Singaporeans experienced their first-ever nationwide virtual sports carnival between July and August 2021. Many ran their first virtual marathons or cycled to virtual landmarks, while others played sports such as football, basketball, and badminton. While the initiative was promoted by a youth ministry body, Sport Singapore, it was Decathlon Singapore that completely handled the event.
This was the very first instance of a government entity partnering with a private company for a country-wide activity. The name of the partner, Decathlon, however, doesn’t come as a surprise.
Set up in 1976 in Lille, France, Decathlon is now the world’s largest sporting goods retailer. Running, cycling, skating, snowboarding, or even skiing — name the sport and Decathlon has the gear to get started.
The company entered Southeast Asia only in 2015 with a store in Thailand but quickly made its mark and set up a flagship store in Singapore. With a 35,000 square feet area, the Singapore store soon became a megastore in the region.
By 2024, Decathlon has expanded to Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines. Singapore alone has 15 stores, and there are no signs of stopping.
The group’s annual revenue was $17.8 billion in 2020, even as e-commerce sales continued to surge.
When Southeast Asia started hosting major sporting events, the interests of locals were piqued. Countries such as the Philippines started getting more serious about international sporting events like the Tokyo Olympics held in 2021.
For retailers, this was a golden opportunity to promote sports, and Decathlon took a big leap. Stores were quickly opened in locations such as Malaysia in 2016, the Philippines and Indonesia in 2017, and Vietnam in 2019.
The market was ripe because while sports were gaining prominence, amateur sportspersons did not know where and how to start. Brands such as Nike existed, but they catered mainly to sports apparel and footwear.
At a crucial juncture when Southeast Asians were looking for the basics of each sport, Decathlon moved ahead of the competition by training its staff to interact with locals in each country.
Being connected to the community also helped create a behavioural change and eventually boosted sales.
Prior to Decathlon’s entry into the region, the sports goods industry was fragmented. There were brands such as Nike, Puma, and Adidas offering apparel and branded merchandise, while distant competitors such as Under Armour offered a mix of apparel, footwear, and accessories. What was missing was personalised attention, and that’s where Decathlon’s popularity rose quickly.
For example, the company has a team member in Vietnam who is a roadrunner and also part of the road running team at Decathlon. He develops products for the sport he practices every day, collecting feedback from the runner community.
Not all individuals who play a sport compete professionally. Some do it for the love of the sport, while many others practice sports just to stay active. Decathlon’s tagline, “all for sports, sports for all,” fits perfectly here.
The World Health Organisation (WHO) said in a report that insufficient physical activity is a leading risk factor for non-communicable diseases (NCDs) in Southeast Asia, where NCDs cause around 9 million deaths every year.
WHO advises that “sports for all” through a mix of government programmes and private participation should be encouraged among all countries in the region. At a time when the world is still battling the coronavirus pandemic, staying fit has been shown to maintain general health.
After months under lockdown, sports are also helping Southeast Asians get the community feeling, whether it’s a quick run with a neighbour or a football match with friends. And where do they buy equipment from? Decathlon.
The economic impact of the pandemic has led many retailers to shut down stores in the region. On the other hand, Decathlon is opening new stores and developing new solutions to improve customer experience while reducing task-based activities at stores.
Some of these innovations include deploying robotics to detect total stock in stores and 3D printing technology. With government backing in countries such as Singapore, the brand has also set up R&D labs. For instance, customers in Singapore can get a foot scan to determine their exact shoe size in stores.
Designing, testing, manufacturing, and retailing — everything is done in-house by the brand depending on the country of sales and the sport. The ease of buying all sports equipment in one store, assisted by field-experienced staff, sets the brand apart and makes it appealing in price-sensitive markets like Asia.
Even as rivals such as ASICS expand into designer accessories through collaborations with artists from the Asia-Pacific region, Decathlon focuses on store expansion and merchandising partnerships.
In Singapore, Decathlon plans to more than double its store network to 37 over the next few years. Multiple store openings are also planned in the Philippines in the near future.
In January 2021, the National Basketball Association (NBA) entered into a multi-year merchandising partnership with Decathlon. This partnership designates Decathlon as an official global licensee and includes a wide range of dedicated NBA merchandise collections designed in-house by the company.
Decathlon’s expansion story is far from over. With the new CEO Barbara Martin Coppola taking over in March 2022, the company’s mission to grow and sustain its number one position remains strong. The Asia Pacific, one of the largest markets for recreational sports globally, will continue to be a key part of this journey.
