Exclusive Interview With Cage, China'S Top Executive, Zhang Ruiyan: Seeing The Sunken Market And Keeping Shop Open

"The competition in the domestic second tier cities has become more intense and the market has been saturated." In November 1st, Skech, vice president of the Chinese market and store development department of Zhang Ruiyan (SKECHERS), told reporters in an exclusive interview with the surging journalist, "market sinking is the inevitable trend of China's market development. Cage needs to seize the bonus for the first time."

In from November 5 to 10, 2019, the second China International Import fair was held in Shanghai. Skech, the American footwear giant, will participate in the Expo for the first time. Skech was founded in 1992 in California, USA, which is mainly recreational and comfortable. In 2007, Skech formally entered China and signed a cooperation agreement with Luenthai Enterprises Ltd, Hong Kong listed companies of China's Luen Thai group. He formally established a joint venture to jointly develop Cage's brand in mainland China.

Domestic 2600 stores, annual revenue over Lining

According to official data, there are about 2600 stores in Cage, covering 26 cities, including one second tier city.

The so-called "super store" mode is in the area of 1000 square meters to 3000 square meters, laying sports, leisure, fashion, Kids and other product lines, displaying as many as more than 2000 SKU. In January 2019, Cage's largest super store landed in Shenyang, Liaoning, with an area of 2982 square meters.

As a sports brand that has been in China for 12 years, Skech headquarters has high hopes for the Chinese market. According to the company's financial data, 2018 Cage China's performance has set a new record. Skech's total sales in 2018 amounted to US $4 billion 640 million, of which Skech's total retail sales in China amounted to 14 billion 100 million yuan, up 36% from the same period last year, selling about 19000000 pairs of shoes. Although Skech's volume in China is not as good as that of Nike, Adidas and Anta, it has already surpassed the domestic brands such as Lining and XTEP in sports brand category.

Not only in the Chinese market, but also in the global market, there has been a movement in recent years, and the scale of the sports shoes market will continue to expand. According to a report by Grand View Research, the global market for sports shoes is expected to exceed US $95 billion by 2025. Young people have always been an important group to promote the sale of sports shoes. As a loyal supporter of sportswear and street clothing, these two kinds of clothing can be regarded as the two most important components of their daily wear.

Seize the sinking market and expect to open more than 1000 stores.

In 2019, Skech's strategy in China went deep into the market, and the key was to open a super large shop.

Zhang Ruiyan said, "opening super stores is the most important market sink strategy for us this year, because the relationship between store modes can better touch consumers. Consumers in the three or four tier cities are very strong in terms of consumer demand and purchasing power, and the international brands are not very large, which is a great opportunity for Skech. "

For the sinking market crowd, the Cage company found that three to five line of urban consumer per capita disposable income continued to rise. A typical town youth has better education, stable work and high quality life, but the pressure is much smaller than that of the first tier cities, but the consumption power is comparable to that of the first tier urban residents.

In addition, Zhang Ruiyan noted that the consumption of consumers in the 345 line cities is limited, and the choice of brands is relatively limited, especially if international brands can enter.

Therefore, according to the layout of Cage China, we will open the super large market of sunken market to 50 by the end of 2019. At the same time, we will layout in boutique, lifestyle, fashion trend, child shop and so on. We expect to open 900 to 1000 stores next week and 100 super stores next year.

The demand for supply chain allocation has also risen with the sinking of the channel. It is reported that the Chinese logistics center built by Cage and invested 1 billion yuan in Taicang port area, Taicang, Jiangsu, will be put into operation by the end of 2019. This will be the largest logistics center in Cage Asia and will serve the efficient supply chain in China and even in Asia in the future.

For the first time to enter the Expo to build Cage's comfort living museum

Skech's exposure in the domestic market has been improved, and he has also come from cooperation with the great variety show. According to statistics, in recent years, Skech has worked with "creative camp", "the name of the regiment", "idol trainee" and "supernova National Games" and so on. Besides direct hard and wide implants, there are also players wearing Cage products in the program.

This year is Skech's first participation in the Expo. According to the official introduction, the booth area of Cage is 213 square meters, with the theme of comfortable life as the theme, and is located in the exhibition area of quality life. The exhibition area is divided into four parts: sports function area, life leisure area, fashion trend area and children's district.

At the exhibition, Skech will display "MEMORY FOAM" insole material.

Zhang Ruiyan said: "it is a great honor for Skech to be one of the exhibitors in the Expo this year. We have been insisting on" making everyone confident and better pursuing and realizing their own bright future ". We will continue to create new breakthroughs in product design and material, and develop better products for consumers.