2. Company presentation

3. What you have to know about Decathlon …
History
1986: Products designer
1996: Brand designer
2000: Technical brand designer
2008: Decathlon belongs to Oxylane group
Business
Design and manufacture athletic apparel and equipment
Retail sports products
Number of employees:
42 000 collaborators
Distribution of turnover:
2010
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
Strategy:
Sell under they own brands products at a lowest price

4. Competitive presentation

5. From 7 to 77 years, From beginner to professional
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

6. Decathlon as its own supplier
Suppliers
Decathlon as its own supplier
The other suppliers
: 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 . l
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!

7. Decathlon as its own productor
Suppliers
Decathlon as its own productor
The other suppliers
: 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. l
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!

8. Decathlon as its own productor
Suppliers
Decathlon as its own productor
The other suppliers
: 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. l
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
Its suppliers don’t know how consider Decathlon as a partner or as a competitor!

9. Products conception Sector
Competitors
Distribution Sector
Products conception Sector
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
Decathlon strategy: product same sport goods than Nike and Adidas but cheaper.
Multi-Sports
Spécialiste
Patagonia
Columbia
Eider
Nike
Adidas
Décathlon
Haute technicité
Basse Technicité
Asics
Puma
Reebok
Airness
Le Coq Sportif
Quicksilver
Rip Curl…
Nike 50€
Artengo 15€

10. Key success factors of the sector
Decathlon
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
+++ ++
+++

11. Decathlon in China

12. 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)

13. 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

14. 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.
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 without a "penny" being spent on TV commercials
French Price: 5.90€ = 51,4 RMB
Chinese Price: 35 RMB

15. An individual approach
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

16. 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
Shenzhen 2
Hangzhou
Qingdao
Guangzhou
Nanjing
Dalian
Suzhou
Tianjin
Changchun
Manufacture Distribution
Shanghai
Qingdao
Nanjing
Tianjin
Guangzhou
Ningbo
Shenzhen
Suzhou
Xiamen
Taiwan

17. Face chinese market specificities
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

18. How to leverage the brand ?
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

19. Thanks for your attention Questions ?