Original Chen Weili: Domestic sports brands understand China better, and international brands should use Chinese thinking to manage their enterprises

Weili Chen, CEO of Skechers China, South Korea and Southeast Asia

Produced | Sohu School of Business

Edit | Xu Xiaoqi

Chief Editor | Wang Demin

According to data from the Prospective Industry Research Institute, from the perspective of the proportion of sports brands at home and abroad, from 2010 to 2019, among the top 20 brands in terms of market share, the penetration rate of foreign brands is on the rise, while the penetration rate of domestic brands is on the decline. However, outstanding local brands represented by Li Ning, Anta, and Xtep are accelerating their rise.

SKECHERS China, South Korea and Southeast Asia CEO Chen Weili said in an interview with Sohu Business School “Achieving 100 People” that international brands have two advantages. The first is that the market is open to the whole world, and the supply chain is stronger. Second, product sales are more stable, with sales channels reaching more than 100 countries.

“but The advantage of domestic brands is to understand China, this advantage is very powerful . To this day, I don’t think I understand China. “Chen Weili said frankly.

In his opinion, the founders of Anta and Li Ning were both born in China, and he has only been in China for more than a decade. Although I am also working hard to understand China, the depth is still not enough. Therefore, multinational companies must use Chinese thinking to manage their companies.

Talking about the future, Chen Weili said, After the epidemic, all industries must be shuffled, Because consumer preferences have changed. But the reshuffle of the sports industry is not too obvious . However, some brands will have operational and inventory pressure, which is also an opportunity for brands, and they have the opportunity to occupy more market shares.

He said that under the epidemic, All brands are looking for new outlets and growth points, which are helpful to the improvement of the entire industry. Only by continuing to abide by laws and regulations operating in China, strengthening corporate governance, and being a brand that respects China and that Chinese consumers love, can there be more lasting development.