Rockport enlarging footprint in second-tier markets

Updated: 2011-09-22 15:47

By Ma Zhenhuan and Wu Ni (China Daily)

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SHANGHAI -The Rockport Co, a US footwear company, aims to launch more outlets in China's second-tier cities as it seeks to make the nation its third-largest market in the next two years, said a company executive.

"China is a dynamic up-and-coming market and people earn more money. If that growth is sustained, we will be able to fulfill our target in two years, (and) that would mean China is among the top three markets for our brand", said Juergen Strafe, vice-president and general manager of Rockport Asia-Pacific.

The company launched its 52nd retail store in Shanghai in September.

"Obviously, in 2007 we started in the Chinese market from a very small base. But we had very strong and encouraging growth rates, growing two to three times on a year-to-year base over the last four years," Strafe said.

However, he admitted that it is difficult to maintain such rapid growth.

"Ideally, you would like to expand everywhere at the same time, but with regard to resources, that's utterly impossible."

Rising material and labor costs are obstacles, he said, but he remains optimistic.

"Basically, the rising cost of materials and labor affects the whole industry. This is a passing phenomenon, which certainly will go away at some point in time. As an international brand we have our niche, a big niche."

He said the brand is among the top five international footwear brands in China. The goal is to become the leading footwear brand in China, as target consumers - urban professionals, the young and affluent - increase in large numbers.

"I think everything here is supportive, that China is becoming more and more affluent, and I think the average Chinese consumer, especially the people we are targeting, is very keen on getting products from international brands."

After setting up retail stores in 17 cities in China, mainly big cities like Beijing, Shanghai and Guangzhou, the next step is looking for a presence in second-tier cities, he added.

Founded in 1971, Rockport highlights the integration of athletic footwear and formal shoes. Strafe said that the brand maintained its technological edge thanks to the parent company, the Adidas Group.

Headquartered in Boston, the company was purchased by Adidas in 2006 and entered the Chinese market the following year, with retail stores present in about 60 countries and regions.

"Ever since we were associated with Adidas, we have plenty of technologies that we can take a look at and see whether they make sense for the Rockport brand. So I think it is an advantage not directly competing with Adidas but complementing Adidas."

The company has a group of biotechnology experts responsible for developing shoe technologies.

A recent invention combines the Adidas torsion system with its own Dynamic Suspension foot bed, which the company said will create a thin cushion of air in the foot bed and protect the ankles.