PERFORMANCE - SportsOneSource.com

FebrUARY2009
PERFORMANCE
SPORTSRETAILER
News and Information for the Running and Triathlon Market
Trail Running Finds a
Path at Outdoor Retailer
At Outdoor Retailer Winter Market, specialty retail buyers found trail running
shoes from mountain-oriented brands
like Lowa, LaSportiva, Vasque and Scarpa as well as traditional road brands like
New Balance and Saucony.
Kenji Haroutunian, Outdoor Retailer
show director reports, “The show is quietly becoming the show for endurance
sports. It’s been an organic process as
stores in the marketplace want to tell a
more authentic story.”
Haroutunian reports over 50 exhibitors
at Winter Market offered trail runningrelated footwear, technical apparel, accessories and nutrition. He says, “Retailers want a full merchandising story and
they get that inspiration and connection
to all those elements of that market at
Outdoor Retailer.” (continued on page 4)
To download a digital version
of this magazine, go to:
www.
performance
sports
retailer.
com
New Balance
Celebrates
20th Anniversary
of Susan G. Komen
Partnership
This year, New Balance celebrates its 20th year as a sponsor of Susan G. Komen for
the Cure. New Balance will mark this anniversary with the introduction of a special
edition pink New Balance 993 running shoe and an expected $1 million donation to
Susan G. Komen for the Cure event.
As a long-time Susan G. Komen for the Cure sponsor, New Balance is committed
to supporting the mission of Komen for the Cure and raising funds through corporate
and consumer donations. In 2009, New Balance will donate up to $1 million (with a
guaranteed minimum donation of $500,000) to Susan G. Komen for the Cure from the
proceeds of the Lace Up for the Cure Collection.
To celebrate the anniversary, New Balance will debut the special edition 993 running shoe shown above. The special edition 993, an all pink suede shoe, features the
Komen for the Cure pink ribbon, an insert adorned with an anniversary logo denoting the twenty-year partnership and a hangtag that details New Balance’s commitment to Komen for the Cure. All special edition 993s will be manufactured in the U.S.
and distributed in a new pink and black anniversary box with matching tissue paper,
all featuring the Komen pink ribbon. The box’s inside cover explains additional information about New Balance’s relationship with Komen. The special edition New
Balance 993 will debut in August 2009 with a suggested retail price of $140.00.
In July, a limited number of customizable anniversary 993s will be available for
purchase. Consumers can personalize the tongue of the shoes with the name of a
survivor or loved one and one of the following phrases: “In Honor of,” “Running for,”
or “Lace Up!”
Make Outdoor Retailer Part of your Buying Plan
Better Business Yields a Better Bottom-line
2009
2010
JULY 21-24, 2009
JANUARY 21-24, 2010
SALT PALACE CONVENTION CENTER
SALT LAKE CITY, UTAH, USA
SALT PALACE CONVENTION CENTER
SALT LAKE CITY, UTAH, USA
OPEN AIR DEMO
BACKCOUNTRY BASE CAMP
PORT RAMP PROPERTY, SNOWBASIN RESORT, OGDEN, UTAH
SNOWBASIN RESORT, OGDEN, UTAH
JULY 20, 2009
JANUARY 20, 2010
Relationships forged, business done, and the strategic partnerships reinforced during face-to-face
interaction at Outdoor Retailer will drive your success in the future year or two!
www.OutdoorRetailer.com
febrUARY2009
www.sportsonesource.com
EDITORIAL
Group Editorial Director
Lou Dzierzak (612-618-2780)
[email protected]
PERFORMANCE
SPORTSRETAILER
A SportsOneSource Trade Publication | www.performancesportsretailer.com
Senior Editor
Thomas Ryan (917-375-4699)
[email protected]
Contributing Editors
Kyle Conrad, Emmaline Harvey, Andy Kerrigan,
Dr. Paul Langer, Judy Leand, Jackson Sveen
Jim Weber
CEO, Brooks Sports
CREATIVE
Creative Director, Teresa Hartford
Art Director, Sean Berthelot
Graphic Designer, Megan Grieser
PRODUCTION
Product Development Manager
Andy Kerrigan (704-987-3450 x103)
[email protected]
Production Manager
Jeremy Noel
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ADVERTISING
Eastern Ad Manager
Robert Feiner (917-399-0672)
[email protected]
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Sam Selvaggio (212-398-5021)
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Susan Tauster (630-858-1558)
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Business
Circulation & Subscriptions
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TECHNOLOGY
Chief Information Officer, Mark Fine
VP Research & Development, Gerry Axelrod
Director Information Management, Ruben Desangles
Manager Database Operations, Cathy Badalamenti
BUSINESS DEVELOPMENT
President & CEO, James Hartford
VP Business Development, Bill Bratton
Director, Business Devleopment, Barry Gauthier
Director, Specialty Business, Kris Versteegen
Relationship Marketing Manager, Jill Underwood
Research Sales & Marketing, Katie Bolick
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NEWS
4 Trail Running finds a path at Outdoor Retailer
6 Asics Re-signs Hall, Kastor and Jones Through 2012
Mizuno Earns American Podiatric Medical Association Seal of Acceptance
Soles4souls Announces Partnership with Liberty Tax Services
7 Saucony Presenting Sponsor of 2009 USA National Cross Country Championships
New Balance CEO Rings Nasdaq Bell in Honor of NB Collegiate Invitational
Saucony Signs Endorsement Deal with U.S. Olympian Anthony Famiglietti
FEATURES
8 Soft Sell: There’s Nothing Neutral about Cushioning
10 Rebuilding
a Brand: How Jim Weber and the Brooks Team Rebuilt Their Brand
14 Conversations with Customers: Using Social Media to Build Relationships
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RETAILER (PSR) are not necessarily those of the editors or publishers. PSR is not responsible for unsolicited manuscripts, photographs or artwork.
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performancesportsretailer.com | PSR NEWS
TRAIL RUNNING finds a path at Outdoor Retailer
New brands and models expand opportunities
(continued from cover)
Superfeet’s booth was located on the
Salt Lake Convention Center’s main
aisle for the first time. Bill McLean, president, noted that in addition to outdoor
specialty customers, running specialty
buyers from retailers like Fleet Feet
and Playmakers scheduled meetings.
McLean says, “Running specialty is our
fastest growing category. We saw a lot of
running specialty people there.”
As consumer interest grows, there’s
a battle shaping up pitting mountain
brands with decades of mountaineering and climbing experience against
long established road brands that are
expanding their lines to attract the trail
running enthusiast.
Bryan Gothie, product manager outdoor, New Balance says, “Shelf space is
at a premium regardless of where the
brand is on the mountain as each of
us has a unique story to tell. The tough
thing is convincing retailers and consumers not to pigeon hole a brand as on
or off the mountain so that the product
can speak for itself.”
Jay Peery, director of sales, E.N.D.
Footwear adds, “Road brands struggled
at first to get any traction in the trail
running space that was really created
to go directly after the outdoor specialty
customers, but they have certainly got
better at building trail running product.
I think road shoe companies have the
upper hand. They have more resources
for marketing, product development and
manufacturing. They are not designing products for climbing, backpackers
and mountaineers. They are focused
on running.”
Mark Day, VP sales and marketing, La
Sportiva sees opportunities for both approaches. “We are a niche product. We
build extremely technical product that
comes from our climbing and mountain-
Founded in February 2008, Oboz
Footwear’s trail running line includes the
well-received Ignition. The dynamic
bootie construction wraps around
your foot to keep trail debris
out while the forefoot cage
locks your foot down to
provide a secure fit.
PSR | performancesportsretailer.com
By Lou Dzierzak
eering background. We flesh out or complete a trail running offering at a running
specialty shop. I think there’s room for
both traditional running shoe companies
and more technical product at the end of
the spectrum that LaSportiva provides.”
Gothie reports outdoor specialty and
running specialty retailers approach the
growing trail running market from different perspectives. “Retailers are embracing trail running, they are just doing it in
a different way than running specialty
does. The majority of running specialty
dealers have an incredible focus on
technology and fit, which leads to conversations on midsole durometers, medial forefoot flares and other minute details. Not that outdoor specialty retailers
aren’t technical, but the conversations
are different, more of a macro approach
that takes the whole shoe into consideration as opposed to each specific feature.
The product is either right or wrong.”
Brooks Sports, Inc. has exhibited at
Outdoor Retailer for at least five years.
Rick Wilhelm, Brooks VP sales says the
show’s energy and inviting atmosphere
makes it easy for specialty retailers to
find new resources. He says, “Retailers
are always looking for new ideas. It’s not
threatening to walk up and say I’m a retailer, I don’t carry your stuff, but can I
get an appointment?”
Haroutunian expects the number of
endurance sports category exhibitors
to grow by the Outdoor Summer Market
Show in July.
IQ
1
How did sales for Running
2
3
Footwear in the sports retailer channel for fiscal January change compared to the year-
ago period?
a. Up mid-single-digits
b. Down low-single-digits
c. Flat
d. Up low-single-digits
Performance Running Footwear sales grew faster in the sports retailer channel than overall Running Footwear for the month.
a. True
b. False
Who had the largest point gain in Performance Running market share for the month at the sports retailer channel?
a. Saucony
b. Adidas
c. Asics
d. Nike
4
5
6
Which Running Footwear subcategory saw the strongest dollar sales growth for the period at the sports retailer channel?
a. Cushioning
b. Motion Control
c. Stability
d. Fashion Running
Who had the top selling Hybrid Running shoe in the sports retailer channel for January?
a. New Balance
b. Nike
c. Asics
d. Adidas
Who had the largest decline in market share in women’s Running Footwear in the sports retailer channel for January?
a. Nike
b. Asics
c. Brooks
d. New Balance
Know More.NOW.
7
8
9
For the sports retailer channel for January, how did the Running Apparel category perform?
a. Decreased low-single-digits
b. Increased mid-single-digits
c. Flat
d. Decreased mid-teens
Running Apparel sales grew at a faster rate in the full line sporting goods channel than at mall specialty.
a. True
b. False
Which brand had the top selling men’s Running Apparel product for January in the sport retailer channel?
a. New Balance
b. Adidas
c. Under Armour
d. Nike
10 Who had the top selling Stop Watch in the sports retailer channel for January?
a. Timex
b. Accusplit
c. Bell Sports
d. Sportline
A Service of The SportsOneSource Group
www.SportScanInfo.com
For more information about SportScanINFO contact
704.987.3450 [email protected].
Answers: c, a, c, c, a, d, b, b, d
NOTE: Answers are for trade channels covered by SportScanINFO only. Does not reflect specialty retail, better department stores, big box outdoor stores, Walmart or Target.
NEWS
Asics Re-signs Hall, Kastor
and Jones Through 2012
ASICS America Corporation announced
it has re-signed marathon runners Ryan
Hall and Deena Kastor, and hurdler,
Lolo Jones to contracts through 2012.
All three athletes represented the U.S.
in track and field in the 2008 Summer
Games in Beijing.
Ryan Hall has been a part of the ASICS
team since 2005, and is best known for
setting a new Men’s U.S. Marathon Trial
record on November 3, 2007 in New York
City’s Central Park making him part of
the Men’s U.S. Marathon Team that
competed in Beijing. Hall’s next major
race will be the Boston Marathon on
April 20, 2009.
Deena Kastor won the Women’s U.S.
Marathon Trial on April 20, 2008 in Boston, MA earning her a spot at the Summer Games. Although she had to drop
out at mile three due to a foot injury,
Kastor has been recovering and is expected to return to competition at the
Yokohama Ekiden, a long-distance relay
this month.
At the 2008 U.S.A. Track & Field Trials
(USATF), Lolo Jones set a personal best
of 12.29 in the 100 Meter Hurdles, which
tied her for the second fastest time in
any condition and earned her a trip to
the Games in Beijing. Jones was favored
to win in Beijing, but hit the ninth hurdle
and lost the race in the finals. Her first
major return to competition will be at
the USATF Championships in June 2009,
which is the qualifier for the International Association of Athletics Federations
(IAAF) Outdoor World Championships.
PSR | performancesportsretailer.com
Deena Kastor
Mizuno Earns
American Podiatric
Medical Association
Seal of Acceptance
Mizuno USA, Inc. has announced
that the company has been awarded the American Podiatric Medical
Association (APMA) Seal of Acceptance for ten of their running shoe
models. The APMA Seal of Acceptance Program recognizes products
that are beneficial to foot health and
of significant value when used in a
consistently applied program of daily foot care and regular professional
treatment. The Seal of Acceptance
evaluates footwear, materials, insoles, hosiery and equipment.
Founded in 1912, the American
Podiatric Medical Association represents the nation’s leading foot
and ankle physicians. The Association has component societies in 53
locations in the U.S. and has a membership of more than 11,500 doctors
of podiatric medicine.
Soles4souls
Announces Partnership
with Liberty Tax Services
Ryan Hall
Soles4Souls has announced the creation of a national partnership with
Liberty Tax Services. Customers
can use coupons to receive a $20
discount on their 2008 tax services
and Liberty Tax will donate an additional $20 to Soles4Souls for each
coupon used. In addition, at participating locations customers will be
able to donate their “gently worn”
pairs of shoes. All shoes donated to
Soles4Souls will go directly to helping needy people in the U.S. and
around the world.
Saucony Presenting Sponsor of 2009 USA
National Cross Country Championships
Saucony, Inc has signed on as a sponsor of the 2009 USA Cross
Country Championships and World Cross Country Team Trials.
The Montgomery County Road Runners Club at the Agriculture Farm Park in Derwood, MD will host the championships
on February 7th. In addition to the national titles up for grabs,
open and junior men and women will qualify to represent
Team USA at the IAAF World Cross Country Championships
March 28 in Amman, Jordan.
According to the National Federation of State High School
Associations (NFHS), over 400,000 high school boys and girls
participated in cross country in 2007-08, an increase of nearly
12,000 from the previous year. To help prepare these young
runners prior to the start of their high school cross country
season, the brand launched Saucony XC 2008, a nationwide
grassroots program. The initiative, which will continue in 2009,
includes a nationwide Spike Night event series; an online partnership with Flotrack; a special training insert with Running
Network LLC; and a print advertising campaign.
Highlights of the 2009 USA Cross Country Championships
will be televised on February 15th during ESPN coverage of
the Tyson Invitational. The championships will consist of six
cross country championship races for men’s and women’s
categories with national titles on the line for junior, masters
and open divisions. The nation’s premier cross country event,
the Championships will feature $47,000 in prize money. For
more information on the 2009 USA Cross Country Championships visit usatf.org.
New Balance CEO Rings Nasdaq Bell in Honor of NB Collegiate Invitational
Rob DeMartini, New Balance, CEO
and Dr. Norbert Sander, Armory Foundation executive director, presided over
the ringing of the NASDAQ closing bell
to highlight the New Balance Collegiate
Invitational held February 6–7th, 2009.
The Invitational is the largest indoor
collegiate track & field meet in the United States and was held at the New Balance Track & Field Center at the Armory
in New York City.
The Armory Foundation, celebrating its 100th anniversary in 2009, is the
home to the New Balance Track & Field
Arena and the fastest track in the world.
Over 100 indoor track meets are held
every year attracting over 500,000 visits
by running enthusiasts from all over the
United States.
Saucony Signs
Endorsement Deal
with U.S. Olympian
Anthony Famiglietti
Saucony, Inc. has signed two-time U.S. Olympian Anthony Famiglietti to a multiyear endorsement contract. Famiglietti, the 2008 U.S. Olympic Trials champion,
competed for the U.S. in the 3,000 meter steeplechase at both the 2004 Athens
Olympic Games and the 2008 Beijing Olympic Games. Famiglietti, whose versatility extends to the roads as well, is the 2007 U.S. 8K and 2006 and 2008 U.S. 5K
champion. In 2007, Famiglietti, known to the running world as “Fam,” ran the fastest 5,000 meters ever by an American on U.S. soil (13:11.93).
Famiglietti’s first competition in a Saucony uniform will be at the 2009 USA
Cross Country Championships, presented by Saucony, on February 7th in
Gaithersburg, MD.
performancesportsretailer.com | PSR Soft Sell
FEATURE
For years, performance running shoe
brands have segmented their product
lines in distinct product categories.
Asics uses structured cushioning,
cushioning/neutral and motion control.
New Balance uses motion control,
lightweight, stability and neutral
cushioning. At Mizuno, the categories are called neutral, support and
control. Saucony uses light stability,
stability, ultimate stability and neutral
to segment their product line.
As the naming conventions evolve to
match the way brands differentiate themselves in the marketplace, are retailers and
consumers still working with the same understanding of cushioning?
Scott McCoubrey, owner of Seattle
R u n n i n g Company, Seattle, WA says, “Blurring lines, that’s
one adjective you could use. The reality is they [footwear
brands] are addressing more individual biomechanics. Originally, you had these three categories that made it easy to package in a nice tight presentable marketing piece to help the
consumer. Brands are trying to address individual biomechanics and coming from that angle now as opposed to pigeonholing [shoes] into three categories. Their shoes are designed for
a specific reason from a biomechanical standpoint.”
At Brooks Sports Inc., Rick Wilhelm, vice president of specialty retail sales explains, “Look at the growth of three categories—stability, neutral and motion control. Over the last few
years, the motion control category has shrunk, stability is the
fastest growing and the neutral category is certainly large.”
While performance specialty retailers continue to set up their
shoe walls to reflect the existing categories, Jay Duke, president
Karhu Footwear sees a change coming. “From the perspective
of research, the lines are blurring and in the future [definitions]
will blur in terms of what it means to be stable vs. neutral.”
Improvements in materials used to provide cushioning have
given designers more flexibility. Eric Vassall, senior product
manager for running at New Balance comments, “Lighter
weight compounds can give you the same amount protection
and cushioning under the foot, but also allow for longevity as
well. Companies are also looking at materials that are environmentally friendly.” He continues, “Everybody wants cushioning. The main thing is how you are applying that to the shoe to
help from a functionality aspect.”
8 PSR | performancesportsretailer.com
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Wilhelm notes that Brooks BioMoGo insole material is inherently more stable than the previous EVA [Ethylene vinyl
acetate] the company used. He says, “BioMoGo offers more
durability and inherent stability so we are able to use in it in a
shoe like the Gylcerin. The Glycerin 7 is more supportive than
the Glycerin 3 was from a biomechanical point of view. You get
a good cushioning component, yet you are still bringing more
stability into the shoe so more people can wear it.”
Wilhelm sees even more growth opportunities for the neutral
cushioning segment. He says, “As more runners have entered
the mix, the neutral category has grown. For some of the new
runners coming in, running is just part of their weekly exercise. They may practice yoga, cycle and hike. Stores aren’t so
tied into trying to fit motion control or stability shoes, because
the new runner isn’t running as much as the average runner
was 10 years ago or even 5 years ago. The neutral shoes are
just inherently more stable than they were just 5 years ago.”
Consumers are doing their own product research more than
ever before. While they are better informed, specialty retailers still play a crucial role in matching the individual runner’s
biomechanical profile and running habits with the appropriate
footwear. Vassal sees more opportunity for the neutral cushioning segment ahead. He says, “In running specialty, their biggest growth opportunity is with new runners coming into their
stores. Those people are coming in for the educational piece.
They want to understand their gait cycle so they can be put
into the proper shoes. They want to be fitted correctly and understand exactly what’s going on with their biomechanics.”
“Throughout
the years the
consumer has
said I need,
Cushioning,
cushioning,
cushioning.
Scott
McCoubrey
owner of Seattle
Running Company,
Seattle WA reports
that the Mizuno Wave
Rider, Brooks Glycerin 7 and
Asics Gel Nimbus (shown) are the
top three selling shoes in the neutral
cushioning category.
First Steps
Lately, cushioning has taken on an additional role in selling performance running shoes. The first impression a runner
gets when they put their foot in the shoe
is becoming a hard fought battleground
waged on the retailer’s floor.
Vassall says, “There’s some instant
gratification when the person puts on
a shoe for the first time and says. ‘Wow
this fits great.’”
Footwear brands are using inserts,
liners and softer materials to capture
that reaction. Vassall says companies
are paying a lot of attention to anything
that they can do to give consumers that
sense of gratification.
McCoubrey points out that measure of
a shoe’s cushioning comes both in the
store and later on the road. He explains,
“Good fit out of the box is going to relate
to a better fit down the road as well.”
If you can
give them the
cushioning
they expect
to feel, but
protect them
with the right
stability in a
pair of shoes,
they will keep
coming back.”
He says runners are looking for materials that feel like they conform to the ball of
the foot and the heal counter and not something that pushes against or resists their
foot. He adds, “That’s the sensation the customer is looking for as opposed to the
soft cushy shoe. That’s why you have to get them to run in the shoe. They can get a
sense of ‘is that shoe right for me? Is it too soft and slowing the roll of my foot down?
Do I need a stiffer shoe?’”
Creating a shoe that offers luxurious feel the first time its put on may come at a
price in terms of future durability. Wilhelm explains, “ There are ways to cheat that
initial store feel.” He continues with a warning, “If those materials break down in
20-30 miles then you are cheating a purchase, but you can only cheat the consumer
once. The employees on the floor understand that.” Looking ahead, Brooks is working on a new foot bed insert that comes from a systems approach and acknowledging the interplay between sock, insole and the footwear itself.
As the number of new runners expands, the neutral cushioning category is certain
to remain a significant force in performance running specialty stores.
Wilhelm closes, “Throughout the years the consumer has said I need, ‘cushioning, cushioning, cushioning.’ If you can give them the cushioning they expect to
feel, but protect them with the right stability in a pair of shoes, they will keep
coming back.”
performancesportsretailer.com | PSR FEATURE
Building a
Despite 95 years of history in the athletic
footwear business, it has been the last
eight years that have created the most
buzz and business growth for Brooks
Sports. After languishing for decades as just another athletic footwear company, Brooks Sports saw new life in the 70’s
after the dawn of the first running craze put millions of Americans on the road to aerobic health. Brooks Sports, which was
founded in 1914, launched its first performance running shoe,
the Villanova, in 1976 and introduced its first running apparel
line in 1981. It wasn’t until the launch of its first iconic shoe,
the Chariot, in 1982 that the brand established itself at the core
of the running market by introducing its Diagonal Rollbar motion control technology that better addressed the issue of overpronation that affected legions of runners.
10 PSR | performancesportsretailer.com
How Jim Weber
and the Brooks
Team Rebuilt
Their Brand
By Lou Dzierzak
Fast forward twenty years and the early years of the new millennium saw a Brooks brand that had changed hands a number
of times (Wolverine World Wide acquired the company in 1981,
Norwegian investment group Rokke Group / Aker RGI in 1993,
J.H. Whitney in 1998) and a legion of industry managers (Jerry
Turner, Tom Carmody, Killick Datta, Helen Rockey, Bruce Pettet
and Eric Dreyer) before settling into perhaps its most stable
and successful era to-date under the guidance of current president and CEO Jim Weber, who joined the company in 2001.
Mr. Weber, a former U.S. Bancorp Piper Jaffray executive that
also held key positions at Coleman, O’Brien International and
Sims Sports, brought stability to the brand by focusing the
Brooks brand on performance running. “When I came in, I was
the fourth CEO in two years,” quips Mr. Weber. “The bank had
called the loan. We had big inventory problems. Most of the retailer discussions we had were about sending product back.”
The brand that had started its first
turnaround in 1994 under Helen Rockey’s
leadership with the launch of the legendary Beast and its first shoe over $100
(The Truth, $109), by 2000 had fallen prey
to the prospect of easy money—and average retail selling prices that were just
over $50. Rockey had dealt with similar
circumstances when she first arrived
at Brooks after previous management
allowed the once-venerable running
brand to find its way into Kmart stores
and retail price-points as low as $20.
While Rockey first established the move
back to running as a core focus, it was
Weber that completed the task, quickly
terminating all product and retail chan-
nels that got in the way of the mission to
establish Brooks as a running specialty
brand once again.
“When I came into Brooks, like many
athletic footwear brands, we were in all
the categories from performance running product, entry level running product, court shoes, basketball shoes, to
athletically styled family footwear at
$29.99 and $19.99 price points,” says
Weber. “We stepped back and looked at
our business at a global basis. We were
everything to everybody. We’re sixth or
seventh in everything we do in terms of
brand share. We’re not that relevant and
meaningful or important to the retailer.”
That move meant cutting the brand’s
product line by 60% that first year and
walking away from $20 million in business done through the big-box sporting
goods channel.They simply focused on
making the best running product they
could. The result: Brooks now does about
76% of its business in the specialty channels of distribution compared to 35% in
those channels in 2000.
The move required real leadership and
a large dose of risk. A battered brand,
a flat running market and inconsistent
product were all liabilities. Still, Weber
and his team saw running as key to the
brand’s resurgence. “We felt that running
was the center of every fitness activity
and the center of every athletic sport for
the most part,” he says when describing
the strategic thought process back then.
“If we could carve a niche here and be
meaningful in running, we don’t have to
beat anybody. We could be a small niche
player. This is a great category to do that
in, so we caste our lot in the running category.”
Weber’s background was not in footwear or apparel, but that may be the one
key to much of the company’s success
in this decade. He often suggests he
brought an “equipment mentality” to
the business. In previous years, the CEO
suggested that Brooks was in the business of building equipment, a position he
feels no one else owned at the time. The
point makes a lot of sense when thinking about a runner and the “equipment”
they require. No ball, no club, no racket,
no weights, backpack or hoop; simply a
pair of shoes. So why not make the best
equipment for the runner?
“We treated the shoe like a piece of
equipment,” says Weber. “We were going to bake ‘run-ability’ into every shoe
we built. I was inspired around this focus by walking the mall stores and seeing running product. When you looked
at what’s on that wall maybe half the
product was lifestyle. It was fashion, lifestyle, casual product that wasn’t technical running gear, but was still in that
category. We felt strongly that if we built
run-ability into every product, while not
everyone is going to run on it, but if they
did, at mile 15 they wouldn’t be blistered,
bloody, injured or have sore knees. If everything we built had run-ability built
into it, we’d begin to establish credibility
and authenticity for what we stood for
as a brand.”
Kris Hartner, the owner of Naperville
Running Co. in Naperville, IL, also sees
the commitment to product as key, “The
number one thing has been product. The
one shoe they had before was the Beast
and only a pretty select group of people
will run in that kind of shoe. But with the
Adrenaline, they have a silver bullet kind
of shoe. It’s kind of the gold standard.”
Weber bet on another running boom.
And he got it. The most recent estimates
suggest that more than 25 million people
consider themselves frequent runners
today, a number that has grown rapidly
in the new millennium, thanks in part
to increased participation by women,
many of whom first got involved in “run
for a cause” races. Many of those participants have seen running become part of
their lifestyle and have progressed from
run/walk races to 10K’s, half-marathons
and marathons. The current recession is
also expected to have less impact—and
possibly a positive effect—on running as
an activity.
“When you look at 5–10 years, we
think the trends that are driving this fitness lifestyle are fundamental and longterm,” says Weber. “We are very optimistic about this category continuing
to grow in participation levels. The most
leverage you can get is to be relevant,
performancesportsretailer.com | PSR 11
FEATURE
connect and bring products from a brand point of view that
syncs up with that lifestyle. That’s the biggest opportunity we
see. No question about it.
“In the short term, with this economy and the pressures on
the industry and at the retail level, it’s clearly getting more
promotional. I think the retailers are going to edit the lines
and the styles they carry with a vengeance. It is going to be
a market share game about getting on to the shelf and being
meaningful at retail. There’s going to be a shakeout.”
In a recent release regarding 2008 retail sales figures, Fleet
Feet, Inc., which has over 90 franchise locations in the U.S.,
reports that Brooks is now in a virtual “dead heat” with archrival ASICS for the top share position, which is estimated to be
in the mid- to high-20 percent range.
“The core Brooks management team is strong and the personnel has been consistent over a long period of time,” says
Jeff Phillips, president of Fleet Feet Inc., himself a former sales
manager at Brooks. “They have been innovators in customer
relationship management—empowering the people in the organization who are closest to the customer to make decisions
resulting in Brooks consistently being the easiest company for
our stores to do business with. This is a simple formula, but it’s
impossible to overstate the impact this has had on our ability
to grow our business with Brooks.”
That consistency and focus are the attributes that many expect will help Brooks prevail and grow in the years ahead in a
slower economy.
Brooks’ consistency of message resonates with the consumer and also with the specialty retailers it services. Retailers point to a brand and corporate philosophy that permeates
every level of the organization as a key to success at Brooks.
“They’ve been very consistent,” says Curt Munson, owner
of Playmakers in East Lansing, MI. “That’s really key. If you
make real radical changes, it gets confusing… The apparel
line has just been a really nice complement to their footwear
line. And it’s the same thing as footwear; they’ve been consistent and done the basics well….They’ve also shown they’re
committed to running retail, which was evident when they
got out of the big boxes…They’re just great to work with all
the way from the president of the company, Jim Weber, to our
rep. You see the same philosophy throughout the company
and it’s been that way for as long as I can remember. They
provide exceptional customer service and really do partner
with specialty retail customers.”
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Ken Sung, a co-owner at Gazelle Sports in Grand Rapids, MI,
also supports the notion of consistency and trade channel as
key, “With the new Brooks, consistency of product has really
carried the brand. Key styles such as the Beast, Arial, Addiction and Adrenaline have been the staples of the volume for
us. They’re very integrated with our grassroots events. They
participate in a lot of the internal marketing as events and staff
incentives and that definitely helps our sales with them. You
can tout your brand in ads in Self, Shape or any of those big
magazines, but those types of things have a much better return for us.”
But there are two types of “green” that concern the Brooks
team these days, both fiscal and environmental.This includes
a commitment in 2008 with the launch of the BioMoGo midsole, which is expected to biodegrade 50 times faster than
conventional athletic footwear midsoles earning the brand
high marks from both environmental and industry groups. Weber says that they’ve had their product teams looking for ways
to reduce the impact of what they build on the environment.
“A lot of our younger employees were asking a lot of questions so we created a team and put a stake in the ground,”
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says Weber. “Sustainability needs to be right in the center of
what we do. It needs to be part of our DNA. The reason we felt
so confident about that was because runners care. It’s not just
the right thing to do or what we personally feel strongly about,
it’s going to be fundamentally expected in this space. We put a
stake in the ground and within 4–5 months it was on the cover
of every business magazine.”
Given all that is happening with the U.S. economy and the
impact of that pressure on the consumer in general, it would
appear that the Brooks “Run Happy” campaign might be
a tougher sell in the market these days. Weber doesn’t see
it that way, instead focusing on the experience of running
rather just a product. A lifestyle. A connection. A community.
“In this tough economy the news isn’t all that good. Retail
hasn’t been vibrant everywhere, everyday. When you are having a tough day, put on the shoes and go for a run. That’s what
it’s all about. We’re selling the run. We’re trying to keep that
torch in front of people. This is a lifestyle that is so positive for
people through thick and thin. This is a wonderful, healthy lifestyle. Our mission in 2009 is to inspire people to get out in run
at every level.”
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performancesportsretailer.com | PSR 13
FEATURE
Conversations
withcustomers
By Jeff Risley, Vice President, Barkley
Using Social Media to Build Relationships
The most valuable asset in business today may be a customer relationship. People do
business with people. So building relationships with people (customers) based on mutual respect, trust and ongoing dialog are key to business success.
Thanks to the Internet, building customer relationships is easier, faster and more
affordable than ever. Social media tools like blogs, podcasts, message boards, online
videos and social networks give your customers a voice and give you a method to
engage and encourage them.
Where to begin? First, do your homework. Spend time in the social media space
and get familiar with its norms and behaviors. Focus on your passion for sports or the
outdoors and not on technology. There are a variety of tools to choose from to converse
and stay connected.
Blogs
Blogs are the printing press of today.
Technically, a blog (short for web log) is
a web page authored by an individual or
a group. It’s updated periodically with
posts that are in reverse-chronological
order. The posts are generally filled with
links to other sources of information. The
blogosphere is the collective community
of all blogs.
There are millions of blogs and millions of blog readers. Men and women,
young and old, and of every race and
creed, participate in blogging today. A
2008 Universal McCann study reported
184 million people world-wide have
started a blog (26 million in the U.S.) and
346 million world-wide read blogs (60.3
million in the U.S.).
For businesses—especially small businesses—the blogosphere is an excellent
opportunity to showcase your company,
connect with customers, drive them to
your Web site and influence their decision-making.
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Start your own blog. Free or inexpensive online blogging tools like Blogger
(blogger.com) or Typepad (typepad.
com) make it easy to get started. Blog
about your passion or your store focus.
Post about your latest run/marathon,
trip or athletic milestone. Encourage
your customers to do the same. Describe
your latest products or post pictures of
them. Just be you. Be authentic.
If you’re not ready to blog, follow
other bloggers who share your passion.
Go to Technorati (technorati.com—a
blog search engine) and search for
“running” or “marathons,” “10k’s” and
“triathlon” blogs. Bookmark them and
read them daily. Or better yet, use a
tool called an RSS reader like Bloglines
(bloglines.com) or Newsgator (newsgator.com) to subscribe to your favorite
blogs so the new information comes
to you each day.
About the Author
JEFF Risley
VP, social media analyst, Barkley
Phone: 816.842.1500
Jeff Risley has 17 years of
communications experience
helping organizations
successfully plan and implement
public relations and marketing
communications initiatives. Jeff
regularly blogs about public
relations, social media and
marketing at risleyranch.blogs.
com. After spending the first
half of his life outdoors hunting,
fishing and skiing, Jeff shares his
joy of camping and snowboarding
with his family.
Message Boards
Podcasts
Social Networks
Also referred to as forums, message boards are the granddaddy of
social media. There are more than
40 million active message boards
today. Twenty-eight percent of
online consumers participate in forums and message boards, according to Forrester.
Unlike blogs, each message
board is generally focused on one
particular topic, like automotive,
parenting, health, stocks/finance,
etc. Boards are heavily moderated,
both by forum webmasters and
participants, so off-subject postings are usually deleted quickly.
It’s these strict rules that make
message boards so useful. If you
need a practical answer to a problem, message boards are the place
to turn. Sites like Epinions (epinions.com) aggregate message
boards and user feedback under
various topics—like “running”
or “camping & hiking” or “mountain biking”—making it easy to
find information.
Podcasting is a blog cousin. It’s
free-form content in an audio file. It
can be subscribed to via RSS feeds,
like a blog, so it can be downloaded
automatically to your computer or
portable music player to listen to
whenever you want.
Creating and listening to podcasts is not as popular as blogging
or even online video. However, it
can be just as effective. Like bloggers, podcasters are always looking
for content for their shows. You can
help them. Search directories like
Podcastalley (podcastalley.com) or
iTunes (itunes.com) for runningrelated podcasts. Subscribe to them.
Get to know what the podcasters
like to discuss. Then offer yourself
as an expert source on running.
Well before the Internet, social
networks existed offline. They are
simply a group of individuals tied
to one another by some type of
relationship—perhaps activities,
values, friendship, kinship or commerce.
The Internet supercharged and
exponentially expanded social
networks. So now, no matter what
your interest, you can find an online group that shares it. According to comScore, the use of social
networks worldwide has grown 38
percent in the past year.
Myspace and Facebook are the
big social networks today. With
millions of members each, these
sites are by far the most popular.
But they may not be the most relevant to your customers.
The power of a social network
lies in the community’s ability to
connect and share. Often, smaller,
niche social networks are just as
valuable to participants as the big
networks. Sites like Run Diva Run
cater to female runners and trailrunningblog.com offers tips about
running on dirt trails.
Some brands are creating social
networks themselves. Two years
ago, Nike launched Nike+, a technology that tracks a person’s running data—like speed, mileage and
calories burned—and syncs it with
an iPod. It then ties that technology to a social network (nikeplus.
com) to connect runners around
the world. Now runners can network with other runners online,
and Nike gets the credit for bringing them together.
SOFABIN from SOS
Video-Sharing
Just about everyone has seen or
heard of YouTube. According to
the Online Publishers Association,
24 percent of Internet users access
online video at least once a week,
and 46 percent watch at least once
a month.
A search on YouTube for “running
shoe” returns thousands of videos.
By creating your own channel on
YouTube, your business could post
videos of your staff running or create demonstration videos about
your latest gear. Customers appreciate your expertise inside your
store; why not make that available
online?
The SportsOneSource Group understands that your professional network of contacts is your most valued career asset. Because of that,
we have created the first online
business networking site for Sporting Goods Industry professionals atSOFABIN.com the Sports, Outdoor,
Footwear and Apparel Business
Information Network. Our mission
is to connect Sporting Goods Industry professionals from around the
world and assist them in accelerating their collective successes. In a
global economy and industry, your
professional competitiveness relies
on easy access to insight and advice
from resources you can trust. Get
started today by becoming a part of
SOFABIN.com.
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