The Italian sports brand, which began life as an underwear manufacturer, marked its mainland launch in earnest with the acquisition by Hong Kong-listed Belle International of Fila’s exclusive trademark rights last year.
China is one of the most competitive sports markets in the world. In addition to the MNC brands that Fila will be familiar with - Nike, adidas, Reebok and Puma - are a host of strong domestic players, including market leader Li Ning.
In Western markets, Fila rose to prominence in the 1970s, thanks to its association with tennis legend Bjorn Borg. Since then it has become well-known for its luxury leanings, signing up socialite Paris Hilton last year to tap her appeal among the fashion-conscious.
At present, though, Fila counts only four flagship stores in Shanghai, and its brand presence in Hong Kong, Taiwan and India, among others, is similarly limited. Brand awareness, accordingly, is low - even when compared with natural rival Puma.
For BBH China, which has been tasked with honing the brand’s fashion positioning and building its presence in China, Hong Kong and Macau, the objectives are clear.
“Unlike competitors like Nike and adidas which are more performance sports brands that target the mass market, especially for team sports like basketball, football and running, our positioning is more towards a fashion sports brand for ‘middle class’ sports like golf, skiing, tennis and yoga,”says Joy Cai, PR and sports marketing manager at Fila China.
Cai may be onto something. Skiing and golf, for example, have seen their popularity increase rapidly in China. Still, Fila will face fierce competition from golf brands like Mizuno. Lacoste, meanwhile, will offer rivalry for tennis and yoga.
Tennis may offer Fila a more credible positioning. Fila is the new official footwear licensee for Wimbledon. With the Chinese tasting some success in the tennis world after years of under-performance, Fila’s 35-year heritage may offer its best route to brand recognition in the mainland.
Owen Hughes, owner Dragon Sports Marketing Hong Kong
As a budding tennis player in the 1980s, Bjorn Borg was my hero. And because of him, I knew what Fila was.
Research shows that Nike, adidas and Li Ning are miles ahead of all other brands in relation to sport affiliation, so they won’t be quaking in their boots. But nor should it be a problem for Fila, as it has a relatively blank canvas to work with in terms of consumer perceptions.
It is less well known in China and the new marketing, if creative and integrated across relevant platforms, can differentiate Fila from the mainstream.
If it holds true to its traditions of quality, style and a level of eliteness, Fila can create its own niche in the middle/upper class apparel market.
By not focusing on the mass market it can play to its strengths and be profit- rather than be purely sales revenue-driven.
As a sports brand, Fila is pushing into China on the back of an Olympic wave. Any link between the two would be more than tenuous, but an increasingly sport-loving population, which is growing in wealth and as a consumer society, makes a good base on which to start.
Stumbling upon an Asian Bjorn Borg might help too.
Steve Lin, CEO, Grey Worldwide China
While Fila gears up to establish itself here, it needs to evaluate its brand from a contextual perspective.
On a landscape of extremely competitive and aspirational sports and leisure category, Fila would need to project itself as a cultural icon not just as a strategy for differentiation, but also to manifest its reason for existence in China.
Fila would need to fundamentally evolve this culture by understanding what being true to sports, elegance and bold means in the local frame of reference. How it embodies the basic want of trust and credibility that Chinese consumers demand of a great brand.
This alternate culture would govern the brand’s attitude, behaviour and establish parameters on which the consumers will experience the brand versus its competitors.
Fila then needs to communicate this culture internally and externally taking into account the context of empowered consumers with choices and channels to actively put forward their point of view. Fila needs to ‘open it up’ and be engaging in its communication. The answer may not be in outspending the competition, but outwitting them.
Fila needs to be stretched to a challenger culture that allows it to be infused into society.