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Tag: Footwear

  • Birkenstock Opens First Indonesian Concept Store in Bali with 180-Sqm Community Hub

    Birkenstock Opens First Indonesian Concept Store in Bali with 180-Sqm Community Hub

    Birkenstock opened its first standalone concept store in Indonesia on September 10, adding a two-storey, 180-square-metre community space in Ubud, Bali.

    The location takes the German footwear brand into direct retail in Southeast Asia’s largest consumer market after years of selling exclusively through local department stores.

    Balinese Architecture and Premium Footwear

    Architect Yoka Sara designed the Ubud property around traditional Balinese residential layouts, using the concept of ‘Umah’, the local word for home. Sara placed the store entrance around a kitchen layout, reflecting the traditional first room entered in a Balinese house.

    Retail space on the upper floor carries Birkenstock’s higher-margin 1774 line alongside an exhibition detailing shoe assembly methods and raw materials. Adjoining the sales floor, the two-level community hub hosts sound healing sessions, yoga classes, and craft workshops run by local practitioners.

    We want to strengthen our presence in strategic markets while staying true to what defines us; creating experiences that are relevant to the places and communities we become part of.

    Direct Retail Over Wholesale Shelves

    Choosing Ubud over Jakarta shifts Birkenstock’s commercial entry point away from high-traffic Indonesian shopping malls. Bali gives the footwear maker direct access to international tourist footfall and resident expatriates who already know the brand, keeping customer acquisition costs lower than a ground-up push in the capital.

    The format also protects pricing power. Selling premium lines like the 1774 collection inside department stores limits brand control and exposes inventory to concession discounting, whereas a dedicated venue allows Birkenstock to sell full-price stock alongside experiential programming.

    Regional Expansion Track

    Direct store rollouts across Asia-Pacific have accelerated following Birkenstock’s flagship opening in Tokyo’s Shibuya district in July 2026. The shift reflects a wider push across the region to convert third-party wholesale accounts into owned mono-brand flagships in primary resort and metropolitan locations.

    Store traffic metrics from Ubud will determine whether Birkenstock expands the standalone concept into Jakarta and Surabaya mall developments later in the financial year.

  • China’s Kailas Opens First Directly Operated European Store in Chamonix

    China’s Kailas Opens First Directly Operated European Store in Chamonix

    Chinese mountain sports brand Kailas opened its first European retail store in Chamonix, France. The site gives the brand a direct physical foothold in the continental outdoor hub.

    It is the company’s first directly operated store outside China. Kailas already runs more than 300 wholesale and retail sales outlets worldwide.

    Direct operations replace third-party distribution

    Founded in 2003, Kailas built its business across mountaineering, rock climbing, ice climbing and trail running. The Chamonix store shifts that strategy. Instead of relying on wholesale accounts, event sponsorships and athlete outfitting, the brand now operates its own storefronts in competitive Western markets.

    Inside, the branch focuses on the Kailas Fuga trail-running line and doubles as a community hub for local runners. Kailas used the location to launch its Fuga Ex Pro G shoe. More than 80 runners and ambassadors from its Fuga Team and Fuga Mountain Club attended the debut.

    Challenging established alpine competitors

    Setting up shop in Chamonix puts Kailas in direct competition with European mountain sports incumbents on their home terrain. The French Alps draw dense traffic from elite trail runners and mountaineers. That makes the town an expensive proving ground rather than a high-volume revenue generator.

    For Asian sportswear makers, direct European retail brings higher overhead, strict labour regulations and steep lease commitments compared to domestic operations. Kailas bets that technical validation in the Alps will lift brand equity across international accounts and its core domestic market in China.

    Building on athlete partnerships

    This opening follows years of sports marketing that assembled an international roster of 107 sponsored athletes. Those sponsorships previously fed third-party retail distribution and online orders rather than dedicated company-owned doors.

    Future expansion will show whether the Chamonix location remains a standalone flagship or serves as a template for more direct-to-consumer stores across Western Europe.

  • Bangladesh Plans New Effluent Plant to Protect $5 Billion Leather Export Target

    Bangladesh Plans New Effluent Plant to Protect $5 Billion Leather Export Target

    Bangladesh will build a new central effluent treatment plant at the Savar tannery estate to protect its target of reaching $5 billion in leather and footwear exports by 2030.

    The existing facility processes between 14,000 and 18,000 cubic metres of liquid waste a day, well below its designed capacity of 25,000 cubic metres. Volumes surge to 45,000 cubic metres daily during peak slaughter periods such as Eid-ul-Azha, overwhelming the site and blocking factories from securing international environmental certifications.

    Overhauling the Savar Estate

    Commerce and Industry Minister Khandaker Abdul Muktadir said the government will select a private operator through an open tender to construct and run the replacement facility. Larger tanneries will receive financial and technical backing to build individual treatment units, while non-compliant operators will receive assisted exit packages to leave the cluster. Tanneries that stay must secure certification from the Leather Working Group.

    Infrastructure bottlenecks extend beyond liquid waste. Bay Group Managing Director Ziaur Rahman reported spending nearly Tk30 million on solid-waste handling last year alone, citing unresolved gas shortages and unpaved roads across the estate. Bangladesh shipped $1.76 billion worth of leather goods and footwear across 105 markets last year, yet roughly 65 per cent of leather leaves the country as crust leather rather than finished consumer merchandise.

    Cutting Red Tape for Footwear Makers

    Footwear manufacturers are pushing to diversify beyond raw hides. Non-leather shoes now generate 31 per cent of the sector’s export revenue, but Bangladesh controls less than 0.5 per cent of global trade in the category. The Footwear Leathergoods and Accessories Exporters Association estimates that lifting that share to 5 per cent would add $3.5 billion in export value.

    Across Southeast Asia, rival manufacturing hubs have pulled ahead by streamlining factory setup and clearing environmental hurdles. Vietnam requires four compliance documents for footwear exporters, whereas Bangladeshi manufacturers must navigate 23 separate licences and 190 administrative filings, according to trade group data. That administrative drag slows foreign joint ventures and leaves machinery import permits stalled for months.

    Government negotiators are preparing bilateral talks with Japan to widen tariff concessions on finished leather items before Bangladesh loses its least developed country trade preferences.

  • Adidas Reopens 569-Square-Metre Chadstone Store Under Home of Sports Concept

    Adidas Reopens 569-Square-Metre Chadstone Store Under Home of Sports Concept

    Adidas reopened its Chadstone store in Melbourne with 569 square metres of selling space, making it the first location in the region built around the Home of Sports concept.

    The store returned to trading following a three-month renovation designed to expand floor capacity and introduce new merchandising layouts.

    Customisation and Footwear Ranges

    Part of the expanded floor plan houses a dedicated Originals shop-in-shop, using the brand’s Collection V2 design for the first time in the Australian market. Two main footwear walls show inventory spanning running, training, football and lifestyle lines.

    Shoppers can also use a dedicated Made for You counter near the point of sale. The station applies heat-pressed patches and personalised name sets directly onto apparel and shoes during purchase.

    Foot Traffic and Format Rollouts

    Securing prime space matters for sportswear operators chasing high-volume sales. The Chadstone shopping centre draws more than 22 million visitors each year, giving the brand direct exposure to one of the highest-density retail corridors in the country.

    Sportswear majors across Asia-Pacific continue to replace standard mall units with larger experience-led stores that combine performance categories with lifestyle streetwear under one roof. Nike and Puma have followed similar paths across regional gateway hubs, using flagship remodels to push direct-to-consumer sales and higher-margin personalised gear.

    The business opened the upgraded doors with a weekend roster of local pop-up collaborations, with attention now turning to how the Home of Sports layout performs ahead of wider network updates across Australia.

  • Indian Sneaker Brand Comet Raises $10.5 Million to Expand Retail Network

    Indian Sneaker Brand Comet Raises $10.5 Million to Expand Retail Network

    Indian footwear brand Comet raised 10.5 million dollars in Series B funding led by global investment firm Verlinvest. The capital injection follows a ninefold revenue increase since the company’s prior round and will fund physical store rollout across India.

    Existing backers Elevation Capital and Nexus Venture Partners joined the round. Angel investors including Urban Company chief executive Abhiraj Singh Bhal, Snap Inc. Global chief business officer Ajit Mohan, and VegNonVeg co-founder Anand Ahuja also participated.

    Tooling and Product Development

    Comet allocates the fresh capital toward retail expansion, technology infrastructure, and in-house research and development. The shoemaker designs proprietary sole moulds and tooling internally rather than relying on off-the-shelf white-label outsoles, a choice that drives higher upfront capital expenditure per silhouette.

    “We want to continue pushing the boundaries of what an Indian footwear brand can build, which means investing deeply in sole technology, R&D and engineering,” co-founder Utkarsh Gupta said. The company spent twelve months engineering a women-specific model with bespoke sole tooling ahead of an upcoming market release.

    Footwear startups across South Asia face steep unit economics when trying to compete directly with global sportswear incumbents. Developing custom moulds costs tens of thousands of dollars per silhouette before a single production run ships, leaving little margin for inventory errors if consumer uptake falters.

    Retail Footprint and Expansion

    Physical stores provide direct access to street-level shoppers who still demand tactile trial for sizing and cushioning. Direct-to-consumer digital channels in India grapple with high return rates and customer acquisition costs, forcing domestic lifestyle labels into brick-and-mortar storefronts to secure stable cash flow.

    Landlords in top tier metros now allocate dedicated lifestyle wings to local challenger labels that pull younger foot traffic into shopping centres. Comet faces competition for prime high-street square footage against well-funded apparel and footwear peers rapidly securing leases in the same commercial corridors.

    Fundraising Track Record

    Founded in 2023, Comet previously raised 42.3 crore rupees in a Series A financing round led by Elevation Capital in 2024. The brand built its early presence around limited-run design drops and four core footwear models.

    The company reaches 10 operational stores this month. Management targets a portfolio of eight distinct footwear models by late next year while expanding the retail fleet to 20 stores across India by the close of fiscal 2027.

  • Skechers Opens 8,650-Square-Foot Superstore at Sunway Pyramid in Malaysia

    Skechers Opens 8,650-Square-Foot Superstore at Sunway Pyramid in Malaysia

    Skechers opened an 8,650-square-foot Superstore at the Sunway Pyramid mall in Subang Jaya, expanding its physical presence in Malaysia.

    The relocated store is nearly six times larger than the brand’s previous 1,453-square-foot unit at the same shopping centre. It is the company’s first Superstore format in Subang Jaya. The launch lifts its nationwide network to 120 doors.

    Zoned layout and digital fitting

    Dedicated zones divide the catalogue into sections for walking, running, trail, pickleball, performance apparel and children’s collections. The store also includes SafeSize 3D foot-scanning hardware to generate personalised sizing data. Alongside the scanners, an in-store customisation station lets shoppers modify selected shoes and garments.

    Footwear retailers across Southeast Asia continue to trade standard mall units for large experiential spaces. The bigger layouts capture higher basket sizes and accommodate specialized athletic lines that boutique footprints cannot hold.

    Expansion pipeline across Malaysia

    Malaysia is a key sales volume driver for the American brand. Cedrick Tan, president of Skechers Southeast Asia, Hong Kong and South Korea, said the group will maintain its brick-and-mortar investment pace to keep up with domestic demand.

    More outlets will launch across the country over the coming months to build on the 120-store base.

  • Indian Sneaker Brand Zaydn Raises Fresh Capital for Expansion

    Indian Sneaker Brand Zaydn Raises Fresh Capital for Expansion

    Indian sneaker brand Zaydn has secured fresh capital to accelerate retail expansion across the domestic market.

    The investment will support the brand’s production scale and broader distribution network as consumer appetite for homegrown footwear labels increases across Indian urban centres.

    Targeting domestic sneaker demand

    Capital from the round will go directly toward expanding retail channels and widening the brand’s core product lineup. Indian consumers continue to shift casual wardrobe budgets toward sneakers and athletic styling, opening room for domestic players to compete alongside established global labels.

    Distribution strategy for direct-to-consumer and lifestyle footwear in India relies heavily on blended retail channels. Brands must balance online marketplaces with dedicated brand outlets to build repeat purchase rates and maintain stock efficiency in metro regions.

    The race for shelf space

    Homegrown footwear brands in India face stiff competition from multinational sporting goods giants and local value manufacturers alike. Established international brands hold the bulk of premium mall space, leaving younger labels to build loyalty through direct channels and targeted offline footprint before pushing into Tier-2 retail corridors.

    RetailNews Asia will track Zaydn’s subsequent channel rollout and store openings as the new capital deployment begins across regional markets.

  • Puma Relocates and Expands Flagship Store at VivoCity Singapore

    Puma Relocates and Expands Flagship Store at VivoCity Singapore

    Puma has opened its renovated flagship store at VivoCity in Singapore. The label shifted operations to a larger space on the mall’s ground level.

    Trading previously took place on level two. The new location sits on level one to capture heavier shopper traffic.

    Floor shift and category layout

    The expanded store houses the brand’s footwear, apparel, and accessories across distinct sections. Key product zones show running, training, team sports, and motorsports merchandise.

    “VivoCity is an important retail destination in Singapore, and this new flagship allows us to bring the full breadth of Puma to consumers in a more engaging and accessible way,” said Sanjay Roy, managing director of Puma Southeast Asia and Oceania.

    Sportswear footprint in regional malls

    Sports brands across Southeast Asia continue upgrading mall tenancies from upper levels to prime ground-floor units. The strategy targets casual lifestyle buyers alongside performance athletes. RetailNews Asia has observed similar moves across core retail nodes in Singapore, where flagship expansions anchor marketing and broader wholesale distribution.

    At VivoCity, the store is now fully operational with the brand’s complete seasonal line-up ahead of the final quarter retail cycle.

  • On Opens First Sydney Store at Westfield Bondi Junction

    On Opens First Sydney Store at Westfield Bondi Junction

    Swiss sportswear company On has opened its first Sydney store at Westfield Bondi Junction. The launch brings its Australian retail network to two physical locations.

    Located on Level 3, the 493-square-metre space pushes the brand’s global corporate-owned store count past 70 units across major metropolitan centres.

    Footwear, Collaborations and Local Design

    The shop carries On’s core inventory across running, training, tennis, and lifestyle footwear, apparel, and accessories. Shoppers can also buy limited-edition collaborative collections with external partners, including Post Archive Faction, Sky High Farm Goods, and grocery brand Erewhon.

    Local design elements run throughout the interior. Builders fitted the unit with textured concrete, sandstone-style seating, regional tiles, and a bespoke accent wall created by Australian finish firm Pretty in Paint Australia to match coastal running corridors around Bondi.

    “It is a place that feels deeply connected to what On stands for,” said Lauren Portelli, commercial director for Oceania at On.

    Direct Retail Push in Asia-Pacific

    Direct retail expansion has become a primary channel for performance footwear labels seeking higher margins and greater control over brand presentation across Asia-Pacific. Wholesale distribution through specialty running shops gave On its initial market volume in Australia. Dedicated company stores now allow the business to show full technical lines alongside higher-priced lifestyle apparel that multi-brand stockists rarely carry.

    Founded in Zurich in 2010, the company now distributes products across more than 80 countries worldwide. Attention turns to whether the Swiss group will add direct retail sites in Melbourne and Brisbane as it scales regional store operations.

  • Vivaia Amplifies US Expansion with Offline Stores, Catering Sustainable Luxury Footwear to New Markets

    Vivaia Amplifies US Expansion with Offline Stores, Catering Sustainable Luxury Footwear to New Markets

    Vivaia, a footwear brand originating from China, is extending its footprint in the United States with the launch of two new retail locations, highlighting the company’s ongoing commitment to increasing its physical availability globally.

    The first location was recently inaugurated at the Roosevelt Field Mall in Long Island, while the second store is scheduled to commence operations in late May at the Garden State Plaza in New Jersey.

    The Long Island outlet, encompassing 650 square feet, is architecturally fashioned after the ‘wabi-sabi’ principles. An inherent Japanese philosophy, wabi-sabi underscores minimalistic and pared-down aesthetics. The store boasts an ambiance marked by light wood finishes and soothing illumination, aimed at facilitating a serene shopping experience for the customers.

    Each store will showcase a handpicked assortment of Vivaia’s footwear offerings. The product line-up includes the Margot Mary Jane, Healing Garden Slingback Heels, and the Satin Sneakerina.

    Jeff Chan, Vivaia’s Co-founder, shared his insights on the brand’s US expansion strategy. He said, “Given that the United States constitutes our principal market and fuels our online growth, branching out beyond New York was a logical progression for us.” He added, “By synergising our robust digital presence with tangible retail outlets, we can better cater to our customers and make our comfort-centric, environmentally-friendly merchandise more accessible to them.”

    Established in 2020, Vivaia has garnered recognition for its footwear that seamlessly melds comfort and sustainability. The brand employs recycled materials in its manufacturing process, such as yarns derived from PET bottles, and leverages 3D knitting technology to minimise waste.

    Questions & Answers

    What is Vivaia’s expansion plan in the US?
    Vivaia plans to increase its US presence by opening two new retail outlets. The first store has already opened in Long Island’s Roosevelt Field Mall, and the second one is set to launch in late May at the Garden State Plaza in New Jersey.

    What are the principles behind the design of Vivaia’s Long Island store?
    The Long Island store is designed following ‘wabi-sabi’ principles, a Japanese philosophy that embraces minimalism and simplicity. The store is characterized by light wood finishes and soft lighting to provide a tranquil shopping experience.

    What is unique about Vivaia’s product offerings?
    Vivaia is known for its comfort-based and sustainably produced footwear. The brand uses recycled materials, including yarns made from PET bottles, along with 3D knitting technology to decrease waste.

  • Satorisan Marches into China: Spanish Footwear Brand Expands Asian Presence

    Satorisan Marches into China: Spanish Footwear Brand Expands Asian Presence

    Recognized as an influential player in the footwear industry, Spain’s Satorisan has successfully broken into the Chinese market. This strategic move is part of their ongoing venture to expand their reach across Asia, following a solid foundation laid in Europe and South Korea.

    Satorisan was established in 2010 by Alejandro Monzó Tadeo, who has over two decades of experience in the active footwear industry. Since its inception, the brand has witnessed steady growth, with sales surpassing 1.6 million pairs in over 100 countries worldwide.

    Satorisan’s Debut in China

    Satorisan unveiled its presence in China through a showroom presentation of their Fall/Winter 2026 collection at Shanghai Fashion Week. The brand also launched its official account on Xiaohongshu, a popular social media and e-commerce platform in China, marking its initial entry into this vast market.

    International Growth Strategy

    Satorisan has been working consistently on their international growth strategy. In Spain, the brand operates flagship stores under the ‘Satori Home’ concept. Their Valencia store, located at Calle Sorní 25, exemplifies this concept. Established in 2016 within a renovated modernist building, it serves as both a retail store and a showroom, hosting events and community-led initiatives.

    Entering the Competitive Chinese Market

    China’s footwear market is highly competitive, with both local and global brands vying for consumers’ attention. By entering this market, Satorisan positions itself among these contenders, aiming to meet the growing demand for comfortable, lifestyle-oriented footwear.

    Questions & Answers

    What is Satorisan’s background?
    Satorisan was founded in 2010 by Alejandro Monzó Tadeo, a veteran in the active footwear industry. It has witnessed steady growth, with sales surpassing 1.6 million pairs in over 100 countries.

    How has Satorisan entered the Chinese market?
    Satorisan made its debut in China through a showroom presentation at Shanghai Fashion Week and by launching an official account on Xiaohongshu, a popular social media and e-commerce platform in China.

    What kind of competition does Satorisan face in the Chinese market?
    The Chinese footwear market is highly competitive, with both local and international brands targeting consumers. Satorisan, with its focus on comfortable, lifestyle-oriented footwear, is positioning itself to meet this robust demand.

  • NewRee Sports Tapped to Boost Reebok’s Expansion in Greater China: A New Era for Athletic Footwear

    NewRee Sports Tapped to Boost Reebok’s Expansion in Greater China: A New Era for Athletic Footwear

    Authentic Brands Group has teamed up with NewRee Sports, designating them as the primary operating collaborator for Reebok in Mainland China, Hong Kong, and Macau.

    Details of the Partnership

    As per the agreement, NewRee Sports is charged with the supervision of the production, importation, distribution, and sales of Reebok products across the three markets. This encompasses a broad range of products, including footwear and attire for both adults and children.

    The initiation of this partnership comes subsequent to the early dissolution of Reebok’s former licensing accord with Tristate Holdings. As per the details disclosed, the agreement with Tristate Holdings came to an end on December 31st.

    A New Chapter for Reebok

    Authentic Brands Group took the reins of Reebok from Adidas in 2021 and since then, it has adopted a strategy of collaborating with regional partners to boost the brand’s presence in pivotal markets.

    Established in 1895, Reebok has built a reputation for its longstanding heritage in athletic footwear and sports culture. In the present era, it aligns itself at the crossroads of sport, activewear, and lifestyle.

    The collaboration with NewRee Sports signifies a new chapter in Reebok’s evolution in Greater China. Authentic Brands Group is perpetuating the expansion of the brand’s presence via local operating partners.

    Questions & Answers

    What is the role of NewRee Sports in this partnership?
    NewRee Sports will supervise the production, importation, distribution, and sales of Reebok products in Mainland China, Hong Kong, and Macau.

    When did the previous agreement with Tristate Holdings end?
    The agreement with Tristate Holdings ended on December 31st.

    What is the current position of Reebok in the market?
    Reebok, having a strong legacy in athletic footwear and sports culture, currently places itself at the intersection of sport, activewear, and lifestyle.

  • Surging Demand for Lifestyle Footwear Propels Asics to Stellar Q3 Performance

    Surging Demand for Lifestyle Footwear Propels Asics to Stellar Q3 Performance

    Asics, the Japanese sportswear giant, has reported robust performance in both the third quarter and the overall nine-month period ending 30th September. This upturn is largely credited to growing demand for lifestyle-centric footwear and a steady flow in its key running sector.

    Surge in Q3 Sales

    The third quarter saw net sales soar to ¥218.5 billion (approximately $1.4 billion), marking a 17 per cent increase from the previous year’s corresponding period. Operating profit also witnessed a significant surge, reaching ¥46.2 billion ($298.9 million), a 38.5 per cent hike.

    Nine-month Period Profit

    During the nine-month period in question, Asics’ net sales touched ¥625.1 billion ($4.04 billion), a rise of 19 per cent from the same span the previous year. This, as the company revealed, was a first-time occurrence in nine months. The period also saw operating profit leap by 39.4 per cent, hitting ¥127.6 billion ($825.8 million), and gross margin bettering by 1.1 percentage points to land at 56.5 per cent. This surge is reflective of a beneficial product mix and an increase in direct-to-consumer sales.

    Driving Factors

    The upward trend in both periods was primarily driven by Asics’ SportStyle and Onitsuka Tiger lines, which registered about 45 per cent rise in net sales. The company’s core running products also maintained a steady pace, backed by continuous innovation and consumers’ propensity for premium footwear.

    Geographical Performance

    Region-wise, Japan, North America, and Europe emerged as the top performers with sales up by 34.5 per cent, 10.2 per cent, and 24 per cent respectively. Greater China also displayed robust growth, recording a 20.6 per cent increase.

    In a recent move, the company opened its first company-owned store in India’s Delhi metropolitan area and broadened its direct-to-consumer channel as a strategy to boost growth in the market.

    Factors Behind the Upturn

    Asics attributes its impressive results to strong product demand, disciplined inventory management, and efficient supply chain operations. However, the company also warned that it would need to keep an eye on currency fluctuations and high logistics costs as potential challenges in the coming quarter.

    Questions & Answers

    What led to the surge in Asics’ Q3 sales?
    The Q3 sales surge was primarily due to rising demand for lifestyle-centric footwear and consistency in the running segment.

    Which Asics product lines largely contributed to the sales increase?
    The sales uptick was mainly due to the SportStyle and Onitsuka Tiger lines, which reported around a 45 per cent increase in net sales.

    Which geographical areas showed significant sales growth for Asics?
    Japan, North America, and Europe were the standout performers, with Greater China also showing substantial growth.

  • South Korean Footwear Giant, Sappun, Makes Strides in Southeast Asia with Exclusive Indonesian Expansion

    South Korean Footwear Giant, Sappun, Makes Strides in Southeast Asia with Exclusive Indonesian Expansion

    South Korean female-oriented shoe brand, Sappun, has drawn out plans to broaden its global presence, beginning with Southeast Asia, Indonesia specifically.

    Expanding Footprints in Indonesia

    The footwear brand, which operates under the management of FNS Retail Co, has embarked on an exclusive alliance with Surya Bumi Retailindo. This Indonesian retail firm oversees over 20 international brands spread across sports, fashion, and lifestyle verticals, Salomon and Dickies included.

    The collaboration gives Surya Bumi Retailindo the exclusive distribution rights for Sappun within Indonesia while also setting a sturdy framework for sustained retail growth.

    Establishing Retail Presence

    Sappun, in accordance with this new partnership, has launched standalone outlets in three of Jakarta’s prime shopping precincts, such as Lippo Mall Puri, Plaza Senayan, and Grand Indonesia. Initial sales at these outlets have been reportedly on par with its flagship stores in South Korea, an indication of the strong demand from Indonesian shoppers.

    FNS Retail has plans to inaugurate five additional Sappun stores inside Indonesia by the conclusion of this year, with a future goal of reaching a total of 30 stores within the next five years.

    The entrance into the Indonesian market marks a noteworthy milestone as the first international expansion of a K-fashion women’s shoe brand. FNS Retail expressed their ambition to extend their presence further across Southeast Asia and Japan.

    The Growth of Sappun

    Sappun was founded in 2014 initially as an online-only brand which later expanded its operations to offline outlets across prominent Korean cities, including Seoul and Busan. To further extend its global reach, the brand continues to exploit e-commerce platforms like Shopee and Lazada.

    Sappun also has plans in the pipeline to launch operations in Vietnam in the near future.

    Questions & Answers

    What is Sappun’s expansion strategy?
    Sappun plans to broaden its global presence starting with Southeast Asia, specifically Indonesia. They aim to establish a robust retail presence through local partnerships and open standalone stores in prime shopping areas.

    How is the brand performing in Indonesia?
    Sappun has launched standalone outlets in three of Jakarta’s prime shopping precincts. The sales at these outlets have been reportedly on par with its flagship stores in South Korea, indicating strong demand from Indonesian shoppers.

    What are Sappun’s future plans?
    Sappun aims to extend its presence further across Southeast Asia and Japan. The brand also has plans to launch operations in Vietnam in the near future.

  • Le Saunda in Red: Unsteady Chinese Market Influences Major Losses for Hong Kong Footwear Retailer

    Le Saunda in Red: Unsteady Chinese Market Influences Major Losses for Hong Kong Footwear Retailer

    Le Saunda, a prominent footwear retailer in Hong Kong, recently revealed disappointing financial results for the first half of the fiscal year. The company’s performance reflects a troubling trend, marked by widespread losses across its operations.

    Significant Revenue Drop

    During the six months ending on August 31, Le Saunda’s revenue slumped by 36 per cent. The figures dwindled from RMB146.9 million ($20.66 million USD) to RMB95.8 million ($13.47 million USD).

    Gross Profit and Shareholder Returns Decrease

    The retailer’s gross profit also bore the brunt of financial instability, experiencing a 30 per cent reduction. It plunged from RMB79.4 million ($11.2 million USD) to RMB55.6 million ($7.8 million USD). Meanwhile, shareholder returns nose-dived to a significant loss of RMB31.4 million ($4.4 million USD).

    Reduction in Physical Stores

    The adversity further reflected in the company’s physical presence, with Le Saunda reporting a net reduction of 133 stores in Mainland China, its primary retail market, by the end of the period. This leaves the retailer with only 91 operational stores as against a markedly higher number in the same period from the previous year.

    Global Economic Uncertainties

    Le Saunda attributed its underperformance to a number of factors. The first half of 2025 witnessed frequent fluctuations in international trade relations. Coupled with a sluggish retail environment and low consumer confidence, these developments fostered global economic uncertainties. The company indicated that these conditions have undermined its future growth prospects.

    Questions & Answers

    What was Le Saunda’s revenue for the six months ending August 31?
    Le Saunda’s revenue for this period was RMB95.8 million ($13.47 million USD), marking a 36% drop from the previous year.

    What is the extent of Le Saunda’s gross profit reduction?
    Le Saunda experienced a significant 30% reduction in gross profit, going from RMB79.4 million ($11.2 million USD) to RMB55.6 million ($7.8 million USD).

    How has Le Saunda’s physical store presence been affected?
    Le Saunda reported a net reduction of 133 stores in its key market, Mainland China, leaving it with 91 operational outlets.