ASICS‍ Shifts Focus to Running Shoes, Exits Baseball Equipment Market

Japanese sports⁤ brand ASICS has announced plans to streamline its business,​ discontinuing the sale of baseball equipment by the ​end of‌ September 2025 to focus on its thriving running shoe ​business.

According to an ⁤ASICS spokesperson, the ‌decision was made due to ⁢limited resource ‌allocation in baseball equipment. The Onitsuka⁢ Tiger brand will also cease sales of gloves, bats, and other baseball equipment.

ASICS’ ⁤first-half 2024 performance was strong, with sales increasing by 18% to 342.2 billion yen (approximately 16.6 ​billion yuan) and gross profit rising by 28.4% to 190 billion yen.

The brand’s business‌ is divided into five major categories: running shoes ​(P.RUN), core sports (CPS, tennis,‌ volleyball, table tennis, badminton,‍ etc.), sports fashion (SPS), apparel and equipment (APEQ), and Onitsuka Tiger (OT). Running shoes have been a significant contributor‍ to ASICS’ performance growth, with sales increasing by 15% to 170.9 billion yen ⁤in the first half of⁤ 2024.

In contrast, the apparel and equipment business,⁢ which includes the baseball segment, has underperformed, with a profit margin of only 2.8% in the previous fiscal year. ASICS has evaluated the business and determined it is not performing well.

Although baseball is ‌extremely⁢ popular in Japan, ASICS’ baseball business has struggled since top Japanese baseball star Shohei Ohtani switched to New Balance in 2023. The loss of its biggest star has negatively impacted the business.

Meanwhile, the running shoe ⁢business has consistently delivered strong performance, allowing ASICS to steadily increase its profits since 2021. This has led the company to reallocate resources from the baseball business to its thriving‍ running shoe segment.

ASICS has benefited from the ​retro trend, with net sales of trendy lifestyle lines increasing by 51.7% in the first quarter of 2024. ⁢Retro shoes like the GEL-1130TM and GEL-KAYANO 14 have achieved ‍significant growth in the market.

Gao Kai, President of ASICS China, noted that the ​millennial retro⁢ trend has boosted sales‍ of trendy lifestyle products. ASICS will increase its investment in running shoes in the future, with a focus on professional running and expansion​ in Greater China.

Greater China is now ⁢ASICS’ third-largest market⁤ globally, with sales surging 31% to 53 billion yen (approximately 2.57 billion yuan) in the first half of 2024. Based on this impressive sales data, ASICS‌ has raised its performance forecast for 2024, expecting⁤ annual net sales to reach 660 billion yen (approximately RMB ‌32.057 billion) and net profit to reach 58 billion yen.

ASICS’ 2030 vision prioritizes professional running and accelerating expansion in Greater China. With its strong performance in the first half of 2024, ASICS is well-positioned for continued growth and success in the running shoe market.