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Yoga apparel company Alo Yoga, a competitor to Lululemon, will debut its inaugural online store on Alibaba's Tmall platform this week, prior to opening physical retail locations in China. The strategy is part of a growing trend in China's premium "athleisure" market, which is becoming more competitive as yoga brands and domestic sportswear manufacturers target the same consumer base.

Among other foreign companies making moves into China are US fast-food chain Church's Texas Chicken and German supermarket chain Mueller. Alo Yoga, which offers products in a comparable price range to Lululemon, disclosed its entry into the Chinese market in June as part of its international expansion plans to capture a market that merges athletic wear with casual clothing.

Maggie Xie, associate director at S&P Global Ratings, stated that while yoga apparel remains popular in China, growth is slowing, but increasing demand for athleisure wear, product innovation, and expanding into lower-tier cities could drive positive growth. Xie cautioned that Alo will need to justify its pricing as a fashion brand to Chinese consumers.

The brand, founded in 2007, has gained traction among young, global consumers with its California casual style, endorsed by celebrities such as Kendall Jenner and Bella Hadid. In contrast to Lululemon's focus on performance-led yoga apparel, Alo positions itself as a street-fashion brand. Alo Yoga's first Hong Kong store, situated in Tsim Sha Tsui's K11 Musea mall, is set to open after renovating a space previously occupied by a British luxury food retailer.

No launch date has been announced. Additionally, Alo recently hosted its first wellness community event at Amanyangyun, a luxury hotel in Shanghai.