Skechers will boost its investment and localization in China, its largest overseas market, as the United States-based athleisure firm seeks to tap growing demand for sports, health and comfort-related items and pursue higher-quality growth in the country, said a senior executive.

With a network of more than 3,000 stores across China, Skechers plans to further expand its investment in local research and development as well as manufacturing over the next five years, strengthen its supply chain and upgrade its retail network as it shifts its focus from scale expansion to quality-driven growth.

Willie Tan, CEO of Skechers China, South Korea and Southeast Asia, said rather than focusing on raw store numbers, the athletic footwear brand will give greater priority to store optimization in premium locations, outlet upgrades and expanding direct-to-consumer and instant retail operations across more Chinese urban markets.

Under its plan, Skechers will further expand its product portfolio in professional and youth sports segments — including running, soccer, basketball and pickleball — and make greater use of artificial intelligence and big data in supply chain management, membership management, product recommendations and demand forecasting.

Emphasizing the importance of greater stability and predictability in China-US economic and trade relations, Tan said such an environment would provide a stronger foundation for US enterprises to make long-term investments and operational decisions in China, and help businesses reduce uncertainties related to supply chains and operations.

"This enables companies to focus more resources on product innovation, retail expansion and consumer services, and strengthen their long-term competitiveness in the market," he said.

Over nearly two decades of operations in China, Skechers has invested more than 4.2 billion yuan ($627 million) in its China Logistics Center in Taicang, Jiangsu province.

Meanwhile, the company expanded its R&D center and livestreaming businesses in Dongguan, Guangdong province, and more than 90 percent of its products sold in China are now produced locally.

Tan said localization will remain central to Skechers' growth strategy in the country. The company has developed an integrated local supply chain covering innovation, manufacturing, warehousing and retail, allowing it to respond more quickly to changing consumer preferences and control operating costs.

"Chinese consumers are placing greater emphasis on value, functionality and personalized products, with stronger demand emerging in running, outdoor activities, light fitness and casual comfort," he added.

To better meet this demand, Skechers is strengthening local R&D and seeking further growth in smaller cities, instant retail and family consumption through higher-quality stores and deeper integration of e-commerce, livestreaming and physical retail.

Guan Lixin, a researcher specializing in marketing and consumption at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said China's expanding sports and health-related purchases are creating new growth opportunities for foreign brands with strong localization capabilities. Guan said foreign brands that combine global expertise with local research, manufacturing and digital capabilities will be better positioned to capture increasingly diversified and quality-focused demand among Chinese consumers.

China aims to lift total retail sales of consumer goods to around 60 trillion yuan by 2030 and foster 10-trillion-yuan markets in green, smart and health-related consumption, said an implementation guideline jointly issued by the Ministry of Commerce and six other government departments in late August.

zhongnan@chinadaily.com.cn