Hoka's giant Shanghai flagship anchors brand push in China

by Qin Siyue

Running shoe brand Hoka has opened its first global brand experience center in Shanghai, making a high-profile bet on the Chinese market as it eyes continued international expansion.

Located in the heart of the city's upscale Xintiandi area, the three-story store spans 1,600 square meters and sits directly opposite the popular Xintiandi Style I shopping complex. A senior property agent familiar with the area told Jiemian News that rental prices in the neighborhood range from 7 to 35 yuan per square meter per day, with Hoka's standalone building likely falling into the highest tier due to its size and location.

Despite the soaring costs, Hoka has allocated a significant portion of the store to non-retail space. In the basement level, the brand has installed its "Fly Run Lab," which offers a suite of physical assessments for runners, including body composition analysis, gait evaluation, and cardiovascular function testing. There is also a members' lounge, changing facilities for running clubs, and a brand history wall to build emotional connections with customers.

"We see this not just as a store, but a platform for runners to connect and grow," said Wu Xiao, General Manager of Hoka China.

The move aligns with a broader trend among athletic brands investing in large-format flagship stores with extensive experiential offerings. Nearby, Chinese outdoor brand Kailas is also preparing to open a major store in the same Xintiandi district. In Beijing's Sanlitun area, FILA and Lululemon have both launched their largest stores in North China, while Nike's Jordan brand debuted its five-story World of Flight concept.

"Landlords love these types of flagship projects," said Du Bin, chairman of Hanbroad Commercial Management's Shanghai division. "They are excellent traffic drivers for malls."

Retailers, too, see these large-scale stores as marketing showcases, providing not just revenue but also brand visibility and community engagement opportunities. For many brands, the flagship is as much a billboard as it is a shop.

Hoka's aggressive retail expansion follows a period of rapid growth. In the third quarter of fiscal 2025, parent company Deckers Brands reported Hoka's revenue rose 23.7% year-on-year to US$530.9 million. The company's international segment contributed US$657.9 million in the same quarter, up 28.5% from the year before. Top Deckers executives, including Global President Stefano Caroti and APAC SVP Olivier Lorans, attended the Shanghai store opening, underscoring the market's importance.

Hoka has ridden a wave of popularity among China’s growing base of performance-focused runners. According to a 2024 white paper from Tmall Sports, higher-priced athletic footwear is seeing strong demand growth, a trend that has directly benefited Hoka’s premium-priced products. The same report noted that runners are increasingly seeking specialized gear tailored to specific environments—urban streets, trails, or mountains—which plays to Hoka’s strengths.

But the brand faces an increasingly competitive landscape. At similar price points are peers such as On and Brooks, while giants like Nike, Adidas, and Asics continue to invest heavily in running-related R&D and marketing. Meanwhile, China's maturing sportswear consumers are becoming more discerning, splitting between ultra-premium and high-value purchases.

Hoka’s strategy appears to be deepening its roots within the running niche rather than expanding into unrelated categories. The new Shanghai store highlights this approach, featuring trail running, urban jogging, and hiking lines. Wu said the brand is actively building partnerships for community events and cross-industry collaborations in the Xintiandi area.

"We believe Hoka is among the first to offer a full end-to-end consumer experience in-store," Wu said. "This is how we differentiate ourselves in a market that's moving both toward specialization and broader accessibility."

Still, with rising operating costs and a shifting consumer landscape, maintaining high growth will become increasingly difficult. For emerging performance brands like Hoka, the next challenge is clear: break beyond a niche following and compete at scale without losing identity.