Decathlon. Turn him away and he becomes a rival.
In 1976 a Frenchman opened a sports shop and the major brands refused to sell him their trainers. That shop was Decathlon.
THE GIST ON DECATHLON: "Decathlon"
What happened in 1976?
In 1976, a Frenchman opened a sports shop, and all the major brands refused to sell him their trainers. They thought he would wreck their prices.
That shop was Decathlon. It's now bigger than most of the brands that shut him out, because the man you turn away builds the alternative.
What did he do about it?
He knew he'd never be welcome, so ten years later he stopped. Decathlon started making its own kit under its own name: Quechua for hiking, Domyos for the gym, B'Twin for bikes, Kipsta for football. About 20 different brands, all owned by Decathlon. You probably bought one thinking it was a brand in its own right.
Because Decathlon designs it, makes it and sells it, hiking boots cost 25 quid.
How big is it now?
Decathlon has 1,900 stores across 79 countries. In France, Italy and Spain it sells more than its four biggest rivals combined. Only Nike and Adidas are bigger. And in 2018, Decathlon started pulling them out of its shops.
Were the brands wrong?
Adidas was right to be hesitant. They read him perfectly, and refusing him is what made him dangerous. Sell him trainers and he needs you every day. Turn him away and he becomes your competitor. You don't unlearn that.
So the question isn't whether you can afford to say no. It's whether you can take the risk of them finding out they don't need you.
Own-brand or big name: which do you buy?
Your take. One tap, then see how everyone else voted.
Quick answers
Why did Decathlon make its own brands?
Major sports brands refused to sell it their trainers in 1976, so ten years later it began making kit under its own names.
How big is Decathlon?
1,900 stores across 79 countries. In France, Italy and Spain it outsells its four biggest rivals combined.
What is Huw's point?
Refusing a customer makes a competitor. The question is whether you can take the risk of them finding out they don't need you.
See you on the next one.
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