Nike And Adi Are Under Pressure. Cage Is Still Selling 14 Billion Or 300 Stores A Year.

There are more and more young people wearing S signs on the streets. They say Cage is ugly, but it does not prevent it from selling 14 billion in China a year. It is approaching half of Adidas.

Can Skech challenge Nike and Adi two?

In mid January 2019, Shenyang was 10 degrees below zero.

In the coldest time of the northeast, Michael Cage, President of global Greenberg, came to celebrate the opening of a super store. He followed the custom of China to dance to the lion dance. Four lion dances were dancing happily in the sound of Gong and drum.

Skech global president Michael Greenberg

Shenyang super store is located in star Moore shopping center, the largest single shopping mall in the city, covering an area of nearly 3000 square meters, which is Cage's second largest supermarket in the world.

This store is a symbol of a grand plan. In the next 2-3 years, Cage is preparing to open 300 super stores in China.

Super store debut

The number of SKU in Shenyang super store is as high as 2800, including Cage's all line products. The most prominent places are the D 'Lite series, the sports shoes with One Piece IP elements, and the cooperation clothing of Chao brand Champion.

The shop center is a small children's playground, a mini slide to a pool of colorful bubbles, opposite to children's shoes and clothing area.

On the axis of the shop, young people's clothing and children's clothing occupy the central position. The left and right sides are men's shoes area and women's shoes area respectively. The display style is quite retro: the shelves are stacked in rows of shoes, and the three sides of the shelves are filled with blue shoes boxes. During the shopping process, it feels like a supermarket and Oteri J.

Michael Greenberg explains that store design follows a "story line", a series of consumption scenarios: parents bring children to children's shoes area, choose sports shoes, canvas shoes or winter boots, etc. after buying children's shoes, you can buy athletic shoes or running shoes in the sports field. "The whole store design is clear at a glance, which is convenient for customers to buy."

Cage has confidence in its operation capability and product strength. The past records show that these products are basically tested by 2800 products.

"No brand can provide 2800 SKU for a single store, and the number of Nike and Adidas products may not be able to meet 3000 square meters of shops," said Cage, China, South Korea and Southeast Asia CEO Chen Weili.

Nowadays, sports brands are becoming more and more popular.

As early as 2008, the 4 floor of Adidas Beijing Sanlitun store amounted to 2350 square meters. In November 2018, Nike opened a flagship store in New York Fifth Avenue, covering an area of more than 6000 square meters.

At two thousand or three thousand square meters, the shops are exquisite in design, fashionable and cool, and often become the city's tidal landmark. It is a good place for self timer, punching cards and making friends circle.

Skech's super shop has learned from the experience of the industry: large area, all kinds of products, children's clothing area and children's amusement park, is a new exploration in the Chinese market.

Even so, the location of Shenyang is still unusual. In the eyes of ordinary people, its city charm is inferior to that of the first tier cities or the two star cities.

"Finding a large store is not an easy task," Chen Weili explained. The first tier business circle, with its brand size and fierce competition, is hard to get the right store.

Star Moore mall adjusted its investment strategy in 2017, expanding the children's area, increasing the parent child activity area, and the main consumer group, which is exactly in line with Cage's position.

"Star Moore is not a top shopping mall, but K11 stores like this can't provide 3000 square meters of space."

Chen Weili said.

Card position sports leisure

In 1992, Skech was founded in California, USA, and started up with men's industrial boots, and later entered recreational sports shoes. However, its global COO David Weinberg is not willing to be branded as a single shoe product. "We are not a professional sandal manufacturer, nor are we specializing in canvas shoes manufacturers. The products of Cage are rich and varied in style, hoping to provide suitable products for consumers of different ages in the family."

"Buying clothes is easy. Buying shoes is not easy.

For example, buying shoes for parents is something that Cage must find.

Chen Weili hopes that the Shenyang super store will build a "one-stop" scenario of household consumption as well as American stores.

Wei Li Chen

In July 2017, Skech set up a super store in southern California, specially set up a children's district and even a small theater outside the traditional leisure and sports shoes and clothing area. Before that, Skech had two 1000 square meters shops in Qingdao, and its operation efficiency was higher than that of a small shop.

Chen Weili's new plan is that in the next two to three years, there will be 300 new super stores in China. "More than 20 of them are joining in the joint venture". He is very optimistic about achieving the goal. The urgent task is to intensify the construction of the logistics center so as to ensure that the supply chain backstage can keep pace with the pace.

The location of the logistics center in Taicang, Jiangsu, covers an area of 300 mu. It will be completed in August 2019 and will be put into operation after the Spring Festival in 2020. Its processing capacity is enough to cope with the sales scale of 10-15 yuan per day.

This means that the fierce competition of sporting goods market is ushering in an ambitious challenger.

"We don't want to compete with Nike and Adidas," explains Michael Greenberg. Cage focuses on lifestyle products and pays more attention to fashion display. This is different from focusing on sports products, but it is also upgrading clothing and accessories categories to develop sports products. "This is conducive to our competitiveness in both sports and fashion, and both are neck and neck," Michae Greenbergl added.

Chen Weili believes that the high-end brand market is limited in volume and difficult to sinks. The advantage of Cage is that the price is moderate and the target group is wider. "Our price is between Nike, Adidas and domestic Lining, Anta, there will be consumers considering us."

Footwear is the advantage of Cage. They develop 3000 different styles of shoes every year. For example, the D 'lites panda shoe has been sold for several years, and now it will improve and update the materials, shoe upper fibers and colors, and adjust according to the climate and aesthetics. For example, the Korean market likes colorful and publicized designs, and many products in the Chinese market can not be seen in the United States and Eastern Europe.

In 2017, Skech sold 17 million pairs of shoes in China. He sold 1 million 400 thousand pairs of shoes on the "double 11" day, and "double 11" in 2018, and Cage's single day sales amounted to more than 500 million yuan.

Michael Greenberg predicts that in 5 years, Skech will probably surpass the United States in China.

In 2017, Skech's sales in the world exceeded 4 billion US dollars, an increase of 16.9% over the same period last year, of which sales in China amounted to about 10000000000 yuan.

In 2018, sales in China amounted to about 14000000000 yuan, about 30% of which came from online.

Public figures show that in 2017, sales in Adidas Greater China amounted to 3 billion 790 million euros, or about 29 billion yuan, while Nike's sales in China amounted to $5 billion 134 million, or about 34 billion 500 million yuan.

Chen Weili, a native of Quanzhou, Fujian, who had just arrived in mainland China to expand Cage more than 10 years ago, had to accompany her interpreter. Now he can speak fluent Mandarin, and has just been to Xibaipo just a few days ago. He believes he can tear a hole in Nike, Adidas and other competing products. "The advantage of skkey is that he is a sports leisure brand rather than a sports brand."