Core Insights - The article discusses the challenges and strategies of the Swedish outdoor brand Fjällräven in the Chinese market, particularly after the decline in popularity of its iconic Kånken backpack [3][6][8] Brand History and Product Development - Fjällräven was founded in 1960 by Åke Nordin, who initially focused on creating a better weight distribution for backpacks, leading to the development of the G-1000 fabric, which enhanced wind and water resistance [4] - The Kånken backpack was designed in 1978 to alleviate back pain among Swedish schoolchildren, and it gained global popularity after a dedicated website was launched in 2008, with vibrant color options introduced [5] Market Performance and Strategic Shifts - After entering the Chinese market in 2008, Fjällräven initially focused on professional outdoor positioning but later shifted to a backpack-centric retail strategy, achieving sales of 400,000 Kånken bags in 2014, which accounted for 80% of its revenue [6] - The brand faced a significant decline in backpack sales by 2021, prompting a strategic pivot to open comprehensive stores that showcase a full range of outdoor gear, with plans to increase from 50 to 100 stores by 2028 [6][8] Operational Challenges - The brand operates in China through a joint venture called Feinaishi, which has expertise in manufacturing but lacks experience in marketing and retail management [7][8] - Fjällräven's transition from a fashion-oriented brand to a focus on outdoor apparel presents challenges, as its clothing prices are significantly higher than its backpacks, making it difficult to shift consumer perception [8] Market Trends and Competition - The outdoor market in China has seen rapid growth, with over 200,000 related enterprises by 2023, but competition is intensifying as brands like Arc'teryx and Patagonia dominate the high-end segment [11][12] - Fjällräven aims to specialize in long-distance trekking, a niche that requires higher outdoor knowledge and equipment, but faces challenges in consumer awareness and participation in this activity in China [9][10] Brand Positioning and Future Outlook - The brand's G-1000 fabric lacks the recognition of competitors like Gore-Tex, and Fjällräven struggles to create standout products in a crowded market [12] - The CEO of Fjällräven's parent company acknowledges the challenges of being positioned between a large company and a small brand, complicating retail space acquisition in competitive environments [12]