Sportswear CEO revisits China, embraces market opportunities

Editor's note: Globalization has opened up a world of opportunities for both Chinese and foreign companies. China Daily will bring out a series of stories sharing the global companies' visions and strategies during a teatime chat with top executives.

Arne Freundt first visited China in 1997 at the age of 17. Now, he has returned to the country for the second time in two years, this time as CEO of the sportswear brand Puma. During his latest visit, he engaged with Chinese consumers through live stream on the short video platform Douyin.

In an exclusive interview with China Daily, Arne reflected on his journey, saying, "Everything has changed, except for the people — they're still as friendly as ever."

Arne said he has always had a special place in the heart for Shanghai, a city he visited as a tourist in 1997.

"I have many great memories from that time. As a young student traveling through different cities, I found the people incredibly welcoming. They would invite me for dinner or coffee, which made it a wonderful experience. Ever since, China has been a special place for me."

This enduring affection was evident during his recent Douyin live stream, where he went beyond typical marketing tactics by shouting "da mai" (big sales) in Mandarin and actively engaging with viewers through playful interactions and games with the guests.

Engaging with Chinese consumers through Douyin live broadcasting is rare among global CEOs, but Arne uses this approach to show respect for Chinese culture and build authentic connections with local consumers.

The third plenary session of the 20th Communist Party of China Central Committee, held in mid-July, rolled out the reform and opening-up road map for the Chinese economy in the coming years.

As China continues to open up to global markets, foreign companies, including Puma, are seizing new opportunities with increasing enthusiasm and deeper involvement. "China is one of the most exciting countries, especially for our industry," Arne said.

He views this year as a prime opportunity for sports brands to grow in China. Along with the various opening-up policies, major sporting events such as the Paris Olympics have also played a significant role in driving this momentum.

The widespread enthusiasm for fitness following the Paris Olympics has sparked a surge in consumer interest in sports, creating new opportunities for sportswear brands.

According to the National Bureau of Statistics, retail sales of sports and entertainment goods rose by 10.7 percent year-on-year in July, with double-digit growth sustained throughout the first seven months of the year.

This reflects a broader trend of rising demand in China's sports industry, providing a fertile ground for global brands.

Arne acknowledged the competitive pressure from market but remains confident in Puma's future in China.

"I could not be prouder of our team and our strong retail partnerships, which were key to delivering this result in macroeconomic weighing on consumer sentiment around the world," he said.

"I'm confident that combining our global expertise with a deep understanding of local needs will position us for success in this market."

To succeed, international brands must understand and adapt to these evolving preferences, he said.

"We closely monitor what drives our customers, who are influenced by a blend of cultures, music, entertainment and gaming," he said. "By incorporating these cultural elements, we create excitement among our customers."

Puma's team in China keeps a keen eye on social media feedback, particularly trends among younger consumers, he said. By collaborating with popular Chinese celebrities and influencers, Puma has launched products that resonate with Chinese youth, quickly adapting to shifts in style and culture.

Arne emphasized that while traditional localization strategies are important, they should not be the end of the road. Recently, he took a pioneering step by traveling to Shanghai to take part in a live Douyin broadcast.

"Chinese consumers' passion for sports is both enduring and substantial. China is a key market for Puma with immense potential. I'm confident in the market's continued growth and am committed to ongoing investment in the region," he said.