Global skate brands expand in Asia: Wipe out or winning streak?

Supreme launched in China in 2015. Or so it seemed. But this was not Supreme New York — this was Supreme Italia. A Samsung collaboration and two stores later, the founders of the imposter brand were jailed in 2021 for fraud and ordered to pay $10 million in damages. Only this year is the genuine skate brand opening its first official China store, at 291 Fumin Road in Shanghai. The brick-and-mortar space will join a growing number of global skate brands putting down roots in Asia. Last month saw Palace Skateboards open its first flagship store in Seoul’s Apgujeong neighborhood. The brand sells its products in China on JD.com and WeChat. And in 2023, Stüssy opened a store at Beijing’s bustling Taikoo Li Sanlitun mall. “People are paying attention to skateboarding in China now more than ever. Because of the Olympic Games [the sport debuted at the 2020 competition in Beijing], parents are taking it seriously too, and they’re happy to let their children start lessons,” says Nicki Zhang, an avid skateboarder who works in the industry. A big draw of the market is its potential to boost flagging revenue growth. Supreme likely plans to build a new consumer base in China in a bid to turn around losses for parent VF Corporation, which bought the company for $2.1 billion in December 2020. The New York-headquartered skateboard lifestyle brand posted a $38.4 million loss in the year to March 2023. Its revenue growth trailed the category’s top four brands: The North Face, Vans, Dickies, and Timberland. Mainstream popularity Skateboard brands’ increased attention to Asian markets comes as the sport and related lifestyle gain recognition and the number of engaged consumers reaches critical mass. Traffic on Chinese social platforms is evidence of this growing awareness. On Weibo, #supreme has 710 million views, #vans has 520 million, and #nikesb has 37.9 million. Growing up, Zhang loved skating but did not have the level of access to the sport that today’s youth in China do. She says, “It wasn’t at the scale that it is now, the school-based skateboarding education. I could only study it myself, so now it is so much more popular with convenient access and skate parks.” Zeroing in on China Skating, and the sport’s community, may appear to be similar the world over, but Zhang says that the immensity of China’s skate scene makes it unique. Even Palace founder Lev Tanju stated back in 2019 that, despite working in skateboarding for over 20 years in the country, he had no idea what the scene was there. Zhang emphasizes that skateboarding in China cannot be viewed in the same way that it is in Western markets. “Unlike other countries, we have very different forms of skateboarding cultures all over China. Each city is totally different, even between Beijing and Shanghai,” adds Zhang. “Beijing is the capital city and stands for North, so it is hardcore and original. Shanghai is the financial center, where skateboarding culture is international and stylish, as many foreign skaters live in Shanghai.” Zhang continues: “Guangdong is in southern China, temperature is warm, so they can skate on the street all year around, the skateboarding culture is very chill. As for southeast skateboarding culture (Yunnan, Sichuan , Guizhou, Chongqing), there are many young skateboarding communities and roots — the community is young, creative, and energetic. Xinjiang’s skateboarding culture has a national spirit and national pride.” While many brands view Asia, or a single country in the region, as one market, the diversity of China’s skateboarding scene suggests a hyper-localized approach would be optimal. For instance, Vans last year collaborated with Shanghai lifestyle brand Tagi on Old Skool silhouettes. It has since rolled out multiple collections with leading Chinese skate brand Avenue & Sons, the latest being in October 2023, fronted by skater Jeremy Hu. Exemplifying how to adhere to the needs of local consumers, Vans recently collaborated with popular Malaysian rider Pa’din Musa (187,000 followers on Instagram) to co-create a capsule collection and hold a pop-up event in Malaysia — the shoes sold out within two hours. Creating a tribe As community is at the core of skate culture, connecting with fan bases in China is key. This can be done by collaborating with local talent like artists or musicians, and rolling out hyper-localized activations. For example, Nike’s skate-dedicated division co-launched a Dunk sneaker in 2023 with Shanghai’s leading skate brand Fly Streetwear. Established in 1999, Fly Streetwear founder Jeff Han is the “OG of Shanghai skateboarding culture.” The Fly x Nike SB sneaker’s 90 percent price premium on resale platforms was therefore likely anticipated. Though skate brands are showing confidence in Asia, it will be a while before they reap the rewards of their investments, if ever. According to a 2023 report by Fashion Exchange, Stüssy, Supreme, and Palace have all seen their ranking fall year after year in China based on search engine traffic and social media popularity. Instead, more mainstream celebrity-backed streetwear brands, like Justin Bieber’s Drew House, which sold over 1,000 products within one second of launching on Tmall, are in favor. The potential growth of skateboarding culture in Asia is huge, but the cost of expanding in the region and the associated risks are high. Hitting on the right level of localization will in part determine the level of engagement global skating brands generate in China and, more broadly, in Asia.

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Global skate brands expand in Asia: Wipe out or winning streak?