An Overview and way forward 20th July 2020 Sports Retail Market- India Market Size (in USD billion) • Currently a ~4 billion USD market (~Rs.30k crore) growing at 12% CAGR • Highly organized segment in Sportswear (45%) and is brand-led • Large number of verticals across FK including LS, BGM and Electronics Market Players- FK group Decathlon India- Success Story Excite Quality Lead with Need Affordability Experience Calendar MISSION STATEMENT "Decathlon's main mission is to make sports accessible to as many people as we can. We would like to help, inspire and guide you through your sports experiences. We believe that being active and discovering new sports every day is an important part of a healthy lifestyle. Let's do some sports together, as together is always more fun!" Experience Engage Flipkart as the Sports Destination Market Leader • Dominance in selection with preferred partner status with all brands • Very strong in marketing assets, monetization spends and celeb support • Very strong SMU and exclusivity play Lead with Need Growing Industry Calendar • Large customer base with inherent Cross sell opportunities • Strong momentum in the Sports and Active story in the country Customer Experience • Experience- Split By Categories • Identity - not identified as the largest sports Excite retailer • Targeting - Sports Base treated similar to other cohorts Experience Competition Engage • DecathlonVery strong messaging of being a Sports Retail destination • Amazon has made intentions clear on targeting brands • GO Sport- Expansion plan in India • Cult.Fit- Sports/fitness culture, celebrities The Why? The Principles Excite Full Assortment 01 04 Our Strategy Lead with Need 02 Calendar 03 We aim to encourage the Sports and Active Living movement in the country by providing an unmatched selection at great value with an unprecedented online shopping experience Educate 05 Engage 06 Customer Landscape ● ● ● ● ● ● ● Men’s Active Sports User base Men’s Active Potential Sports User base Women’s Active Potential & Current Sports User base ~4.5 Mn Men’s Footwear Metro/T1, Young, Branded, 700+ ASP users ~5 Mn Men’s Footwear Mid level Branded to Unbranded, 500-700 ASP users ~0.4 Mn WF: Metro/T1, Young, Branded, 700+ ASP ~0.5 Mn WF: Mid level Brand- Unbranded, 500-700 ASP Evolved e-commerce customer Metro/ T1 customer Sports enthusiast Strong brand/ price affinities Shops in 1 or more categories Buys different footwear/ clothing for different sports High engagement ● ● ● ● ● ● Sports Enthusiasts E-commerce customer T2+ customer Casual sporty Finds value for money Buys 1-2 footwear/clothing for all sports Medium- low engagement Beginners ● ● ● ● ● E-commerce women customer Across tiers Finds value for money Buys 1-2 footwear/clothing for all sports High engagement Sports Enthusiasts Customer landscape Men’s Active Deal Seeker & Potential Trendy Clothing Sports Buyer ~3 Mn Men’s Clothing Meto, T1, T3 - Mid level brand & Unbranded - 0-300 asp ● ● ● ● ● ● E-commerce customer Metro & T3 customer Price conscious Shops in 1 or more categories that have value High engagement towards discounts Price researches other platforms Beginners Men’s Active Sports Clothing Branded Base ~3.2 Mn Men’s Clothing Branded - 700+ ASP users -2.8 Mn Men’s Clothing T1,T2 - 300-500 asp ● ● ● ● ● E-commerce customer T1 & T2 Trendy Selection Seeker Price Conscious Seasonal Buyer ● ● ● ● ● ● Evolved E-commerce customer Metro customer Medium engagement Feature Comparison Brand Conscious Factory Brand Price Seeker Sports Enthusiasts Targeting Sports Enthusiasts (SE) Men’s Active Sports User base Beginners (B) Women’s Active Potential & Current Sports User base Men’s Active Potential Sports User base Selection: Variety & Depth User Profile: Intermediate/ Advanced, Foot type, Fit/ Shape Surface Type/ Court, Features/ Technology/ USP Iconics, Fan merchandise, Brand x celeb associations Selection: Variety & Deals Value Packs: Beginner’s kit, Most popular curated list Fan merchandise, Brand x celeb associations Trends/ Lookbooks Brand Deals & Offers Calendar: Loyalty, Previews & Benefits Brand Days: launches, Deals Milestones/ Celebrations: Record breaker wins, Fan Birthdates Sports of the Month Fk Campaign & Events Calendar: Acquire, Introduction & Awareness, Welcome offer Sports events, Fk Campaign & Events ACTION PLAN 1. 2. 3. 4. 5. Targeted destination store Catalog V2, Expert reviews (SE) Your Size (SE) RPDs/ Buying Guides (SE & B) Product Finder LHS Interventions Iconic store Brand Stores Fan Merchandise Community (SE & B) (SE) (SE) Engagement & Loyalty (SE) Engagement & Acquisition (B) 1.1 Targeted Destination Store Entry & Navigation Sports Enthusiasts All Sports destination Navigation Sport Type > Type > Category > All Iconics > Category > Runnin g User level Fan Club > Brands > Community > Sport of the Month Brands You <3 Games & Challenges > Newly Launched Deals Iconics > Training Fan Club > Cricket Football Brands > Community > 1.1 Targeted Destination Store Entry & Navigation Beginners All Sports destination Navigation Men > Men > Women > Kids > Brands > Community > Women > All Footwear Kids > Sub Category Footwear > Clothing > Accessories > Product price Brand Deals Equipment & Gear > Top Offers Sports Type Clothing Gear Accessories Fan Club > Iconics > 1.2 Targeted Destination Store Content Types Sports Enthusiasts Beginners Recommendations Shopping kits/ Value packs Type of Surface User profile Experts choice Complete Shopping guide 6 Running Shoes High Arch (Achillies Tendonitis) For beginners/ Intermediates 10 Best Marathon Shoes 6 Key Items You Need To Become A Pro Runner 1.2 Targeted Destination Store Content Types Sports Enthusiasts Beginners Celeb Associations X Brands LookBook & Trends Category level (BU x Vertical) Category level (BU x Vertical) Trending in Your Area Sport Type X Vertical Top Offers 2. Iconic & Brands Stores Sports Enthusiasts Brand Stores Brands > Spotlight Puma Iconics > Nik e New releases Bestsellers Collections Must Have’ s Key Brand Collections Fan Club > Adidas Under Armour Iconic Stores Yonex Monthly Multi Brands Collections Launches: Intrigue, Notify me Brand/Collection Launch Videos Top Movers/ Feature Collections Cl, Fw, Acc, Gear Deals Videos Sponsorships & Associations Seasonal Collections Flash Hour Offers Store Launch & Structure One Sports Category Navigation HP Entry: Icon/ All categories One Sports Store Launch Packaging Video All Sports One Destination Video to comprise of: Motivational Factors, Local Relevance, Aspirational Celebrities, Relevance On Sport Type + Categories Reference Video 3. Selection Discovery Sports Enthusiasts Product Finder User level: Beginner, Intermediate, Advanced... User profile: Type of foot, Condition... Features & Technology: Material, Sole type, Flexibility... Affinities: Price, Brand... Ratings/ Quality New LHS Filters New Type + Technology + Width + Surface + Features Run Type Width Features Technol ogy 4. Decision Making Sports Enthusiasts- Premium Selection Product Catalog Product Details Usability of Products Catalog Videos, RPDs Video Reviews Your Size Lifestyle shots, Feature & Functionality focus, Detail focus, Athletic Poses Hi XYZ, Based on Flipkart True Size certification, we recommend you to buy Size 9 4. Decision Making Beginners- basic value but functional products How To Buy/ Buying Guides On Platform- Marketing 1. Permanent Nav Icon On Homepage 2. One Sports Identity - Logo + Brand Name 3. HP plan for Sports affinity base Integration with Games - Brand Sponsorships - Quiz/Trivia around Sports/ Sports Brands 1. SuperCoins usage to tap in FK loyal customer 2. SuperCoins exclusive TDs, Price point stores 1. Dedicated Central Whitelist Theme for One Sports 2. CRM - Dedicated weekly PN and email to affinity base Sports Club- Build on Loyalty Cross BU Loyalty property (360 Internal Push) Referral program for Sports members How one becomes a member? Unlock Special offers Only for members Influencer/Sports expert tie ups Daily Constructs to drive repeat 1. Weekly Challenges- daily TD/reward/accumulate coins How to keep the customer engaged? 1. Free passes for upcoming sports events through engagement 1. Challenges like- Try a yoga aasan/ do this workout/ pose a running photo 1. Fills in their Sports Interest 2. Share the One Sports page 1. Influencers Post & activations - Flipstream Off Platform- Marketing Brand Marketing Content Marketing ● ● ● Sustenance Programmes with the right set of identified Influencers for one sports PR FK is a one stop destination for all sporting needs. New brands/ product solve/ Authentic products on FK with brand partners Drive awareness for the FK Sports Build traffic to the sports store Paid & Organic media for amplification Perf marketing 1. 2. SEO Indexing sports and related keywords RT - Targeting across BU’s, Lookalikes of customers bought sports products SEM - Text ads on search keywords related to sports and other products Brand Marketing - Calling out the entire selection X Value FK has with sports across Shoes, Apparel, equipments etc. beyond the nuances of BU’s - Amplify the new engagement & constructs eg. FK Sports club, Celeb styles, top brands - Brands calling out FK on their social promotion For giving the consumers a richer experience we will need a separate handle for Lifestyle through which disproportionate share can be given to One sports. Content Marketing Mohit Sehgal - 1.1 Mn Followers - Vitrag Mehta - 47.3K Followers Association with Influencers for integrating cross BU products for projecting a 360 view of FK for sporting (eg. Integrating Badminton rackets with Badminton shoes) - Sustenance campaign for 3-4 months by providing influencers cross BU products for creating content for One sports - Pivots like Sports club, top brands & Celebrities can be amplified with the One sports property Performance Marketing - RT Greater synergies to be derived by showcasing cross BU products. - Cross promotion and higher indexing of Cross BU products for showing the entire range. eg. Badminton rackets to customers searching for Badminton shoes Performance Marketing - SEM “Sports” Query on SEM: - Decathlon - Adidas - M&S - “Badminton” Query on SEM: - Decathlon “Running” Query on SEM: - Adidas - Asics For creating the entity of One Sports we will need to over index SEM to drive traffic for which will need additional spends in perf marketing SEO & PR Cross BU page will help in SEO generic indexing and drive organic traffic. (Badminton is the 3rd Highest searched keyword in sports) Integrated PR amplifying the authenticity of FK as a platform for selling branded products The Landscape Need States A new perspective A reinforced conviction A new normal 73% will stay as active post Covid Building Immunity is the new mantra Staying active linked with Mental Wellness 62% new Covid runners will continue 36% are more active than pre Covid Large growth in Supplements WFH can exacerbate sedentary lifestyle Home Fitness is exploding. Yoga leads Staying Active = Staying Healthy Your Fitness Partner Why go to a store? Booming What’s Working Campaign Proposition - Sep starts the season of Marathons - Aug end Covid expected to peak - National Sports Day 29th Aug 47% increase in runners YoY Oct onwards Suspended Sports Calendar: Aug-Nov’20 Next Steps & Timelines Task Timeline BGM & LS Alignment Cross BU Store Wireframe V.1. July 24th Store Ready to Launch Store Launch August 20th Name & Logo July 20th Social Plan- Aug week 4 & Sept July 30th Whitelist July 25th CRM-weekly Aug week 4 onwards Product Capabilities Ask List July 22nd Product Capabilities Go Live TBD Fashion Sports Store Wireframe July 18th Fashion Sports Store Ready to Launch August 3rd Sports Club Plan July 25th Fashion Page Visibility plan of Sports Store Brand Connect July 30th App Visibility Plan July 27th