Decathlon, the French sports goods chain, signed a strategic alliance with real estate giant China Vanke Co Ltd on Thursday in a bid to further penetrate the country's lower-tier markets.

Under the contract, Decathlon will rent or buy properties in Vanke's commercial projects in second- and third-tier Chinese cities such as Foshan and Dongguan to open its new stores.

"It's a win-win situation for both parties. Decathlon can lower their costs on finding good store locations, and Vanke has a famous brand to lease their property," said Wang Hongtao, a press officer and industry expert from the China Chain Store and Franchise Association.