FOOTSIE WITH THE ORIENT: Manhattan Beach-based Skechers USA Inc., a footwear maker, said today it will expand its sales and distribution in China through a joint venture, called Skechers China, Luen Thai Enterprises, a conglomerate based in Hong Kong with investments in various industries in Asia, North America and the Pacific Region.
During the next three years, Skechers China expects to open more than 1200 points-of-sale for the brand across China. In addition to Skechers footwear, Skechers China will design and market a collection of branded men’s and women’s fashionable active and leisure wear. The apparel, expected to reach market in 2009, will be designed as an extension of the footwear and should further grow the brand in China.
The first shipments of Skechers products by Skechers China is planned for the Chinese New Year, February 2008. The offering will include all of the Skechers lines for men, women and kids – including lifestyle sport, casual and molded footwear. The footwear will be supported by a marketing campaign that includes print, TV and point-of-purchase materials and displays.
For statements from executives, read below.
Willie Tan, CEO of Luen Thai Enterprises and SKECHERS China: “China’s share of the global footwear market is estimated at close to $9 billion for 2008 with this number increasing due to the growing middle class. Skechers is a famous global brand and there is a huge market segment in China waiting to be satisfied by its trendy lifestyle footwear products. We expect to reach $10 to $15 million of sales by year-end 2008.”
Michael Greenberg, president of Skechers and chairman of Skechers China: “To Skechers, China is a country of giant potential – 1.3 billion people, steady market growth and rapid retail growth. We see Skechers – a proven brand in hundreds of markets around the world – as ideal for China and ready to capitalize on the power of its population. And with Luen Thai Enterprises’ forward-looking management team, experience in the fashion supply chain and retail operations expertise, we believe it is the right company to help grow our business in China.”
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