Core Viewpoint - Asics has reported strong financial performance for Q1 of FY2025, with net sales and net profit both showing significant year-on-year growth, indicating a successful turnaround and increasing popularity among younger consumers in China [1][2][3]. Financial Performance - Asics' Q1 net sales reached 208.3 billion yen (approximately 10.3 billion RMB), a year-on-year increase of 19.7%, marking the first time the company surpassed the 200 billion yen mark in a single quarter [1]. - The net profit attributable to the parent company rose by 18.4% to 31.6 billion yen (approximately 1.57 billion RMB), achieving a historical high for the January-March period for three consecutive years [1]. - For FY2024, Asics reported total revenue of 349 billion RMB, an 18.9% increase, and operating profit of 48 billion RMB, a substantial growth of 84.7% [1]. Market Trends - The resurgence of retro styles has made Asics popular among younger consumers, with the brand being associated with comfort and nostalgia, previously perceived as "old people's shoes" [2][3]. - The "Y2K" and "millennial" trends have driven the popularity of retro running shoes, with the GEL-CONTEND 4 model selling over 400,000 units [3]. - Asics' performance running shoe segment has seen double-digit growth, contributing 48% of the company's revenue with 326.9 billion yen in sales, a 14.3% increase [3]. Brand Strategy - Asics has effectively targeted Gen Z consumers through innovative marketing strategies, including collaborations with popular culture icons and social media influencers [4]. - The brand's high-end sub-brand, Onitsuka Tiger, has also shown strong growth, contributing 95.4 billion yen in revenue, a 58.3% increase, with a profit margin of 34% [3][4]. Regional Performance - The Chinese market has become a significant growth driver for Asics, with net sales increasing from 62.4 billion yen in FY2022 to 100.5 billion yen in FY2024, making it the third-largest market for the brand [5]. - Asics has expanded its online and offline channels in China, sponsoring major running events and collaborating with fitness influencers, similar to strategies employed by other outdoor brands targeting the middle-class demographic [7]. Consumer Engagement - Asics has focused on creating emotional value for Chinese consumers, enhancing brand loyalty and engagement through community-building efforts [6][7]. - The pricing strategy of Asics remains competitive, with top-selling running shoes priced under 500 RMB, making them more accessible compared to other premium brands [7].