【China】Lululemon’s Rival Sweaty Betty’s China Business Acquired by Baozun

Chinese e-commerce and brand management company Baozun has acquired the China operations of the UK-based premium yoga wear brand Sweaty Betty.
Sweaty Betty, founded in London in 1998, is often dubbed the “British version of Lululemon.” The brand focuses on women’s activewear with a flattering fit and British style, with price points ranging from 480 to 1,180 RMB. It was founded in the same year as its future rival, Lululemon, which started in Vancouver, Canada.
Despite being praised as a “more fashionable yoga pants brand,” Sweaty Betty has remained largely confined to the UK and US markets, unlike Lululemon’s global success. Sweaty Betty entered the Chinese market in 2021 but struggled to gain traction, closing its only mainland China store in March 2023. Its total revenue for that year was $203 million.
The Chinese activewear market is now fiercely competitive. Beyond the dominant Lululemon, contenders include North American brand Alo Yoga, MAIA ACTIVE (acquired by Anta), NEIWAI SPORT, and major sportswear giants like Nike and Adidas.

Baozun has been operating at a loss in recent years, including throughout 2024. However, the company has been actively acquiring consumer brands to fuel growth. This acquisition marks Baozun’s third international brand purchase, following its acquisition of Gap’s China business in late 2022 and the British footwear and outdoor brand Hunter in 2023.

These acquisitions have provided a growth engine. In Q1 2025, Baozun’s brand management business revenue grew 23.4% year-over-year to approximately 390 million RMB, with adjusted operating losses narrowing by 28.1%. The company noted in its financial report:

In a previous interview, Qiu Wenbin, Chairman and CEO of Baozun Group, stated:

The acquisition of Sweaty Betty represents another bet on the fate of international brands in China and a significant gamble on Baozun’s future path.

More Chinese companies are embarking on a new round of hunting for classic global consumer brands.

Similarly targeting the yoga wear segment, Anta previously acquired MAIA ACTIVE. Anta has consistently expanded through investments and acquisitions, bringing brands like FILA, Arc’teryx, and Kolon under its umbrella for global expansion. Its latest move was the full acquisition of the German outdoor brand Jack Wolfskin this year.
In January, the Youngor Group acquired the French luxury children’s wear brand Bonpoint. Shortly after, menswear brand Baoxiniao invested to acquire the intellectual property of the international outdoor clothing brand Woolrich for all regions outside Europe.
The logic is clear: acquiring a foreign consumer brand to complement one’s business lines and achieve scale expansion. This has given rise to numerous consumer M&A deals.
Among the most notable is the private equity pursuit of Starbucks China, with firms like Hillhouse, Carlyle, and Trustar Capital expressing interest. Recent reports suggest Centurium Capital is also in the bidding, with a potential valuation reaching $10 billion.
Another high-profile transaction involves PE giant KKR conducting a consumer acquisition in China, with the target reportedly being the beverage brand Dayao.
Familiar brands are increasingly being put on the block. In January, Sequoia China acquired a majority stake in Marshall for a valuation of 1.1 billion euros (approximately 8 billion RMB). Soon after, the Italian luxury sneaker, apparel, and accessories brand Golden Goose announced a strategic equity investment of about 12% from Blue Pool Capital.
Other deals include FountainVest Partners and Unison Capital acquiring jewelry brand Tasaki, and Boyu Capital acquiring the high-end department store SKP.

A prevailing view is that the consumer sector is considered rigid and counter-cyclical, making it more attractive to capital during economic fluctuations. Acquiring the China operations of multinational companies has become a primary focus for consumer M&A players.
Reshuffling is underway, but the great consumer market never fades.