Full-year sales reached $8 billion, and full-year DTC sales increased by 243%……On February 2, Skechers (hereinafter referred to as "Skechers"), a comfort technology company, handed over a satisfactory answer sheet for 2023. In response to the gratifying financial results, Skechers cites comfortable, high-quality products as the key reason. Among them, the hands-free flash-through technology has brought recognition to consumers of all ages to Skechers.
Notably, Skechers achieved double-digit growth in the Chinese market. Skechers has also repeatedly increased its investment in the Chinese market, deepened its transformation and digital transformation in the Chinese market, and continued to expand its business in the sinking market. In addition, starting with comfort, Skechers is also making efforts in the field of professional sports. With a goal of 70% in the fashion and leisure category and 30% in professional sports, Skechers will further develop its global business through a lineup of athletes and celebrity endorsers.
Full-year sales reached a record high.
On February 2, Skechers released its 2023 annual financial report. In 2023, Skechers' global sales will increase by 75%, a new record of $8 billion; Skechers' direct-to-consumer (DTC) sales increased by 243%。
With record sales for the full year, Skechers sees product and marketing as key. Robert Greenberg, Skechers' Global Chief Executive Officer, said: "Skechers has set a new record annual sales record of $8 billion, thanks to products that are widely recognized around the world, a loyal and growing consumer base, strong relationships with partners, and a committed and dedicated team. ”
In the eyes of industry insiders, with comfort as the "starting point", Skechers' products have a variety of functions, such as slip-ins hands-free flash technology, hyper pillar sensor column technology, and memory foam memory insole technology to enhance wearing comfort, etc., these functions have also become Skechers's "quality-price ratio" advantage.
Robert Greenberg also points out that comfort, quality, style and innovation are the inspiration for each Skechers collection. "Over the course of the year, Skechers slip-ins have introduced a number of new styles because this comfort technology has been tested in the market, and we know that consumers of all ages love the comfort and convenience it brings. Robert Greenberg emphasized.
In addition, Skechers' global chief operating officer, D**id Weinberg, also pointed out Skechers' gratifying data for the fourth quarter of 2023. "Skechers sales reached 19$600 million, with a gross margin of 531%, a record high. This reflects strong global demand for Skechers Comfort Technology products, particularly the 20% growth in our direct-to-consumer (DTC) business. D**id Weinberg said.
In the eyes of industry insiders, 2023 is also a milestone year for Skechers. According to the data of the well-known research agency SGI (Sporting Goods Intelligence), Skechers' annual sales rank third in the world, and it has entered a new stage of development in the field of sports shoes and clothing, showing the success of the Skechers brand business model and high market value on a global scale.
The Chinese market is embracing growth potential.
We are confident in 2024 and will continue to execute on Skechers' long-term growth strategy, expand our international business, deepen our direct-to-consumer relationship, and achieve our $10 billion sales target in 2026." John Vandemore, Skechers' global chief financial officer, said.
Geographically, throughout 2023, Skechers continued to invest in distribution hubs in India, Canada, and Latin America. In the fourth quarter of 2023, Skechers grew 15% in the Asia-Pacific region, driven by double-digit growth in the Chinese market.
Behind the growth of the Chinese market driving the growth of the Asia-Pacific region, Skechers has been in the Chinese market for 17 years.
In 2007, Weili Chen, the current partner of Skechers China and CEO of Skechers China, Korea and Southeast Asia, officially introduced the Skechers brand to the Chinese market, and promoted the establishment of a joint venture between Skechers and Luen Thai to jointly develop the business of the Skechers brand in China. Subsequently, he expanded the business territory of Skechers and Luen Thai from China to other markets in the Asia-Pacific region, including Singapore, Malaysia, Thailand and South Korea, and gradually improved the retail business unit.
As Skechers' largest overseas market outside of the U.S. home market, the Chinese market provided a strong boost to Skechers' full-year results. In 2023, the number of Skechers' offline sales outlets in the Chinese market has exceeded 3,500.
Skechers' investment in the Chinese market has also been repeatedly increased. Talking about Skechers' digital construction for the Chinese market, the relevant person in charge of Skechers told Consumer Titanium: "Brand digitalization is a compulsory course, and Skechers must continue to innovate and innovate to meet the demands of the market and consumer behavior. ”
It is reported that in 2023, Skechers will establish a Chinese live broadcast base of more than 2,000 square meters in Dongguan, and 14 professional live broadcast rooms have been put into use. In order to deeply reach and tap consumers' demand for high-quality and comfortable products, Skechers will also expand diversified businesses such as live broadcast e-commerce training and anchor incubation, and strive to build a professional and efficient live broadcast team of 200 people.
Chen Weili also revealed Skechers' development plan for the Chinese market in 2024. "In 2024, Skechers will surprise in the leisure and children's categories; continue to make efforts in digital transformation and improving the efficiency of the first chain; It also plans to add 550 new stores and increase investment in new store forms and terminal retail experiences. Skechers always adheres to customer-centricity, constantly seeking change, constantly improving, and going all out to create a win. Chen Weili said.
Lai Yang, member of the Expert Committee of the China Federation of Commerce and executive vice president of the Beijing Business Economics Association, pointed out that Skechers' products combine the characteristics of fashion, comfort and leisure, and are very in line with the modern lifestyle of Chinese. At the same time, as an international brand, Skechers meets the needs of consumers who pay attention to both quality and cost-effectiveness. Skechers still has a lot of potential for growth in the Chinese market.
Further efforts to promote professional sports.
With more than 5,000 retail stores and a Fortune 500 company, our global reach continues to expand. Robert Greenberg summed up 2023.
It is worth noting that although it started as a casual shoe, Skechers has been developing professional sports for more than a decade - as early as 2012, it has been developing professional sports running shoes, and professional sports have long become an important part of Skechers' business.
Our goal is to capture 70% in the fashion and leisure category and 30% in professional sports. Chen Weili once introduced. On this basis, the signing of professional athletes can also see the acceleration of Skechers's pace in the professional sports field.
In August 2023, Skechers signed the world's top football striker Harry Kane (Harry Kane) and other top players, and launched Skechers football boots. Skechers has also partnered with NBA All-Star Julius Randle and rising basketball star Terance Mann to further enrich the product range and elite roster.
Entering 2024, Skechers signed Oleksandr Zinchenko, a star who is playing for Arsenal in the English Premier League, to continue to expand his football expertise.
As an athleisure brand, our goal is to provide consumers of all ages with footwear and apparel products that cover all scenarios. Entering the field of professional sports can open up new markets and reach new people, covering the field of professional sports and sports and leisure in all dimensions. The above-mentioned person in charge said to "Consumption Titanium".
According to industry analysts, in the early and middle stages of the brand's rapid development, Skechers chose the focus of leisure and comfort for development. With the rapid development of the professional sports market, it is an inevitable trend for Skechers to join the professional sports field.
Robert Greenberg commented: "Our product program and diverse lineup of athlete and celebrity ambassadors will help us better tell the Skechers story and further grow our global business. ”