Taking advantage of the 2008 Beijing Olympics, Puma, which
generally keeps a low profile, plans its expansion in the Chinese
market with a big increase of new stores and launch of an Olympic
collection.
"Beijing Olympics is a very good opportunity and platform for us
to showcase our products in China. The Olympics collection will
definitely be our focus in the first half of next year," said Joerg
Zobel, general manager of Puma Asia-Pacific.
Puma will have many new boutiques next year in both the main as
well as second- and third-tier cities. Puma's plan in China is to
increase retail spots from 400 to 1,600 next year and a 50 percent
growth this year, according to a report of the CEOCIO China
magazine.
But Zobel admitted the Chinese market is "very competitive".
Almost all sports brands from home and abroad have aggressive
Olympics plans. Nike, the No 1 international sports brand and the
most high profile in China, supports several Chinese Olympic teams
such as swimming.
Adidas, also very high profile, is on an expansion binge as
well. Sources said the company plans to double its number of stores
to 5,000 in 500 Chinese cities by the end of 2010.
Local brands such as Li Ning have also become a lot more
aggressive these past years. Now it has over 4,000 retail
spots.
"Puma is not afraid of competition," said Zobel. "China is the
fastest growing market in Asia and one of the biggest markets in
Asia, if not the biggest. Our growth is very close to that of our
major competitors."
Puma's confidence comes from its new owner: PPR Group, France's
leading luxury product supplier which owns Gucci and YSL. PPR has
acquired 65 percent of Puma, according to a recent public
announcement.
"The acquisition doesn't mean we will only target high-end
consumers. Our positioning won't change after the acquisition,"
Zobel said when asked if Puma will turn into a luxury brand.
"A big advantage of this takeover is that Puma can use its
expertise and design knowledge of the PPR Group."
Based on the huge design team of the group, Puma is now trying
to stand apart from its competitors.
To attract Chinese consumers, Puma plans to support some
individual sports stars. Puma has supported national soccer teams
of Italy, Sweden and Jamaica in the past.
"If we find the right persons, we will consider partnering with
those Chinese sports stars," Zobel said.
(China Daily October 26, 2007)
