China Daily Global Edition (USA)
Converse recasts itself as ‘brand of youth’
Sportswear maker targets younger generation to burnish its image in Chinese market
Converse, a prominent sportswear brand for over 100 years, has made it a priority to engage more with local youth in communities across China.
The Nike-owned brand is making the younger generation key stakeholders in its innovation and production process, its top executive said.
In a self-conducted market survey, Converse has found many consumers in China consider it an old brand. The finding has pushed the sportswear maker to launch campaigns and innovations to change that perception.
“We actually want to be a brand of youth and for youth,” said Matthew Jung, general manager of Converse Asia. “You need to help participate with them every day.
“Young consumers in China are super optimistic, have an incredible worldview and are creative. They find creative solutions for everything, whether it’s education, gaming, creating art or expressing themselves.”
Therefore, this year Converse has launched “All Stars” campaign to fuel the acquisition of new consumers.
It appears to be paying off. Zhang Liang, 25, a marketing professional based in Shanghai, said he and his friends, who have known the brand since college days, are inspired by the All Stars campaign.
“Young people are interested in cultivating a distinct individuality, a unique personality. The new message from Converse has encouraged us by saying everyone can be a star,” Liang said. “It makes wearing the Converse canvas shoes extra cool.”
The sportswear brand has won almost 1 million new consumers during the Singles Day shopping festival this year (from Oct 1 to Nov 11). From Jan 1 to Nov 30, the brand achieved 24 percent growth yearon-year in terms of new consumer/ patron acquisitions.
Besides shoppers who bought Converse products, they included people who joined the brand’s social media accounts and other comparable online groups like fans.
Jung said despite the heavy impact of COVID-19 on the sportswear industry, the long-term prospects in China remain bright.
“I think the Chinese market is a great place because of the power of Chinese youth, their vision and optimism,” he said.
Financial results of Nike Inc’s first quarter ending Aug 31 showed sales, including that of Converse, in the Chinese market increased by 8 percent, led by digital and Nike Factory Stores.
For Converse, the first quarter realized $563 million in global revenue, up 2 percent year-on-year, mainly driven by strong demand in Europe and on digital channels globally.
Hao Shuai, apparel analyst at Guotai Junan Securities, said stronger health awareness among the public in the wake of the pandemic and the upcoming Tokyo Summer Olympic Games in 2021 and the Beijing Winter Olympics in 2022, will likely result in explosive growth of the sportswear industry in the next two years.
Over the past couple of years, the Chinese market has served as a really important growth market for Converse, with a lot of untapped potential for the brand in China, said Jung.
The sportswear market is considered by Jung the most competitive market in the world — “a healthy marketplace for global brands with an incredible level of competition among local brands”.
According to Euromonitor International, 2019 sportswear market revenue in China reached 316.6 billion yuan ($48.2 billion), up 17 percent year-on-year. It is forecast to reach 542.6 billion yuan by 2024.
Although dominated by international sportswear players Nike and Adidas, the market has the presence of domestic firms such as Li-Ning and Anta. The two Chinese brands’ sales in China grew 32 percent and 40 percent year-on-year, respectively, in 2019.
In retail, Converse’s objective is to find the right space within the trade zone to offer the right products to various consumer segments, based on the nature of consumer behavior in different shopping areas.
The decision to engage more with consumers is “consistent” with top-notch experience at different points of sales, Jung said.
“Whether you are offline or online, everybody’s expectation is just to be consistent and to provide a similar high touch experience.
“People go into stores with cellphones on. And I think that’s just the new behavior. There’s like one shop in the universe.”
This year, Converse in China has built a WeChat mini program to ensure consumers can buy products during collaborative product launches.
The brand, which works with about 30 key distribution partners in the country, has also helped develop omni-channel capabilities with its local partners to empower them to have strong online-and-offline shopping experiences.
In its next phase of development, Converse will re-launch the brand’s own website in China to reflect its new brand mission, serving as an invitation to enable and empower the creative community and to communicate the brand story in a more robust way, said Jung.
Innovation and newness are what fuels the brand, he said. Converse said it has constantly kept updating its product lines with new materials and designs to make shoes more comfortable and relevant.
Its product line CX provides extra comfort by using new fabrics and rubber. Its Shapes collection focuses on inclusivity and sustainability, which has received positive reception from Chinese consumers, Jung said.
The brand has also expanded its product offerings by further connecting with new sports communities, including those related to basketball and skateboarding.
Endorsing Chinese local designers such as Feng Chen Wang to create products also resonated well with local consumers.
“We’ve rebuilt the brand for Converse over the last four years in China through very hyper emphasis on work that reflects the consumer but also celebrates China,” he said.