XTEP Upgraded Multi Brand Portfolio Group To Set Up 155 Million Joint Venture Company

Sports brand XTEP International announced that it signed a joint venture agreement with Wolverine, an American shoe company. The two sides will set up a joint venture to carry out the marketing and distribution of Saucony and Merrell's two brands in mainland China, Hongkong and Macao.

According to the joint venture agreement, XTEP and Wolverine will each pay approximately 155 million yuan to the joint venture company as the initial financing amount.

The announcement shows that XTEP has three purposes: first, upgrading the company to a multi brand portfolio to cater to a more mature Chinese consumer group.

The two is to give full play to the brand advantages of XTEP and Merrell and Saucony, promote product innovation to provide diversified product mix, and the three is to optimize the supply chain operation and resources of XTEP and Merrell and Saucony brands.

According to public information, Wolverine is a footwear retailer from Michigan, USA, whose business extends to about 200 countries and regions around the world.

It has outdoor sports brand Merrell, running shoes brand Saucony, outdoor sports sandals brand Choca and other sports business, and many other footwear products.

Among them, Merrell is an outdoor life brand. Mountaineering hiking shoes are its key business areas. It is famous for its light weight and good shock absorption effect.

In addition, the running shoes brand Saucony, together with New Balance, Asics and Brooks, has been recognized as the four most famous international running shoes brand.

The announcement shows that the joint venture will expand its business market for the two major brands, including running shoes, outdoor shoes, clothing and accessories, with the help of XTEP's strong retail network in China and its close ties with shopping center operators.

In addition, the product sales of these stores will adopt a two pronged strategy. Saucony and Merrell's high-end classic products and tailored styles for Chinese characters and tastes will be launched in the market to cater to the needs of the more mature Chinese consumers.