K-Swiss Inc. has replaced its existing distributor in Japan and signed a three-year distribution and trademark license agreement with MoonStar Chemical Corporation, a 130-year-old footwear distributor based in Kurume, Japan. The agreement expires in June 2007.
Steven Nichols, Chairman of the Board and President, stated, “Japan is the largest market for K-Swiss in Asia and one where we have enjoyed a strong brand image for over 15 years. For the past several years, this presence has not translated into the level of revenue potential that we believe exists for us in Japan. MoonStar's extensive operations, as well as their significant experience in footwear, are the best platforms to reverse this trend by renewing the K-Swiss brand in Japan and expanding our brand recognition. We look forward to working with such a valued and experience partner.”
Under the terms of the agreement, MoonStar's plans for product lineup initially include men's and women's lines with expanded offerings and the addition of children's and infants' lines in the second year followed by the addition of licensed products in the third year. MoonStar intends to sell both the Original Classics and Limited Edition categories in athletic and specialty shoe stores, sporting goods stores and department stores throughout Japan.