Vans Goes to China
adamsullivan
- June 25 2008
- 2,765 views
- 21 comments
Last week I was lucky enough to be invited on a trip to Shanghai for the official launch of Vans in China.
They set up a showroom, invited retailers and media, and brought out Legendary Z-Boy Tony Alva, and artist Pnut to help celebrate the launch on June 19 and 20.
It’s no secret that the current Chinese retail landscape is many shades of grey, but Vans, which is now operating out of VF Corp’s Hong Kong office, is looking ahead to a time when the market becomes more black and white, and is positioning themselves to be as entrenched in the market there as they are in the States.
This was the first step - Check out more photos and the ongoing story by clicking HERE.
This is where I parked, and by a miraculous twist of fate, my car was still there—unmolested—when I returned.
LAX is always crowded, and there’s always ten different languages being hollered.
That’s because in the span of an afternoon, there are flights to ten different countries.
Vans’ Marketing team—Chris Overholser and Doug Palladini—were all set to go. These guys are travel veterans, with comfy pants and Ambien. I brought headphones.
Being a travel veteran means you can send emails even after your section is boarding.
When someone says “airbus,” certain smells spring to mind, but this thing was more of an “air train,” and we flew business class, so that was more like “air limo.”
This is the last photo I shot for the next 13.5 hours. It’s a business class thing, I’m sworn to secrecy.
Upon arrival we were greeted with signs we couldn’t understand. I like making up my own interpretations. This one means “Check out these seats, you may sleep here if you wish.”
This one was important enough to print in English. Leave your blood products at home, people.
After a 13 hour flight, this is a more accurate depiction of what things looked like.
Currency exchange. We got about $700 RNB for $100 USD.
Palladini exchanging money. Yeah, it’s out of focus, sue me. I was up all night watching Kung Fu movies and drinking Tsingtao in an effort to assimilate to my new surroundings.
This is Pnut. He’s an artist, having his first smoke in China.
Pudong airport architecture. I think that’s a bar.
In the van en route to the hotel. From left to right: Palladini, Alva, Kristy Van Doren, and Joe Eberling. We met up with Joe in the airport, he was coming from Beijing. He’s lived in China for 20 years, and is for many the go-to guy. The go-to white guy, at least.
In my hotel room there was a surprise left for me. It’s always a little creepy when someone’s been in your hotel room expecting you, but when they leave gifts it’s not so bad.
We had our own little room at some fifth floor fancy restaurant and everything. From left to right: VF Asia’s finest—Matt Morgan, Jenn Kong, and Mitch Whitaker (they were our hosts and took great care of us), Doug, Chris, Pnut, Alva, and Kristy. Jenn took care of the ordering, and selected enough food for an army.
This was our view from the restaurant. That’s the Huang Pu river.
Pnut, Giant chandelier, Tony, Jenn.
The view from my hotel room. I don’t really know why I shoot these photos, but somehow I always do. Maybe it’s so you can share the experience with me.
In China Red Bull comes in a funny can, but that doesn’t stop Pnut from downing them by the case.
And you thought you needed an SUV.
Rooftops.
Pensive Tony Alva.
Chris, Jenn, and 75 other people set up an entire vans showroom for the launch party. It took 2 days, but they transformed an empty room to a boutique. It was 105 decrees (Fahrenheit) and there were lots of vapory chemicals involved, and people kept shutting the windows. I think it’s because it’s more fun to build a store while you’re high.
Matt, Doug, and Tony taking a break.
While we were hotboxing glue, these guys were carrying some really heavy shit up the stairs because it wouldn’t fit in the elevator.
In the Starbucks we went to (there are tons of them, just like in the States) there was a guest book. A casual flip through revealed this gem, which I am going to use as a literary device called “foreshadowing.”
Matt and Tony with Tim in the middle. Tim’s one of the OG skaters in China and has a mean frontside flip. Thanks for showing us around, Tim…
This is one of a thousand malls in Shanghai alone. Suck on that, King of Prussia.
Yeah, they’re fucking everywhere.
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June 26th, 2008 at 5:22 am
It is nice to hear of Vans officially deploying business in China. As you said, the China Market is in many shade of Grey, it is the truth. Many skateboarding products are manufactured in China, the question is how the companies deal with factory leaks. The fact is the whole skateboarding market in China is pitch black, full of factory-leaked products and fake products, except hard goods. I don’t how you promo and advert your brand. As a Chinese skater, we always read transworld skateboarding, Trasher etc the American skateboarding magazines in order to get updated information on who is hot and what is the popular products.
I love Vans footwear. Back to 1995, when I was in teenagers, I bought my first pair of skate shoes, a pair of false Vans from a vendor besides the main entrance of Xiu Shui Marketing in Jian Guo Men in Beijing.
There is a list of things for Vans to be branding in mainland China.
Setting up magazine or launching Transworld Skateboarding Chinese version in short way. You know, politics is not everything. What we want to do is to communicate with intened consumers. Unfortunately, there is no such a influential skateboarding magazine or at least a action sport related mag in the publicity market for you guys to utilize. I do not know the situation in Japan or South Korea if they may have such a widely publicizing mag.
Eliminating all factory leaks. At least, the amount of factories-leaked products does not threaten your authorized business, if you can not completely control your manufacturing supply.
Everyone must ride. Hire right persons for your business. The man at least skate no matter how well he/she skate so that from the top the management understands skateboarding very well in established brand identity and image.
Benefiting local skate shops. You can sell your footwear in shopping mall/center, it is no problem. But do not forget skate shops in streets, which spread across major cities in mainland China.
Sole Tech’s distributor in China is like a jerk. The distributor remain semi-underground in mainland China. He sell his footwear directly online and sponsor none up to now never get publicized. Thinking long-term development instead of short term for your entrenched penetration in the ‘new’ market, by understanding what the retailers, customers need and maximize your self differentiation in the market.
June 26th, 2008 at 12:15 pm
Loved your photos and snarky commentary on this, Adam.
June 27th, 2008 at 5:33 am
Adam, nice to know you had a fun time in Shanghai. Just would like to ask where will Vans be sold? Who the hell is Sole Tech? Distributor? Shit, never heard about real distribution in China…Aren’t all Vans product at the present moment fake or leaked? About the dude from Beijing on the first comment, there is a skate mag in China called “What’s Up” and it comes with a DVD. Pretty good considering its mostly Chinese riders. Also, there this American Chinese dude who’s making Skateboard named “Society Skateboards” with really cool Chinese art on it.
The scene here is as you say very “grey” but there are a lot of people out there making lots of noise. There is this one company out there who don’t sell fakes but I rather not mentioned them cos it might be perceived as a “plug” cos I actually work there.
About the factory leaks, I don’t sincerely think that’s the biggest issue…the stupid in-fighting between people and shops is the most frustrating actually. They bitch about having the best, the most core, the most whatever but really, they never consider that the market is so f*cking small that instead of fighting amongst themselves they should join and promote the lifestyle more than the products. Expand the market. Ask people to stop playing with their balls (ball sports that is…) and get on board and skate. You got the latest Nike SB? Who cares? Can you skate? Do you like to skate? What will you do to grow the market until every little city in China has a skatepark? That’s the real question.
Chinese riders should ride more, trash talk less, and Vans and the rest of the skate company should invest more in grassroot events to promote skating, music and art. It’s a good thing that Vans is coming to China but seriously, if their HQ is based in Hong Kong, might as well be based on Mars. HK and mainland China are such different markets. I’m not too sure if they’ll be able to grasp the “grey” areas of the Chinese market. HK is a powerhouse in marketing but what works in HK doesn’t necessarily work in China. Anyhow, good luck & may we hope to have skate rule China!!!
June 27th, 2008 at 8:40 am
Hey Bo
Good points. There will be an upcoming article discussing the overall Chinese emerging market, and leaked product will certainly be a big part.
As for a magazine, we may see the day where Transworld China exists, you never know. Transworld is licensed in Japan. But as MRT mentioned below, there?s a mag in place called ?What?s Up?
June 27th, 2008 at 8:41 am
Hey MRT (or is it ?Mr. T??)
There will be a story coming shortly, which will discuss Vans? plans at length. I don?t know who Sole Tech?s distributor is over there. I managed to get my hands on a couple issues of What?s Up when I was over there, and I had picked up a Society board when I was in Shanghai in 2003.
I think over the next decade you?ll see skaters, skateparks, and industry all thriving in China, but the laws of supply and demand dictate that the first one must precede the other two. My advice would be to not wait for corporations to get involved. Scenes come from within.
And what I didn?t mention above was that Vans has people in mainland China as well, including a Core Channel Development Manager named Matt, who I bet could show you some spots around Shanghai you?ve never seen.
Thanks for the info!
June 27th, 2008 at 11:34 am
Good comments MRT. I know the Chinese skateboarding company called Society Skateboards or Shehui Skateboards which feature the unique China culture revolution arts on their decks. The boss of the company named Reef, half White American and half yellow Chinese. I like him, a straightforward man, and we used to skate together in Beijing.
I agree with what you mentioned, whole skate market is too small, though there are many street skating spots full of marble and concrete. The stupid argument and discrimination among skate shops in China is meaningless on who’s best. Actually, who’s best is never a matter to skating. I have skated in the Netherlands and the UK. I felt the skaters in Europe were very friendly and nice, easy to talk with. The similar skating scenario of China is sometimes unpleasant, however it depends on who you skate with. Anyway, we care about skating and having fun with it, not care about what other people do, don’t we?
The mag in China called ‘What’s up’ I have read them. It’s often free to take in certain skate shops. It’s said the mag operated by China skateboards manufacture. However, as my observation, it is not popular, who is going to buy it? furthermore, the mag is not publicized in mainstream public mag/book/mag distribution channel.
I have ever worked for a rather large skate shop in Beijing for a short period of time. Two black/gray channel to factory leaks. One is, like the shop I have worked in, boss/owner of shop knows someone in factory able to take products away and sell them to shop. Sometimes, the ’someone’ looks for a shop in street which would like to carry factory leaks. The other one is located in someplace called wholesale clothing/apparel market. When factory has ‘extra’ leak to bring out, someone will bring these factory leaks to the wholesale market. Interestingly, in Chinese language, they call factory leaks ‘exported clothing’. The channels are operated very smoothly, once you have done them first time setting up relationship with point person.
What I disagree with you is the gray market issue in China. Because I have seen lots of factory leaks products carried in skate shops across China. You gotta be careful about this, because it’s sometimes mixed with fake products in shops’ shelves.
We can do a marketing research in both of us side regarding factory leaks or called black/gray market. The task in your side is gonna be easy. Investigating which company officially launches business in mainland China (definitely not Hong Kong, the two markets are very different in many ways). and You and I search the skate shops across mainland China in order to probe factory leaks with a golden eye on all possible American brand boarding products. Though I probably know the skating scenario in Beijing the best, the same things in Shanghai, Shenzhen and some another cities, are familiar with me.
I have contacted Sole Tech’s distributor in Guangzhou in order to inquire footwear info they are selling.
By the way, to be honest, I would say the street skate spots in some Chinese cities are much better than some European countries. Happy skateboarding. I love to see lots of boys and girls who are not the familiar faces I have seen before skating in my concrete jungles. It’s a lot of fun skating in a skate session jam.
June 28th, 2008 at 3:38 am
Zhao and MRT make some very good, first hand, insightful points.
I work for a Action Sports hard goods manufacturer here in China, and “shades of grey” is the way we would describe the Mainland manufacturing / distribution market currently.
All my observations are based on almost 10 years of experience living here in China ? If you don?t live and work here, you will never truly grasp the seriousness of Grey and Black marketing.
And thus the short and long term negative effects it has on this developing Action Sports market, that’s still truly in it?s infancy. But if you look deeper it is a cultural business problem, not so much specific to Action Sports.
To do business anywhere you need to understand the business culture and environment. No truer words have been written when describing Mainland China.
As Zhao stated, Hong Kong is NOT the mainland. You might as well be setting up shop in ?Australia? if you set up your base in Hong Kong.
HK is westernized and understands simple western premises, like “Delivered Quality = More Sales Tomorrow”.
Whereas, our Mainland friends are continually cutting quality corners during bulk production. Mainland factory owners are too concerned with cutting corners & making more money to buy their next shiny BMW. Keeping up with the Chen?s so to speak.
The need or desire to deliver high quality goods, (keeping a client happy and their orders rolling in), is sacrificed continually for today?s profits. Most times at all costs, including putting those same clients goods into the Grey and Black market.
Until Western brands (no matter the product) can understand that going directly to the factory is a recipe for disaster, the Mainland market will never truly be able to develop to it?s true potential.
The reasons are immense but simply, the business culture and environment dictates making more profit from a product then just what the customer has ordered. For every ?legit? piece out the front door, the environment dictates 2 pcs out the back, and then 2 pcs with you logo on lower quality style at the factory down the street.
Thus Grey and Black market goods are created on every order.
All Chinese factories do this. Period. They are all your friends, right, and tell you they don?t conduct this type of business, but we have been here for almost a decade and will tell you it is happening to ALL brands regardless of who they are.
Preventative measures are as simple as finding a partner that truly understands the cultural and business makeup in China.
Then having that partner involved in all aspects of your production, on site at the manufacturing facility. Companies that employ Chinese speaking Westerners in an Engineering and QC capacity while living on-site in China, not HK.
Our company accomplishes this everyday and have truly revolutionary measures in place to protect IPR. So it can be done.
Until the Action Sports industry understands that sometimes paying a ?premium? (to protect their IPR) isn?t such a bad thing ? these Grey and Black market products will saturate China and be 100% counter-productive to truly establishing the Mainland as the Action Sports powerhouse it has the potential to be.
July 2nd, 2008 at 3:33 am
Very good comments!CBSC. where do you reside in mainland China? Is it far far away from Beijing? May I invite you a cup of afternoon coffee/tea for a causal talk in your neighborhood Starbucks?
July 3rd, 2008 at 12:40 pm
The fact is these gray market products have already saturated mainland China for a long time. They are found in every skate shops in mainland China.
July 4th, 2008 at 1:06 am
Hi Bo !
We are located in Shenzhen actually. Do you find yourself in Futian SZ anytime?
We would be most interested to sit down and discuss the landscape here and how we can improve it making it more attractive to our client?s brands and others outside of our current client base.
We export to 50 countries from China, and have a very “international” view of skateboarding and its challenges & goals for the upcoming seasons. We are very interested in your Northern opinion and how it may differ or be similar with our Southern experience .
Could you please leave your e-mail address or indicate a way we can start to correspond and work to reach what looks to be very similar interests. You can contact us via our website at info@ …
We will be very happy to hear from you. Best to you Bo !
July 4th, 2008 at 9:40 am
Hi, CBSC Thank you for your response! I can be found by email at zhaoboone@gmail.com
Skype: bocheapphone
I am very happy to start the correspondence.
July 4th, 2008 at 5:45 pm
Hi Bo - Thank you and you can find me at info@caliboardsports.com. Looking forward to our talks. Best - CBSC
July 7th, 2008 at 4:11 am
thanks. I got it.
October 24th, 2008 at 10:04 pm
china made vans fucking suck!!!!!usa made were way better made!!!!
December 21st, 2008 at 6:35 pm
well some genuine vans in hong kong is ok, but for fake vans has a really stinky rubber and has a really pooorrrr durability that will last less than a month. So if u guys happen to visit in china don’t waste your time buying cheap (fake) VANS go for genuine! don’t be fooled by most rip off black market.
can someone here recommend a big VANS store in hong kong? bec. I can’t find what I lookn for, thanks.