Decathlon: Brands Built Business

VILLENEUVE D’ASCQ, France (March 30) - French Decathlon, Europe’s largest sporting goods retailer clocked-up double figure increases in sales again. 10.3% growth in revenue for 2004, leading to a grand total of € 3.43 million are very healthy figures indeed, especially in the present economic climate. Margins showed the biggest gain: up 27.4% from 2003, a good for a € 371.5 million total. This is divided between the company’s own brands, and the big names in sporting goods. Brands like Nike, Adidas, Reebok and Salomon showed a 20% increase in sales. Decathlons own brands still make up for 50% of the total turnover. But the difference between own brand and global brands is fading quickly. Decathlon puts a lot of effort in creating a brand image for their own gods. For instance: the captain of the French rugby team, Fabien Pelouis, is now endorsing the Kipsta brand, Decathlon’s version of team related sports gear. For their water sports brand, Tribord, Emmanuelle Joly, six times European champion surfing, is flying the flag. This policy will narrow the gap between well known brand names and private label, giving he private label goods far more street cred. Dectahlon’s outdoor brand (the company’s first private label) Quechua gained some 20% over 2004, leading to a total turnover of € 480 million. Private label goods in cycling, running and team sports did extremely well in 2004. Decathlon will introduce two new labels: Kalenji for running, and Fouganza for equestrian sports. A brand aimed at racquet sports is planned for 2006.