Converse betting on China market for brand revival

Converse is trying to reconnect with a new generation of consumers through product innovation and retail experimentation. The 118-year-old US-based footwear and apparel brand is betting that part of its turnaround will be driven by China.

When Converse opened its new STAR concept store at Deji Plaza, a premium shopping mall in Nanjing, Jiangsu province, in late August, it offered an early glimpse of how the brand hopes to evolve.

The store — 10 months in the making from the first sketches to opening day — is the first test of a retail concept that could eventually be adapted for markets including Seoul, New York and other cities around the world.

Walking into the store, visitors see a more elevated and contemporary space. The design combines the brand's signature design language — canvas, rubber and diamond patterns — with music, art and locally inspired elements. Dedicated Converse Select areas showcase global product launches and collaborations, such as ZO&FRIENDS and Collina Strada.

More importantly, the store signals a broader strategic shift for the company. "China is one of the world's most dynamic and competitive consumer markets, making it an ideal place for us to test, learn and accelerate new ideas," said Aaron Cain, CEO of Converse, during his visit to Nanjing.

"If we can understand consumers deeply and deliver products and experiences they genuinely want, the insights we gain here can also inspire other markets."

The visit was Cain's third trip to China within a year. Since June this year, Converse China has stepped up investment in the market through product innovation, retail upgrades and collaborations highlighting local youth culture.

The Nike-owned brand is navigating a period of strategic reset as it works to sharpen its consumer focus and build renewed momentum.

To trigger this turnaround, Nike appointed company veteran Cain to lead Converse last year, and sharpened the brand's positioning in the Nike Inc family. Soon after taking the helm, Cain identified what he believed was the root problem: Converse had lost its focus.

The brand, he said, had gradually expanded its appeal too broadly, weakening its connection with core consumers. "We tried to be everything to everyone," Cain said.

The turnaround effort is now centered on a narrower audience Converse calls "creators". Creators are young consumers who express themselves through fashion, music, art and culture. Product development, marketing and retail experiences are being redesigned around those consumers.

"The priority is reconnecting more deeply with the consumers we serve. That means being more precise about who we serve," he said.

And China is playing an increasingly important role in that effort. "When I took on this role, I made it clear that China would be critical to the Converse turnaround," said Cain, who previously worked in Hong Kong and Shanghai. "We needed to direct more resources toward serving Chinese consumers."

For decades, many global consumer brands followed a top-down model: products were developed at headquarters and later adapted for China. Converse is now reversing that approach. Products here are increasingly being designed around local consumer insights before expanding overseas. The clearest example of that strategy is the Chuck 70 X, an iteration of one of Converse's most iconic silhouettes.

After in-depth consumer surveying in China, Converse identified two major opportunities. While many consumers love the Chuck 70 as a classic silhouette, they felt the last of the traditional version was not well suited to the fit preference of Asian consumers. Secondly, younger shoppers increasingly wanted sneakers versatile enough for commuting, work, social occasions and travel.

The result was the Chuck 70 X, featuring a new last designed with Asian consumers in mind, a roomier forefoot and an "Anti-Gravity" insole made with supercritical foam technology.

First launched in China in June, the Chuck 70 X is now expanding to other markets. "Consumer adoption has been in line with the ambitious plans we set for the product. Even more encouragingly, sell-through has continued to build," the CEO said.

The same China-led approach is reshaping Converse's retail strategy. The company has adopted a "One City, One Story" approach, using physical retail to build deeper connections with younger consumers while allowing each location to reflect its local culture. "We intentionally created room for each city to express its own character within a consistent Converse experience," Cain said.

The strategy is being rolled out beyond Nanjing to cities including Shanghai, Changsha in Hunan province and Chongqing. At the Converse Shanghai X-ING concept store, the concept combines modern art and local culture with community engagement through the Unfinished Gallery, an interactive exhibition space that invites visitors to contribute to evolving art installations. The store also features city-exclusive products, workshops and collaborations with local artists.

Beyond products and stores, Converse has also changed its operating model to give the market more autonomy. Converse China's General Manager Amy Yang reports directly to Cain, while local functional leaders work closely with their global counterparts.

"The China team understands the consumer here better than anyone else," Cain said. "To operate at China speed, we have to trust the team and give them the space to exercise judgment and act quickly."

Cain said Converse's relatively small size within Nike Inc enables it to act quickly on consumer insights, turning them into products and experiences faster than larger organizations often can.

But speed alone isn't enough, he said. Successful execution requires clarity and focus. "When a brand truly understands its consumers and they see their needs reflected in its products and experiences, growth follows."