The Los Angeles activewear brand Alo cleared RMB10 million (US$1.4 million) in its opening minute on Tmall. The instructive part of its China entry is everything that happened in the two months before. The demand was already there. That was the problem. Alo published its first China-facing post ‘Hello, China’, through a newly registered WeChat account on 17 June, alongside accounts on Xiaohongshu (RedNote) and Douyin. In the days before launch, it had accumulated 240 million topi
n topic views on RedNote, according to Dao Insights.
The entry manufactured none of that appetite. It built over years through celebrity street imagery, cross-border e-commerce and daigou, and it accrued to whoever was positioned to convert it.
Time Weekly found more than 1000 trademark applications resembling Alo lodged in China, alongside “self-created” Alo styles out of Yiwu that the brand has never made. Leggings priced near RMB1000 on Alo’s overseas site were selling below RMB500 in some domestic shops, and for a few dozen yuan in others.
“Until now, much of its Chinese demand has been served through overseas resellers, unofficial shops and counterfeit products. That makes this launch more interesting than a routine new e-commerce store,” said Patrick Steijlen, Shanghai-based retail expert.
“Alo can now control pricing and customer service, build direct user data and see which products Chinese consumers actually buy rather than merely save on Xiaohongshu. Starting online also gives the company a relatively contained way to test demand before committing to a larger mainland retail network.”
Channel exclusivity
Alo’s Tmall flagship is its sole official e-commerce channel on the mainland, carrying more than 300 styles across yoga, training, athleisure, footwear and accessories, and giving it a route to the platform’s 62 million-plus 88VIP members.
Gu Di, GM of sports and outdoors at Taobao and Tmall Group, framed the deal in familiar platform terms, describing Tmall as “the go-to choice for global brands in China seeking high-value customers”.
Alo’s mini-program opened bookings in late July, and from August 1 it ran an eight-week Shanghai programme of running clubs, city walks, outdoor yoga, reformer pilates, cycling and wellness salons. Sessions have since shown as fully booked.
This is Lululemon’s decade-old China method, compressed into two months and run before a single mainland door has opened. The first Greater China store is slated for Hong Kong’s K11 Musea in September, with mainland flagships flagged for Shanghai’s Jing’an Kerry Centre and Beijing’s Taikoo Li Sanlitun North.
What to watch, and what not to
The competitive set is filling fast.
Lululemon’s China Mainland revenue rose 30 per cent to $478.4 million in the quarter to May 3, lifting the region to 19 per cent of group revenue from 16 per cent a year earlier, while Americas revenue fell 3 per cent and full-year guidance was cut. Most of Lululemon’s 25 to 30 planned international openings this year land in China.
NikeSkims hoardings went up in Shanghai the same week Alo’s Tmall store opened, promising an autumn debut. Vuori has been adding mainland stores. Anta-owned Maia Active competes at roughly half Western pricing with fits cut for Asian proportions.
“This has been one of the most anticipated entries in China retail for several years. Alo pulled back once already, hit by counterfeit products, and opened in Korea first. The Shanghai programme is the first real signal that intent is now firm,” said Chris Baker, founder of brand and digital strategy firm Totem.
“The opportunity is a pricing layer. Lululemon has held a dominant share here. Alo arrives more expensive and reads as more premium, positioned to carve out a top tier above it, particularly among affluent women who have been waiting for the luxury upgrade.”
Further reading: Experts weigh in on NikeSkims’ chances for success in a hyper-saturated market.