April 2007 - SportsOneSource.com

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Performance
Sports
ts
RETAILER
News and Information for the Running and Triathlon Market
A SportsOneSource Trade Publication
April 2007
Reebok Launches $30 Million
Running Ad Campaign
Newton Running
Goes Live
Newton Running is a new performance
footwear running company founded by a
group of elite runners, coaches and
inventors in Boulder, CO. The company
has based its shoe design on patented
technology inspired by Sir Isaac Newton’s
elemental laws of motion. In late March,
the company went live with its e-commerce
website and in the first three weeks
sales were 45% ahead of internal company projections.
Reebok is launching a $30 million multimedia marketing
campaign in the U.S. called “Run Easy.” The campaign is
designed to motivate runners to have fun with their exercise.
Reebok noted that according to a recent survey orchestrated by
GfK Custom Research, a staggering 87% of Americans have
been put off the sport of running for a variety of reasons including
the fear that they need to be competitive in order to participate.
The multi-faceted movement features celebrities from around
the world showing how they “Run Easy,” including basketball
legend Allen Iverson, soccer standout Thierry Henry, track and
field stars Carolina Kluft and Aries Merritt, football icons Vince
Young, Chad Johnson and DeAngelo Hall, tennis phenom Nicole
Vaidisova, acclaimed actress
Emmanuelle Chriqui, cricket stars Rahul Dravid and MS
Dhoni and street skateboarder Stevie Williams.
Of particular note to running specialty
retailers, Newton running shoes will available
for purchase exclusively through Newton’s
website. The company anticipates that it will
maintain this distribution strategy for the
foreseeable future. A company spokesperson
told Performance Sports Retailer that the
company decided to use the direct channel
initially, because they are targeting early
adapters, primarily in the triathlon market.
Newton also recently inked a deal with
North America Sports, the production
company behind eight different Ironman
events in 2007. Newton will be on-site at
all eight NA Sports events with demo
shoes for the public to try.
The first phase of the “Run Easy” movement will feature
several attention grabbing, Out of Home executions including
edgy messages such as “Run + Puke + Run = Crazy” and
“Why Hit the Wall? It Hurts” as well as digital advertising on
high profile websites worldwide. The Out of Home executions
will be located in high-traffic areas in key global cities.
Simultaneously, eye level media will also be used to spread the
Run Easy philosophy and encourage consumers to use text
messaging or SMS to join the movement. One of its poster ads
takes a swipe at Nike’s “Just Do It” slogan with the message
“What are you just doing? Run easy.”
DeAngelo Hall and Chad
Johnson run away with
Rebok’s new ad campaign
To further bring the “Run Easy” movement to life, Reebok
will sponsor new running events that celebrate the joy and
fun of running such as “Bay to Breakers 12K” in San
Francisco, CA on May 20th, and the “Peachtree 10K Road
Race” in Atlanta, GA on July 4th.
Extends Sponsorship of Brooks-Hansons ODP
INSIDE PSR: ■■ Brooks
Running Specialty Retailers: Public Relations for
Running Specialty Retailers
■ Influential Consumer: A Look at the Women’s
Running Market
■ The Doctor’s Office: Insoles and Orthotics
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EDITORIAL
Group Editorial Director
Judy Leand (646-654-5058)
[email protected]
Managing Editor
Kris Versteegen (704-987-3450)
[email protected]
Performance
Sports
ts
RETAILER
News and Information for the Running and Triathlon Market
CONTENTS
April 2007
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Contributing Editors
Lou Dzierzak, Andy Kerrigan,
Cara Griffin, Thomas J. Ryan, Matt Powell,
Dr. Paul Langer
ADVERTISING
Publisher
Samuel Wender (646-654-4464)
[email protected]
Account Managers
Robert Z. Feiner (646-654-4991)
[email protected]
Sam Selvaggio (646-654-7465)
[email protected]
Stephen Jones (888-233-8434)
[email protected]
News
4
■
■
President & CEO James Hartford
Chief Information Officer Mark Fine
VP Research & Development Gerry Axelrod
Director Information Management Ruben Desangles
Manager Database Operations Cathy Badalamenti
VP Business Development Bill Bratton
Director Business Development Neil Schwartz
Regional Business Manager Barry Gauthier
Controller, HR Manager Carol Wexler
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■
■
6
Brooks Extends Sponsorship of Brooks-Hansons Original Distance Project
Spira Footwear Sues USATF and IAAF
Under Armour Seeks Out Breast Cancer Survivors
Brooks Hires Liz Wilson as Director of Apparel Sales
Epstein Returns as Fila President
Reebok Sues Nike over Patent Infringement in ‘Free’ Line
■ Saucony Fights Child Obesity
■
■
Feature
Running Specialty Retailers
Other SportsOneSource Titles:
Sporting Goods Business
Hunting Business
Outdoor Business
The B.O.S.S. Report
Sports Executive Weekly
Footwear Business UPDATE
Outdoor Business UPDATE
Team Sports UPDATE
SGB UPDATE
8
12
Public Relations for Running Specialty Retailers
Influential Consumer: A Look at the Women’s Running Market
Departments
14
The Doctor’s Office:
Insoles and Orthotics
14
© SportsOneSource, LLC
PO Box 480156 | Charlotte, NC 28269
704-987-3450 | fax: 704-987-3455
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Specialty NEWSwatch
Brooks Extends Sponsorship of BrooksHansons Original Distance Project
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Brooks Sports Inc. has extended and
enhanced its partnership with the BrooksHansons Original Distance Project (ODP).
Kevin and Keith Hanson started the ODP in
1999 as a unique, grassroots training team to
restore and raise the bar of U.S. distance running. They recruit post-collegiate athletes
nationwide and give them the rare opportunity of living in a supportive, training-focused
environment where they are able to pursue
Olympic dreams and, more importantly, see
just how fast they can get. Team members are
provided employment, housing, coaching,
health care and running gear. Brooks initially
partnered with the ODP in 2003 to serve as
the exclusive footwear and apparel sponsor for the running team.
“We are so proud of the Brooks-Hansons ODP team and what they
represent for the sport,” said Brooks’ sports marketing manager
Jesse Williams. “Whether they’re competing at races, working in the
Hansons Running shops, helping out with community events or
blogging on brooksrunning.com, they inspire
all of us to embrace the run and have fun.”
Under the original contract, Brooks provided
the Brooks-Hansons ODP performance gear
and monetary support, which enabled them
to add a competitive women’s program in
2003. In addition to continued product support,
Brooks will amplify its team investment
under the extended contract by annually
raising financial support until it represents a
nearly 400 percent increase over original
contract levels. These boosted resources
allow coaches Kevin and Keith Hanson to
more effectively recruit top post-collegiate
runners with unique incentives, such as equal
performance bonuses for the team’s male and female runners.
Brooks will soon introduce a new Brooks-Hansons ODP apparel
collection—including singlets, tanks, shorts and more—for the
public to join in supporting the team. The spring 2008 collection
will debut early, in time for the Olympic Trials this November.
Spira Footwear Sues USATF and IAAF
Spira Footwear, which owns the
patent rights to manufacture
WaveSpring technology running
shoes, filed a lawsuit in Texas
against the regulatory bodies that
govern the 111th Boston Athletic
Association Marathon.
The suit contends the U.S.
Association of Track & Field
(USATF) and the International
Amateur Athletic Federation
(IAAF) are violating antitrust laws
by banning runners from using
racing shoes with an implanted
spring. Spira alleges that the rules
have effectively prohibited its ability
to gain market acceptance of its
technology since most elite runners
will not compete in Spira products
for fear of disqualification or sanctions by the USATF. The USATF
governs all competitive track and
field events and road racing in the
U.S. including the Olympic Trials.
The USATF and the IAAF ban
spring technology in footwear
because it gives a competitor “unfair additional assistance.”
Andy Krafsur, Spira CEO, told PSR that spring technologies may
help the average jogger run faster and make “the run more enjoy-
able,” but he doubts it makes worldclass runners run faster. He expects
spring technologies will eventually
gain approval and noted that it’s
“not unexpected” to see some resistance when technologies reshape a
sport. He notes, for example, that
oversized tennis racquets and oversized golf drivers were first thought
to be in violation of rules.
“What’s the last time you’ve seen
a wooden tennis racquet or wooden
driver? You’d probably have to look
in an antique shop,” says Krafsur.
El Paso, Texas-based Spira
announced that several of the top
Kenyan runners competing for
the Foot Solutions Racing team
plan to wear WaveSpring shoes
in the race, despite the ban. BAA
race director Dave McGilvery
told the Boston Herald the
marathon will abide by the rules
of the USATF and the IAAF, but
there is no mechanism in place to
check for banned footwear.
In 2006, Spira launched its “Banned in Boston” campaign,
offering $1 million to any runner who wins the Boston Marathon
in the “Banned” shoe and runs the risk of disqualification.
Performance Sports RETAILER
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Under Armour Seeks Out
Breast Cancer Survivors
Under Armour is hosting a national search for breast cancer
survivors whose stories of courage and survival illustrate why a
physically active lifestyle is so vital to a healthy life with or without
cancer. The search is the centerpiece of
Under Armour’s 2007 ‘Power in Pink’
campaign to raise awareness of the link
between physical activity and breast health.
Three women will be invited to Under Armour headquarters in
Baltimore, all expenses paid, for the opportunity to be featured in a
national “Power in Pink” magazine advertisement, in-store visuals
and an online campaign this fall that will serve as the kick-off to
Under Armour’s annual “Power in Pink” campaign.
The “Power in Pink” promotion was first conceived by Under
Armour in 2003 as an effort to help educate the company’s core
female athlete consumers about the important link between physical
activity and winning the battle against breast cancer.
“This is the first year that we are hosting a national search for
inspirational women to share their stories of survival with the rest of
the country,” said Steve Battista, Under Armour’s VP of brand. “We
are looking forward to launching our ‘Power in Pink’ campaign this
fall with our chosen breast cancer survivors to help shed light on the
importance of incorporating physical activity as a critical component
of a healthy lifestyle.”
Under Armour noted that this year over 211,240 new cases of
invasive breast cancer are expected to be diagnosed among women in
the United States. There are over 2 million breast cancer survivors
alive in the U.S. today and research from the American Cancer
Society has shown that vigorous athletic activity such as jogging
and participating in team or individual sports significantly reduces
the risk of developing breast cancer and if diagnosed, can make a
significant impact on the recovery process.
Brooks Hires Liz Wilson as
Director of Apparel Sales
Brooks Sports, Inc. has hired Liz Wilson
as director of apparel sales. Her major
responsibilities include strategically
developing and leading all aspects of
apparel sales, for both the running specialty and the non-running
specialty channels. She also sets apparel revenue goals and serves as
the sales liaison between the product team and the marketplace.
Liz spent the last 16 years working at SportHill in Eugene, OR. She held
many roles at SportHill, including national sales manager and most
recently sales director of national and international key accounts. She
helped develop SportHill from a company with seven styles when she
joined, to a company that now has many styles and programs including a
“Plus Sizing” program, as well as a kids and team apparel line.
Liz was a seven-time NCAA All-American. She competed in four
Olympic Trials, starting in 1992 running the 3000 Meters to most
recently at the 2004 Olympic Marathon Trials where she finished
13th. Still kicking strong, this past January, Liz won the Arizona
Rock ‘n’ Roll Half Marathon.
Performance Sports RETAILER
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Specialty NEWSwatch
Epstein Returns
as Fila President
Former Fila CEO Jon Epstein
Korea. In 1991, Yoon launched
has become president of Fila
the subsidiary Fila Korea and
USA, Inc., and will also overbuilt a network of franchise
see global product development,
stores. The subsidiary was sold
sales and marketing for the
in 2003 to Sport Brands
brand. The hiring follows the
International, but repurchased by
completion of Sport Brands
Yoon in 2005.
International’s sale of Fila to Fila
“Having been affiliated with
Korea Ltd. With more than 30
Fila for so many years, we are
years experience in the athletic Former Fila CEO
proud to have the opportunity to
footwear and apparel industry, and new president lead such a distinguished brand,”
Epstein has served in senior Jon Epstein
said Yoon.
sales and management roles
Also, Y.C. Cho, most recently
with adidas, Fila and Le Coq Sportif.
president of Fila Korea will relocate from
“Fila has tremendous upside potential Seoul, Korea to Sparks, MD to oversee
and we are very excited about its future” global operations and finance for Fila.
Epstein said.
Under the new leadership, Fila will
Also as part of the emphasize its heritage in the sportswear
transaction, Yoon-Soo category in traditional country club sports
(Gene) Yoon, chairman including tennis, golf and ski. In that
and CEO of Fila Korea, regard, the company plans to maintain and
has become chairman expand its affiliations with world-class
of Fila. Yoon has been professional
athletes
and
events.
associated with the Fila Additionally, Fila will leverage its strong
brand since 1984 when equity in the athletic footwear category as a
Yoon-Soo Yoon,
he served as the com- fashion-forward, athletically inspired
new chairman
pany’s first footwear lifestyle brand targeting a core 18-34 year
of Fila
sourcing agent in old consumer aspiring to urban culture.
Reebok Sues Nike over Patent
Infringement in ‘Free’ Line
Reebok International Ltd. has
filed a lawsuit against Nike, Inc. in
the U.S. District Court for the Eastern
District of Texas, claiming Nike infringed
on a patent arising from Reebok’s collapsible
shoe technology. The complaint identifies
several Nike men’s and women’s shoes that
Reebok claims infringe upon its patented
flexible sole technology, which also allows
shoes to be collapsed for travel or for
packaging. Infringing products include 11
different Nike shoes marketed under the
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“Free,” “Free Flex,” “Free Zen
& Now,” “Free Trainer,” and
“Free Trail” product names.
The Reebok patent protects technological
design features of a system that includes
flexible materials in the product’s sole. The
suit alleges that despite Reebok’s patent
protection, Nike “willfully and intentionally”
developed shoes that use Reebok’s technology. The U.S. patent was issued for
Reebok’s flexible sole shoe technology in
January of this year.
Saucony Fights
Child Obesity
The Saucony Run For Good
Foundation joined Massachusetts
Governor Deval Patrick in tackling
child obesity head on as he proclaimed
Monday, April 9, 2007 as “Run For
Good Day” in his state.
The Saucony Run For Good
Foundation presented a $10,000
Saucony Run For Good grant to the
locally-based DMSE Children’s Fitness
Foundation’s Trek USA East Coast
Relay at the Massachusetts State House.
The Saucony Run For Good Foundation
was created to address the growing epidemic of childhood obesity by offering
financial support to nonprofit organizations that initiate and support running
and fitness programs for children.
“As a company by and for runners, we
are committed to helping organizations
like Dave McGillivray’s Massachusettsbased Trek USA East Coast Relay that
so closely identifies with our
Foundation’s mission,” said Richie
Woodworth, president of Saucony and a
member of the Saucony Run For Good
Foundation Board of Directors. “The
Saucony Run For Good Foundation
hopes that our grants will make a difference for these programs and the children
that they serve, and will help reverse the
alarming trend of childhood obesity.”
On April 18, Trek USA East Coast
Relay will begin a 1,568 mile relay
run from Boston, MA to Florida to
raise funds for the DMSE Children’s
Fitness Foundation. The DMSE
Foundation, founded by Boston
Marathon
race
director
Dave
McGillivray, promotes youth fitness
and supports programs addressing the
rise in child obesity and diabetes.
Performance Sports RETAILER
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Can Nike “Just Do It?”
If anything, it would be the biggest threat to the athletic footwear
stores. But it could be healthy for the category as a whole if they
can really do a better job of engaging the customer and evolving
the marketplace to grow the market as a whole, which would make
all retailers a beneficiary. I think that’s their notion in opening
these retail stores. They have the wherewithal to change the market landscape and therefore are going to take the initiative to try to
do so.
— Jim Duffy, analyst at Thomas Weisel Partner
People are sitting back wondering how much they are going to be
competition and how much they’re still going to be partner. I think
it just depends on what these stores end up looking like, how big
they are, what the assortment really is... We’re just continuing to
talk to them about how they’re planning on doing it and making
sure it doesn’t have an adverse affect on business.
— Sporting Goods Retailer
I think the retail move is a very smart thing. Every retailer out
there wants to be a manufacturer. They all want to be in private
label and have their own brands. So when you have a brand like
Nike, why wouldn’t you do it the other way? You have a lot more
control over your destiny.
— Richard J. Heckmann, chairman of K2 Inc.
Performance Sports RETAILER
A lot of vendors who rely on channel
partners consistently complain that stores
don’t represent their brand or their product
the way they want them to. It’s probably
the next logical step beyond Niketown,
which were more like showrooms rather
than places where you sold a lot of stuff.
Now they’re going to want to sell a lot of
stuff… Nike’s bravado is what makes Nike
‘Nike.’ It’s an irreverent brand and in some of the
ways that it does business, it kind of personifies its
brand identity. If you were a brand manager, you’d say you want
your company to exude what you stand for. Yet in the day-to-day
reality of doing business, sometimes you’ve got to check your ego
at the door and create lasting meaningful positive relations with
those who in a sense are the ones that create your value…You have
to respect that the partners are not only who got you to where you
are, but are still the cash cow of your business. You can’t destroy
that relationship or create so much tension that they choose to go
in another direction, because then you almost create an Achilles’
heel to the whole strategy.
— Paul Swangard
director of the Warsaw Sports Marketing Center at the University of Oregon
I’m not sure that they have the same motivation. They don’t have
to make money in their stores. They’re a $19 billion company.
They can use the stores to showcase product and use it more as a
marketing vehicle. That’s what Niketown is. But there’s a difference
between a 50,000 square-foot Niketown as opposed to being right
in the mall competing for those same consumer dollars. When they
came out with Niketown 10 to 15 years ago, it was the same thing.
It’s just a flagship. We’re building them to have a laboratory to
make the brand better. But it wasn’t 50. The retailers bought the
argument back then. We’ll see what happens now.
– Sporting Goods Retailer
Specialty ANALYSIS
Nike recently outlined ambitious plans to
grow revenues by $8 billion in five years
to reach $23 billion by 2010. In his first
major initiative since taking over as CEO
in January 2006, Mark Parker unveiled a
long-term strategy to reshape Nike’s management structure, redefine relationships with
today’s fast-paced, digitally-driven consumer, and
add 100 stores worldwide (50 in the U.S.) in three
years. While some assumed the growth would come
from newer brands and acquisitions, 75 percent is expected to be
driven by the flagship brand.
The Nike brand will be reorganized into six categories – running,
basketball, soccer, women’s fitness, men’s fitness and sport culture
as opposed to three segments – footwear, apparel and equipment –
previously. The most controversial part involved its plans to open
its own stores. Some analysts believe Nike premium locations will
create excitement and test merchandising strategies to complement
wholesale distribution - mimicking successful strategies from
brands such as Apple, Coach and Polo Ralph Lauren. But sports
stores weren’t overjoyed that their largest vendor could become
more of a competitor.
“Nike has always believed they can run the business better
than any other retailer,” said one sporting goods merchant.
“They don’t think we’re necessary. They still need us, but that’s
just their attitude.”
Nike insists that opening its own stores can serve as a growth
catalyst for the specialty athletic retail industry.
“Becoming a better retailer will help us become a better
wholesale partner,” said Parker.
PSR polled a few industry observers to explore Nike’s bold strategy:
From my understanding it’s just going to be 100 stores and
primarily in only A type malls. From Hibbett’s standpoint, I don’t
think that bothers us. We like the cheap rent. To me, they did not
overdue Niketown so if they don’t overdue this - if they do in fact
only do 50 in the U.S. over a period of time and don’t decide to do
300 - I think it’s okay - at least from Hibbett’s standpoint. It also
helps the brand, because I’m sure they’ll being showing a lot more
product than any retailer chain. It will probably be a lot like
Niketown and help the brand become more popular.
- Mickey Newsome, chairman and CEO, Hibbett Sporting Goods
I think (Foot Locker) believes that they’re a vendor and a
manufacturer and not a retailer. And they feel Nike opening up
their own stores is moving kind of outside their core competency.
If you look at the Nike Goddess and the Niketown stores, they’re
not exactly great examples of fantastic forays into retail…But it’s
really not that many stores. It’s 50 in the U.S. If they really wanted
to own their own distribution, they would just buy Foot Locker.
– Wall Street Analyst
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Specialty FEATURE
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Public Relations for
Running Specialty Retailers
by Lou Dzierzak
R
unning specialty retailers have a hard-earned reputation
for product knowledge, customer service, and investing
time, energy and financial resources in supporting the
local racing scene. However, creating and funding an advertising
campaign to build awareness for a specialty running store is
becoming a challenge. Trying to identify media sources that
effectively target the local running community can be difficult.
Newspaper readership is down and the choices of television, cable
and radio channels are daunting. Many retailers are quickly realizing
the truth behind the advertising adage that states, “I know half of
my advertising budget is wasted, but I don’t know which half.”
Penn Newhard, co-founder of Carbondale, CO-based Backbone
Media notes, “The advantage of advertising is you control your message. The disadvantage is that it is expensive and people are constantly
being assaulted by thousands of advertising messages every day.”
8
Public relations can be a viable, effective alternative to traditional
advertising. Mike Geraci, Basecamp Communications, defines the
goal of public relations this way, “It’s basically establishing and
managing relationships with your publics; any group that has a
stake in the success of your company.”
Fendler Communication’s managing partner Sven Lee suggests
retailers consider the way consumers think about them. “They
need to ask themselves how many people understand the reasons
why they should shop there? If the retailers don’t voice their opinions
about why customers should shop, they aren’t doing their job.”
Understanding what to communicate is integral to success.
“You have to understand what you are marketing. Three important
topics are customer service, premium product selection and
localism. Those are the three brand messages that enable you to
sell premium gear and have people come back. Communicate
the fact that you have all this experience in the environment that
surrounds your shop,” notes Geraci.
Performance Sports RETAILER
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ROY VAUGHN OF KATCHER VAUGHN & BAILEY PUBLIC RELATIONS
in Nashville, TN is the Public Relations Society of America’s
Counselors Academy Chair. Vaughn offers these suggestions to
running specialty retailers who are considering hiring a public
relations firm.
In a metropolitan area, how can I find a public relations
firm that knows my business?
Don’t necessarily expect them to know your business and all
your nuances. It’s more important that they know their business
and how to translate that to your needs. By and large, the people
in our industry who are successful have to be quick studies. We
have to take businesses apart to understand them so that we can
translate them into terms our customers understand.
I’m not sure how much I want to spend. I’m trying to
determine how much this will cost?
Please, please be up front with what you have to spend.
Contrary to popular belief, from the firm’s side, we don’t rub our
hands together and say let me at that budget. That’s just not our
approach. It is fair to ask, say, what your budget is. What is
realistic? What are your expectations?
If you know that on the front end, you can make more sound
recommendations or it may be that your firm isn’t right. A smaller
firm or solo practitioner may be a better fit. So you really are
helping your cause by giving them an understanding of your
budget and what can be done with it. In the end, the client has to
feel like they are getting good solid value and the firm has to feel
like it is being fairly compensated.
Newhard adds, “You need to find the strong suits for the retailer
and flesh out a plan that supports and bolsters those key elements
and links them to the consumer. We look for areas where we could
find solid examples of their expertise and the services that made
them special.”
Contributing an “Ask the Expert” column in smaller community
newspapers is one way to create awareness and credibility.
Newhard reports, “Linking the retail shop with knowledge and
expertise is very appealing to the consumer.”
Partnering with government agencies, like the local parks and
recreation department, or nonprofit organizations to promote
public service announcements are some ways to generate publicity
for a retail store. Geraci explains, “It’s not a direct product plug,
but you get recognition for supporting local issues. The government
agency may help with production costs.” He adds, “Make sure
local newspapers understand your business milestones—anniversaries,
1,000th customer or events. That gives you permission to tell the
Performance Sports RETAILER
Why can’t I have one of my managers handle PR? Do I really need an outside firm?
It’s akin to a public relations firm trying to have a tent sale.
Buying all the merchandise and handling all the nuances of inventory, staffing and everything that goes into the relationships with
manufacturers; a PR firm would be pretty poor at that.
Think of it this way. Because public relations and media relations is not what I do, I might go ahead and rely on an outside
resource so I can focus solely on the operations part of my
business where I can have the most effect.
By placing public relations responsibilities in the hands of a professional, it remains a top priority. It’s not going to fall to the bottom
of the list. That’s the danger of trying to handle it in-house. You
ask an employee, ‘Did you get to that?’ and they say they will
tomorrow. Sometimes you can handle it, other times it slips.
Can investing in public relations really make a difference?
It’s been proven that publicity and media relations can drive
business.
I would encourage the storeowners to think of public relations
as more than just media relations and publicity. It is about creating relationships with your customers. As the relationship
matures, the PR firm will bring you other ideas that create value
and address needs. That’s really the way it should work.
9
Specialty FEATURE
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Working with local writers you are building your brand
awareness for the retailer through third party placement
and endorsement. The credibility of an editorial
placement over an advertisement is proven.
whole story about the company. Find ways and vehicles to
communicate those messages in a newsworthy way.”
Getting the store’s name in the newspaper or local news
broadcast shouldn’t be based on a reporter’s luck finding you.
Contacting media sources and nurturing relationships makes it
easier for a deadline stressed reporter to rely on you when needed.
Geraci offers, “The primary goal is to open and nurture a relationship
with your local media. That doesn’t cost you anything; it’s part of
what you are already doing with your customers. My advice is to
treat your local media like your best customers. Give them
heads-up about new products and technologies. It’s not spin, it’s
establishing yourself as an expert source.”
Newhard suggests working with local freelance writers.
“Working with local writers, you are building your brand
awareness for the retailer through third party placement and
endorsement. The credibility of an editorial placement over an
advertisement is proven.”
At its best, the relationship between retailer and customer is more
than a transfer of legal tender. Lee states, “Retailers must get
connected to the local community on an emotional level so they
won’t pick the brains of the specialty retailer and then go to Dick’s
to make the purchase.”
Some specialty retailers may be adept at creating public
relations strategies. The challenge is finding time and
”
resources to properly execute it. Newhard, Lee and Geraci all
agree consistency is the key to successful campaigns. “It’s
most effective when it is a full-time campaign. You have to
tend to it regularly. It’s a matter of budgeting your time and
staying consistent,” says Geraci.
Adding public relations costs to an already tight operating
budget requires some form of measurement to justify the expense.
Newhard suggests, “The number of dollars allocated to a marketing
campaign vary widely. In terms of looking at some kind of ROI,
look at comparative values like the amount of press coverage you
got compared to the amount of advertising you would need to get
to that level.” He adds, “Most important, when you make an
investment like this you have to close the loop. Make sure the
message ties back into the brand.”
Whether handled in-house or with hired help, public relations
can be a powerful communications tool to reinforce relationships
with long-time customers and introduce beginners to the store’s
product selection and services. Newhard suggests there are definite
benefits to using an experienced public relations expert from time
to time. “It’s important to bring in other elements that will push
you. Sometimes comfort zones are established and bringing other
people in can bring in new ideas. It is an exciting time for retailers,
because they are tons of opportunities out there. Thinking out of
the box, you can build things pretty quickly.”
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Specialty MARKETwatch
Influential Consumer:
12
A Look at the Women’s
Running Market
by Cara Griffin
D
iscerning and dedicated—two words that sum up not just
runners in general, but specifically the prototypical women’s
running customer. With vendors and retailers reporting
continuing growth in women’s running sales, the differences between
the ways the two genders make purchases are becoming clearer.
“Our business has been been 55 to 60 percent women’s for a few
years now,” says Jeff Phillips, president of Fleet Feet. “In footwear,
we sell the same styles to men and women, but on the apparel
side—which is 60 percent women’s for us—women really drive
the apparel business.”
According to Adam Kemist, owner of The Runners High, a
two-store chain in Northern, CA, his customer base is slanted 55
to 45 percent in favor of women, and the amount of time women
spend shopping in the store is disproportionately high.
“Women are asking more questions and that’s great,” says
Kemist, whose shops place a special emphasis on footwear and
shoe-fitting. “Where men will choose from three or four pairs that
we bring out, women can often look at three to nine pairs.”
The anecdote reveals a perhaps obvious notion: men and women
shop and buy differently.
“Our business traditionally had been a larger percentage men’s,
but we have seen a huge push the past four or five years to having
over 50 percent of our customers, closer to 65 percent are women,”
says Amanda Charles, GM and apparel and accessories buyer at
the Boulder Running Company. “Whether it is women buying for
themselves or for others, they are dictating what we sell.”
“In apparel, a little bit of fashion is influencing it,” says Charles.
“Boulder is a huge running community and women are looking for
new technology. The key with women’s apparel and footwear is that
it needs to catch the eye. Consumers want that nice tactile experience.”
The story is the same across the board. At Brooks, a balance
that was once 55/45 in favor of men at key retail accounts is
now shifting in favor of women. At Asics, women’s sales are
outpacing men’s.
“The impact of the women’s business on the industry has been
the single largest driving force in its growth,” says Jim Monahan,
VP of footwear at Asics. “Our women’s growth has been outpacing our men’s for the last two years.”
While it’s hardly a secret that a trend towards “cause-related”
race participation has spurred participation growth in women’s
running over the past few years, the resulting shift is continuing to
evolve towards a consumer who is not only more female, but is in
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“
The key with women’s
apparel and footwear is
that it needs to catch
the eye. Consumers
want that nice
Photo courtesy of New Balance.
tactile experience.
some cases less hardcore, and increasingly interested in products
that cater to an overall active lifestyle.
“We’ve noticed a huge increase in business through the Avon
Breast Cancer Walk,” says Charles. “We host clinics and training
and there is a huge prevalence of women involved in those events.”
Kemist agrees, “We certainly have customers in the store that we
may not have had in the past, people who are new to the sport.”
And these “newbie” consumers are purchasing high performance
items. “Style and color might play more of a factor, but in
footwear, especially, it is the performance of the shoe that matters,
not how it looks,” says Kemist, whose two leading footwear brands
are Brooks and Asics. “And of course, fit is the biggest concern.”
Retailers and vendors are seeing a shift towards casual, yoga
influenced apparel items. Core running companies are now selling
plenty of capri and flare leg pants, which are not exactly classic running
styles. Look for the continuing growth of yoga to exert an enduring
style influence on women’s running apparel going forward.
Seventeen million Americans now practice yoga, and 77 percent of
these practitioners are women. An additional 35 million Americans
intend to try yoga in the next 12 months, according to the SGMA.
At Boulder Running Company, where a large percentage of
customers are high-level runners of both genders, yoga styles are
impacting trends in apparel sales. “The apparel categories growing
Performance Sports RETAILER
”
the most are yoga and lifestyle,” says Charles. “Women might
work out and then go to yoga. Also, brands that are offering roomier
fits are doing well. If a woman tries on a medium and a large in the
fitting room, chances are they will buy the medium just based on
the size on the tag. Brooks and Nike are two brands that are
making apparel sizes that are more forgiving.”
Female consumers are seeking not only comfortable fits and
technical product, but also functional, stylish details.
“Who the runner is, is changing,” says Craig Vanderoef, apparel
product manager for performance running at Brooks. “The customer
is now the active, dedicated women for whom being fit and being
healthy is key. They may define themselves as runners, but they
may not.”
While style is important, “fit, fabric and function” are still the
most vital aspects, according to Vanderoef. Charles echoes that
sentiment, saying customers in her store are influenced by style,
but seek “performance first.”
Vanderoef says of retail merchandising techniques that “there are
a lot of stores who do it very well, because they are selling running
as a lifestyle.”
As fashion and style gain importance in the women’s business,
performance brands are being careful to maintain their technical image.
“Because of the lifestyle impact on women’s sports, the competitive
base has shifted and we are very conscious that there’s a performance
story behind what we do as opposed to just putting a shoe out there
because it is a trend,” says Deirdre McDonnell, marketing manager
for the women’s initiative at New Balance.
Focusing on performance is also key, according to McDonnell.
“There are different voices for different consumers. Men will still
say they play a sport, and this is why they will buy product. For
women it is about looking good, keeping their weight under control
and feeling better. For women, the shift in activity is towards more
holistic sports.”
Boulder Running Company’s Charles agrees, “Women are looking
for both footwear and apparel to multi task.”
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Insoles
and
Orthotics
Aetrex
Since no two feet are the same, Aetrex
offers its orthotics in high, medium and
low arch models in order to ensure the
perfect fit. Each model offers the same
four key features: “Ultra Fresh” treated
polyester on top to attack bacteria and
fungi; Anti-Shox foam for sock absorption
and wicking; “Balancing Shell” for proper
foot alignment; and “Evazote” foam for a
custom molded fit. SRP $29.95
Specialty MARKETwatch
by Paul Langer, D.P.M.
14
M
astering an understanding of running shoes used to be
the most difficult task for running store employees.
But in the last few years, the number of insoles
available has increased dramatically to the point where store
employees and consumers are often overwhelmed and confused
about what an insole is intended for and which one will work
best for a runner’s particular needs.
The types of shoe inserts are almost as varied as the shoes.
There are cushioned insoles, firm insoles, arch supports, heel
cups, short insoles, full-length insoles, thick ones, thin ones, etc.
Most cushioned insoles are made from silicone gel or closed cell
foam, while firm insoles use plastic or graphite shells with a
softer top cover. Like running shoes, the more firm insoles are
intended to minimize overpronation, while cushioned insoles
are designed to soften impact.
Rubber or gel heel cups simply cushion the heel without
providing any other support. I do not often recommend heel
cushions for runners, but occasionally do for walkers. They can
be useful as a temporary treatment for heel pain. Flimsy foam
insoles found in drug stores do practically nothing to protect
from the impact forces of running. It is not unusual to have a
runner come into my clinic with three or more insoles stacked
inside their shoes and complaining that nothing seems to help.
Some insoles can be customized by adding cork
wedges or heating the shell and molding it to
the foot. However, it takes a high level of
biomechanical knowledge and experience
to do these types of insole modifications well.
Just as with shoes, it can be hard to predict
which type of insole a runner will find
comfortable, but most runners will instinctively gravitate toward the softest insoles. I
always encourage runners to try the insoles
on and explain to them that firm support can
actually help them absorb impact more
efficiently than cushioned support. Firm
insoles often have the highest arch support
and research does show that most people
tend to find arch support comfortable. An
additional advantage of the firm insoles is
Spenco
The PolySorb Total Support is designed specifically
for runners. The foundation of the Total Support
system is a PolySorb Support Cradle, which provides
arch support and a deep heel cup. It also uses
Spenco’s patented “3-POD” cushioning system that
absorbs shock and helps prevent over pronation,
the leading cause of running injuries such as Plantar
Fasciitis. For additional support and protection,
PolySorb Total Support insoles are heat moldable
to provide a custom fit. SRP $34.99
Superfeet
The Green insole provides support, stability, balance and shock-absorption with
firm rear and mid-foot control points that
reduce over-pronation and stabilize the
mid-foot. It is ideal for feet with
medium to high arches and recommended for ski and snowboard boots, running and trail
running shoes, hiking boots,
work boots and walking
shoes—all with removable
insoles. SRP $33.95
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SofSole
The new Adapt insole offers custommoldable arch support, a deep heel
cup and full forefoot shock protection.
This insole is designed for runners
and walkers alike who can benefit
from the simple, three step custom fit.
SRP $29.99
that they are very amenable to modification. For example, if
I have an injured runner with a firm insole in clinic, I can
easily add arch support or metatarsal pads to customize their
insole. Cushioned insoles are not as easily modified.
Runners with flat feet tend to have the most difficulty finding
off-the-shelf insoles that will work for them, because their
arch often collapses onto and over the edge of the insole’s
arch support. Those with flat feet most often require a
custom made orthotic.
I probably recommend cushioned insoles more for walkers
than for runners, although there are plenty of walkers who
may do better in a firm insole than a cushioned one. I tend
to recommend firm insoles for most running-related injuries,
because, as I’ve emphasized before in this column, alignment is more important to impact absorption than additional
cushioning. For some runners who are already in a stability
for the first time on their custom orthotics, describe the
sensation of “rolling out.” I have to explain to them while
they are not literally “rolling out,” they are “rolling in” less
than they are used to. This same perception applies to the
more stable insoles. It is extremely unlikely that an insole or
orthotic combined with a stability shoe will cause a runner to
roll out. Keep in mind that running shoes cause runners to
pronate more than they do when barefoot, so at best, a firm
insole/orthotic may only slightly minimize some of the
de-stabilizing effects inherent in running shoes. If an
insole/orthotic and stability shoe combination truly provided
too much support, then runners who used them would be
spraining their ankles on a daily basis.
Because insoles push the heel forward and take up some
volume, it is good to always advise runners to consider a half
size larger shoe. Also, it is very common for runners to
“
The best insoles for most runners
are the ones that have some form
of stability built in.
shoe but experiencing injuries, instead of moving them into
a motion control shoe, I’ll have them add the firm insole to
their current shoe. That way they’ll get the benefits of
increased stability without going to the heavier and clunkier
motion control category. (A category I usually reserve for
bigger runners with flat feet).
A common misconception I hear from medical professionals
as well as shoe store employees is that if a runner has a
custom orthotic or supportive insole then they should use a
cushion shoe so that they don’t end up with “too much” support.
First of all, the best insoles for most runners (just as with
shoes) are the ones that have some form of stability built in.
If you place a stable insole inside an unstable shoe, then the
insole’s ability to support the foot will be compromised.
Conversely, placing a stable insole inside of a stable shoe
will provide better stability without providing excessive support. Just as you wouldn’t build the foundation of a house in
sandy soil, you wouldn’t place a stable insole on top of an
unstable shoe and expect it to provide proper support.
On the issue of “rolling out,” (A.K.A under-pronating or
over-supinating), almost all of my patients, when they stand
Performance Sports RETAILER
”
experience new aches and pains as they start to use an insole,
so encourage them to gradually introduce the insoles to their
running and wear their insoles with running shoes during
walking activities to help them adjust to the new support.
Wearing the insoles around the store and taking them for
short test runs just as you would with new running shoes
will help you to feel some of the differences between the
insoles and make it easier to explain the differences to your
runner customers.
Paul Langer is a podiatrist and serves as a clinical
faculty member at the University of Minnesota
Medical School. He is a member of the Clinic
Advisory Board of the American Running Association
and is the author of Great Feet For Life: Footcare and
Footwear For Healthy Aging.
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