:22:06.237
it’s difficult for any one company
to build a dominant position.
00:22:06.997 --> 00:22:14.677
Duolingo, Babbel, Rosetta Stone, iTalki,
and the list just goes on and on.
00:22:14.887 --> 00:22:15.757
Tell me about it.
00:22:16.297 --> 00:22:21.797
Call me old school, but if I were learning
a new language I would simply go with
00:22:22.117 --> 00:22:25.347
an Anki flashcard system and podcasts.
00:22:27.357 --> 00:22:31.417
Would you like to help Down to Business
English reach more people wanting to
00:22:31.417 --> 00:22:33.617
improve their Business English skills?
00:22:34.117 --> 00:22:39.092
Follow Down to Business English on
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00:22:39.432 --> 00:22:41.252
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00:22:41.862 --> 00:22:46.362
Leave a rating and a review and tell
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00:22:56.067 --> 00:22:58.437
Thanks for that report on
the sportswear business, Dez.
00:22:59.257 --> 00:23:04.057
I’m still not convinced I’m ready to start
wearing sneakers to a business meeting,
00:23:04.297 --> 00:23:09.417
but I have to admit, the market is a
lot more interesting than I realized.
00:23:09.497 --> 00:23:14.587
Well, whether you wear trainers for
fashion or just for walking, there's
00:23:14.587 --> 00:23:19.497
clearly a lot more going on in this
industry than most people think.
00:23:19.577 --> 00:23:21.057
There certainly is.
00:23:22.077 --> 00:23:28.157
D2B Members and Apple Podcasts subscribers
— the Bonus Down to Vocabulary episode
00:23:28.167 --> 00:23:32.987
for today’s report will be released
within the next few days or so.
00:23:33.817 --> 00:23:39.407
In that bonus episode, we will break down
five more useful words and expressions
00:23:39.887 --> 00:23:46.777
from today’s report: landscape, go
down the same road, to be cut and
00:23:46.777 --> 00:23:51.637
dry, to mock, and the noun scrutiny.
00:23:51.967 --> 00:23:56.957
A very useful set of terms for
talking about competition, market
00:23:56.987 --> 00:23:59.367
trends, and business strategy.
00:24:00.421 --> 00:24:05.307
If you are a D2B Member, make sure
you have copied your members-only
00:24:05.327 --> 00:24:12.047
podcast feed URL from your account
page on the D2B website and pasted it
00:24:12.097 --> 00:24:14.597
into the podcast app of your choice.
00:24:15.047 --> 00:24:20.797
That way, you will not miss the Bonus
D2V episode when it is released.
00:24:21.287 --> 00:24:26.087
And Apple Podcasts subscribers
you do not need to do anything.
00:24:26.367 --> 00:24:30.667
The Bonus D2V episode will
appear automatically in your
00:24:30.667 --> 00:24:32.757
feed as soon as it goes live.
00:24:33.267 --> 00:24:38.897
And if you are not yet a D2B Member
or Apple Podcasts subscriber, but you
00:24:38.897 --> 00:24:44.307
get value from what we are doing here
on Down to Business English, please do
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consider becoming a D2B member or Apple
Podcast subscriber and support the show.
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To become a D2B Member, just
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00:24:59.857 --> 00:25:01.187
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00:25:01.682 --> 00:25:07.781
That’s d2benglish.com/membership.
00:25:09.077 --> 00:25:13.927
And to become an Apple Podcast
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00:25:13.927 --> 00:25:19.097
Business English show page in Apple
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00:25:20.257 --> 00:25:21.607
Thanks for listening, everyone.
00:25:21.817 --> 00:25:23.377
See you next time.
00:25:23.487 --> 00:25:24.047
Bye bye.
00:25:26.607 --> 00:25:31.267
Down to Business English … Business
News, to improve your Business English.