Japanese sportswear giant Asics has reported a remarkable 28.8% year-on-year growth in sales in the Greater China region for the first three quarters of 2023.
This surge significantly contributed to the company’s global sales increase of 23.4% during the same period. The positive financial results have set a new historical high for the brand, according to their latest earnings report released on November 10.
Asics’ strong performance can be attributed to the robust sales across all categories, with net sales rising to 448 billion JPY (3 billion USD), while its gross profit increased by 26.5% to 229 billion JPY (1.5 billion USD). Additionally, the company’s operating profit saw a substantial leap of 54.8% year-on-year, reaching 55 billion JPY (376 million USD).
A significant factor in Asics’ success has been its digital business strategy, particularly the growth of its OneASICS membership program. The program has seen a 32.6% increase in memberships, now boasting 8.82 million members. This expansion has been a key driver in the 35.4% increase in e-commerce sales, which totalled 76.5 billion JPY (516 million USD). The company emphasises its ongoing commitment to enhancing direct engagement with runners and OneASICS members to further develop its running ecosystem.
Equally contributing to its digital growth are its online collaborations and virtual space ventures. In March 2023, Asics rolled out an immersive digital space “City of Explorers” that allowed users to embark on “boundary-free” explorations through Asics’ custom stories.
Overall, this blend of strong digital engagement, localised product offerings, and effective leadership transitions appear to be at the heart of Asics’ success. This strategy, coupled with a keen understanding of regional market dynamics and consumer preferences, can serve as a valuable blueprint for other companies looking to establish or expand their presence in the rapidly evolving Chinese market.