The sports apparel brand K-Swiss is re-entering the domestic market in partnership with Black Yak after seven years.
On the 19th, the domestic operations company of Black Yak, BYN Black Yak, announced the establishment of a joint venture, K-Swiss Korea, with KP Global Investment of China, which holds the global intellectual property (IP) of K-Swiss, and it plans to open domestic stores next month. BYN Black Yak, which has primarily been engaged in outdoor apparel brand business, is now expanding its business scope into the sports sector through K-Swiss.
At a press conference held for K-Swiss's relaunch in Korea in Seongsu-dong, Seoul, CEO Kang Joon-seok of BYN Black Yak said, "We are launching a sports brand and entering not only the outdoor market but also the sports market," adding, "We aim to achieve good results by collaborating with a great partner from China, Xtep."
CEO Kang is the eldest son of Kang Tae-seon, chairman of BYN Black Yak Group, and oversees management, including Black Yak's global business. On this day, he accompanied Chairman Kang to the K-Swiss brand launch event and thoroughly inspected various parts of the venue.
BYN Black Yak, which started as Dongjin Leisure in 1973, has grown into an enterprise that includes Black Yak and Mountia. However, as the outdoor market has entered a mature stage, its growth rate has slowed. In 2023, sales fell by 11% compared to the previous year, totaling 335.3 billion won, while operating profit dropped by about 85% to 1.1 billion won.
This new business for K-Swiss is seen as a chance to expand the company’s focus from outdoor-centric operations to the sports sector. Chairman Kang is known to have a keen interest in sports, having run for the 42nd president of the Korean Sports Council.
As a partnership has been established with a Chinese corporation, the likelihood of the representative brand Black Yak's entry into China is being speculated. In response to such a question, CEO Kang remarked, "I hope so. If K-Swiss does well."
K-Swiss is a brand that was established in 1966 in Los Angeles, California. It is recognized for its functionality, holding the number one position in the U.S. tennis shoe market. In 2013, the E-Land Group acquired the brand and operated it for six years, while the domestic distribution has been handled by Hwasung. Following that, in 2019, it was acquired by Xtep International Holdings, a Chinese sports brand operator, leading to the suspension of domestic operations. KP Global is a company owned by Ding Shuipuo, the founder and largest shareholder of Xtep International Holdings.
K-Swiss, re-launching in the domestic market after about seven years, plans to introduce a premium classic sports brand centered around tennis. Park Jong-hyun, the representative of K-Swiss Korea, said, "K-Swiss has a rich heritage, having been worn by figures like Paul McCartney and Mike Tyson, and has even appeared in the drama 'Reply 1988,'" adding that "the authenticity of our products is both a source of pride and a key factor for success."
K-Swiss, which underwent a brand renewal in 2023, aims to position itself as a comprehensive sports brand encompassing various court sports like tennis and pickleball, as well as running, surfing, and skiing. Previously, footwear accounted for 80% of sales, but going forward, it plans to operate with 60% in apparel, 35% in footwear, and 5% in equipment. Products will be developed at research and development (R&D) centers in the U.S., Japan, Korea, and China. For the tennis apparel line, there is a plan to emphasize functionality in collaboration with pattern artisans in Japan and textile manufacturers in Taiwan.
K-Swiss will open its first store at Lotte Department Store in Busan next month and fully commence its domestic operations. From April, it plans to establish stores in the metropolitan area, securing 7 to 8 offline stores by the end of the year.
However, the lingering brand image from the past is identified as a potential risk factor. Some online malls still sell products that were released before its withdrawal. Representative Park noted, "(The existing image) will not conflict with the new brand story," and stated, "We aim for sales of over 80 billion won within five years. We plan to focus on online communication to increase online sales to 30%."