Asics is Undering a Difficult Situation

 

 

In the case of a positive trend in the global Shoes Coupons sports market, Asics is in a difficult position.

Recently, this well-known Japanese sports brand announced the first quarter of fiscal year 2018 data. As of March 31, total sales fell by 9.4% year-on-year to 104.6 billion yen at a constant exchange rate. Among them, domestic sales fell 7.1% year-on-year to 28.6 billion yen, while overseas markets fell 10.3% year-on-year to 76 billion yen. The US performance was particularly sluggish.

 

Affected by the increase in cost of sales, gross profit decreased by 3.2% year-on-year to 49.8 billion yen, and both sales and profits declined.

 

One of the few growth figures is that the East Asian market’s sales growth reached 5.7%. Among them, Onicsuka Tiger, a sports fashion brand of Asics, has achieved strong growth in the East Asian market, and the brand's performance in the Oceania/Southeast Asia and South Asia markets has also remained stable.

 

During the period, Asics’ sales cost, general expenses and administrative expenses increased by 7.9% year-on-year, mainly due to the opening of new retail stores. Operating profit dropped 35.4% to 8.5 billion yen, while ordinary profits fell 47.2% to 7.4 billion yen.

 

From the perspective of major regional markets, except for East Asia sales growth of 5.7% and EMEA growth of 3.7%, the rest of the market is in a downtrend - Japan's sales fell 7% year-on-year, Americas fell 26.6%. The Oceania/Southeast Asia and South Asia markets fell 6.3%, while the markets in Australia and the United States were weak.

Thanks to steady growth in outdoor apparel and Haglofs brand sales, business units outside the main brand sales increased by 12.6% year-on-year.

 

As of March 31, the total number of Asics global retail stores reached 877.

 

In FY 2017, the sales of this old Japanese sport have been weak, rising by 0.3% year-on-year to 400.2 billion yen. However, the Etsy Coupons growth rate of the Chinese market reached 34.5%. With the help of China's strong performance, the annual performance achieved growth. Due to the additional costs brought about by the reorganization of business in Europe, the profit for the year declined.

 

Earlier this year, Asics announced that Li Zhiting and Jiang Shuying became spokespersons for the Greater China region in 2018. This is the first time that Asics, one of the world's four major shoe brands, has signed a Chinese spokesperson. Previously, the ghost tiger announced Li Yuchun as the spokesperson for Greater China.

After the high growth in China's performance, Asics signed traffic stars continuously, reflecting the brand's desire for the Chinese market and changes in its marketing strategy.

 

Japanese brands are hoping that the popular running shoes Gel-Kayano 25 can stimulate performance. Since the launch of the first generation of shoes in 1993, the Gel-Kayano series of running shoes has been popular in the mass market, and is the core product line of Asics. In June this year, the 25th generation of products will be on the market.

 

According to the American magazine Popular Mechanics, Asics revealed that the midsole of the new shoes will adopt a new material MiniInTheBox Coupon containing nanofibers, which is lighter than the previously used microfibers, and its strength and durability will be increased by 20%. Its male version weighs less than 12 ounces, and the front and rear support frames continue to use gel material for cushioning.

 

"The normal midsole, if you want to make it lighter, the strength and durability will be reduced, which is the problem we have to solve. Because the placement of nanofibers between the bubbles, it can remain light, but will not reduce the strength or Durability, explains Junichiro Tateishi, manager of the Asics footwear material development team.

Although the shoe technology has been updated, but from the leaked spy photos, shape design and color matching is not clever. In the context of consumers’ increasing emphasis on the appearance of running shoes, it remains unclear whether these shoes can make a significant contribution to the performance.