Execs voice confidence in China's consumer market
Q5 Could you share with us one or two of your successful business or personal stories in the process of growing with China?
TAN: By the end of September, Skechers had nearly 3,000 stores in China. Over 400 stores have been opened in lower-tier markets, with the number expected to double to 850 by the end of 2023. Skechers invested 3 billion yuan ($410 million) to build the China Logistics Center in Taicang, Jiangsu province. Last year, CLC phase I began operations. Skechers entered a new phase of development by upgrading its omni-channel and digitalization, which is a big milestone. In recent years, we began focusing on expanding lower-tier markets. With the development of the national economy, consumers in offline cities have higher income levels and product demand.
SUN: Attending the China International Consumer Products Expo for the first time this year was a very memorable experience for Hugo Boss and me. I got to meet many of our loyal customers and had the opportunity to engage with a variety of important partners. I also spoke on a panel for global consumption innovation and cut the ribbon to officially mark our cooperation with the Hainan government in biodiversity conservation. We announced a partnership with the Hainan (provincial) government to donate 1 million yuan, contributing to the restoration of local rainforests to protect Hainan's rich biodiversity and natural habitat.
BOZEC: Over our 20 years in China, we've seen China's business environment evolve and have adapted our growth strategies and investments in response.
We are a long-time supporter of both the CIIE (China International Import Expo) and the China International Consumer Products Expo and are focused on bringing the most innovative, high-quality products and experiences to Chinese consumers, as demonstrated by our debut collaboration with White Rabbit candies. In response to the dynamic market trends in China, we are accelerating our business and sharpening our focus on Chinese consumers. We're confident in the long-term opportunities for China as a growth vehicle for our brands as we move forward.
MACHADO: One key milestone of Suzano is the inauguration in March of our China Innovability Hub — the first of its kind in Asia — which represents Suzano's long-term strategic efforts to create an open and transformative innovation platform in China with significant investments in R&D and innovation. In May this year, a CSR program was launched in our hub, aiming to enhance sustainability among China's younger generation. Looking ahead, we will continue working with our key stakeholders to support China towards reaching its green goals.
ZHAI: We are actively participating in the country's high-quality development. This year, we will participate in the CIIE for the sixth time. At the past five CIIEs, APP displayed and promoted its advanced green technology products. This year, in addition to product technology and quality standards, a set of higher standard APP green value systems will be launched, with a comprehensive focus on sustainable development. We not only exhibited at the CIIE, but also helped lead more multinational enterprises to go abroad and enter China based on our own successful experiences.
