Champion, a Century-Old Trend Brand, Faces Sale for 7.2 Billion Yuan: Analysis of Brand Rise and Fall and Market Landscape

Overview of the Brand Acquisition Event

Recently, significant merger news has emerged in the global fashion industry. American brand management giant Authentic Brands Group (ABG) has reached a preliminary agreement with apparel group HanesBrands Inc. (HBI) to acquire the century-old sports trend brand Champion for approximately $1 billion (equivalent to 72 billion yuan). This transaction is expected to be completed between May and June 2024, marking the third ownership change for this trendsetting brand favored by Generation Z.

The background of this acquisition stems from Champion's continued poor performance in recent years. As HBI's second-largest brand after Hanes, Champion experienced declining global sales over seven consecutive quarters from Q2 2022 to the end of 2023. Calculated at fixed exchange rates, sales declines in each quarter of 2023 were recorded at 15%, 15%, 20%, and 24%, with the most significant downturn occurring in the U.S. domestic market. Although it maintained relatively stable performance in China and Latin America markets, its overall decline has become difficult to reverse.

The Development History of Champion

Founding Period & Campus Culture Era (1919-1970) Champion’s history dates back to its founding in Rochester, New York by Feinbloom brothers in 1919. The brand initially focused on producing high-quality athletic wear targeting college students as its first core customer base. In 1926, Champion secured a contract to provide uniforms for Wentworth Military Academy which marked its official entry into campus markets—a strategic decision that laid an important foundation for future development. In the '30s, Champion made significant breakthroughs in product innovation by inventing prototypes of modern hooded sweatshirts which quickly caught attention from Michigan University's football team—making them one of the first collegiate teams wearing Champion gear; subsequently becoming fashionable among college students across America. Cultural Symbol & Business Expansion (1970-2000) Entering into the '70s era saw Champion keenly capturing potential within women's sportswear market by launching stylish activewear specifically designed for women along with pioneering sports bras as an entirely new category—this innovation not only expanded their audience but also propelled growth within women's athletic apparel sector. During '80s period they successfully integrated themselves into hip-hop culture where their iconic blue-and-white “C” logo hoodies became symbols on streets transitioning from professional athletics toward broader consumer markets completing transformation from specialized sporting goods label towards cultural phenomenon during this time frame culminating peak commercial success throughout ‘90s decade when they became official sponsors both NBA teams alongside USA Olympic representatives including legendary athlete Michael Jordan who donned various pieces while showcasing immense visibility thereby significantly enhancing branding impact globally establishing itself firmly amongst renowned names worldwide.