Global sports apparel retailers Nike and adidas are accelerating expansion into the country's smaller cities and creating products specifically tailored to regional markets, sources reported.
According to the Boston Consulting Group, China's fashion apparel market, which is currently dominated by casual clothing and sportswear, will triple in size to more than 1.3 trillion yuan (£130 billion) in the next decade.
Currently, Nike is the country's number one sportswear maker, intending to expand into 1,400 Chinese towns and cities in the next five years, up from 550 today, while Adidas is vying with Chinese firm Li Ning for second spot.
Last month, Adidas also revealed that it expects to see record sales in its football division in 2012, with the Uefa European Football Championship in Poland and Ukraine expected to generate sales for the company around the world.