韩第一夫人拎环保袋出访被批作秀 | 8k8 vip login register | Updated: 2024-08-17 14:37:33
Athletic footwear shows some COVID resilience, smaller players making dash for it
When life and production returned to normal in Shanghai on June 1 - about two months after the temporary lockdown to contain a COVID-19 outbreak in the city - the first thing 41-year-old Zhao Fei did was to run 10 kilometers around Century Park in the city's Pudong New Area, a venue that attracts thousands of running enthusiasts like himself.
"The 5-km track around the park boasts elite runners and amateurs,bringing a great deal of fitness enthusiasm and creating a buoyant running environment. I assume that is one of the reasons that quite a large number of brands have organized running clubs and activities around the park, which is really effective marketing," Zhao said.
One such club's members running in the park is sponsored by Swiss running shoe brand On, and is one of the better-known runner unions around Century Park. In August 2021, the 12-year-old brand launched a WeChat mini program in China through which consumers can exchange running experiences or share product reviews, extending offline activities to online channels to enhance brand loyalty.
The company's operational data represents the effectiveness of its offline and online activities. With its first physical store opened in Shanghai in December 2019, On opened a brick-and-mortar store in Wuhan,Hubei province, in early September.By Dec 31, the end of fiscal year 2022,On will have 13 offline shops in China, the company's CFO and co-CEO Martin Hoffmann said during an analyst meeting in late August.
While saying that the two-month shutdown of On's warehouse in Shanghai caused 5 million Swiss francs ($5.2 million) turnover loss to the company earlier this year due to the resurgent epidemic, Hoffmann said robust recovery was a certainty when the restrictions were removed.
It turns out that On and French athletic shoe company Hoka One One are the only two major sports shoe brands worldwide unaffected by the COVID-19 pandemic, according to New York-based market research company the NPD Group.
London-based market consultancy Mintel said jogging and hiking have become the most popular outdoor physical activities in China,with both enjoyed by many Chinese.
Similar to On's strategy, 13-year-old Hoka attaches greater importance to offline retailing, with its store opening pace accelerated in 2021. Up to now, the French brand has opened 12 regular chain stores in China after first tapping into China six years ago. Its newest regular chain store was unveiled in Chengdu in mid August, which is also the first Hoka store in Southwest China. Hoka's official website in China shows that its shoes are available in another 90-some third-party stores that the company has partnered with via licensing agreements.
Hoka was acquired by Deckers Outdoor Corp - also the parent company of well-known boot maker UGG - in 2013. As Deckers said in its 2022 annual fiscal report, the company plans for most of Hoka partner retail stores to be operated in international markets, with the largest number expected in China.
David Powers, president and CEO of Deckers, said in an analyst meeting in late May that the opening of physical stores in China is one way to better reach into the Chinese market.
"As to Hoka retail, it's definitely early days," Powers said.
His ambition is supported by the large group of runners in China and a relatively smaller market share that emerging sneakers brands take at present.