we/cee summary free market response [25 th april 2011] free we/cee...
DESCRIPTION
WE/CEE Free Futures The European marketplace is very polarised regarding adoption and bookings of Free: AGS/Northern Europe and Retail are the biggest regions……….and account for 77.8% of all Free business. France/Iberia and Italy account for only 1.39% of Free business, yet they are $162m Nike running business in FY 11 so there is vast opportunity remaining to connect here…. Proportion of business fy2011 AGS236, % CEE89, % France1, % Iberia3, % Italy2, % Retail65, % NE77, % UK12, % Ftlkr00.00% 486, %TRANSCRIPT
WE/CEE SummaryFree market response [25th April 2011]
•Free WE/CEE futures/territories/distribution/opportunity•Marketplace response by brand•Appendix
WE/CEE Free FuturesThe last 12 months has seen a huge increase in Free for the European marketplace.
FY 12 is also tracking towards further growth with 285k/$20m booked in the first 4 months of the year……
Values FY 2010 Long Description units $ NIKE FREE 3.0 V2 54,945 3,638,130 NIKE FREE RUN+ 52,384 3,414,217 NIKE FREE 5.0 V4 40,636 2,657,726 NIKE FREE 7.0 V2 9,854 645,682 NIKE FREE EVERYDAY+ 2 7,660 504,662 Mens total 165,479 10,860,418 WMNS NIKE FREE RUN+ 31,135 2,021,693 WMNS NIKE FREE 5.0 V4 26,858 1,830,798 WMNS NIKE FREE 3.0 V2 15,456 1,029,798 WMNS NIKE FREE 7.0 V2 6,882 454,784 WMNS NIKE FREE EVERYDAY+ 2 696 47,334 Womens total 81,027 5,384,407 246,506 16,244,825
FY 2011 Long Description units $ NIKE FREE 3.0 V2 128,903 8,715,251 NIKE FREE RUN+ 110,979 7,285,699 NIKE FREE RUN+ 2 65,332 4,615,695 NIKE FREE 7.0 V2 7,856 512,300 NIKE FREE RUN+ LAF 1,454 104,305 NIKE FREE RUN+ 2 LAF 791 58,397 Mens total 315,315 21,291,647 WMNS NIKE FREE 3.0 V2 65,532 4,555,214 WMNS NIKE FREE RUN+ 67,601 4,455,179 WMNS NIKE FREE RUN+ 2 35,232 2,480,085 WMNS NIKE FREE RUN+ LAF 1,005 72,709 WMNS NIKE FREE RUN+ 2 LAF 1,041 68,663 WMNS NIKE FREE 7.0 V2 661 43,107 Wmns total 171,072 11,674,957 486,387 32,966,603
97% 103%
WE/CEE Free Futures
The European marketplace is very polarised regarding adoption and bookings of Free:
AGS/Northern Europe and Retail are the biggest regions……….and account for 77.8% of all Free business.
France/Iberia and Italy account for only 1.39% of Free business, yet they are $162m Nike running business in FY 11 so there is vast opportunity remaining to connect here….
Proportion of business fy2011 AGS 236,077 48.54% CEE 89,033 18.30% France 1,167 0.24% Iberia 3,035 0.62% Italy 2,600 0.53% Retail 65,346 13.43% NE 77,108 15.85% UK 12,021 2.47% Ftlkr 0 0.00% 486,387 100.00%
WE/CEE Free FuturesFY 12 outlook is very strong with almost 60% of the business from last year booked already in the first 4 months of the year.
The growth in the European marketplace is fastest in France, Iberia and Italy but the base remains very low.
The more “mature” markets for Free still show appetite for growth……. fy2010 fy2011 fy2012 [4 months] fy 11 GROWTH % men women men women men women AGS 84,104 42,765 126,869 155,387 80,690 236,077 96,820 48,206 145,026 86.08% CEE 38,262 14,060 52,322 62,155 26,878 89,033 23,246 10,924 34,170 70.16% France 173 0 173 729 438 1,167 1,330 340 1,670 574.57% Iberia 685 121 806 2,184 851 3,035 2,779 1,145 3,924 276.55% Italy 555 191 746 1,620 980 2,600 949 217 1,166 248.53% Retail 20,144 9,835 29,979 42,152 23,194 65,346 26,206 10,162 36,368 117.97% NE 18,883 12,495 31,378 43,463 33,645 77,108 29,863 20,064 49,927 145.74% UK 2,673 1,560 4,233 7,625 4,396 12,021 9,864 3,405 13,269 183.98% Ftlkr 0 0 0 0 0 0 0 0 0 0.00% 165,479 81,027 246,506 315,315 171,072 486,387 191,057 94,463 285,520 97.31% 67% 33% 65% 35% 67% 33%
WE/CEE Current Free Distribution: Sporting Goods Sports Lifestyle General Goods
Best/RSG
Better
Good N/A
N/A
N/A N/A
To date, distribution has been only to the Sporting Goods channel at the better/best level of distribution by Nike in the Geo. In the UK it has been segmented further to RSG accounts only.
N/A
N/A
N/A
Nike Free Running
Nike NSW Free starting FA 11
Competitor DistributionSporting Goods SportsLifestyle General Goods
Racers/Tempo: Adidas Zero/Brooks Green Silence/Saucony Kinvara
Best/RSG
Better
Good
Natural Motion: Free/Vibram/Brooks/Innov8/NB Miniumus/Asics 33
Decathlon own brand
Zara
Nike Free/possibly Asics 33
Nike Free Su 12 Distribution thoughts:Sporting Goods Sports Lifestyle General Goods
Best/RSG
Better
Good
Innovation: disruptive lightweight product e.g Mayfly/Nike knit etc
Nike Free family :
1.0/3.0/4.0/5.0/trail……
Nike Free family : 4.0/5.0
Nike Flex :
Opportunity to engage premium consumers in this channel around Free innovation…..3.0?
No intended product distribution N/A
N/A
N/A N/A
The Future…..Opportunities in Europe;
•Preserve Nike Free integrity and credibility with runners
•Ensure premium positioning is maintained
•Opportunity to ignite Free in southern Europe markets, current approach to date has not resonated….. what can we do differently [profile/materials]?
•Opportunity to engage the Sportslifestyle consumer/channel. Showcase and amplify Free to position Nike running innovation. Su 12…….potential to explore Free 3.0…… offers the profile and premium materials to connect here …..
•Harvest with “good” partners through Flex product offer [monitor quantities]
Market response to Free
•Adidas•Reebok/Salomon•Asics•Brooks•Vibram
Adidas: •Adidas Climacool is available in Europe in 2 models right now. •The Ride 110E / £72)•The Chill 100E/ £62) •The Oscillate will introduce in FA 11 [similar price point expected . •The Run Box also FA 11 expected at 90E•The customised version of The Ride is available at 130E on Mi Adidas.
•Accounts targeted are in the Sporting Goods channel in the UK, both are distributed to SDI and are price discounted to £52 & £44.99. •The model is also in JDs in a limited amount/online and is not in Ftlkr.
• In AGS Adidas launched the Chill last Fall as a quickstrike pack sold to the retailers not on the "normal" future timeline. Key focus was the Clima cool effect and not the natural motion aspect. Consumer likes the product as it's lightweight, breathable, colorful and on a good/critical 100€ pricepoint. Sell thru on a RSG level is not great however. It is sold in the lifestyle doors of Runnerspoint called Sidestep. Sell thru is 5:1 Free Vs Chill.
•Multiple colour blow out is the strategy with up to 8 colours per model in major accounts.
•RSGs do not stock this product.
•Adidas will launch a TV advert continuing to use David Beckham to promote ClimaCool http://www.youtube.com/user/adidasrunningtv?v=vACznSF9Nq8&feature=pyv&ad=7851017702&kw=adidas#p/a/u/0/vACznSF9Nq8
http://www.youtube.com/watch?v=BLrvz59tb2c
120€
110€
105€
100€
90€
CLIMA COOL RIDE
CLIMA COOL CHILL CLIMA COOL OSCILLATE
CLIMA COOL RUNBOX and trail…….
Customisable CLIMA COOL RIDE via MI ADIDAS“ @ 130€
$75/ released in USA..in europe FA 11
FA11:
Adidas Running:
Adidas Training :
•€80 Fluid Trainer
http://www.youtube.com/watch?v=OOu8gJ-WWys
Customisable FLUID TRAINER VIA MI ADIDAS“ @ 105€
• €75 Fluid Trainer Lite 2 • €90 Fluid Tech Trainer
•€85 Fluid Trainer TT [suede]
Adidas Express: not directly using the same shoes in a sportswear execution, but use
elements of the Climacool technology….
Men's 9174 – Clima cool upper Named after the postal code of adidas HQ in Germany.
Hyper fuse type materials?
ClimaCool outsole?
Reebok: •Real Flex, will launch in Europe in Sp 12 and expected to follow on from Zig Tech.
•Zig tech £90/€100-130 was launched in Sportslifestyle doors such as JDs/FTlkr and is also in selected Sporting Goods doors like JJB [uk]Stadium [swe]Sportscheck [ger]Go Sport [france].
•It is not present in most RSGs.
65€RX MOC
RX TRAVEL
75€
RX S LAB
Salomon:
Salomon concept does not target to strengthen your muscles or natural motion but instead has a focus on the recovery aspect. The shoes above are visible in the NE & AGS market with the dealer network expanding.
Pricepoints are 75E which is quite significantly below Free. [E110]
Distribution is in SG/Outdoor channel and is following their success with Trail Running shoes.
Asics: GEL 33 RUSH
“LOW MILEAGE RUNNING SHOE”
INSPIRED BY THE 33 JOINTS IN THE FOOT
LTWT MINIMALIST/NATURAL MOTION POSITIONING
Not visible in the European market yet
UK research suggests it is expected to enter the market in Sp 12 or Su 12, however in AGS the lead account Runerspoint is placing it is 30 doors from Nov 2011.
Asics see US leading the barefoot running market and will launch there first.
Distribution not entirely known, but expected to start in RSG and leading Sporting Goods accounts like RunnersPoint..
Current performance line from Asics goes to all levels/channels from good accounts like SDI to Ftlkr to RSG so it may not take long to cascade…….
Brooks:
Comprehensive product offering to target Lightweight & Natural Motion Silo
Tends to be an RSG excl brand in Europe and is gaining ground within this distribution in many territories
“Pure project” is being offered to UK RSGs exclusively, it is on the radar in Northern Europe and is being offered in Germany via Runnerpoint from Nov 2011.
It is positioned as lightweight and natural motion product suitable for road and trail.
The midsoles varies from model to model, but all have a 4mm drop heel-to-toe)
Pricing is £90-100 and €130-140
Vibram: -Very narrow distribution in Europe with product to be found mainly in Specialist Outdoor Stores and a few RSGs like Run2 in Germany and Run2day in Holland.
-Credible and premium positioning, but still quite niche.
-In the UK online partner is Barefootjunkie.co.uk (offical Retail Partner for Vibram).
-Product range is large from £85/90E - £165 over 13 different styles with some key styles offering 5 or more color options.
120€
110€
105€
100€
90€
CLASSIC WOOL JAYA
CLASSIC
130€
SPRINT
http://www.vibramfivefingers.com/index.htm
BIKILA LS
SPEED
KOMOD SPORT
Appendix Others:
Others: Innov8 UK off road/trail/fell running brand - expansion into Europe beginningPrimarily Outdoor and some RSG distribution 3 barefoot inspired products…….INOV-8 Road-X 233 (£90), INOV-8 Road-X 255 (£90) launch FA 11, INOV-8 Baregrip 200 (£90) launched Su 11
Others: Saucony -Offer lightweight tempo product
-Pro Grid Mirage (SRP £85) & Pro Grid Kinvara (SRP £85) with Distribution solely on RSG and Online Channels.
Others: New Balance -Minimus
-3 options for Running…..Trail and Everyday use.
http://www.inov-8.com/News-Detail.asp?NID=342&L=26
Other: Ecco Biom A
RRP 199.95€Running natural motion idea. High priced and not successfull in sell-thru
Big launch at ISPO last year. PR coverage within the key running magazines and Triathlon magazines. Only at some RSG‘s but in the south of Germany already losing ground – retailers start focusing on the better selling brands.
Other: On
Newton Running shoes are designedto mimic the advantages of barefoot running. Comes from Triathlon background
Others: Newton
Other: Merrell Merrell Trail glove
Other: Terra Plano Evo II
Other: SkechersApparently a Sketchers natural motion solution is on the way…………..
Other “Own” Brands: Zara -ZXM Running Shoe – Iberia E40
- priced very competitively.
Other “Own” Brands: Decathlon E40