With the rapid development of online shopping market in the Mainland, Liantai Group has actively expanded its distribution brand Skechers in the physical stores and online shopping market in China, Hong Kong and Southeast Asia in recent years.
Chen Henry, chief executive of the group, said he was optimistic about the development of Outlet and online shopping market in the mainland.
Skechers, an American sports footwear and apparel brand, has cooperated with Liantai Garment Manufacturing and Supply Chain Group since 2007. The sales business of China, Hong Kong and Southeast Asia is handed over to Liantai.
Skechers currently has more than 3,900 retail stores in the region, mainly in cities in the Mainland, while Hong Kong and Southeast Asia account for about 20% of the total sales in the region.
Over the past five years, Skechers has recorded double-digit annual growth in sales in the region, with the most significant increase in the mainland market, with an average of two to three branches opening in the mainland every day. This year, about 600 to 700 branches opened in the whole year.
Refers to the complementary role of online stores’physical stores
Henry Chan expects Skechers to open 600 to 700 new stores in the Mainland next year, mainly in second and third tier cities.
He pointed out that physical stores now account for about 70% of the total sales in the region, but in the long run they are more optimistic about the development of Outlet and online shopping, because their sales growth rate is relatively high, which is bound to become a new trend in the retail industry in the future. “Consumers are now smarter and know how to buy more. ”
He believes that online stores and physical stores can complement each other, rather than the other, retailers can do a good job in two-way development. Entity stores can let consumers understand the product entity, strengthen their consumption experience, also enhance brand awareness, help promote online shopping; online stores can provide consumers with more choices, such as some size shoes are not in stock in physical stores, consumers can turn to online stores to place orders.
Outlet Special Attraction Helps to Suck Different Passenger Groups
As for Outlet, he believes that customers are different from traditional retail outlets in that they mainly sell discount styles, which helps to attract consumers who are more sensitive to price, and different from traditional retail outlets which sell the latest style products, but retailers still need to pay attention to the balance between the number of Outlets and regular outlets.
He also pointed out that with the shortening of the production cycle of the garment industry, rapid response to market demand has become increasingly important. Today’s retail industry relies more on important data than the retail industry used to rely on “vision” to purchase goods. It can predict market demand more accurately by analyzing sales records and other data through artificial intelligence, and by comparing with competitors’products.
Skechers is now trying to diversify its products in the Mainland, Hong Kong and Southeast Asia, with plans to expand the proportion of apparel products from 10% to 30%, he added. He believes that the market competition of apparel products is more intense than that of shoes and shoes, but the functional apparel market is optimistic.