K-Swiss Chinese owner Xtep shrugs off Omicron outbreak, chases growth in lower-tier cities
- Xtep plans to expand in China’s lower-tier cities to entice budget consumers with low-priced running shoes
- As consumers on the mainland become more health conscious, demand for athletic apparel has soared
Chinese sportswear maker Xtep International, owner of K-Swiss, is betting on inflation and weaker consumption in the country to boost demand for its low-priced trainers and expand its share in China’s fast-growing sports apparel market.
The company based in southeastern China’s Fujian province will ramp up expansion in the mainland’s lower-tier cities to promote its budget merchandise to a growing number of sports fans, according to chief financial officer Ricky Yeung.
“We believe that an expected weak consumer market will indeed give our running shoes an advantage,” the executive said in an interview with the Post on Sunday.
“Xtep is a highly competitive sportswear brand in lower-tier cities because our products are more affordable to consumers there even with a 5 to 10 per cent price hike arising from inflation.”
Parts of China – including Shanghai, Shenzhen and the northeastern province of Jilin – are currently battling with Omicron outbreaks, resulting in lockdowns that have halted manufacturing activities and temporarily closed stores.
