Core Insights - Skechers, once popular among young consumers, has seen a decline in its appeal, shifting from a trendy brand to one associated with older demographics [1][3] - The brand's struggle to connect with younger consumers is evident as it attempts to balance its image between appealing to youth and catering to the aging population [9][10] Brand Strategy - Skechers appointed Cheng Yi as its brand ambassador in 2024, aiming to attract younger consumers, particularly women aged 25-45, aligning with the brand's image of comfort and health [4][6] - Despite the efforts to rejuvenate its image, Skechers has faced criticism for its lack of innovative products and has struggled to compete with emerging local brands in China [14][15] Financial Performance - Skechers has been privatized by 3G Capital, ceasing its trading on the NYSE, with a reported revenue of $8.97 billion in 2024 and a 7.1% year-on-year growth in Q1 2025 [11][14] - The company has experienced a decline in its Chinese market contribution, dropping from 15.4% in 2023 to 13.6% in 2024, with a significant revenue drop of approximately 15.9% year-on-year in Q1 2025 [14] Market Challenges - The introduction of tariffs on imports from China has increased costs for Skechers, impacting its competitive pricing in the North American market [13] - The brand's low investment in research and development, only 1.2% of revenue, has hindered its ability to innovate compared to competitors like Nike and Anta [14][15] Consumer Trends - The current economic climate has led to a shift towards value-driven purchasing, with consumers prioritizing comfort and affordability over brand prestige [16][19] - Skechers has the potential to leverage its "comfort technology" to appeal to cost-conscious consumers, similar to the strategies employed by Uniqlo during economic downturns [18][19]