Xtep International Holdings Limited, the China-based running brand, formed a joint venture with Bonia, a distributor with over 50 years of market expertise in Malaysia, to jointly develop the Malaysian market.
Beyond manufacturing its flagship brand, Xtep owns the rights to distribute Saucony and Merrell in China.
MS (China) Sports Company Limited, a direct wholly-owned subsidiary of Xtep International Holdings Limited (Group), completed the acquisition of Wolverine Group’s interests in certain joint venture entities for the Merrell and Saucony brands and its subsidiaries on January 1, 2024. Those interests are related to China, Hong Kong and Macau and do not extend to Malaysia or other Southeast Asian countries.
As part of the new Malaysian agreement with Bonia, Xtep’s business model will be upgraded from a single exclusive distribution arrangement to a multi-channel setup. The former exclusive distributor, VGO, will transition to a “non-exclusive distributor” and remain a key partner for Xtep in the region.
Xtep said that, as the initial partner facilitating its 2024 entry into the Malaysian market, VGO laid a “solid foundation” for the brand’s market debut. During its partnership with VGO, Xtep organized several large-scale running events in Malaysia, including the “10KM Time Challenge” held in Penang in August 2024, which attracted top athletes from Indonesia, Singapore, Uganda, and Kenya.
Under the new set-up, Xtep will continue its collaboration with VGO to advance the Xtep brand’s development through channels where VGO holds strength. Bonia will focus on maximizing Xtep’s brand visibility in Malaysia’s core commercial districts and running brand hubs. The first store under Xtep’s partnership with Bonia was a 3,262-square-foot location in Mid Valley Megamall, Kuala Lumpur.
Gaining a foothold in Malaysia and the new partnership with Bonia are expected to support Xtep’s ambition to become the leading running brand in Southeast Asia. Bonia’s sales network spans Malaysia, Singapore, Indonesia, Thailand, and other Southeast Asian markets.
Image courtesy Xtep
