Company presentation
What you have to know about Decathlon …

History
Distribution of turnover:
1986: Products designer
1996: Brand designer
2000: Technical brand designer
2008: Decathlon belongs to Oxylane group
 Business
2007
 International market
More than 500 stores in about 16 countries
53% of its activity
 Turnover:
2009 turnover: 5.4 billion Euros
Third sport goods distributor
Design and manufacture athletic apparel and
equipment
Retail sports products
 Number of employees:
42 000 collaborators
 Strategy:
2010
Sell under they own brands products at a lowest
price
Competitive presentation
Customers
From 7 to 77 years, From beginner to professional
“ Make the pleasure of sports accessible to the largest number of
people. “
 Number of customers: 80 million
 Structure of the customers : fragmented
 Wide range of people
 From beginner to professional
 Children, Adults, old persons
 From Individual to familial
 Frow low wages to high wages
 Category of people passionate about sports and very involved are overrepresented
 51% of clients are women
Suppliers
Decathlon as its own supplier


Brands sold in Decathlon Store
1976-1986: Decathlon wants to sell product of
sport brands but Decathlon was judged « not
enought chic »
33%
Others
67%
Décathlon
1986: Creation of « Decathlon production »
for the conception and fabrication of its own
brand


The other suppliers

The other suppliers: specialized in the
production of sport goods

Their selected products are on the shelves by
Decathlon only 1 year later

Décathlon is present both as a distributor
and as a fabricant of sport products
it becomes a strategic axe
1988: Decathlon opens an office production in
China.Nowdays, 2/3 of sold articles made in
Asia .
 Its suppliers don’t know how consider
Decathlon as a partner or as a competitor!
l
Suppliers
Decathlon as its own productor



The other suppliers
Brands sold in Decathlon Store
1976-1986: Decathlon wants to sell product of
sport brands but Decathlon was judged « not
enought chic »
1986: Creation of « Decathlon production »
for the conception and fabrication of its own
brand
 it becomes a strategic axe
1988: Decathlon opens an office production in
China.Nowdays, 2/3 of sold articles made in
Asia . In China,Decathlon has 250
sub-contractors.
33%
Others
67%
Décathlon

The other suppliers: specialized in the
production of sport goods

Their selected products are on the shelves by
Decathlon only 1 year later

Décathlon is present both as a distributor
and as a fabricant of sport products
 Its suppliers don’t know how consider
Decathlon as a partner or as a competitor!
l
Suppliers
Decathlon as its own productor



The other suppliers
Brands sold in Decathlon Store
1976-1986: Decathlon wants to sell product of
sport brands but Decathlon was judged « not
enought chic »
1986: Creation of « Decathlon production »
for the conception and fabrication of its own
brand
 it becomes a strategic axe
33%
Others
67%
Décathlon

The other suppliers: specialized in the
production of sport goods or are specific brand

Décathlon is present both as a distributor
and as a fabricant of sport products
1988: Decathlon opens an office production in
China.Nowdays, 2/3 of sold articles made in
Asia . In China,Decathlon has 250
sub-contractors.
 Its suppliers don’t know how consider
Decathlon as a partner or as a competitor!
l
Competitors
Distribution Sector
Market sport products distribution
in France

Decathlon strategy: product same sport goods
than Nike and Adidas but cheaper.
Haute
technicité
30%
Autres
11%
Go Sport
Products conception Sector
43%
Decathlon
16%
Intersport
Patagonia
Columbia
Eider
Nike
Adidas
Décathlon
Spécialiste

N°3 in the world on this sector
(N°1 Intersport)

In China, in 2003 the distribution market of
sports goods was almost virgin

Today, in China, Decathlon
has only one competitor.

All the others sport stores are specialized
Quicksilver
Rip Curl…
Basse
Technicité
Nike 50€
Multi-Sports
Asics
Puma
Reebok
Airness
Le Coq Sportif
Artengo 15€
Key Success Factors
Key success factors of the sector
Products
Large range of products/ adaptation to the local market
Quality of products
Research & Development Policy
Managerial expertise
Implementation (geographic implementation and high number of stores)
Relationship with suppliers: strong partnerships with sub-contractors
but bad relationship with big brands
Marketing Know-how
Communication & advertising policy
Services and Customer Relations
Decathlon
+++
++
+++
Decathlon in China
Opportunities of implementation
In China since 1988: a huge advantage

Already implemented for the production of its goods
 opening of three stores nearby factory production offices
in Shanghai, Guangzhou and Shenzhen to test the market.

The Chinese law allows foreign companies manufacturing in the country to open stores in solo
called "outlet stores".
The results - in 2002, these three units have generated a turnover of 3.5 million with 250,000
customers - were enough to validate a real development project under banner.

80% of sold products are their own brand : no customs tax (taxes douanières)
Opportunities of implementation
Sport Market is growing up with the improvement of the standard of living

As with rising living standards, we attach importance to fitness.
Different physical improvement clubs have opened and all attract a
large clientele.
 Spending in entertainment, sport, culture and education is
increasing
+121% in 6 years
(1995: 312,7 2001: 5309 RMB/pers/year)

400 millions of Chinese people(30%) nationwide participate in
various sports activities

In 2008, the Beijing Olympic Games gave a new boost
Strategy of implementation
Low price, no tv advert

Low prices
To win over the mass market
In an emerging economy, products have to be cheap.
French Price: 5.90€ = 51,4 RMB
Chinese Price: 35 RMB

No advertising.
Decathlon inundates the french market advertising to promote its products but not in China.
Now Decathlon, for the company's China business, has opened 25 outlets in 12 Chinese cities in 2010
- without a "penny" being spent on TV commercials
Strategy of implementation
An individual approach

Experiential marketing :The concept of shops attract
Decathlon maintain in China its concept store:
 you can test ping pong, golf, basket
 all outlets are spacious to try the equipments
 The concept store/event results: Decathlon emphasizes family and family happiness and their tast
for sport.
Decathlon also sponsors sports events every month in residential
neighbourhoods near its outlets, especially for youngsters.
 They believe in word of mouth. They expand through person-to-person networks

Adaptation to local market: Think Global Act Local
 Concentre on Chinese fitness preferences - light to moderate exercises such as ping-pong,
badminton, tennis and golf rather than more robust sports. As such it doesn't sell gym equipment.
 Take measurements of its shoppers in key Chinese cities in order to design sportswear that fits
better. Eg: Chinese people's feet
 Take into account consumer feedback . Eg: swimming goggles
An immediate success


In 2003, Decathlon opened its first store in Shanghai today it has 25 stores: China become the 4th
country in term of outlet.
Decathlon has principally implemented its stores on the East coast, which is the most rich and
developed part of the country. most strategic and developed economic areas to implement its stores
Stores Distribution
Shanghai
6
Chengdu
1
Beijing
5
Wuxi
1
Shenzhen
2
Hangzhou
1
Qingdao
1
Guangzhou
2
Nanjing
1
Dalian
2
Suzhou
1
Tianjin
1
Changchun
1
Manufacture Distribution
Shanghai
Qingdao
Nanjing
Tianjin
Guangzho
u
Ningbo
Shenzhen
Suzhou
Xiamen
Taiwan
Emerging or possible problems
Face chinese market specificities
 Counterfeiting of the concept and the products
 Few sports facilities and low sensitivity of Chinese for hobbies



60% of the population live in rural areas and has no access to infrastructures
Sports federations are young
Very few sports are practiced and popular
 Joint venture

Joint venture with the Zhong Lu company
For the future…
How to leverage the brand ?

Open more and more stores in big cities to have a big presence on the chinese market: key success
factor

Develop implementation of little stores in the downtown areas of the cities to target high wages and
urban population

Don’t forget to reference big brands in the stores…but also strengthen its «French» image and values

Develop customers fidelity (cards…)

Exposing its products as a health protector: develop “Zen” products or Spa and Massage equipments

Look deeply into the future development of China
Thanks for your attention
Questions ?