Lululemon rival Alo Yoga enters China market with online store on Alibaba’s Tmall

The US brand announced its entry into China in June as part of its international expansion to tap the premium ‘athleisure’ market

Los Angeles-based yoga apparel brand Alo Yoga, a rival of Lululemon, will open its first online flagship store on Alibaba Group Holding’s e-commerce platform Tmall on Wednesday, ahead of launching bricks-and-mortar stores in China.

The move comes as China’s premium “athleisure” market grows increasingly competitive, with emerging yoga brands and domestic sportswear makers targeting similar consumer groups.

Alo is among a group of niche foreign brands – including American fast-food chain Church’s Texas Chicken and German supermarket chain Mueller – that are newly entering China to unlock growth in the world’s second-largest consumer market.

The US brand, which offers products in a similar price range to Lululemon’s, announced its entry into China in June as part of its international expansion to tap the market that combines athletic wear and casual attire.

“Yoga apparel remains very popular in China, although growth is slowing,” said Maggie Xie, associate director at S&P Global Ratings.

“We believe increasing demand for athleisure wear, product innovation and penetration into lower-tier cities should support good growth in China’s yoga apparel market.