18. June 2021 | 13:05 CET
Adidas, RYU Apparel, About You, Nike - Fully on Trend
When Germany plays France, it is also a battle of Adidas versus Nike. For the sporting goods manufacturers, the European Football Championship is the marketing highlight of this year, alongside the Olympic Games in Tokyo. Trade in sporting goods is booming. The Corona pandemic has made a new trend, sports at home, a crisis winner. Sales, especially online, skyrocketed. This trend is likely to remain even after the gym openings, and it promises enormous growth leaps for manufacturers.
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ISIN: DE000A1EWWW0 , CA74979J4072 , DE000A3CNK42 , US6541061031
The enormous growth increases - in 2020, the sound barrier of EUR 1 billion was broken - were also used by the online fashion retailer About You, which ventured onto the trading floor in the middle of the week. The subsidiary of the Hamburg-based retail Group Otto was valued at an issue price of EUR 23 with a market capitalization of EUR 3.9 billion. The proceeds from the IPO are to be invested mainly in growth and the expansion of the technical infrastructure.
On the first day of trading, shares in the Hamburg-based Company climbed to as high as EUR 26.80. The forecasts of the Internet retailer, which was founded just seven years ago, assume continued strong growth. Sales are expected to increase by between 40% and 50% in 2021. The difference to the top dog Zalando lies primarily in the technology division. About You sells infrastructure solutions for companies.
Focus on the consumer
Business outfits will change after the long home office period. This opinion is held by none other than the CEO of Adidas, Kasper Rorsted. In his view, there should be significantly fewer ties and suit shoes after the comeback to the office. Although employees will hardly enter the workplace in Adiletten or gray jogging pants, the work outfit of the future will be more casual. In general, the Herzogenaurach-based Company is focusing on growth and innovation. A comprehensive brand and growth strategy up to 2025 was presented as "Own the Game." The focus is to be increasingly on the consumer.
"Our strategic focus is on increasing the credibility of the Adidas brand, taking consumer experiences to a new level and becoming even more sustainable," says the Adidas CEO." In the future, Adidas wants to offer its consumers more than ever a brand and shopping experience on their terms - with personalized offers, direct interaction and digital services.
Direct sales to consumers via its stores and online retail will play an even more significant role for the Group in the future. Direct sales are expected to generate around 50% of total sales by 2025. For 2021, following the weaker previous year, Adidas expects significant growth in the mid to high teens on a currency-adjusted basis.
Tuned for growth
After a year of restructuring and negative impact due to the Corona pandemic, award-winning apparel manufacturer RYU Apparel believes it is well-positioned for the future. "Respect Your Universe" aims to create a perfect symbiosis of the three segments of fashion, sports and lifestyle in its collections, setting itself apart from conventional performance apparel and occupying a unique selling point in a lucrative niche. The Canadians' target for 2025 is net sales of CAD 50 million and EBITDA of CAD 15 million. The ambitious goal is to be achieved with innovative products, strong collaborations, and digital ecosystem development.
The advantage of RYU Apparel lies in its lean yet high-caliber structure consisting of experienced managers. Thus, the capital raised is to be invested directly in demand and product development. The target is a gross margin of over 70% and a five-year cumulative annual growth rate of over 80%. A retail model that enables a seamless omnichannel "click and collect" model will be introduced no later than 2023. This model will be built as a mix of large-format, empirical retail and small-edition formats and will enable geographic design customization based on consumer data collected from e-commerce.
The Company, which already has a strong online presence, also aims to provide customers with a digital experience that offers consumers a seamless and consistent brand message across all touchpoints within the RYU ecosystem. A newly created unit will enable advanced analytics and monitor acquisition channels, sales funnels and consumer behavior to meet and exceed brand and revenue metrics. These measures have already led to an increase in weekly online sales of over 77%.
RYU Apparel's management, made up of experienced industry leaders, is breaking new ground and has the potential to become a real force in the highly competitive market. If the plans become a reality, a new star in the sportswear market could be born here. The stock market value is currently just under EUR 17 million.