US footwear The Rockport Co is eyeing China to be its third largest market in the next two years.
After establishing stores in 17 cities in China, mostly in big cities such as Shanghai, Beijing and Guangzhou, the company is aiming for more expansion by setting up outlets in second-tier cities of China.
“China is a dynamic up-and-coming market and people earn more money. If that growth is sustained, we will be able to fulfill our target in two years, (and) that would mean China is among the top three markets for our brand, ” said Juergen Strafe, VP and GM of Rockport Asia-Pacific.
“Obviously, in 2007 we started in the Chinese market from a very small base. But we had very strong and encouraging growth rates, growing two to three times on a year-to-year base over the last four years,” Strafe added.
Nevertheless, he said it is hard to maintain rapid growth.
“Ideally, you would like to expand everywhere at the same time, but with regard to resources, that’s utterly impossible,” he said.
But, despite high labor and material costs, the company remains optimistic.
“Basically, the rising cost of materials and labor affects the whole industry. This is a passing phenomenon, which certainly will go away at some point in time. As an international brand we have our niche, a big niche.”
Strafe revealed that The Rockport Co is one of China’s top five international footwear brands. By targeting the increasing number of urban professionals and young and affluent population, the company hopes to be the top footwear brand in China.
“I think everything here is supportive, that China is becoming more and more affluent, and I think the average Chinese consumer, especially the people we are targeting, is very keen on getting products from international brands.”
The Rockport Co accentuates formal shoes and athletic footwear. Since its foundation in 1971, the company has maintained technological edge through the support of its parent company, Adidas Group.
“Ever since we were associated with Adidas, we have plenty of technologies that we can take a look at and see whether they make sense for the Rockport brand. So I think it is an advantage not directly competing with Adidas but complementing Adidas.”
The company’s headquarter is located in Boston. In 2006, Adidas Group purchased the company and launched its first store in China in 2007. At present, the company has retail stores in some 60 countries and regions.
