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Present in more than 57 countries,?Decathlon?is a family-owned business.? The French brand has more than 167 stores and continues to grow. In 2019, the Sports giant reported generating €12.4bn. A quarter of the revenues were coming from its home market. Net sales might seem small compared to?Decathlon competitors¡® selling?like?Adidas?(€23bn in 2019) and?Nike?(€39bn in 2019). But Decathlon is visibly catching up.

It is also noteworthy to mention that the brand grew internationally within a year (between 2018 and 2019). Indeed,?Decathlon?experienced a growth rate of 82%. What could explain such impressive growth?

The merrier, the better?

Decathlon?first started as a wholesaler. Little by little, the French company started to create its brands and acquire others.? In the process,?Decathlon?slowly tried to reduce its?competitors¡¯ share from its offering.?

Therefore, we see that none of the top 3 brands of sportswear, i.e.,?Nike,?Adidas, and?Puma, are among the top 10 brands represented at?Decathlon.

Moreover, one of?Decathlon¡®s characteristics is to offer one brand per type of sport.

According to?Retviews?data, we see that the most represented brands within?Decathlon¡¯s broad portfolio are: Domyos, Quechua, and Kalenji, representing Fitness, Outdoor Sports, and Running, respectively.

Decathlon?has more than 86 sports in its international portfolio and 70 in France. One of the sports brands¡¯ goal is to offer??to its customers by the mid-2020s.

Although it is part of?Decathlon¡¯s strategy?to remove its?competitors¡¯ products from its portfolio gradually, the French sports company increased its offering of?Adidas?products between 2019 and 2020, accounting today for 3.2% of the French brand assortment. In comparison, the top three brands of?Decathlon?saw their share of products reduced. What could justify the brand¡¯s decision to increase its offering in competitors¡¯ products??

Assortment mix?

Unlike its competitors,?Decathlon?only offers sportswear and does not sell any ¡°lifestyle¡± products. It is probably part of the?Decathlon¡¯s strategy?to focus solely on the sportswear market segment. Simultaneously,?Decathlon competitors,?Adidas?and?Nike, are investing more and more into their??section.?

Decathlon¡¯s assortment mix reflects the high number of different sports the brand has in its portfolio. Each sport has its specificity and, thus, specific clothing.?In comparison,?Nike?and?Adidas?stay true to their heritage in footwear. Shoes are the most significant source of revenue for both of them.

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Is sportswear a Men¡¯s business more than Women¡¯s??

As clich¨¦ as it might seem, the sportswear industry primarily addresses men. When compared to the Number one fashion brand globally,?Zara,?we see a visible shift between gender.

Men¡¯s collection, in general, accounts for the least share of business for fashion brands. However, it is increasing year after year.

According to?Retviews?data, we see that for?Decathlon?and?Nike, Men¡¯s category almost accounts for 60% of the entire assortment (performance and activewear combined). It is the complete opposite of?Zara¡¯s assortment.

Nevertheless, we see that?Adidas?aims to reach gender parity in its gender mix. Could it be the first step towards gender equality in the sports industry??

¡°The best sports products available to anyone.¡±

In sportswear, the biggest category after footwear is t-shirts. In general,?Decathlon?is way more affordable than?its?competitors.?It is part of the brand¡¯s identity to offer ¡°the best sports products (available) to anyone?.¡±

In terms of pricing?strategy, we see a difference between the French brand and its competitors. Indeed, we observe that the entry price itself is highly differentiated.?Decathlon?starts its offering of t-shirts, for Men and Women, at €2.99. In comparison,?Adidas¡¯ entry price is at €8.95, and?Nike¡¯s at €16.99.

Also,?Decathlon¡¯s most frequent price is €20 lower than its?competitors. What catches attention is the difference in terms of maximum price.?Adidas?and?Nike?are well-known for their lifestyle products, and the price of these products can go up to €399.99 for?Nike¡¯s brand new collection labeled Nike ESC and €299.95 for?Adidas. Set side by side, national football team jerseys priced at €89.99 by?Decathlon?do not seem that expensive.

At?Retviews, our artificial intelligence tool allows us to find look-alike articles. In the case of pricing comparison, we found that a basic jogger?made of French terry ¨C brushed or unbrushed- is priced at €39.99 and €39.95 at?Nike?and?Adidas,?respectively. On the other hand,?Decathlon?offers similar products at €9.99.

Sportswear combining quality and affordability is a valuable element in?Decathlon¡¯s successful equation.

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The expansion continues

Founded in a small parking lot with many sports-loving friends in 1976, the French brand has come a long way.?Decathlon?strategy integrates brand design, innovation, and customer service to allow maximum efficiency. As the brand shares on its website, the integrated approach enables the sportswear company to deliver high-quality products at a fair and reasonable price.

On top of that, Decathlon¡¯s expansion is not slowing down anytime soon. The brand continues to grow by opening?. For now,?Decathlon¡¯s turnover only equals half of?Adidas¡¯ but who knows what the future holds. The French family-owned business may out shadow the leaders of sportswear.?