Amer Sports Reports Omni-Channel Transition Successes
HELSINKI, Finland – Amer Sports saw its sales in cycling products under the Mavic and Enve brands drop with over 10% last year. But the Finnish holding company of numerous sporting goods brands also reports on the successful transformation of its activities towards omni-channel resulting in for instance a Direct to Consumer sales growth of over 25%.
2017 was another year of record sales for Amer Sports with net sales coming in at close to 2.7b euro (cycling products sales stood at 134.3m euro; down 10.6% on 2016). The holding company reports “Despite the challenging wholesale market especially in the US, net sales increased by 4% in local currencies. Consumer demand for Amer Sports brands continued to be high, and the company grew at strong double-digit rate in the strategic priority areas Apparel, own retail, e-commerce, and China.”
‘Engaging directly with consumers’
On e-commerce Amer Sports financial year report accounts of remarkable progresses made in its transition towards an omni-channel distribution set-up. Interesting here is also the fact that the holding company is incorporating a forward integration strategy with an ever expanding number of own branded retail stores.
Amer Sports financial report says on this “In 2017, the company utilized its new omni-channel set-up to engage directly with consumers, striving to give them great experiences across a range of different touchpoints. Millions of new consumers (+50% from 2016) opted into the Amer Sports database.
The financial reports furthers with “Traffic to Amer Sports e-commerce sites grew substantially as brands provided consumers with more compelling online experiences as well as more opportunities to customize or personalize their purchase. The company also developed the consumer experience at many of the wholesale partners, both in store and online, particularly focusing on providing the consumer a high level of service. In 2017, Amer Sports Direct to Consumer net sales were € 254.1 million (2016: € 203.6 million). Growth in local currencies was 25%, of which e-commerce growth was 37% and retail growth was 19%. Same store sales growth was 7%.”
Part of Amer Sports’ omni-channel strategy is apparently a forward integration approach as the holding company reports “At the end of 2017, Amer Sports had 288 (287) branded retail stores. Half of the stores are operated by local, independent partners. 80% of the stores are full price, 20% are outlets. During the year, 21 new stores were opened and there were also six re-fits to a new format. There were also 20 closures, both own and partner, where stores were at the end of contract or in less strategic areas. Geographically, the retail store footprint is balanced, with approximately one third in each of Europe, Asia Pacific and the Americas. At the end of 2017, the number of Amer Sports e-commerce stores was 86 (69).”