Mzuno, a Japanese sports brand, has announced plans to reduce the number of its new stores that will be opened in China in 2008.
At the same time, other Japanese sports goods retailers such as Asics and Descente have also made adjustments to their opening plans in China for the year 2008.
Unlike their rivals in Chinese, American and European companies that are extending their businesses with the opportunity of 2008 Beijing Olympic Games, Japanese sports brands' profits declined because of the ever increasing competition. Therefore, these Japanese manufacturers decided to shift to more profitable strategies.
Mzuno said that the company originally hoped to increase the number of its stores in China from 871 to 1,200 in 2008, but the plan is now canceled. In addition, while giving priority to profitability when opening new stores, the company will shut down unprofitable stores. Over the past five years, Mzuno opened 100 to 200 new stores in China each year. However, the number of its stores in China may remain unchanged by the end of 2008.
Asics, which currently owns 190 stores in China, said it formerly planed to increase the number of its stores to 300 and to increase its revenue to JPY3 billion by the end of 2008. The plan is now postponed to 2009.
In mid 2008, Descente announced plans to increase the number of its stores to 270 by the end of 2008 while it predicts that the number will be only 245.