Warrior makes its sneakers trendy by using creative patterns. Provided to China Daily

Warrior steps out of the past to revitalize its age-old brand

While youngsters view many Chinese time-honored brands as old-fashioned, the 85-year-old shoe brand Warrior (known as Huili in Chinese) is fighting to become fashionable again.

The nostalgia factor was triggered in 2008 when Hollywood star Orlando Bloom wore a pair of sneakers on the set of a movie that looked exactly like the basic classic Warrior style.

The canvas shoes with soft rubber soles and toecaps remind many Chinese born in the 1950s to the 1980s of their childhoods and have spurred the interest in younger generations. The impression of China's earliest sneaker brand has slowly changed in the minds of consumers and they have realized that Nike and adidas aren't the only trendy athletic footwear options.

But Gui Chenggang, the executive director of Shanghai Warrior Shoes Co Ltd, isn't satisfied with the windfall brought about by the buzz. To revitalize the brand, Gui is reshaping the original shoe from athletic to modern chic by initiating two innovative transformations in production and marketing.

"Trends can fade, so we have to keep refining the classic design. Our goal is to build a real middle- or high-end sports footwear brand such as Nike, adidas or Li-Ning, rather than merely a vintage product for nostalgia," Gui says.

Warrior has a storied history. For decades, "made in Shanghai" used to be the sign of China's consumer goods. Warrior has always been the pride of Shanghai's rubber industry. The brand reached its peak in the 1970s and 80s.

"All the youngsters back then were proud to wear a pair of Warrior sneakers, which were priced at around 10 yuan. But the average salary then was only 30 yuan per month, which means the shoes were much more expensive than today's Nike or adidas," Gui says.

In the 1990s, when China's economy became market oriented, domestic private companies and foreign companies swarmed into the country. The economic focus in Shanghai shifted from a manufacturing city to a finance and trade center. Warrior wasn't able to compete with the flush shoe market and was forced to file for bankruptcy.

The legendary brand underwent its first transformation in 2000, when Shanghai Huayi Group revived the factory and saved the time-honored Warrior brand, which was registered in 1935.

"It was the first time we separated production and sales. Like Nike and adidas, we had our OEM (original equipment manufacturer) factories in Fujian and Guangdong provinces, leaving core techniques, branding and marketing in our hands," Gui says.

However, because of the fierce competition in the Chinese market and its outdated marketing strategy, Warrior still struggled. From 2000-09, Warrior's yearly sales varied between 100 million yuan ($15.8 million, 12.2 million euros) and 150 million yuan. In 2004 and 2005, it could barely make ends meet.

But the 2008 Beijing Olympics was a game-changer. Since Warrior shoes were among the top of the list of time-honored brands, tourists snapped them up as souvenirs.

"Revenue of the month of the games at the Beijing Wangfujing Warrior store were bigger than the revenue of the whole previous year," Gui says.

That's when Warrior decided to target overseas markets. It began to cooperate with distributors in many places such as Europe, the United States and Southeast Asia. Export sales went from 4 million yuan in 2009 to 8 million in two years.

Beyond exports, it has been focusing on transitioning from being a wholesaler to a retailer, which will give it the most potential for windfall profits.

"It is a new attempt for an old State-owned enterprise to turn to retail channels and establish its own distribution network," Gui says. Warrior currently has eight stores in Shanghai and nearly 1,000 franchised stores in China. Gui says its goal is to open 3,000 franchised stores in 5 years.

"We're not overlooking second- and third-tier cities, but we want our shops to be found in the first-tier commercial zones in those cities," Gui says.

Warrior's innovation has already paid off. The company's revenue reached 200 million yuan in 2010 and 300 million yuan in 2011. Gui says its target revenue for this year is 500 million yuan, and 1 billion by 2015.

Warrior's first store opened at the factory's original site, in Shanghai on Pingliang Road on Sept 18, 2010, which is the memorial date of Japan's invasion of China in 1931. It was a wise choice to promote the national brand at a time when patriotism was high.

"Buyers were lining up outside of the store waiting to buy sneakers that remained in the memory of several generations. It was an unprecedented scene," Gui says.

To have consumers think of Warrior as more than just an athletic shoe, Gui says Warrior is making more of an effort in market research and creative designs.

Apart from working with industrial design firms, Warrior now also has its own design team with members scattered in big shoe manufacturing cities such as Jinjiang in Fujian province and Dongguan in Guangdong province.

Gui would like consumers to know exactly what they are about, instead of constantly struggling to get the word out.

"Many college students told me that Warrior, in their eyes, is the embodiment of fashion and vintage chic. So we will strive for chic products and try our best to make it fashionable."

The sneaker producer used to emphasize more on function rather than appearance and beauty. For years it has been producing professional athletic shoes for national sports teams. The classic 565 basketball sneaker was developed and produced specifically for the 1956 national basketball team. Athletes, such as volleyball star Lang Ping, have tried on Warrior sneakers and given suggestions on the design.

Because sports is so strongly tied to its past, Warrior never plans on completely giving up its traditional athletic shoes.

The price for a pair of Warrior sneakers varies from 80 yuan to 500 yuan, depending on where they are purchased.

"It has made some good attempts in attracting its nostalgic consumers. But one can buy it from small retailers or even vendors, but also from boutique stores. The unclear positioning may confuse its consumers and even lose some potential buyers," says Kang Yan, senior partner and vice-president of Greater China at Roland Berger Strategy Consultants, one of the largest consultancies in Europe. "To become a first-tier brand, Warrior at least has to standardize its distributing channels and reorganize its product structure."

xiaoxiangyi@chinadaily.com.cn