SPORTS-NOV09-P16 View:SGBGolf_NEW_template 13/11/2009 11:39 Page 16
View from the industry
A Direct hit
In the first of a new series of articles written by you,
members of the sports retail trade, Ward Robertson, joint
managing director of the STAG Buying Group, offers his
opinions on Mike Ashley’s contribution to the industry
I
f Mike Ashley were to write a book I think once again, especially when so many retailers and Canterbury tale
it should be called, ‘HOW TO LOSE FRIENDS consumers alike have deserted the brand. It’s a Now, I can’t talk about brands without
AND SABOTAGE YOUR OWN INDUSTRY’. crying shame that the people before Kath allowed mentioning Canterbury. Well come on, you
And one of the chapters could be entitled: this to happen, and they should be ashamed. Any didn’t expect me not to mention it did you? Chris
‘The way to make a small fortune is to start 22-year-old marketing student will tell you that the Stephenson, Canterbury’s current MD, was
off with a big one!’ strategy Reebok and others employed is known as previously appointed by the Kuwaiti Finance
a ‘brand exit strategy’: dump all you products into House as Finance Director some 18 months ago.
“A huge ethical con” the big box category killer, enjoy the short term Chris joined a company heading towards the
Now don’t get me wrong; Mike Ashley is a genius gains in turnover, and then watch the brand name ground at 500 miles per hour, burning through
in what he did with Sports Direct initially, but get flushed down the corporate loo. cash at a rate Mike Ashley would recognise! The
some may take the view that it was mostly a huge Mike Ashley also had a licence for Umbro (a inevitable happened and KFH ran out of patience
ethical con for the public to lap up. Come on, ‘70% licence now bought out by Nike) and his strategy and called in KPMG. What the previous
off’ what exactly? Karrimor Approach shoes with was basically to stick the Umbro brand on virtually management team carried out by its own volition
£50 off? Do you honestly believe these shoes were anything, with the inevitable result that Umbro was an utter disgrace. They totally screwed up
specified from day one with all the features and was discounted enormously as a brand and sold to just about everything, but luckily didn’t kill the
benefits of an authentic £70 shoe? No, neither do I, retailers like Peacocks. At least sense should company. The bankers at KFH also need to have
but the public lapped it up, just as they did the prevail now that Nike is running Umbro. I look their heads examined, and I hope to God they
Lonsdale shoe at £22.95, with £50 off. forward to seeing if Umbro can make a comeback were hauled across the coals for their total
£70?! In yer dreams mate! If you don’t believe in the independent trade. mismanagement of their investment in
me, you could ask an experienced shoe designer to Canterbury. There is no excuse for letting people
pull these shoes apart and cost it all out (while
Strong identity:
run amok. They should have recognised the signs
remaining anonymous). In my opinion, the truth
South Africa's
much earlier, sacked the people they had in place
would be laid bare for all to see; that these shoes
Bryan Habana
and appointed a new team.
were actually specified to an SRP of approximately
has been a high
£15, on a good day.
profile
Reebok, among others, virtually
Meanwhile, Joe Public out there thinks he is
Canterbury
saving a small fortune when in reality, he is, in
ambassador
“
committed brand suicide by
many cases, receiving quite poor value for money,
pouring millions of pounds of
in terms of making a strict comparison between
branded products, side by side.
product into Sports Direct, only
for key products like the Classic
Brand suicide
to be sold at about £20. Can
Another point is that brands are brands for a
reason. Part of that is the quality of materials and
you believe that the trade price
design that go into the product. A Rolex and a used to be £26.60!
Timex both tell the time, but it’s the Rolex that
makes you feel better and the quality of Chris, with Matt Davey and Ryan Pace, have
engineering and materials costs money, lots of it. very firmly got Canterbury on the right road”
In my view, Reebok, among others, virtually again; sales are climbing, they have very few, if
committed brand suicide by pouring millions of any, delivery problems (thank God) and best of
pounds of product into Sports Direct, only for key all, they are in profit. JD bought the worldwide
products like the Classic to be sold at about £20. Intellectual Property rights and I know they are
Can you believe that the trade price used to be keeping a watchful eye on their new baby. Well,
£26.60! So, how can any other retailer be KFH’s loss is very much JD’S gain and I suspect
expected to buy this product and make money? Canterbury will once again rise to be an excellent
The truth is that they can’t, and so they deserted ‘must stock brand’ and market leader, and a
Reebok in their droves. friend of the independent sports trade.
S
Kath Smith, MD of Reebok, is faced with a very
tough job to make Reebok a ‘must have’ brand www.stagbuyinggroup.com
16 SGB SPORT NOVEMBER 2009
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