Wednesday , January 20 2021

Decathlon will offer thousands of products from its competitors on its website: why?

Decathlon has decided to launch a so-called market, where, of course, it will sell its products and its leading brands, but where it will invite other brands and other retailers to place their products online. Decathlon hopes to increase from 40,000 to 200,000 referrals on its website, which opens next month, exclusively in Belgium for now.

What is the purpose of Decathlon with such a place in the market?

With 86 brands, Decathlon is a champion of its own brands, even if it also sells big brands such as Adidas or Nike for example. The brand has been selling physics in its stores for several years, but also online. KOVID boosted these sales, with Decathlon placing up to 12,000 orders a day in France during the restriction. But also on the net, the competition is fierce. And sometimes you do not have to find what you are looking for. The brand then loses the customer to competing sites such as Amazon, eBay or specialty sites like Trakks.

What is most valuable today is the relationship with the client. I reminded you earlier this week about retail. Like eBay or Amazon, Decathlon opens its page to other brands or companies that have complementary and even competing products and will sell them through the French brand’s website. Thus, it is about a hundred international and local brands that will be in this new place.

But then Decathlon feeds the competitor in it?

Yes But first, his client is even more satisfied. Then, Decathlon will not only develop its product offer very quickly and cheaply, it will take its sales margin, but it will also develop a larger consumer base for which it will have all the useful and strategic data. Decathlon knows what this customer buys, how much he pays, what products he surfs for, hesitates about, and so on. That is the main benefit of the company’s future commercial success.

Well, are the partners the ones who could lose in the exchange?

Not in the short term and not necessarily. Indeed, Decathlon has above all a mid-range offer. It is good that the physical stores that will sell through the Decathlon platform are in complementary niches or markets, for example, with a wider range. These companies will reach a huge customer base at a low cost, rotate their shares and eventually specialize. In any case, these stores and these brands have no other choice, the future of commerce is what is called omnicane, a mixture of physical presence and Internet presence.

The only potential risk is that, in the future, Decathlon may integrate technologies on its platform that suggest its own products instead of those of its partners. But it would be a kick in the leg because his partners would soon leave the platform. This would cause Decathlon to lose this network effect, this mass effect.

Start in mid-November. Talk about rubbing salt in my wounds – d’oh!

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