Puma re-entered the American basketball market, which had long been dominated by Nike and Adidas.
If sportswear had a prestige category, it would be basketball shoes. A strong basketball business can capture the attention of customers and increase the reputation of a brand's products. Last year, Puma partnered with hip-hop artist Jay-Z when they decided to return to the American basketball market, where they had been absent for more than 2 decades. This direction is a key part of the company's global strategy, which has challenged giants such as Nike and Adidas.
"Partnering with Jay-Z meant a lot to us because we believe that basketball is the sport that most connects the worlds of culture, hip-hop, art and fashion," said Adam Petric, Puma's director of global development and marketing.
But it's not just limited to basketball. The company hopes to increase its presence in the retail industry, which should help to establish closer ties with the younger generation. So, this year, Puma's flagship store opened on Fifth Avenue in New York, located a couple of minutes walk from similar Nike and Adidas outlets.
All these actions are bearing fruit. For example, the company reported an increase in sales of 17% in the third fiscal quarter compared to last year, making it the fastest growing sports brand. At the same time, the strongest growth is observed in the Puma sportswear segment - 18.7%.
The US sportswear market is currently dominated by Nike и Adidas, their footwear and apparel lines are backed by top athletes such as LeBron James, Patrick Mahomes, Steph Curry and Serena Williams. Puma has enlisted its own roster of influencers including Jay-Z, Meek Mill, Selena Gomez, and Rihanna, as well as social media stars known in Asian markets. Plus, the company is starting to pay more and more attention to the world of eSports. So, she signed an agreement with the eSports brand Cloud 9.
An important direction for Puma today is China. At the same time, the company is now aiming to increase sales in the Chinese market and at the same time reduce shipments from this country to the United States. And she does it well. If in 2014 supplies from China amounted to 50%, then in 2019 they fell to 20%. This is important against the backdrop of trade wars between countries.
Well, the company is clearly aiming for global leadership, and its first steps on this path look quite convincing.
