How Does Asics Company Work?

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How does ASICS operate and generate revenue?

ASICS, a global leader in athletic footwear and apparel, achieved significant financial growth in 2024. The company's revenue reached US$4.41 billion, with operational profit surging by 76.9%. This momentum continued into the first half of 2025, showing strong net sales and operating profit increases.

ASICS is renowned for its performance-enhancing technologies, especially in running shoes, and holds a strong position in various sports and lifestyle categories. Its strategic focus aims for market leadership in key segments.

How does ASICS work?

The company's core operations revolve around creating and delivering performance-enhancing athletic products, primarily footwear and apparel, guided by its philosophy of 'A Sound Mind in a Sound Body'. It caters to a broad customer base, from elite athletes to everyday active individuals and those seeking stylish, comfortable wear.

Product Development and Innovation

The company invests heavily in research and development, exemplified by its Institute of Sport Science in Kobe, Japan. This focus drives the creation of proprietary technologies, such as its signature GEL cushioning system, ensuring products meet the rigorous demands of athletes and active consumers.

Global Manufacturing and Supply Chain

Manufacturing is strategically distributed across key global hubs, including Vietnam and China, to optimize costs and supply chain efficiency. As of January 2024, Vietnam hosts 37 factories, underscoring its significant role in the company's production network.

Distribution and Market Reach

A robust omnichannel distribution strategy is employed, featuring approximately 1,200 ASICS-branded retail stores globally as of 2022, an official e-commerce platform, and extensive partnerships with third-party retailers. The European distribution center in Garons, France, supplies around 10,000 stores across 20 countries.

Value Proposition and Customer Benefits

The company's unique blend of scientific research, diversified manufacturing, and widespread distribution results in technologically advanced, high-quality products. These offerings cater to specific athletic needs while also appealing to lifestyle trends, providing customers with both performance and style.

Key Operational Strengths

The company's operational success is built on a foundation of scientific innovation and a strategic global footprint. This approach ensures the delivery of specialized athletic gear and lifestyle products to a diverse customer base.

• Extensive research and development at the Institute of Sport Science.
• Proprietary technology development, such as GEL cushioning.
• Diversified global manufacturing base for cost efficiency and supply chain resilience.
• Robust omnichannel distribution network reaching over 10,000 stores in Europe alone.
• Catering to both specialized athletic needs and broader lifestyle consumer trends.

The company's approach to product design and development is deeply rooted in scientific principles, aiming to enhance athletic performance. This commitment is evident in its product lines, which range from high-performance running shoes like the Metaspeed series to specialized footwear for sports such as tennis and volleyball, alongside the lifestyle-oriented SportStyle and Onitsuka Tiger collections. Understanding the history of ASICS's business operations provides context for its current strategic focus.

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The company's primary revenue comes from selling athletic footwear, apparel, and accessories. In 2024, global revenue reached $4.41 billion, a 13% increase. This growth continued into the first half of 2025, with net sales of $2.71 billion, up 17.7% year-on-year.

Performance Running

This core segment saw a 7.6% revenue increase in 2024. For the first half of 2025, running products generated $1.247 billion, an 8.2% rise.

SportStyle

Driven by fashion trends, this category grew 56.2% globally in 2024. In Europe, it increased by 39.9%. First-half 2025 sales were $454 million, a 46.4% surge.

Onitsuka Tiger

This brand experienced exceptional growth, with net sales up 53.1% in 2024 and a 34% profit margin. First-half 2025 sales climbed 50.1% to $444.1 million.

Core Performance Sports (CPS)

This segment, including tennis and indoor athletics, grew 4.3% in 2024. In the first half of 2025, CPS revenue increased by 4.8% to $300.02 million.

Apparel & Equipment

Sales in this category saw a 6.9% increase in the first half of 2025, reaching $136 million.

Direct-to-Consumer (DTC) Expansion

The company is expanding its DTC channels, including e-commerce and retail stores. Online sales rose 20.7% in 2024, enhancing profitability and customer data access.

Regional Performance and Customer Engagement

Geographically, EMEA contributed 28% to total revenue in FY2024, followed by North America at 21%. In the first half of 2025, Europe accounted for $773.64 million (up 24.2%), Japan for $674.97 million (up 24.3%), North America for $502.59 million (up 9.1%), and Greater China for $421.76 million (up 16.9%). The company is focusing on its OneASICS membership and omnichannel strategy to strengthen customer relationships and offer value-added products and services, aligning with insights into the Target Market of Asics.

• Strengthening the OneASICS membership program.
• Enhancing the omnichannel customer experience.
• Deepening customer connections through personalized services.
• Providing high-value-added products and services.

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ASICS has demonstrated remarkable growth, achieving record sales of ¥678.5 billion JPY and operating profit of ¥100.1 billion JPY in the fiscal year ending December 2024. This success is largely attributed to the strong performance of its SportStyle and Onitsuka Tiger brands, which now complement its core Performance Running business.

Record Financial Performance

In the fiscal year ending December 2024, ASICS achieved its highest-ever sales, reaching ¥678.5 billion JPY. Operating profit also hit a record ¥100.1 billion JPY, underscoring a period of significant financial success.

Strategic Mid-Term Plan

The 'Mid-Term Plan 2026,' initiated in 2024, aims to transform ASICS into a 'Global Integrated Enterprise (GIE).' This plan prioritizes global expansion, brand experience enhancement, and operational efficiency.

Market Leadership Ambitions

ASICS has set ambitious goals to become the leading running brand in Japan, the U.S., and Europe by 2025. This includes targeting a 29% market share in European running by 2026, up from 25% in 2022.

Innovation and Sustainability Focus

Product innovation, such as the Nimbus Mirai running shoe designed for recyclability, highlights ASICS's commitment to both performance and environmental responsibility.

ASICS's competitive edge is built on its strong brand reputation for performance-enhancing technology, particularly its signature GEL technology found in popular models like the Gel-Kayano and Gel-Nimbus. The company effectively blends technical functionality with stylish design, appealing to a broad consumer base through its SportStyle and Onitsuka Tiger lines. This dual approach allows ASICS to capture diverse market segments, from serious athletes to fashion-conscious individuals. The company's extensive global distribution network, encompassing over 10,000 retailers, direct stores, and online platforms, further solidifies its market presence. ASICS actively manages its Growth Strategy of Asics by focusing on product innovation, expanding its running ecosystem through initiatives like 'OneASICS' membership, which targets 30 million members by 2026, and optimizing its supply chain for greater efficiency. These strategic moves are crucial for navigating the competitive athletic footwear industry and maintaining its market position.

Key Competitive Advantages

ASICS leverages its strong brand heritage and technological innovation, particularly its GEL cushioning system, to maintain a competitive edge in the athletic footwear market.

• Renowned for performance-enhancing technology in running shoes.
• Successful integration of technical performance with stylish aesthetics.
• Extensive global distribution network with over 10,000 retail partners.
• Commitment to innovation through initiatives like the 'C Project'.

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ASICS maintains a robust position in the athletic footwear and apparel market, particularly excelling in performance running. The company is a leader in the premium performance running segment in Europe and has seen growth in Core Performance Sports and SportStyle. ASICS commands over 10% of the global performance running market, supported by strong customer loyalty driven by quality and innovation.

Industry Position

ASICS is a dominant force in performance running, holding a significant share of the global market. Its reputation for quality and innovation fosters strong customer loyalty, with specific models contributing substantially to sales and profit margins.

Key Risks

The company faces intense competition, the risk of shifting fashion trends impacting its SportStyle segment, and foreign exchange rate fluctuations due to its significant overseas sales. Valuation also carries risk if 2025 results underperform expectations.

Future Outlook & Strategy

ASICS aims for continued revenue and profit growth through its 'Mid-Term Plan 2026' and 'VISION2030'. Key strategies include global expansion, enhancing brand experience, and operational excellence, targeting U.S. performance running market leadership by 2025.

Sustainability & Expansion

The company is committed to sustainability, targeting net-zero emissions by 2050 and increasing recycled materials usage. Expansion plans include growing its retail network in India and increasing domestic manufacturing there to secure supply.

Strategic Initiatives and Financial Targets

ASICS projects a 17% revenue increase for 2025, reaching ¥780 billion JPY, with a 22.2% net profit increase. This growth is supported by strategic moves to become a 'Global Integrated Enterprise' and expand its market presence.

• Targeting number one market share in the U.S. performance running market by 2025.
• Increasing use of recycled polyester materials to over 50% in 2024.
• Expanding retail network to 200 locations in India by next year.
• Aiming to increase domestic manufacturing in India to 40%.
• Commitment to achieving net-zero emissions by 2050.

ASICS's operational strategy is deeply intertwined with its product development and global presence, focusing on innovation in performance footwear and expanding its reach in key markets. The company's approach to its Revenue Streams & Business Model of Asics emphasizes both direct-to-consumer sales and wholesale distribution, supported by robust marketing and branding efforts. The role of technology is paramount in ASICS's operations, from R&D to supply chain management, ensuring quality control and efficient production. ASICS manages its global workforce through a structured company structure that supports its diverse operations across different regions.

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