Sneakernomics: What Sports Brands Need to Do Right Now

We are in a much different retail world than we were before the pandemic. Some of the issues that were created by the pandemic are still present. Brands need to think and act differently in this new world.

One bit of old business: get rid of the excess inventory NOW. Yes, it will be costly and yes, you won’t be able to offset next year.? But you can’t go forward if the past is still holding back. Time to move on.

Most brands missed the opportunity to develop a new vision and strategy during the pandemic. If they did not, they need to do so now. Instead of just doing more of the same, brands must reimagine themselves for the future. We are in a different place now and the old rules no longer apply.? Engaging with an outside partner is a great way to build a new strategy and vision.

Brands need to better understand the new consumer. What are their needs and how do those differ from the past?? How do consumers perceive your brand?? What permissions do the consumers give you to change the way you do business? Understanding consumer insights is a critical skill right now.

Brands must develop a “consumer-centric” strategy. The old blunt instrument of “channel segmentation” is no longer valid. Where are your best consumers and which retail doors (not chains) can get to them most efficiently. The data exists to show you where your best consumers are. Seek help in how to use it. BTW—Loyalty programs are critical here. Brands need to improve their loyalty programs in every way.

Brands need to better understand their wholesale partners and how the brand is perceived. What do retailers really think about your brand?? Where do your retailers see opportunities and weaknesses for your brand? Understanding insights from your wholesale partners is key to developing the new strategy.

At the same time, brands must continue to rationalize their wholesale partners. We have far too many stores in the US selling the same stuff. But this rationalization must be surgical. Just as the data shows you where your best consumers are, the data also shows where they are not. Use this information to drive your rationalization decisions.

As we saw during the pandemic, dropping entire chains in an ineffective tool in rationalization. Again, these decisions must be consumer-centric not channel or retailer centric. Brands must also recognize that all discontinued retail will not be captured back.

Brands must diversify their supply chain, as a hedge against future disruptions.? Having all (or most) production in one country could be fatal in the future.

Brands must again focus on the female consumer. She remains terribly underserved by our industry. Female specific products are key to winning her business. Merchandising and go-to-market strategies must be different for women than for men. The gains here won’t come quickly but they will come.? Women’s products remain the industry’s most lucrative opportunity.

Brands that were recklessly promotional during the pandemic must begin today to wean themselves off being on sale 24/7. This transition will be painful and will take years to achieve. But brands have no choice but to get off the promotional needle or risk the long-term health of the brand.

Finally, brands need to take risks again. Brands that took risks during the pandemic (Hoka and On are two examples) thrived during the pandemic. Theremust be a renewed commitment to innovation. Fresh products are the key to the future. Multiple colorways of tired products are a recipe for failure.

There are so many opportunities for our industry. Many of these recommendations will be painful and none will be easy. But we have no other choice than to begin to reinvent ourselves. Let me know how I can help.