Wolverine Worldwide is taking a step to further broaden its market in Asia by teaming up with XTep International Holdings Ltd, China's leading sportswear company. The joint venture will allow the former to break deeper into the Asian market and eventually expand its presence internationally.
One of the highlights of the new Wolverine and XTep partnership is the distribution of the former's well-known brands such as Saucony and Merrell in mainland China, Macau and Hong Kong.
The American footwear manufacturer stated that the agreement with the Chinese sportswear firm is an important part of its near-term plan to achieve "strategic investments in key international markets."
On March 4, via press release, Blake Krueger, CEO and president of Wolverine Worldwide said, "Wolverine is extremely pleased to partner with Xtep to accelerate the growth of two of our best-known global brands - Saucony and Merrell - in the critical markets of mainland China, Hong Kong, and Macau."
He added, "We have seen incredible sportswear growth in these markets, and our brands are now poised to excel as we engage Xtep's significant retail presence and regional expertise to tap into the booming running and outdoor sectors."
According to the South China Morning Post, the venture will pave the way for the opening of new stores in China featuring the Merrell and Saucony exclusive brands. Apart from this, shops and boutiques are also planned to be a fixture in China's big shopping malls in major cities.
Wolverine Worldwide and XTep revealed that their target is to open around 400 to 500 stores in China within five years. This number is set for each of the brands -Merrell and Saucony - thus they can total up to 1,000 when combined. The agreement is expected to start rolling in the latter half of 2019.
XTep is also very positive about its partnership with Wolverine Worldwide and it is looking forward to bigger opportunities that will result from this venture.
"We look forward to working shoulder-to-shoulder with Wolverine, to seize the numerous business opportunities we see in these key Asian markets," XTep's CEO, Ding Shui Po, also said in the news release. "Leveraging the combined resources and strengths of both Xtep and Wolverine, we expect the joint venture will reach a large group of sophisticated customers."
Po further said, "We are delighted to have Wolverine, a global company with a portfolio of premium brands, as our partner."
XTep is based in Quanzhou and it will invest 155 million yuan or US$23 million for this project. It was said that Wolverine Worldwide will also give the same amount since a 50:50 venture was agreed in the collaboration.
