Sponsoring athletes in the Olympic Games, equipping international football competitions and a top-level cycling team… Decathlon launches into the world of professional sports in the hope of competing with the giants Nike and Adidas, which continues to worry your staff representatives.
Dectahlon partner of the AG2R cycling team
On this day at the end of November, the impressive presentation of the new collaboration between Decathlon and the AG2R cycling team contrasts greatly with the gray weather that dominates Lille and its surroundings.
In the immense Village BTWIN, a space where department stores, cafes and various sports fields coexist, the company that belongs, like Leroy Merlin, Boulanger or Auchan, to the Mulliez galaxy, has done everything possible to present its latest feat. : become a main partner of one of the best French teams, now called Decathlon-AG2R, and equip it with bicycles.
The latest episode of a true revolution in the equipment and sponsorship of professionals in recent years, from Gaël Monfils’ racket to the balls of Ligue 1, Ligue 2, the Europa League and the Europa Conference League, passing by a large number of athletes who will participate in the Paris 2024 Olympic Games, including Teddy Riner.
Acquire greater legitimacy in sport
“The current trend is to present ourselves around the world with very popular sports such as football and cycling,” explains Céline Del Gènes, head of global customer experience.
In reality, the company intends to acquire greater legitimacy in the sports market. “When it comes to sporting goods distribution, they are full,” says trade marketing expert Frank Rosenthal. “Now their competitors are no longer (the store networks) Intersport or Sport2000, but the big equipment manufacturers like Nike, Adidas.”
It must be said that, even if Intersport intends to compete, Decathlon has acquired a dominant position in the French market since its creation in 1976. The group today has some 105,000 employees, 1,700 stores worldwide and has raised 15.4 billion euros of turnover in 2022.
This effort could also boost foreign sales for Decathlon, present in 72 countries, since the events in question are followed around the world. But the challenge is immense for the French brand, which faces the majors in the sector, Nike and Adidas, and makes a “bet,” according to Frank Rosenthal. “They have managed, over the last thirty years, to be extremely innovative,” he analyzes. “We all have in mind the famous tent set up in two seconds.”
An ambition that worries unions
This change of course comes at a price, and that is what worries the unions. Grégory Labrousse, union representative of the CFTC, sees “more and more important objectives with fewer and fewer resources.” While, at the same time, “our shareholders distributed 400 million euros in dividends in 2022, both in 2023, with a reserve drain of 400 million (…) this does not contribute to the construction of the “brand image” On the other hand, it is well financed by the work of French stores.”
In addition, some unions are alarmed by the possible loss of customers as prices increase, far from the company’s official discourse.
“Before, it was about having good quality products that were very accessible for beginners and leisure users,” he recalls. “There, that is going to mean a cost for a bet not won.”
Source: BFM TV
