Decathlon: A Growing Expansion, an Efficient Strategy

 Decathlon: a growing expansion, an efficient strategy

Decathlon is one of the world’s largest sporting goods retailers in the world and the largest in Europe. In 2014 the company’s revenue reached 8, 2 billion euros and will certainly continue to grow in the following years.

 It was founded in Lille, France in 1976 by Michel Leclerc and started to expand ten years later in all Europe (Germany, Spain, Italy, UK…), in 2003 in China and in 2009 in India. Today 60, 5 % of its revenue come from abroad.

The company distribute in its store its own products but also products of big international brands like Nike, Adidas, Reebok etc. Today Decathlon create 70% of its products which represents two third of its revenues. Decathlon maintains a rich and cheap offer by producing in low cost countries (65% is produced in Asia)

Today Decathlon owns 850 stores in 22 different countries and employs more than 60,000 all over the world. In addition decathlon products are also available online. The retailer owns 20 brands that represents a different sport of group of sports and has a dedicated product development and design team: B’Twin (cycling), Kalenji (Running), Wed’Ze (skiing) …

Innovation is also at the heart of their activities and each brand has its own research and development facilities all over France with a view to “develop technical, good looking and simple products always at the lowest price». Indeed Decathlon main purpose is “to make the pleasure and benefit of sport accessible to all” and enjoy a strong company culture reinforced by their values: Vitality and Responsibility.

The retail sporting goods industry is highly fragmented but the main players are Intersport International, Decathlon, and Sport 2000…

However the group also has to face the competition of other international brands to sell its own products. For example the leader in the sporting shoes industry are Nike, Adidas or Asics and in the sporting equipment are Shimano, Jarden or Amer.