Distribution of sports goods on marketplaces

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In our previous article reviewing 2020, we mentioned that specialised marketplaces were becoming increasingly important. New players are appearing on the internet to meet the needs of the market. In this article, we will therefore study the market for the distribution of sporting goods. The market is the 10th largest in terms of products purchased on the Internet, with players that are changing rapidly. ⁽¹⁾

The market for the distribution of sporting goods

In France, this market has grown steadily since 2010 and exceeded 11.54 billion euros in turnover in 2018.⁽² ) This represents almost 3% of global turnover.⁽⁵⁾

16,370,896 members are registered in French sports federations. That is 25% of the population present on French territory.⁽⁴⁾

Furthermore, at the beginning of 2020, it was observed that 1 in 2 French people play sport more than once a month and 72% of them play at least once a week. Also, the French spend an average of 253 euros per year on sporting goods.⁽⁴⁾

These figures represent the attraction that the French have for sport, whether it be for intense, moderate or even sportswear. In fact, 54% of French people bypass the primary use of a sports item to make it a fashion item.⁽¹⁾

Thus, this variety of practices and needs attracts competitors and allows many different types of retailers to compete.

The main players in the market

These distributors are distributed as follows:

Large multi-sport retailers (GSM): Composed mainly of the "Big Four" in France: Décathlon, Go Sport, Intersport and Sport2000. They cover all sporting practices with their offers and therefore cater for a large group of customers. Originally Brick and Mortar, they have gradually turned to digital to offer omnichannel distribution.
Specialised brands: They respond more specifically to the needs of experienced sportsmen and women by concentrating on an intense practice to meet the precise needs of their clientele. They do not necessarily have the same logistical capacity as the mobile phones, but they are able to retain their expert customers better. Espace Foot is one of the best known.
Branded stores: To differentiate themselves from retailers and capture their customers directly, some major brands, such as Nike, Adidas and Lacoste, are creating their own sales outlets.
Sportswear brands: As the name suggests, they cater for the needs of shoppers who use sports items as fashion items. One of the best known in France is Foot Locker.⁽²⁾

Indirect and digital competition

Specialists are in direct competition with non-specialists Brick And Mortar and Pure Players:

On the Bricks And Mortar side:

Large-scale food stores (G SA): Leclerc, Carrefour, Auchan, etc.
Ready-to-wear brands : Gemo, Uniqlo, etc.
Department stores: Galeries Lafayette, etc.

On the Pure Players' side :

The specialists: Alltricks, Casal Sport, Colizey, Blissports, etc.
Generalists : Amazon, Cdiscount, etc.
Temporary sales sites : Veepee, Showroomprivé, etc.
Traditional retailers: La Redoute, Les 3 Suisses (2), (3)

In terms of market distribution :

Multi-sport and specialised superstores account for 60% of the market in terms of overall business volume.
Brand names and multi-brand sportswear companies account for 20% of the market.
Retailers and pure players represent the remaining 20% of the market.⁽³⁾

24% of French online shoppers buy sporting goods. ⁽¹⁾

The Big Four and the specialists are well positioned in the market due to their specificity, their high logistical capacity and the public recognition of quality.

However, this share of online sales is a threat to them. It must be taken into account in order to meet the varied needs of customers in terms of both products and services.

We will therefore look at the strategies that have been put in place to take account of this share of digital sales, particularly via marketplaces.

Focus on marketplaces

Increase in specialised and ultra-specialised marketplaces

In order to compete with Bricks and Mortar and above all with generalist marketplaces, several companies were created in the 2010s such as Alltricks, Colizey⁽⁶⁾, Blissports⁽⁷⁾ and My Sport Market⁽⁸).

The common theme of these companies is to put the customer in direct contact with the manufacturer or independent sports shop. This makes it possible to offer more advice, lower prices, a reduced energy footprint and, in 2020, to show solidarity with its small French structures.

Some sports marketplaces are also trying to become ultra-specialised by selling to customers who are experts in a specific sport. This is the case with Some Ride, which offers clothing and equipment for skateboarders.⁽⁹⁾

Marketplaces for the Big Four?

The main strength of generalist or specialist marketplaces is their ability to offer a catalogue of several hundred thousand products thanks to the retailers present on their platforms.

To counter this threat, GoSport was a forerunner of the "Big Four". In 2017, the company launched its own marketplace in France. At the end of 2018, the platform had 1,000,000 references. This allowed the company to complete its omnichannel offer and meet the increasingly specific demand.⁽¹⁰⁾

In 2019, Decathlon began to capitalise on this trend by acquiring Alltricks , a specialist bicycle marketplace. This structure, which offers 160,000 references for 600 brands, continues to develop by making a series of acquisitions. A few days ago, the company acquired Troc Vélo, France's leading second-hand bicycle reseller. This will enable the company to develop the sustainable and quality offer that it has wanted to pursue since its creation in²⁰⁰⁸ .

This first step has given Decathlon the impetus to launch its own marketplace at the end of 2020 in Belgium. The aim is to increase the number of references offered from 40,000 products to more than 200,000. The company is keeping its multi-sport focus on this project to meet the needs of as many people as possible. This first launch will serve as a test for a possible European deployment.⁽¹¹⁾

Intersport and Sport 2000 have not yet taken the plunge in France. They are focusing more on the deployment of their already rich online offers and Click And Collect.

The case of Brand Places

Veepee, formerly known as Vente-privée.com, is one of the leaders in event-based sales. After the company's name change in 2019, Veepee is launching Brandsplace, a marketplace where brands can create their own landing page to run event sales directly on the platform.

This has enabled Veepee to maintain its promise of unbeatable deals on branded products, especially sports products, by connecting sellers directly with their customers.⁽¹²⁾

Private Sport Shop is also an important competitor in event sales. Despite the absence of a Brandplace, it is positioned more as a specialist with highly technical brands.⁽¹³⁾

Positioning is the most important thing

Like many other sectors, the sports goods distribution sector is influenced by the role of the marketplace. Not only to offer a greater choice of references but also to simplify the relationship between the customer and the manufacturer.

The particularity of this sector is the variety of sports practices, customer typologies and therefore distribution channels.

So to position yourself correctly on these marketplaces as a manufacturer or retailer brand, you need to prioritise your objectives to reach your customers while maintaining your brand image:

Generalist marketplaces: A lot of visibility for little specialisation.
Multi-sport or specialist marketplaces: More targeted visibility for greater competition.
Ultra-specialised marketplaces: Excellent reach of enthusiasts for less general visibility.

For more information on the subject, see below a EUROSIMA conference recorded in 2020 with the presence of executives from CDiscount, GO Sport, Akewatu and Sellingz :