According to a report by the British ‘Financial Times’ on August 29th, Chinese outdoor clothing group Kailas is becoming one of many Chinese retail companies expanding overseas, thanks to its cross-country running brand ‘Kailas Fuga’. Kailas expects its revenue to reach $1.7 billion this year. The media reporter interviewed the founder of the group, Zhong Chengzhen.
The Financial Times stated at the beginning of its report that over a decade before the opening of the Xiamen off-road running specialty store, Zhong Chengzhen's ambition for internationalization had already begun to take shape.
Kailishi Founder, Zhong Chengzhen, Financial Times
The store located in the Alpine resort of Chamonix, France, is the brand’s first direct-ownership store outside of China. Previously, Keleishi products were already available in hundreds of stores in regions such as Europe and North America.
In recent years, more and more Chinese companies have been expanding overseas. In 2019, the Fujian garment group Anta acquired the Finnish company Amer Sports. Earlier this year, it also acquired a 29% stake in Puma. Other Chinese companies are also expanding their international influence in various fields such as coffee and online applications.
Kaile Shi was established in Guangzhou in 2003, initially as a brand for mountain climbing and rock climbing. It later expanded into the field of cross-country running. Zhong Chengzhan said that online forums at that time inspired his interest in mountain climbing: "At that time, our entire society didn't even know what mountain climbing was."
In 2014, when KeleStone first ventured into the overseas market, it tried to sell its climbing and mountaineering products through retailers. Today, its overseas business is centered around the KeleStone Flying Wing Cross Country running brand, which accounts for about 30 of KeleStone's 350 stores in China.
Financial Times
This brand has sponsored hundreds of cross-country running events in China and around the world, including the annual event in Penyagolosa, Spain, in April. In addition to sponsoring competitions, Kelexi Feiyi also supports 60 professional cross-country runners, with about half of them coming from Europe.
Zhong Chengzhan revealed that in the early days of the company’s establishment, he met “two very important suppliers”. These two suppliers produced products for the American outdoor clothing retailer Patagonia. In the interview, he said, “I worked with them, and their product quality was excellent.” He added that at that time, “Patagonia did not sell in China; its products were too expensive, so we did not compete with each other.”
In recent years, Chinese high-end sportswear and outdoor clothing brands have seen significant growth. From the Canadian yoga clothing brand Lululemon to the backpack brand Osprey, their sales have increased significantly. However, international brands now face competition not only in the Chinese market but also as Chinese companies expand overseas, this challenge extends to even more distant regions.
The Financial Times quoted Ted Hopkins, founder of the consulting firm KulturShift, with a pre-planned warning. He stated, "Every category with a manufacturing base in China should anticipate that such bases will begin to create global competitors... Every product in every vertical market should be expected to see Chinese brands emerging worldwide."
Kayelite's competitors in Europe include the Swiss mountain sports brand Mammut and the Swedish brand Haglöfs. Speaking on this matter, Zhong Chengzhen said, "The off-road running market in Europe is still small. We are not there to compete for business, but to jointly promote this market and this sport."
Financial Times
Looking back at the early stages of the business, Zhong Chengzhen estimated that the salaries paid by the company were only a fraction compared to international companies like Patagonia. "We sacrificed revenue in order to gain a competitive edge in terms of low prices." But now, the price of Keleishi Fei Yi Ex Pro off-road running shoes is 250 euros (about 1,950.1 yuan), and such situations no longer exist.
At the Guangzhou headquarters of KeleStone, the company displayed a range of products including flyweight running shoes, down jackets, and ski boots. There is also an indoor rock climbing wall available.
It is reported that Zhong Chengzhan became paralyzed below the waist in a skiing accident and was discharged from the hospital in February 2014. In July of the same year, he traveled to Europe to attend trade exhibitions, where he showcased his products for the first time on the European continent.
After the accident, Zhong Chengzhan used special equipment to resume skiing. During his hospital stay, a group of friends helped him modify his motorcycle so that he could still ride it. He now also has his own wheelchair company, with one of his friends being a partner in the business.
Zhong Chengzhan said: "I found that the way life changes is not so great. I cannot change this fact, so all I can do is change my perception of it."
