Decathlon’s way of cutting costs and increasing customers

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Decathlons way of cutting costs and increasing
customers

• This largest sports goods retailer company needs
  no introduction. We all are fascinated with the
  best quality products at such affordable prices.
• Decathlon, a French based company thoroughly
  dominates the sports retail market worldwide and
  has been a steady growth in India.
• Sport for all All for sport
• The company intends to make sport accessible to
  every person in the world. The company believes
  in the transformative power of sports. The best
  way to do it is to provide the customers with the
  best products at the best prices. 
• So is quality compromised to reduce cost? The
  company knows its way through all. For 40 years,
  Decathlon has led the way toward high-quality and
  low-cost products. The company maintains the best
  value to price ratio. 

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How does the company manage to provide such
affordable products?

• Innovation is central to the companys continuous
  drive to make sports accessible to all.

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Research and Development-

• The decathlon has a constellation of self-owned
  Brands, each of which is as unique as the sports
  they are centered on. The founder Michel Leclercq
  first created his own bike frames and sold them
  under the Decathlon brand. Inspired by the
  success, the company now follows the same process
  to expand its touch on other sports and is called
  Passion Brand. Today the company owns 25 labels
  and covers more than 70 sports. Like Quechua
  company of Decathlon produce sports goods for
  hiking.
• By bringing the brands in-house and having
  passion brands work under one roof, the company
  manages research and development resources. Being
  hyper-specialized in every sports category is the
  power of Decathlon.
• Being the most efficient and innovative decreases
  the price.

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Integrated Design

• Designing mass-market products smartly lowers the
  costs. Users are provided with the best quality
  products considering each sports specifications
  and knowledge of design teams. The company
  optimizes materials, components,  shapes, and
  quality to be efficient. Every design team is
  located where their sport is frequently practiced
  to observe and collect feedback from users. 

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• Validation first strategy
• The products are made by sportsmen for sportsmen.
  Decathlon uses its own community to build
  products to solve customers pain points. The
  easy breath mask was an innovative idea from the
  project manager, a scuba driver himself. The
  suggestion came when he observed swimmers
  struggling between their snorkel and their mask.

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• The company values customer feedback and
  insights. A few years ago, they came up with
  Decathlon creative, a sharing platform for
  users to submit a product idea. Decathlon will
  produce the idea with enough votes from the
  community. Only passionate sportspeople are
  recruited from the cashier to the store manager.
  Production-wise, the team continuously comes up
  with innovative ways to improve processes and
  simplify the design.

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Omnichannel strategy-

• Along with more than 1,000 stores, and strategic
  warehouses around the world, Decathlon sells its
  products at 30-40 lower prices than the
  Competition. The company has dominated big names
  like Nike, and Adidas with a strong digital
  presence of more than 14 websites and 32 mobile
  applications.

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Manufacturing- 

• Decathlon has long term partnerships with the
  best industrial suppliers. The company is
  committed to sustainable development. Scoring the
  fabrics, exercising chemical risk prevention, and
  measuring carbon emissions to ensure safer
  manufacturing. Being selective means greater
  productivity without compromising core values
  like improved time to market and enhanced risk
  management.

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Logistical organization-

• Higher prices at the expense of the planet arent
  worth it. The company adopted a cashless policy
  as well as eliminate packaging unnecessarily such
  as no shoe boxes. Decathlon invests in logistical
  organizations like storage, transportation, and
  automation, thereby reducing cost and
  environmental impact. Even warehouses are located
  within close proximity to the stores to have
  efficient and low-cost shipping.

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Users First-

• Customer satisfaction is the priority which is
  reflected by the 365-day return policy. The
  sports leaders interact with users, collect
  feedback, connect users with the right options,
  and relay suggestions directly to the brand.
  Products reviewed less than 3 stars are optimized
  to meet customers expectations. The company
  strives to deliver the best experience both
  online and in-store.

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Business model-

• The companys integrated business model means low
  margins and higher quality. Decathlon doesnt
  have any non-integrated importers. The brand
  relies on exclusive partners so that there is no
  accumulation of margins to fall on users. Low
  margins mean lower prices for customers. The
  brand takes smart costs into account. The
  company doesnt sponsor teams and saves at areas
  to deliver the promise of great prices.
• Decathlon believes in bridging long-lasting
  relationships with customers. By making sports
  gear and equipment easily accessible to all, the
  company offers an affordable option for around 70
  different sports. 
• There is no mystery behind Decathlons rising
  story. It all comes down to having the best
  products. Passion brands, creative products based
  on customer feedback and customer satisfaction
  are key to Decathlons success. So, the next time
  you think of purchasing a sporting good, be
  assured, Decathlon has it all in-store.