For a brand like Puma, surviving and getting its second wind in a crowded market among such strong competitors as Nike and Adidas might mean actually thinking outside the market, i.e. turning from a sports sector with its tough competition to a more tolerant lifestyle clothing and apparel market. This idea was first discussed in Bloomberg Businessweek article dedicated to the dynamics of Puma sales over the last ten years.
Image: www.puma.com Usain Bolt Presents Custom Designed Paris Singlet
Since 1998, after Puma had unveiled sneakers as the fruit of its collaboration with Pele and the revenue had soared eight times, things were no longer looking bright for the most elegant of all the sports brands.
In 2007, Puma was acquired by a French luxury house PPR, but during the economic recession it saw only 3.1% increase in sales. François-Henri Pinault, CEO of PPR, intends to help Puma blossom by expanding its product portfolio so it will become a brand offering sports and lifestyle products. This strategy was previously applied by PPR with regard to its other brands, and has proved to be a success.
«The sports and lifestyle segment shares common characteristics with the luxury segment, growing fast in the same regions of the world,» Mr. Pinault told Bloomberg Businessweek. He assured such brand-portfolio model «has been proven in the last 10 years—it was a winning choice.»
Switching from sports to a lifestyle category for a brand might mean appealing to a wider audience without limiting itself to catering for the more specific needs of spotsmen. That’s why Puma pursues an ambitious goal of increasing its sales by 50% so it will near $6 billion by 2015. PPR is supplying the German sports brand with everything that will foster sales growth. So, this year, according to Pinault, Puma that owns Cobra Golf and Tretorn brands will be focusing on product development and marketing revolving around the lifestyle theme.
In 2010, the Puma kicked off its «After Hours Athletes» campaign during which it hosts parties offering its participants sports games one can play with a drink in their hand. More than that, Puma has signed on three-time Olympic gold medalist and sprint world-record holder Usain Bolt and Formula 1 motor-racing world champion Sebastian Vettel to endorse its products in a series of events for general public, not just sportsmen.
Image: www.puma.com Usain Bolt Launches Jamaica Party in Paris
However, Puma is not the only sports brand thinking in this direction. According to bizjournals.com, «Adidas AG’s outdoor products division has already become a $290 million business» with jackets and hiking boots constituting the most rapidly growing product categories. Adidas plans to roll out its outdoor product lineup in the coming fall.
As announced previously, in February adidas expanded its Originals lineup with denim collection targeting the young and sexy consumers and has established itself as another sports brand switching to a lifestyle clothing category. The beginning of May marked the launch of Neo Label 2011 Spring collection for adidas which represents the lineup of stylish footwear and clothing for the young consumers pursuing active lifestyle.