The wholesale model is doomed to failure for two reasons. First of all, the selective brand distribution policy. Many brands distribute selectively because they want to avoid their products ending up in the wrong channels, like marketplaces. But they are now also determining that fashionable sports collections are sold in fashion stores and no longer in specialized sports stores. As a result, customer-relevant lifestyle models in sports retail reduce both sales and above all margins. For example, SportScheck previously made several million euros in sales with Adidas Originals alone. It has completely disappeared. The customer does not understand why this is so. He thinks sports retail is too stupid to buy cool sneakers. He doesn’t know that the sporting goods store can’t buy them.
Add A Comment