China's burgeoning middle class, often referred to as the “new rich” (bang fa hu), once flaunted luxury brand logos as social currency, but times have changed and today's affluent consumers embrace the “middle class trinity” – three highly coveted items: Arc'teryx jackets, Lululemon yoga pants and Salomon sneakers.
Across domestic digital platforms, outdoor apparel is being elevated to a powerful symbol of social identity. Premium outdoor products are the new “treasures” of the era. On Xiaohongshu, Salomon now boasts over 10,000 user-generated posts, with fans claiming that “wearing Salomon is a true sign of being middle class.”
Founded in 1947 in the town of Annecy, at the foot of the French Alps, Salomon is known for its outdoor sports equipment and apparel, including skiing, trail running, and hiking gear. In recent years, the outdoor footwear brand has risen to the pinnacle of contemporary fashion thanks to its limited edition releases and frequent collaborations with luxury fashion brands such as MM6, Comme des Garçons, and Sandy Liang.
Salomon was founded in 1947 in Annecy, a town at the foot of the French Alps. Salomon/Weibo
According to data from sneaker resale platform StockX, Salomon was the fastest-growing brand in terms of sales in 2022, growing by a staggering 2,277% compared to 2021. Due to a significant imbalance between supply and demand, Salomon shoes are currently trading at premium resale prices on the secondary market: While Salomon shoes typically sell for 1,000-1,500 RMB ($140-210), popular models on StockX are selling for 3,999 RMB ($560).
Although Salomon's brand recognition in China lags behind that in Europe, the company's high-performance products meet the needs of the local market and have great potential for growth. During the company's second quarter 2024 earnings call, Amer Sports CEO James Chen emphasized that China is Salomon's most important growth market. The brand plans to expand the number of stores to 200 by the end of 2024.
Salomon's China market entry strategy mirrors Arc'teryx's approach: positioning itself as a mid-to-high-end brand targeting the affluent middle class, moving from a wholesale to a consumer-centric retail model, and emphasizing fashion and trends while maintaining its identity as a niche outdoor brand. The number of Salomon stores in China has been steadily increasing, with 27 openings in the second quarter alone.
To attract the attention of affluent consumers, Salomon is expanding its presence in key city-centre shopping districts, including stores such as Sanlitun and WF Central in Beijing, Jing'an Kerry Centre in Shanghai and Deji Plaza in Nanjing.
The strategic bet on the Chinese market is paying off. Salomon is leading the outdoor gear business in Greater China and is set to achieve an astounding growth rate of 146% in 2023, well outpacing the global market growth of 18% in the sector. Salomon's revenues have also soared from RMB 7.6 billion ($1.06 billion) in 2022 to RMB 9.3 billion ($1.3 billion) in 2023, solidifying its position as Amer Sports' flagship brand alongside Arc'teryx. Notably, Salomon has also hit the 1 billion euro (80 billion yuan) milestone, well above its original 2025 target.
Despite the country's shaky economy, Chinese consumers remain willing to pay high prices for what they consider to be social currency. Luxury brands like Burberry and Saint Laurent looking to reconnect with the middle class could take cues from the successful strategies of Arc'teryx, Lululemon and Salomon in China.
Jing Take covers major news stories and presents our editorial team's analysis of what it means for the luxury industry. In this regular column, we analyze everything from product discontinuations and mergers to the heated debates erupting on Chinese social media.
