Why Lacoste’s China strategy stacks up

For nearly a century since its debut in 1933, with its unmistakably recognizable logo and devoted following of country club revelers, Lacoste has weathered luxury’s shifting landscape. Most notably in China, where the brand was one of the first international retailers to enter the market in the 1980s, Lacoste has maintained its relevance. Though trading initially started off slow (Asia contributed only 13% of global sales in 2005), flash forward to today, and sales are flush. In 2022, for example, the label closed an exceptional year in the country, growing by 15%, and the wider region, increasing sales 30% in the rest of Asia. Post-Covid, Lacoste has intensified its efforts to adapt its global appeal to Chinese consumers. What can competitors learn from its approach? China’s ‘tenniscore’ revival Lacoste’s recent China success owes much to the country’s booming ‘tenniscore’ trend, fueled by a surge in tennis-related events, rising recreational interest, and the rapid ascent of Chinese tennis stars, such as Zheng Qinwen. Online, hashtags like #tennis outfits (网球穿搭) and #courtcore (城市网球风) have garnered 180 million and 58.4 million views, respectively. Lacoste’s deep-rooted links to tennis (the label was founded by French tennis star René Lacoste in 1933) place it at the fore of the ‘tenniscore’ movement, says Junjie Wang, a Chinese retail expert and founder of the China Retail Watch newsletter. “Currently, not many Chinese brands have been able to successfully tap into this sector,” Wang says. This connection is something the brand has been capitalizing on. Earlier this month, the label staged a high-profile event at the Great Wall of China, where tennis icon Novak Djokovic faced off against Chinese actor and global brand ambassador Wang Yibo. The campaign went viral; the hashtag #Playbig racked up over 26.7 million views on Xiaohongshu, while the Weibo hashtag #LacosteGreatWallactivities (#Lacoste长城活动) reached 22.27 million. Local ties Bringing Wang on board has been instrumental to Lacoste’s success in China. The brand enlisted Wang as global ambassador in March, citing his personal interest in tennis as a key point of appeal. One of the country’s most valuable stars, his appointment marked a turning point for Lacoste in China, says Olivia Plotnick, founder of China marketing agency Wai Social. “[Wang’s] massive fan base and strong influence in pop culture have positioned Lacoste as a trendsetting brand in China,” Plotnick says. “His blend of youth, style, and versatility aligns with Lacoste’s sporty image, making the brand more appealing to Gen Z and millennial shoppers.” Wang explains that the partnership allows the brand to promote “star-endorsed” products, directly driving sales and increasing exposure through events. Alongside its celebrity ties, Lacoste is deepening its China footprint by teaming up with domestic cult fashion favorites, such as Edison Chen-owned streetwear label Clot. The collaboration, which launched last month, merged traditional East Asian martial arts aesthetics with Lacoste’s tennis and golfing roots. Localization pays off The brand is also expanding its physical reach as part of its growth strategy. In January, it inaugurated a standalone boutique at the CDF Haikou International Duty-Free Shopping Complex in Hainan, tapping into the country’s thriving duty-free market. But the standout aspect of Lacoste’s playbook is its commitment to localized activations. “Lacoste is one of the few global brands making such a strong local effort, and it’s paying off,” says Andrew Spalter, founder and CEO of East Goes Global, a company that bridges the gap between Western brands and Chinese consumers. While Lacoste’s Great Wall of China spectacle made waves online, it isn’t the first time the brand has hosted an installation in one of China’s top attractions. Last year, the brand commemorated 90 years by transforming local arts and culture hub Aranya into “Lacoste City.” As part of the activation, the brand took over landmark locations including the Lonely Library, sports multi-brand store Doe, and Bar Lotus, along with hosting a mini tennis tournament at China’s first seaside clay court. The official livestream of the event attracted over 9.41 million views on Weibo. Campaign hashtags, including “Crocodile Lands in Anaya” and “Lacoste 90th Anniversary,” garnered 130 million and 57.14 million reads, respectively. Lacoste’s Fall/Winter 2021 show in China, titled “Lacoste ARena,” also blended digital and physical elements, featuring AR-enabled mirrors, customizable sneaker stations, and interactive digital game zones. Despite its pop-up efforts across China spanning a decade, only recently have they come into sharper focus. Wang notes that the brand’s grasp of its target audience segments and their interests is helping drive brand buzz. “Both Aranya and the Great Wall are cultural symbols that Chinese consumers are very familiar with,” he says. “The former represents the younger generation’s aspiration for a middle-class lifestyle, while the latter symbolizes traditional Chinese culture.” Online presence An early entrant in China’s e-commerce market, Lacoste officially launched its multichannel operations in 2013, before establishing its Tmall flagship store (where it often partakes in seasonal promotions) and moving into Douyin and Xiaohongshu. But occupying a place on China’s local apps is no longer enough to stand apart, says Plotnick. To overtake rivals, the label has been ramping up its efforts, including jumping on China’s current livestreaming craze. Plotnick notes that other areas the brand could improve on include collaborating with more select celebrities and KOLs, alongside focusing on limited-edition drops tied to Chinese cultural events. East Goes Global’s Spalter concurs, noting that, to maintain momentum, the brand should “continue pushing boundaries with their marketing campaigns, collaborations, and events.” “The key to a successful APAC strategy is to ‘think globally, act locally,’” he adds. “If your brand has reach in a specific market, host localized events with local partners who understand the market deeply. If you see trends featuring your brand on social media, lean into those trends and amplify your marketing efforts. The focus should always be on local relevance.” Keeping up momentum With its well-crafted local playbook, Lacoste’s diversified understanding has improved its market position and consumer recognition, says Plotnick. As the brand charts its next steps in China, a focus on the country’s rapidly expanding virtual ecosystem may also be on the cards. It’s an arena Lacoste is already testbedding in the West to prime fashion’s next big spenders: Gen Alpha. Can the brand continue to serve an ace with Chinese shoppers? Yes, as long as it remains agile, says Plotnick. “[Lacoste] should also pay close attention to the dynamics of other competing brands and the changing economic environment,” Plotnick adds. “It should also continue to innovate and adjust its strategy, which is expected to continue to maintain a good growth trend.”

Why Lacoste’s China strategy stacks up

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Published October 14, 2024

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Why Lacoste’s China strategy stacks up