Wolverine Worldwide Inc. has announced a series of strategic moves focused on its Asian market presence, including the sale of its Asian leather business, the formation of a new joint venture for Saucony, and a new operating model for Merrell..
**Sale of Asian Leather Business:**.
– Wolverine Worldwide has agreed to sell its Asian leather business to China-based Tannery Holdings Limited..
– The transaction includes tanneries in China, Vietnam, and Indonesia, as well as a leather sourcing office in Hong Kong..
– The sale is expected to be completed in the second half of 2023, subject to customary closing conditions..
**New Saucony Joint Venture:**.
– Wolverine Worldwide has formed a new joint venture with China Dongxiang (Group) Co. Ltd., which will operate the Saucony brand in China..
– The joint venture, named Saucony China, will be headquartered in Xiamen, China, starting in July 2023..
– China Dongxiang (Group) Co. Ltd. is a leading sportswear and footwear company in China, with a strong distribution network..
**New Merrell Operating Model:**.
– Wolverine Worldwide is implementing a new operating model for Merrell in China..
– The company will transition from a direct-to-consumer model to a distributor-based model, with more focus on e-commerce and wholesale channels..
– Merrell will continue to maintain a presence in China, including a local design team and a network of retail stores..
Wolverine Worldwide’s strategic moves aim to enhance its focus on its core businesses, strengthen its operations in key markets, and improve its long-term performance. The sale of the Asian leather business aligns with the company’s strategy to streamline its operations and focus on profitable growth. The new Saucony joint venture is expected to leverage China Dongxiang’s market expertise and distribution network to accelerate Saucony’s growth in China. The new Merrell operating model is designed to improve efficiency and optimize the brand’s performance in the Chinese market..
These strategic moves are part of Wolverine Worldwide’s ongoing transformation, which has included a focus on innovation, brand building, and digitalization. The company’s goal is to emerge from the COVID-19 pandemic stronger and better positioned for long-term growth..
