GLOBAL DISTRIBUTION FOR LUXURY BRANDS
DECATHLON
Jenny Erwin
Today's Agenda
Presentation Outline
1. Decathlon and it's Competitors
2. Decathlon's Core-Based Retail Concept
3. Decathlon's Internalization.
Global Distribution for Luxury Brands: Declathon Case Study
Decathlon and it's
Competitors
What was the difference between Decathlon and its
competitors during the launch? How exactly could
Decathlon position itself relative to its competitors?
INNOVATIVE STORE DESIGN
Decathlon began its retail offerings with a wide array of
products encompassing every type of sport, rather than
Launch just the popular ones. Everything was available in one
store rather than multiple specialty stores.
Differentiators TRY BEFORE YOU BUY
Every store had a dedicated space outside in which
customers could try out the store's products.
INNOVATION
Decathlon is dedicated to consumer's needs and uses
their research to cater to them. An example of this is
the launch of their passion brands, which offers the
same qualities as competitotrs but at a lower price
point.
LOCATION, LOCATION, LOCATION
Throughout the company's growth, Decathlon has
made smart investments in the rental locations of its
Positioning stores. An example of this is their rental of run down
buildings in desirable locations. With these rentals, they
are able to have control of the renovation process to
keep it on brand, while also saving money compared to
their competitors in the same area.
OMNI-CHANNEL STRATEGY
Decathlon uses both in-store and online methods to
communicate with their consumers and offer products.
An example includes "Click&Collect", where products
that were bought online can be collected at a nearby
Decathlon location.
Decathlon's Core-Based
Retail Concept
What are the main success factors of Decathlon’s core
store-based retailing concept? How could it be
improved in the future (e.g., additional services)?
A PRODUCT FOR EVERY SKILL LEVEL
AND PRICE THRESHOLD
Decathlon caters to an sport enthusiast, from the
Success Factors amateur to the professional. Many stores have more
than 70 sports categories available, with 35,000+
products available. These products are also offered at
entry level and "top of the range" pricing.
PRIVATE AND PASSION LABELS
Decathlon diversified their sales by offering both
private labels (Nike, Puma), as well as their own in-
house passion labels. The two categories work
simbiotically; Private labels draw in customers, while
passion labels undercut the competition and offer
Decathlon a higher profit margin because they control
the entire value chain.
FITTING SERVICES
Although not currently offered in the sports category,
custom tailoring is seen heavily within luxury fashion
Future sales. The process itself is relatively inexpensive for
brands to implement, and it gives consumers a feeling
Improvement
of being valued. I propose that Decathlon offer this
service for their passion labels. In doing so, they are
catering to consumers' needs of finding the perfect fit,
Possibilities and also promoting their own line. After all, we perform
our best when we feel our best.
GOING GREEN
In this case study, there is no mention of Decathlon
producing their products in an environmentally friendly
way. Doing so is shown to increase consumer
perception of a brand.
Decathlon's
Internalization
Decathlon expanded its store-based retailing by adding
new brands to its portfolio and introducing new stores
under its passion brands. Considering the
internationalization process, how could this concept be
a competitive advantage?
SUPPLY CHAIN CONTROL
Decathlon can have greater control of their pricing if
they are involved in every aspect of product production.
Competitive QUALITY CONTROL
Advantage Many companies face the problem of quality control,
particularly as they scale and are therefore able to have
less oversight over their production. Internalizing the
product production lifecycle takes care of this problem.
ADAPTATION
In having autonomy over their supply chain, Decathlon
could quickly adapt production. This could come in
handy in the swift removal of a faulty product line, or in
responding to global needs, such as an increase in
sportswear buying during the pandemic.
THANK YOU
JENNY ERWIN
