Salomon and the evolution of China’s middle class identity

What happened China’s burgeoning middle class, often dubbed “nouveau riche” (暴发户), once flaunted luxury logos as their social currency. But times have changed, and today’s affluent consumers are embracing the “Three Treasures of the Middle Class” – a coveted trio of Arc’teryx jackets, Lululemon yoga pants, and Salomon sneakers. Across domestic digital platforms, outdoor apparel is being elevated into a powerful symbol of social identity: premium outdoor products are the new “crown jewels” of our era. On Xiaohongshu, Salomon now boasts over 10,000 user-generated posts, with fans claiming “wearing a pair of Salomons is the true mark of being middle-class.” Founded in 1947 in Annecy, a French town nestled at the foot of the Alps, Salomon is renowned for its outdoor sports gear and apparel, including skiing, trail running, and hiking equipment. In recent years, the outdoor footwear brand has scaled the summit of contemporary fashion, thanks to limited-edition releases and frequent collaborations with high-end fashion names, such as MM6, Comme des Garçons, and Sandy Liang. The Jing Take Data from sneaker resale platform StockX reveals Salomon was the fastest-growing brand in terms of sales for 2022, with a staggering 2277% trade growth over 2021. Due to a stark imbalance between supply and demand, Salomon shoes now fetch premium resale prices in the secondary market; Salomon's footwear typically retails from 1,000 to 1,500 RMB ($140-$210), but sought-after models on StockX are being sold for 3,999 RMB ($560). Although Salomon’s brand recognition in Greater China lags behind Europe, its high-performance products align well with the local market needs, offering significant growth potential. At the Q2 2024 performance briefing, Amer Sports’ CEO James Zheng highlighted China as Salomon’s most important growth market. The brand plans to expand its store count to 200 by the end of 2024. Salomon’s strategy to penetrate the Chinese market mirrors Arc'teryx’s approach: positioning itself as a mid-to-high-end brand targeting the affluent middle class, shifting from wholesale distribution to a consumer-centric retail model, and emphasizing fashion and trendiness while maintaining its niche outdoor brand identity. The number of Salomon stores in China has grown steadily, with 27 stores opening in Q2 alone. To capture affluent consumer attention, Salomon is accelerating its presence in prime city-center shopping districts, including stores in Beijing’s Sanlitun and WF Central, Shanghai’s Jing An Kerry Centre, and Nanjing’s Deji Plaza. Their strategic bet on the Chinese market is paying off: Salomon is driving the outdoor gear business in Greater China, achieving an impressive 146% growth in 2023, which dwarfs the global market growth of 18% for the same segment. Salomon’s revenue also surged from 7.6 billion RMB ($1.06 billion) in 2022 to 9.3 billion RMB ($1.3 billion) in 2023, cementing it as one of Amer Sports’ core brands alongside Arc’teryx. Notably, Salomon also hit its 1 billion euros (80 billion RMB) milestone well ahead of the company’s original 2025 target. Despite turbulent economic times, China’s consumers are still willing to pay premium prices for what they consider social currencies. Luxury brands looking to reconnect with the middle class, such as Burberry and Saint Laurent, could draw inspiration from the successful strategies of Arc’teryx, Lululemon, and Salomon in China. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Salomon and the evolution of China’s middle class identity

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Published August 26, 2024

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Salomon and the evolution of China’s middle class identity