It’s time to catch-up with ten part innovation series. The Ninth type of innovation on Brand is about how offerings are expressed to customer to their benefit. It’s been quite a bit of challenge to identify a right case for this innovation, finally nailed it with Decathlon sports India. Decathlon entered India as a sports goods retailer, primarily catering to high end customers by having closed membership association. This was partly due to their positioning and partly due to retail industry regulations in India. Over a period of time they changed the way their brand is expressed to customers, which has made Decathlon as a popular brand today.
To start with, Decathlon instrumented making their employees as brand ambassadors by hiring sports enthusiasts for specific departments. Say if you are passionate cyclist, then you will be hired and made as cycle department sales person or supervisor. Naturally this makes a huge difference to a customer who walks into the shop to buy a bicycle. Given the pre-existing expertise and passion, naturally the sales person will understand customer needs better and ensure they are suggested with proper options in comparison with the person who don’t know anything about cycles. Added to that these employees are positioned well in their marketing communications, hoardings and future job hire needs.
The store and employee appearance also establishes a unique brand image among customers. Unlike other stores, Decathlon’s real estate size is relatively large in order for customers to try out various sports goods (ex: cycles). However they ensured their internal store arrangement (ex: racks) is very simple with lesser investments in order to optimize cost. One gets ‘no-nonsense-I-get-what-I-want’ feeling by entering any of their stores. Their employee appearance (ex: French beard with trendy hair-style) is also something different that I have observed in comparison with other places.
When Decathlon entered India, it was not open to all retail customers. One needs to get membership in order to shop from them, which got repositioned now. It is not open for all retail customers. By targeting upper-middle customer segment, they are able to establish Decathlon as a synonym for quality with decent pricing. This repositioning and communicating right message also changed the way Decathlon is perceived among common people.
In summary Decathlon changed the sports expression by innovating around their brand – in terms of store design, employee appearance, profile of employees and positioning. Globally they have been existing for more than three decades, but by adapting to some of the local challenges, they are well positioned their brand in sports goods retailing.