Abstract:
Tourists visiting Tokyo today have several must-visit places: Sensoji Temple, Shibuya Crossing, and at least one Onitsuka Tiger Store in Tokyo. Tourists flock to these fashion meccas to examine rows of sleek sneakers or show clerks their favorite styles on their phones. The store will issue number coupons to tourists waiting in line outside the door, and they can enter the store in turn. You can also see people buying new shoes and putting them on directly on the street corner.
The weaker yen means that tourists can buy this Japanese luxury at a lower price than buying it in their home country. Enthusiasts praise the retro look of the shoe, which is also lighter on the foot than popular thick-soled sneakers from other brands.
This craze has driven revenue and profit growth for Asics, the parent company of Onitsuka Tiger. The products of this Japanese shoe company are favored by both professional runners and those who prefer comfortable “dad shoes”.
The company’s latest financial report shows that, driven by the strong consumption of inbound tourists to Japan, Onitsuka Tiger’s sales rose 36% year-on-year in the six months to June, reaching 89.5 billion yen (approximately US$574 million). During the same period, ASICS' overall revenue reached US$3.4 billion, and profits surged by approximately 50%.
ASICS announced in June that it would spin off the Onitsuka Tiger brand into a wholly-owned subsidiary in order to speed up the decision-making efficiency of this high-speed growth business.
Kono Sho, head of Tokyo retail and consumer industry research at Goldman Sachs, said that the recent "Millennium (Y2K)" fashion craze set off by the younger generation has given Onitsuka Tiger a boost in development.
But he added that the company has controlled the popularity of the brand very well: controlling the pace of store expansion and refusing discounts and promotions, in order to maintain Onitsuka Tiger's light luxury and high-end tone. Due to ASICS' massive business contraction in 2023, there are currently no Onitsuka Tiger standalone stores in the United States. A new large Onitsuka Tiger flagship store is scheduled to open in Los Angeles early next year.
Kono Sho said: "They hope to maintain this high-end brand image."
Comments