As the world’s largest privately held sportswear brand, New Balance has undergone a profound strategic transformation over the past decade. Following a record-breaking $6.5 billion in revenue for 2023, the company is now setting its sights on an ambitious goal: achieving $10 billion in annual revenue.
These figures signal the professional running shoe brand’s comprehensive expansion and successful evolution into a sports-inspired lifestyle brand.
In early 2025, New Balance launched its first NB Grey R store on Shanghai’s Huaihai Middle Road. This store represents an upgraded version of NB Grey, the brand’s high-end retail concept, and serves as a new global flagship. Spanning 400 square meters, it exemplifies the brand’s latest vision for luxury retail.
The “R” in NB Grey R stands for “Redefine,” symbolizing the continuous refinement and advancement of New Balance’s premium market strategy.
Arthur Ang, Vice President of New Balance China, stated in an interview with Luxe.CO:
“We don’t aim for every store to be all-encompassing, but instead, each store must deliver a clear message and experience.”
During Luxe. CO‘s on-site visit to this newly opened store revealed how New Balance is navigating the dual challenge of competing against traditional sportswear giants and emerging running shoe challengers. The brand has maintained its independent identity while simultaneously pursuing disruptive innovation like a fresh contender.
From “Original Grey” to the High-End Retail Philosophy of NB Grey R
NB Grey combines New Balance’s initials and the color grey. Similar to Hermès orange, Tiffany blue, and Rolex green, this classic branding strategy links a specific color with the brand’s identity, forged through decades of meticulous brand management.
Known as “Original Grey,” this particular shade has been a cornerstone of New Balance’s design language for nearly 50 years. Introduced in the late 1970s, it was originally conceived as a solution for urban runners. Grey suede offered durability and camouflage against asphalt dirt. Today, it is not only the signature color of the MADE collection but also an iconic element of New Balance’s heritage.
While grey may not be the trendiest color, its understated and tranquil tone has become deeply intertwined with New Balance through countless iterations over decades. Now, as an upgraded, high-end retail space, NB Grey R embodies the brand’s further elevation into the luxury segment.
The design of NB Grey R emphasizes natural materials such as stone and wood, complemented by low-saturation grey tones to create a serene and refined ambiance. During the store’s opening event, Shanghai’s city flower—the white magnolia—was used as an accent, evoking the quiet growth of life during winter and showcasing the brand’s thoughtful approach to local storytelling.
Spanning 400 square meters, the store offers a wide range of curated products, including:
- The most comprehensive selection of MADE in the UK and USA collections of shoes and apparel;
- The exclusive U1500JI handmade Japanese-dyed shoes unavailable elsewhere;
- 1906A series with deconstructed designs and innovative 1906L loafers;
- Grey Jacket series made with high-performance materials like a triple-layer Merino wool blend;
- New Balance Grey down jackets, filled with 90% premium goose down and boasting 800+ fill power;
- The MET 24 collection offering versatile urban apparel for all-day wear;
- And the Tokyo Design Studio series, combining innovation with craftsmanship.
The World’s Only Running Shoe Brand Retaining US and UK Production: Balancing Performance and Fashion
In today’s sportswear industry, driven by cost efficiency and profit margins, most major brands have relocated their manufacturing to lower-cost countries. However, New Balance stands out as the only leading brand that continues to operate production lines in the US and UK, showcasing its commitment to heritage and craftsmanship.
The iconic “Made in UK” collection originates from New Balance’s Flimby factory in Manchester, England. This facility is regarded not only as a sacred site for New Balance enthusiasts but also as a benchmark for full-shoe handmade craftsmanship in the running shoe industry.
At the NB Grey R store, an extensive range of “Made in USA” and “Made in UK” 9-series sneakers is displayed. These premium models, renowned for their exceptional quality, have attracted global creative pioneers like Steve Jobs, Ryuichi Sakamoto, and Jonathan Lee, earning New Balance the title of “artisan’s favorite” in athletic footwear.
One of New Balance’s most iconic product lines, the 990 series, was launched in 1982 as the brand’s first high-end running shoe. The original CM990 was groundbreaking, being the world’s first athletic shoe to dare a $100 price tag—a bold move at the time. Over its 40-year history, the 990 series has reached its sixth iteration (990v6), continuing to innovate while honoring its roots.
The highly sought-after Loro Piana x New Balance limited-edition collaboration is based on the 990v6 model. With a retail price of $1,000, only 200 pairs were made available in the Chinese Mainland market, making it a coveted collector’s item. This collaboration, one of the most significant in 2024, epitomizes the fusion of classic fashion and professional athletic culture.
New Balance’s enduring success lies in its ability to mine its rich brand heritage while fostering continuous innovation. Acknowledged as one of the earliest brands to specialize in running shoe design, New Balance has delivered numerous classics since the launch of its first running shoe in 1938. The 3-series, 5-series, and 1000-series remain beloved icons among sneaker enthusiasts.
The brand’s deep roots in performance and craftsmanship have positioned it at the forefront of the intersection between sports and fashion. High-profile collaborations with Loro Piana, Miu Miu, and Stone Island have only solidified its standing in both realms.
New Balance has further demonstrated its adaptability in the Chinese market by collaborating with rising fashion stars, including local designers Liang Dong and Hong Yang (and their brands Randomevent and DIDU).
While New Balance is often associated with the “dad shoe” trend, it has proven to be much more than a nostalgia-driven brand. Each pair of sneakers reflects a meticulous balance between aesthetic appeal and technological innovation, ensuring exceptional comfort and performance.
For instance, the 1906A series, launched in 2024, draws inspiration from Y2K retro aesthetics. This collection reimagines millennium-era running shoe silhouettes with metallic finishes and industrial design elements, evoking a futuristic vibe. On the performance front, it features ABZORB midsole technology for superior cushioning and a Stability Web outsole for enhanced arch support and stability.
While New Balance embraces high-end fashion and style, it has not blindly followed trends. The brand remains steadfast in its dedication to performance, ensuring its sneakers meet the highest standards of comfort and functionality. This careful balance between performance and fashion defines New Balance as a global leader, capable of appealing to both serious athletes and fashion-forward consumers.
Apparel Sales Surpass $1 Billion: A New Growth Frontier for New Balance?
According to New Balance’s category disclosures, the brand’s apparel business, launched in 1978, surpassed $1 billion in sales in 2023. The remaining $5 billion-plus revenue is attributed to its core footwear business.
The NB Grey R store opening in Shanghai left a strong impression on Luxe.CO, with its more comprehensive and prominent display of apparel collections, signals that apparel is becoming New Balance’s next major growth driver.
Inspired by the iconic 1978 jacket, the Grey Jacket series is renowned for its three signature designs, dubbed the “Three Musketeers”—the Coach Jacket, Parka, and Windbreaker.
The New Balance Grey down series features 90% premium goose down with an 800+ fill power. It combines wool-blend fabrics and Dermizax materials, offering options for urban fashion and outdoor activities across multiple scenarios.
The MADE series apparel showcases the brand’s craftsmanship and sports aesthetics with rich dopamine tones that evoke retro American style.
The MET24 series, part of the Japan production line, draws inspiration from the all-weather urban lifestyle. It balances fashion and functionality with neutral tones, minimalist tailoring, and performance fabrics. Meanwhile, the TDS series breaks away from traditional gender and age boundaries in apparel, encouraging wearers to make choices based on personal preferences.
Expanding Exploration of Diverse Store Formats
In fact, it’s not just the apparel category. According to Luxe.CO monitoring data, New Balance, opened more than 480 stores across the Chinese Mainland in the past year (January 2024 to the publication date), featuring a variety of formats.
These include stores focused on professional running, such as Run Hub and Running Store, as well as those emphasizing sports-inspired lifestyles, such as NB1906, new retail concept stores, and New Balance Kids for children’s apparel.
A sales advisor at the NB Grey R store told Luxe.CO that in their previous work experience, when customers inquired about specific or unique styles, staff from other New Balance store formats would guide customers to the appropriate store based on their needs, prioritizing personalized customer experiences.
This diverse range of store formats not only enables precise targeting to meet the varying needs of different consumers but also lays the foundation for the brand’s transition into a comprehensive sports-inspired lifestyle brand.
The opening of the world’s first NB Grey R store in China sends a clear signal: the global sports-fashion industry’s opportunities are still concentrated in the Chinese market, where high-end opportunities continue to emerge.
As the world’s largest privately held sportswear brand, New Balance is free from the pressures of shareholders and market forces, allowing it maximum creative freedom and control over its decisions. This unique advantage positions the brand to single-mindedly pursue its ambitious goals, setting it apart from many of its competitors.
Looking ahead, New Balance told Luxe.CO that the brand will continue exploring diverse store formats, starting with customer needs, to provide superior products and exceptional service. With the Chinese market as its starting point, the century-old New Balance is ambitiously striving toward the $10 billion revenue milestone.
| Image Credit: New Balance
| Editor: Elisa
