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Tag: sport wear

  • Descente China marching across mainland

    Descente China marching across mainland

    Sportswear maker Descente China plans to open 100 retail stores under its own name before March 2019.

    Unlike the 500-odd boutique stores with swimwear and golf goods being run already in China by a foreign subsidiary of the Japanese company, the new outlets will be large shops under the Descente banner offering a wider range of products.

    Descente’s plan is to open both roadside stores and outlets in shopping malls stocked with both functional gear for sports such as golf, skiing, running and triathlons, as well as fashionable sportswear for everyday use.

    Descente has set up a joint venture with Chinese sportswear giant Anta Sports Products. Tentatively named Descente China, the JV has been capitalised at 250 million yuan ($38 million), with 60 per cent held by a subsidiary of Anta, 30 per cent by Descente and 10 per cent by the Chinese subsidiary of Japanese trading house Itochu.

    Descente and Anta will share marketing channels and collaborate in the search for store locations.

    In late August, Descente will open four or five retails stores in northeastern China, including Heilongjiang province, famous for an annual ice and snow sculpture festival. Later, Descente will open stores in major urban areas like Beijing, Shanghai, Dalian and Chongqing.

    By teaming with a local sportswear maker, Descente believes it will have an easier time fending off fakes, says company president Masatoshi Ishimoto.

    He says the company aims to double Chinese sales from last year’s figure to about 22 billion yen ($207 million).

    As well as its China expansion, the company is opening golf apparel stores in South Korea.

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  • Li Ning completes resurrection

    Li Ning completes resurrection

    Just a year ago, sports retailer Li Ning seemed down for the count, battling to stem the red ink.  This week it released its half year results to June 30: Revenue rose 16 per cent and it has finally returned to profit.

    The once beleaguered Chinese sports brand – which peaked in brand awareness about the time of the Beijing Olympics in 2004 – has recovered its mojo: Sales are up, it is expanding its store network once more, all the result of a root and branch review of the whole business, from the way it sources and designs products to the way it operates its stores and how it disposes of end of season stock.

    Li Ning has recorded total sales of RMB 3.641 billion – about US$567.5 million. Its profit may have been a modest RMB 260 million (US$40.5 million), but this year both profit and cashflow turned positive. In the same six months last year, Li Ning lost RMB 350 million, or US$54.6 million at today’s exchange rate.

    Significantly, the second quarter was a better one for the business than the first. Li Ning says same store sales in retail registered growth in the high teens on a year on year basis. “The entire store network registered low teens year on year growth,” the company said.

    As at the end of June, Li Ning had 5745 stores, including flagships, conventional stores, factory outlets and discount stores – 119 more than six months earlier.

    During the first half the company “vigorously implemented clearance of obsolete inventory,” optimizing its stock structure to lay a solid foundation for the growth in the second half of the year and into the next.

    Li Ning has also approached senior management of nine leading shopping mall groups in China – including Parkson, Bailian, Grandbuy, RT-Mart, Rainbow and Maoye – to discuss partnerships and expansion plans.

    “In 2015, we have opportunities for opening over 100 new points of sale and renovating over 30 [more] in the premises of these groups,” the company said in its trading results overview.

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  • Asics restructures global operations

    Asics restructures global operations

    Japanese sports brand Asics has announced an organisational restructure and the appointment of experienced international executives to accelerate business growth.

    Under what it calls ‘The Center of Excellence Initiative’ Asics is strengthening its global business, which includes the Onitsuka Tiger brand and retail network, through the appointment of “top talent to lead and manage its global categories from the most influential regional markets by category”.

    From September 16, a new Global Lifestyle Division will be established to lead global marketing for Lifestyle brands such as Onitsuka Tiger and Asics Tiger. Europe will be designated as the Center of Excellence for this category with the offices based in Amsterdam. This division will be headed by the newly appointed senior GM, Torsten Widarzik, who moves from his current position as CEO of German fashion label Campus. Widarzik was previously Levis Strauss Germany/Switzerland GM and business and brand director with Nike Sportswear at Nike CEMEA, where he built the sportswear business across Central and Eastern Europe.

    Asics says strengthening its footwear and apparel business is also a key part of the business growth strategy following the appointment of Asics as Gold Partner in Japan for Tokyo 2020 Olympic and Paralympic Games.

    “To further accelerate growth, the design functions will be added to the Global Footwear Product Marketing Division.

    “The seamless integration of the product design, development and manufacturing functions will boost the development of competitive products.The reformed Global Footwear Product Marketing Division will continue to be led by Gerard Klein, senior GM, who returned to Asics in August 2014 after seven years at Converse where he was in charge of the go-to-market strategy and merchandising in the EMEA market.”

    Earlier this year, Asics also strengthened its Global Brand Marketing Division by appointing a new leader, Paul Miles, senior GM, who joined Asics in May 2015 from Nissan Motor, where he was VP of marketing and communications. Miles previously worked for Fast Retailing in France and Japan, where he was responsible for the market launch and expansion of the Uniqlo brand.

    “The restructuring of our global operations and the appointment of top talent as our new leaders shows our commitment to accelerate growth as a global sporting goods company,” said Motoi Oyama, CEO of Asics Corporation.

    “I am confident that the Center of Excellence initiative will enhance organisation’s capacity and effectiveness, and lead us into the next stage of growth.”

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