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Tue, May 18, 2010
my paper
Building a brand that transcends borders

By Reico Wong

THE global sports-apparel industry is thriving and looks set to continue growing in the near future, especially in the Asia-Pacific.

That is the view of Mr Motoi Oyama, 59, president of leading Japanese sportswear brand Asics. The positive growth forecast for the region is one reason why Asics has been increasingly focusing on the Asia-Pacific in the past five to six years, despite its strong roots in American and European markets.

Asics is particularly well-established in the United States. At the end of last year, it gained nearly three market-share points in the running-footwear category to solidify its No. 2 position, according to The NPD Group, a leading global provider of consumer-retail market research.

Mr Oyama, who was in Singapore recently for a visit, believes that people in the region are growing increasingly affluent, and are more willing to spend on sports merchandise.

"Asians now recognise that a sporty life is healthy, and a sporty culture is developing. They are paying more attention to their health," the trim, silver-haired man told my paper.

"I expect sales in each of the region's territories to continue rising... Asics focuses on authentic high-performance products like running, basketball, tennis shoes and other indoor sports...all of which will be in line with the hobbies and tastes of Asians."

When asked whether there is a trend among Asian sports-apparel companies, including Mizuno, to specialise in running, Mr Oyama said: "Yes, I think so. Normal, healthy people who are concerned about their health will naturally think about walking and running.

"It can be just for 10 minutes to an hour, and they need only simple clothing like T-shirts and pants."

He added that running is an exercise a person can do on his own, unlike sports such as tennis or basketball, which require a companion or team to get a game going.

"There is also an increasing number of marathons being organised. Participation in marathons both big and small is growing more than ever before," said Mr Oyama. That is why Asics has intensified its sponsorship of marathons in Tokyo, Seoul and Mumbai. More recently, it signed a three-year, $11-million deal to become the official apparel sponsor for the inaugural Standard Chartered Marathon in Singapore.

As for competition from more popular Western sports brands like Nike, adidas, Puma and New Balance, Mr Oyama noted that the success of a brand does not depend on where it comes from.

According to research conducted in markets where Asics has had a presence for at least 10 years, 50 per cent of consumers regard Asics as an American brand; around 30 per cent do not associate Asics with a country, while the rest see it as a Japanese brand.

"We are a brand that can live in any territory," said Mr Oyama.

"We're not showing up our nationality."

Instead, Asics competes in terms of functionality, in which it has a strong track record, and design.

Said Mr Oyama: "People now pay more attention to not just the visible but also the hidden functions of sports shoes, so we combine functional shoes with original, fashionable designs that can be recognised as the Asics logo or style."

The company has introduced features such as the DuoMax Support System, which provides more support for the foot; the Impact Guidance System, which enhances gait; and special technology that makes Asics shoes lighter and more comfortable.

In terms of design, the brand is making headway with its Onitsuka Tiger series, which represents the forward-looking face of modern, metropolitan Japan.

Meanwhile, the industry is increasingly moving towards more customisation, which allows consumers to choose the colour of their shoes, or the material and embroidery used to make them. Shoes can also be specially tailored to match the shape of a consumer's feet.

"Such customisation puts focus on the ideas of design, just-fit and quick delivery time," said Mr Oyama. While Asics has had the necessary systems to offer customisation in Japan since about 30 years ago, it is now seeking to extend such services to its branches around the world.

Given its popularity in Japan, Mr Oyama is confident that the idea will take off in other Asian countries which have similar cultures and tastes.

Asics wants, in particular, to get larger orders from sports teams. Teams want to have their own custom- designed footwear, and players are keen to embroider their names on their shoes.

"Many teams now do not like white-coloured shoes. They prefer blue or red shoes, or shoes with mixed colours," said Mr Oyama. "Tastes are changing" so I think we can maintain the (customisation) business."

Indeed, Asics is well-positioned to continue being a leader in the global sportswear industry. Many customers in Singapore have commented positively on its shoes.

"Asic shoes tend to be durable and extremely lightweight," said 24-year-old university student Heath Tan. "The brand offers different types of shoes that are ergonomically designed for specific purposes, and generally have good heel support."


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