1. Sketching A Plan
As a brand in step with fashion trends, Skechers reckons it can fit the big reputation and bigger
shoes as America’s top footwear brand.
By: Tan Hai Ting (6 July 2015)
Stepping strategically, in 1992, into a consumer niche with the means and the desire to be
fashion savvy helped Skechers establish a firm foothold in the footwear industry. Its founder,
Michael Greenberg, quite rightly commented that his was a marketing company that sells shoes,
with its focus on trendy, casual styles for those aged 19 to 40. Skechers opened its first retail
store in 1995. It then went on a mad dash to expand international in 2001, opening stores in
Paris, London and Tokyo. This was followed by stores in Angola, Algeria, Latvia, Libya and
Romania in 2014. Today, with a total of 1, 100 standalone stores around the world, Skechers is
still looking to expand. With 18 stores in the Southeast Asian region, Skechers set up their new
flagship store at Ngee Ann City.
In 2008, through Onwel Group, Vincent Leung, President of Skechers Southeast Asia, formed
Skechers Hong Kong Limited through a joint venture with Luen Thai Enterprises and Skechers
USE. The following year, this joint venture was further expanded to cover the Southeast region.
Today, there are more than 350 retail and wholesale shops in Southeast Asia.
Leung, who believes he lives the Skechers life, explains that strategically, “in order to become
big in Asia, we would have to succeed in Singapore.”
He isn’t concerned about the “lack of quality retailers” on the island, Singapore offers a good
location and good body of shoppers who seem to spend a disproportionate amount of time in
retail malls.
“It’s a major hobby,” Leung notes, pleased at the possibility of business walking in in droves. As
the second ranked global sports footwear company in America, Skechers is catching up with the
leader, GoWalk. “According to market research, we now have 80% of market share in terms of
walking shoes.”
Leung had to sketch a different strategy to make his shoes relevant. “In the US, even a very
niche part of the market has a huge volume. When it comes to Asia, we need a more holistic
approach. We are no longer looking at little stories, we have to present a brand story. This is
because we are new to the market and also we are more retain drive.”
In Asia, Hong Kong and Singapore consumers have similar tastes. “However, our bright colors
and sophisticated patterns sell better in Singapore. As for Malaysia, the colors are more
conservative. The shoes are generally black and brown. For Thailand, the market is casual shoe
driven. In Asia, we require a good pair of walking shoes,” Leung adds.
Leung is optimistic that his shoes will virtually walk into every Asian home. “Social media,
although sometimes a pain, is a necessary evil However, it is difficult to put a figure on how
much social media has helped our business sales. Social media is about sharing and
experiencing. The thing with social media is that we expect immediate and efficient responses.
My dream is that we would be able to have iPads at our shops that would allow customers to
buy products that are not sold at the store. With the advancement of technology, I hope that one
day customers are able to go up to the MRT billboards to purchase Skechers shoes with a
touch of a finger.”
It would give them something to do while waiting for the train to roll in.