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Skechers expands to meet rising demand in China


The US-based company, Skechers, will invest up to $279 million to expand its distribution facilities in China’s Taicang, Jiangsu province, this year. Eexpansion will help the brand meet surging demand in China. In late December, the company set up a distribution center in Taicang. The signing of the Regional Comprehensive Economic Partnership agreement and upgrading of e-commerce businesses during the COVID-19 pandemic has introduced a new market dynamic. Skechers found its current operational capacity will no longer meet the increased demand.

As Taicang has a well-developed container port and customs office, as well as a convenient location to connect many eastern Chinese cities, the Skechers distribution center will further enhance the company's overall supply chain competencies. The expanded facility will play a key role alongside the company's other businesses in building a more comprehensive logistics network in China and other markets, particularly in the Asia-Pacific region.

The company is studying the policy details of the RCEP and hopes to boost two-way trade of its products between China and the markets of the Association of Southeast Asian Nations. In addition to expanding presence in top-tier cities and working closely with domestic logistics service providers, Skechers will open more brick-and-mortar stores in China's lower-tier cities to reach more consumers.

In late December, Skechers forged a partnership with Shanghai Disney Resort to promote sales of its products at Shanghai Disneyland theme park.

As China has recovered from the first wave of the pandemic in an exceptional manner, Skechers saw its local sales jump almost 24 percent year-on-year in the third quarter of 2020. The company entered China in 2008, and now runs nearly 3,000 stores, including 150 super-large shops.