XTEP continues to strive for excellence and innovation.
XTEP International Holdings Limited (SEHK stock code: 1368) is a leading multi-brand sportswear company listed on the Main Board of the Hong Kong Stock Exchange on 3 June 2008. The Group engages mainly in the design, development, manufacturing, sales, marketing, and brand management of sports products, including footwear, apparel and accessories. In 2019, the XTEP further diversified its brand portfolio, which now includes four internationally acclaimed brands: K-Swiss, Palladium, Saucony and Merrell. In an interview with Fibre2Fashion, XTEP General Manager Antone Liu discusses the sportswear market and the company’s plans.
What is the size of the global sports footwear market and how fast is it growing?
I think the global sports footwear market size is around $95-100 billion. During the COVID-19 pandemic, there was a negative impact on the demand for sports shoes worldwide. However, demand is back now, and the market is expected to grow at a compound annual growth rate (CAGR) of 4.8-5.0 percent and reach $135-140 billion by 2030.
What is XTEP’s market share in India and globally?
We expect phenomenal growth in the sports and athleisure retail market in India. It is likely to grow from ₹158 billion in the financial year 2020-21 to ₹402 billion in 2024-25.
We have a strong global presence, which can be gauged from XTEP Holdings’ net worth of $3.53 billion as on February 01, 2023.
What impact did COVID-19 have on the sportswear apparel and footwear industry, and how did XTEP cope with it?
There is no doubt that the COVID-19 pandemic had a significant impact on the sportswear apparel and footwear industry. In fact, many brands faced challenges such as supply chain disruptions, reduced consumer demand, and temporary store closures. However, we were able to sustain its operations and even opened our first store in Bengaluru (India) during this challenging period.
But from a different perspective, the pandemic led to increased awareness among the public about the importance of maintaining good health. As a result, many people have started following healthy lifestyle habits such as regular exercise, leading to a positive impact on the sportswear industry. We expect the industry to see significant growth in the coming years due to this trend.
What are the latest innovations in XTEP’s footwear design and sportswear science labs?
We have made significant strides in footwear design and sportswear technology, including collaborating with Nobel Prize-winning physicist Barry C. Barish to develop the world’s first ‘PISA’ supercritical foaming technology. This technology provides professional runners with excellent rebound and propulsion.
We also work closely with leading international fibre material developers to enhance their footwear products continually. In addition, our sportswear science labs have upgraded various first-place-winning marathon shoes, as seen in international-class marathons. These efforts demonstrate our commitment to innovation and providing athletes with the best possible gear to support their performance.
What are some key global trends in sports apparel and footwear in terms of colours, materials, patterns, looks, and design?
In terms of global trends in sports apparel and footwear, XTEP has been focusing on sustainability and eco-friendliness, with the introduction of our Mass Balance low-carbon, eco-friendly running shoes. We hope to influence consumer behaviour towards a healthier lifestyle and integrate sustainability into people’s daily lives.
Other global trends include the use of innovative materials such as recycled and upcycled materials, sustainable and biodegradable materials, and plant-based alternatives. There is also a trend towards bright, bold colours and unique patterns, as well as sleek and minimalist designs. Additionally, there is a growing focus on versatility and multi-functionality, with apparel and footwear that can be worn for a variety of activities and occasions. Overall, the trend towards sustainability and eco-friendliness is a significant focus for the industry as consumers become more environmentally conscious.
What are some of XTEP’s major markets?
Our major markets include several countries in Asia such as Kazakhstan, Uzbekistan, Thailand, Vietnam, India, Pakistan, Cambodia, Nepal, Indonesia, the Philippines, Malaysia, Laos, and Myanmar. In the Middle East, we have a presence in Saudi Arabia, Egypt, Iran, the UAE, and Kyrgyzstan. In Europe, Ukraine and Finland are among the company’s major markets, while New Zealand and Australia are key markets in Oceania.
What are the plans for XTEP as a brand for the next 2-3 years?
Looking ahead to the next 2-3 years, we have several strategies in place to enhance our brand and better connect with consumers. One key focus is to expand XTEP’s product offerings to include more lifestyle products in addition to its athletic apparel and footwear. This will allow the brand to tap into the growing demand for athleisure wear, which can be worn both during exercise and in everyday life.
In terms of innovation, we will continue to invest in research and development to create new technologies and materials for its products. This includes the development of sustainable and eco-friendly products, as well as the use of advanced technologies to improve the performance and comfort of its athletic footwear.
Overall, we aim to make XTEP a leading global brand in the sportswear industry by focusing on product innovation, expanding its retail presence, and building strong connections with its customers.
Published on: 24/02/2023
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
