ASICS’ business in the EMEA region has shown positive signs across a number of key strategic growth areas during Q1.
For this period, the EMEA region reported a 3% increase in apparel sales (10% for running), and 4% for ASICS Tiger. ASICS’ own stores reported an increase of 10% in sales – “with apparel taking a significant share of all sales in ASICS own stores, further demonstrating the potential of ASICS apparel within the markets.”
Over the past two years ASICS has grown its business in emerging markets: South Africa is one of these, reporting a 9% growth. The brand predicts further progress for the remainder of 2017.
“We are making all the right moves for the brand by ensuring our legend products are re-positioned in the right retail environment, we have strengthened the senior management team and are heavily investing in the brand presentation,” says Alistair Cameron, CEO of ASICS EMEA. “There has been a short-term impact in 2017, but the brand is now well positioned to grow sustainably and we expect to report sales growth by the end of the year.”
“I’m particularly pleased to see the development of apparel across the region, a key growth area and how the new retail concept is driving a 10% higher share of apparel in our new and refitted stores,” says Cameron.
This despite global short term results being negatively affected by a strategic decision taken during 2016. “After more than doubling sales between 2010-2015, in 2016 ASICS made the strategic decision to streamline the distribution of iconic running shoe models – including the GEL-NIMBUS, GEL-KAYANO, GT-2000 and GT-1000 – across EMEA in order to provide a more diverse collection across its distribution network,” explains the brand. “The long-term aim is to answer the changing needs of the consumer by providing a greater variety of products that are suited to a broader spectrum of consumers to ensure healthy growth for ASICS and its accounts.”
Due to this, its first quarter results show a consolidated net sales decline of 7%.
ASICS plans on launching a new creative brand campaign later this year, which will introduce “refreshing brand expressions across multiple consumer touch-points to further connect with a broader audience and enhance its brand presentation in the marketplace.” The launch will coincide with the opening of new retail stores in London, Berlin and Paris, which will feature ASICS’ new global retail concept, showcase its full collection and provide a more consumer centric environment including community spaces.