Descente China marching across mainland

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Sportswear maker Descente China plans to open 100 retail stores under its own name before March 2019.
Unlike the 500-odd boutique stores with swimwear and golf goods being run already in China by a foreign subsidiary of the Japanese company, the new outlets will be large shops under the Descente banner offering a wider range of products.
Descente’s plan is to open both roadside stores and outlets in shopping malls stocked with both functional gear for sports such as golf, skiing, running and triathlons, as well as fashionable sportswear for everyday use.
Descente has set up a joint venture with Chinese sportswear giant Anta Sports Products. Tentatively named Descente China, the JV has been capitalised at 250 million yuan ($38 million), with 60 per cent held by a subsidiary of Anta, 30 per cent by Descente and 10 per cent by the Chinese subsidiary of Japanese trading house Itochu.
Descente and Anta will share marketing channels and collaborate in the search for store locations.
In late August, Descente will open four or five retails stores in northeastern China, including Heilongjiang province, famous for an annual ice and snow sculpture festival. Later, Descente will open stores in major urban areas like Beijing, Shanghai, Dalian and Chongqing.
By teaming with a local sportswear maker, Descente believes it will have an easier time fending off fakes, says company president Masatoshi Ishimoto.
He says the company aims to double Chinese sales from last year’s figure to about 22 billion yen ($207 million).
As well as its China expansion, the company is opening golf apparel stores in South Korea.
Questions & Answers
Q.What is the ownership structure of the Descente China joint venture?
What is the ownership structure of the Descente China joint venture?
A subsidiary of Anta holds 60% of the joint venture, Descente holds 30%, and Itochu's Chinese subsidiary holds the remaining 10%. The JV has been capitalised at 250 million yuan.
Q.What types of products will the new Descente stores offer?
What types of products will the new Descente stores offer?
The new stores will offer a wider range of products, including functional gear for sports like golf, skiing, running, and triathlons. They will also stock fashionable sportswear for everyday use.
Q.How will Descente's new stores differ from its existing Chinese operations?
How will Descente's new stores differ from its existing Chinese operations?
Unlike the 500-odd boutique stores already running with swimwear and golf goods, the new outlets will be larger shops. These will operate under the Descente banner and offer a wider product range.
Q.What is Descente's target for Chinese sales following this expansion?
What is Descente's target for Chinese sales following this expansion?
Descente aims to double its Chinese sales from last year's figure, reaching approximately 22 billion yen. This expansion is part of that growth strategy.
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