PUMA dedicated to pursuing ‘China-for-China’ strategy
PUMA, a German multinational corporation that designs, develops, sells and markets footwear, has reaffirmed its “China-for-China” strategy by intensifying its efforts in the country.
Reporting a remarkable 19 percent growth for the fiscal year 2023 in China, the company had four consecutive quarters of expansion in a volatile and highly competitive sports market landscape, underscoring the country’s strategic importance to PUMA’s global expansion strategy.
“China is one of our most strategic global markets and we want to make PUMA one of the most sought-after sports brands in China,” said company CEO Arne Freundt. “With China’s focus on further stimulating consumption and fostering high-quality development, we have full confidence in its instrumental role in driving PUMA’s future growth.”
According to a report jointly issued by the General Administration of Sport of China and the National Bureau of Statistics, the size of the Chinese sports industry surged to 3.3 trillion yuan ($456.2 billion) in 2022 and is expected to increase to 5 trillion yuan by 2025.
In a recent interview, Zhou Jinqiang, deputy director of the General Administration of Sport of China, emphasized the industry’s pivotal role in driving the national economy. As well, Li Min, managing director of PUMA China, expressed her confidence in the rapid growth of China’s sports industry, stating: “We have always been optimistic about the potential of the Chinese market and have been deeply involved in the Chinese sports industry for over 25 years. We will continue to innovate on products and services to better meet the needs of both Chinese athletes and consumers, contributing to the high-quality development of this thriving industry.”
Localization
In 2023, PUMA rolled out its “China-for-China” strategy, aimed at increasing the brand’s relevance and appeal among domestic consumers. It is underpinned by a clear objective to position PUMA as a leading global performance brand and activate its local-for-local appeal to develop products tailored to the Chinese market. Additionally, PUMA revamped its distribution strategy by introducing a novel store concept designed specifically to cater to the unique demands of Chinese consumers.
With its new “Field of Play” store format, the company strives to create an authentic brand experience in a compelling retail environment.
“PUMA always puts the needs of Chinese consumers at the heart of its innovations and will continue to strengthen its localized design and production capabilities,” said Li. In line with that commitment, PUMA and 2022-23 Champions League winners Manchester City have unveiled a special edition capsule collection in celebration of the Year of the Wood Dragon and a Chinese New Year collection. “In 2024, around 40 percent of our products will be designed locally, and about 80 percent of the products will be manufactured in China,” Li added.
To better meet the needs of Chinese consumers, PUMA has invested in digital marketing and social e-commerce, which has led to a significant increase in brand awareness. Partnering with internet titan Tencent, the company has established an innovative digital member “hub”, which offers comprehensive consumer analytics, tailored content and seamless omnichannel experiences. Additionally, PUMA continues to prioritize consumer experience, implementing a complete upgrade of store designs to refresh consumer perception and positioning of the brand, while unlocking the potential of offline spaces.
In 2023, there was a marked upswing in Chinese consumer interest in sports, with expanded participation in diverse athletic events. PUMA actively supports developing the sports economy in
China and has sponsored several events, including the World Athletics Diamond League competition in Xiamen. The company has also entered into endorsement deals with Zhang Ru from the national women’s basketball team, and Wang Lanqin, Jiang Weize and Zou Yang from the national men’s squad.
In another high profile move, PUMA is a headline sponsor for the April 21 Formula 1 Shanghai Grand Prix. The company’s legacy with racing dates back to the 1980s, providing professional equipment for athletes and trendy products for motorsport fans. PUMA formally launched its cooperation with Formula 1 in May 2023 and unveiled shoes with a traditional Chinese, ancient dragon totem at the China International Import Expo in November.
“PUMA has always been at the intersection of sports and fashion,” said Li. “By embracing a local-forlocal design philosophy, our goal is to incorporate elements of Chinese culture and the spirit of sports into relevant streetwear collections and drive brand heat with a young, affluent and diverse audience.”
Green development
China’s promotion of environmentally friendly lifestyles and production methods in recent years is reflected in consumer behavior. The China Consumption Trends Report in 2023 shows that 73.8 percent of consumers prioritize green products and brands in their daily lives — a commitment that PUMA wholeheartedly supports. The company has always been committed to sustainability and is supportive of China’s dual carbon strategy. By the end of 2022, about 80 percent of PUMA products sold within the Chinese market were manufactured locally, significantly cutting down on transportation-related energy use. Additionally, the company managed to decrease its global greenhouse gas emissions by 24 percent year-on-year in 2023 and has set a more stringent science-based emission reduction goal for 2030.
Last year, eight out of 10 PUMA products were made with a significant part of recycled materials, and today all PUMA replica football jerseys are made from textile waste using its Re:FIBRE recycling technology. The company is also committed to supporting China’s rural vitalization efforts and since 2019 has been actively involved in improving sports education at a primary school in Nanling township, Lancang Lahu autonomous county in Yunnan province.
Li emphasized the importance of physical training in fostering children’s perseverance and teamwork spirit, highlighting PUMA’s commitment to nurturing the younger generation’s physical strength and mental resilience.
“For PUMA, collaborating with Chinese partners to implement sustainable development initiatives and uphold corporate social responsibilities is an essential aspect of our commitment to the Chinese market,” Li said.