Are those NB Grey stores you mentioned still located in premium malls? Are the 40 stores split between premium malls and the large format stores you talked about?

How do we define which store to open? We look at city penetration. For New Balance, in tier 1, 2, and 3 cities, we already have 100% penetration, meaning we have a presence in each city. We still look at consumption and the capital of those cities to decide whether to open a new format or another store. If it is still tier 1, we would open a big store. If it is tier 2 or 3, we would open an inline store.

Are those NB Grey stores you mentioned still located in premium malls? Are the 40 stores split between premium malls and the large format stores you talked about?

The decision to open a store depends on city penetration and whether the city or store has reached full capacity. For New Balance, there is still a big opportunity in lower-tier cities, tier 4 and tier 5, where New Balance only has about 55% penetration, but Adidas and Nike already have 100% coverage.

Regarding product and brand segmentation, how many footwear brands exist based on average unit volume tiers? For example, On's target is around $150 USD, while Nike has historically been below $100 on average. How do you approach this in the Chinese market, and how many brands exist across these various tiers?

There are different ways to segment and look at brand metrics. One way is by price tier. For example, products above $150 include brands like Descente, a Japanese brand acquired by a Chinese vendor, and Hoka, which now also offers a high-price portfolio. NB Grey shoes are also in this high-price category.