Converse: How Itochu mastered what Nike hasn’t

Converse, the Nike-owned footwear icon synonymous with American counterculture, is facing an identity crisis. Pursuing a scattershot approach to collaborations, from Coca-Cola and Jurassic Park, to Charli XCX and Doraemon, the brand’s global arm appears to have lost its way. Meanwhile, the iconic Chuck Taylor plimsoll has struggled to maintain relevance in contemporary style circles. Yet a very different story is unfolding in Japan. Operated independently under Itochu Corporation, Converse Japan has transformed itself into a cult fashion label through bold design innovation and an intuitive grasp of cultural nuance. The contrast in style and cultural capital between the two operations is striking — and instructive. The revenue gap: 26% decline vs record growth Financial performance illustrates the struggle. Converse’s revenue declined 26% YoY to $357 million on a reported and currency-neutral basis in the fourth quarter of fiscal 2025, driven by declines across all territories. Itochu reported record net profit of 880.3 billion Japanese yen ($6 billion) for fiscal 2025, achieving approximately 10% growth year-over-year. The Japanese conglomerate’s fashion portfolio underscores its commanding presence across the country’s retail landscape. Beyond operating Converse Japan, Itochu manages or licenses a roster of prestigious brands including Hunting World, LeSportsac, Outdoor Products, and Paul Smith, while holding exclusive import and distribution rights for global names such as Fila, Lanvin, Reebok, and Vivienne Westwood — cementing its position as a major force in Japanese fashion. Itochu’s fashion empire Beyond operating Converse Japan, the conglomerate manages or licenses a roster of prestigious brands including Hunting World, LeSportsac, Outdoor Products, and Paul Smith, while holding exclusive import and distribution rights for global names such as Fila, Lanvin, Reebok, and Vivienne Westwood; cementing its position as a key power player in Japanese fashion. Creative autonomy as competitive advantage Unlike its global counterpart, Converse Japan operates with creative autonomy. This freedom has allowed the brand to evolve far beyond its basketball roots into something far more aligned with contemporary Japanese fashion sensibilities. Square toes, platforms, ballet pumps: Converse Japan is a trailblazer in avant-garde commerciality. Recent hits like the All Star Coupe GB Loafer and All Star Square Toe reinterpret the brand’s heritage silhouettes through a minimalist, refined lens that resonates with Tokyo’s design-conscious consumers. The One Star J Loafer PRM, for example, revives a 1990s icon remodeled in the image of luxury shoemaker Regal. Then there’s the All Star Westernboots ST Z, both of which reimagine the brand’s core DNA with couture-like attention to form. This nuanced design language has made Converse Japan resilient as a standalone entity, eliminating the need for the constant collaborations that define its global counterpart. In April 2025, Converse Japan dropped its balletcore-inspired collection: chunky platform ballet sneakers in pastel “Pale Rose,” fronted by dancer and model Aoi Yamada. The campaign visual — Yamada in a tutu, effortlessly grounded in oversized sneakers — was both poetic and elevated. It spoke to Japan’s broader role in Balletcore aesthetics while tapping into the major trend of the “sneakerina” shoe. Cultural attunement as strategy This kind of culturally attuned storytelling is where Converse Japan excels. By embedding itself in local aesthetics — from Tokyo minimalism to Balletcore — the brand maintains relevance through intuitive design sensibility and bold creative vision. Across the Pacific, Nike’s Converse division is feeling the pressure. The brand’s June 2024 revival of the Chuck Taylor All Star XXHi (the 2006 “Knee-High” silhouette) hints at a successful embrace of nostalgia, with the style prominently featured in the brand’s Instagram bio. A recent bow-wrapped style signals a shift toward a more distinctive design direction. Without a cohesive narrative, however, these launches will struggle to sustain consumer momentum. What the Nike subsidiary can learn Converse Japan’s success underscores a powerful truth: creative autonomy unlocks cultural relevance. Rather than imposing a homogenized global product strategy, Nike could empower regional teams to cultivate design ecosystems that reflect local lifestyles. The Japanese operation demonstrates how a 117-year-old brand can remain relevant. By adopting Japan’s design-led, lifestyle-focused approach, the global Converse brand could reclaim its cultural edge In a sneaker landscape dominated by performance-driven giants like Adidas and New Balance, Converse Japan proves that design integrity and cultural connection can trump scale.

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Converse: How Itochu mastered what Nike hasn’t