A model presents a creation of the Hosa Swimwear collection in Beijing, April 28, 2014.[Photo/VCG]

In 2015, the swimwear market in China saw sales of over 4 billion yuan ($601.3 million), boosted by the spread of swimming activities to more locations such as community centers, fitness gyms and seaside resorts, said Frost and Sullivan.

Neil Wang, global partner and China president at Frost and Sullivan, said the swimwear market is still very fragmented in China, with a large number of unbranded small players, a sign that the market still needs to develop further.

"However, as the industry continues to mature, the small players with backward technology and equipment are likely to exit in the future," said Wang. "The branded local players with healthy performance on the market are expected to largely take up their share due to a comparatively similar pricing."

Hong Kong-listed sports health company Hosa Group, which started selling swimwear in the country 20 years ago through department stores, warns that intense competition in this segment is growing online.