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Nike, Adidas, Subway: Consumerism booming near Mao Zedong’s communist cave

If only Mao could see it now.

The small city in which the father of modern China, Mao Zedong, lived in a cave during the communist revolution has become the symbol of skyrocketing consumerism and capitalism in the country.

The Financial Times covered the trend in a front page story this weekend and found residents of Yan’an kitted out in the latest Nike and Adidas sportswear, just minutes from Mao’s cave, which has become one of Chinese communism’s most sacred sites.

Prices are comparable to those in the US and head-to-toe sportswear ensembles can run $200 – or up to a month’s rent in Yan’an.

Zhang Peng, 36, who wore Adidas clothes and a Gucci watch, told the Financial Times: “If I am out playing badminton with my friends, and I am wearing Adidas while others are wearing Nike or (Chinese sportswear brand) Anta, then the one wearing Anta will lose face.”

Adidas last year opened up to 400 stores in smaller Chinese cities – those between 500,000 and 700,000 residents – in an effort to attract more buyers outside the larger cities such as Beijing and Shanghai.

Despite the pricetags, buyers still flock to big brand clothing stores but treat them as a luxury.

“Consumers in lower tier cities have a lot more time to participate in activities that do not cost a lot, like running, and there is not so much choice in lower tier cities in apparel so it’s OK to wear sportswear for going to work or even to a wedding,” said Managing Director of Adidas China, Colin Currie.

China’s communist government is pleased with the trend which it hopes will speed up an economy that has suffered steep declines in recent months.

Growth suffered an unexpected decline to 7.7 percent in the first three months of the year from the previous quarter’s 7.9 percent, according to the Associated Press.

The Government has promised changes in medical and pension policies in an effort to free up household incomes for increased consumer spending. The goal is for a self-sustaining economy based on domestic consumption instead of trade and investment.