Running for a Cause - SportsOneSource.com

A SportsOneSource Trade Publication
July 2006
Nike Nears $15 Billion for
Year; Q4 Net Slips
Running for a Cause:
Nike, Inc.’s 2006 fiscal year, which ended
May 31, saw revenues grow 9% to $15.0 billion from $13.7 billion last year. Net income
jumped 15% to $1.4 billion from $1.2 billion last year, and diluted earnings per share
were up 18% to $5.28 from $4.48 last year.
On June 20th, 2006, USA Track & Field announced that runners and walkers had raised
$656 million for charitable organizations in 2005. Event participants contributed 14%
more than in 2004; the largest single year increase in the five-year history of the annual
charity survey.
Q4 revenues increased 8% to $4.0 billion
from $3.7 billion for the same period last
year. For the fourth quarter, net income
declined 5% to $332.8 million from $349.5
million last year, and diluted earnings per
share declined 2% to $1.27 from $1.30.
Worldwide futures orders for athletic footwear and apparel, scheduled for delivery
from June 2006 through November 2006,
totaled $6.6 billion, 5% higher than such
orders reported for the same period last year.
Futures orders for the U.S. increased 9%.
U.S. revenues increased 10% in Q4 to $1.5
billion versus $1.3 billion for the same period
last year. Footwear revenues increased 10%
to $993.7 million over last year, while apparel revenues increased 18% to $395.7 million. However, equipment revenues declined
12% to $74.3 million. U.S. pre-tax income
improved 11% to $347.4 million.
For the year, U.S. revenues were up 12% to
$5.7 billion. Footwear revenues increased
14% to $3.8 billion, while apparel revenues
grew 9% to $1.6 billion, but equipment revenues declined 5% to $298.7 million from last
year. U.S. pre-tax income rose 10% to $1.2
billion for the fiscal year.
Raising Millions, One Step at a Time...
The USATF, the national governing body of track and field, long-distance running, and race
walking, gathered information
from more than 25 national
charitable organizations that
host running and walking
events. The survey also included contributions from almost
200 events across the United
States.
Organizations like the Arthritis
Foundation,
Leukemia
and Lymphoma Society, and
Susan G. Komen Breast Cancer Foundation have achieved
tremendous fundraising success with running and walking events. Since 2002, the USATF
reports more than $2.3 billion have been raised by these events. From small local events
to national series competitions, runners and walkers are giving back to fund research into
preventing diseases, supporting cancer survivors, and raising awareness about long-term
health issues.
In 1983, 800 runners registered for the first Susan G. Komen Race for the Cure event in
Dallas. Since then, the series has raised $650 million including in-kind donations. In 2006,
race organizers expect more than 1 million participants at 120 events. Melissa Aucoin,
Komen Race for the Cure Series manager said, “We are the largest 5K run and fitness walk
in the world. We found that the race has kind of a viral effect in the communities. It draws
attention and inspires people to get involved in a healthy lifestyle.”
Andy Phillips, national director of partnership marketing for The Leukemia & Lymphoma
Society reports the 295,000 participants in the Team in Training program have raised over
$660 million for the organization. All sixty-six LLS chapters are required to participate in
the year-round Team in Training program.
Continued on Page 2...
INSIDE PSR:
• Marketing to Women: Tapping into
Trillion Dollar Spend
• Millions of Female Runners Need New
Shoes
• The Secrets of Experienced Shoe Fit
Experts
• PSR Retailer Spotlight: See Jane Run
Specialty TRENDwatch
Local and National Organizations
Help Runners Train for a Cause
Phillips said, “Team in Training is the
largest endurance sports training program. We pioneered the marathon training concept.”
mentary T-shirts, and post-race muffins.
The USATF survey reported that 83% of
races held in 2005 raised money for charitable causes last year.
Both organizations set strategic goals
and objectives at the national level and
support organizers at the local level. Participants range from first time runners to
elite athletes. “We are very unique that we
attract people of all ages and fitness levels, including elite runners,” said Aucoin.
To honor these philanthropic contributions, the USATF awarded the J.P. Morgan Chase Corporate Challenge Series the
2005 Charitable Race of the Year award
and the Arthritis Foundation was honored as 2005 Charitable Organization of
the Year.
Team in Training offers runners and
walkers a comprehensive 4-5 month long
half and full marathon-training program.
According to Phillips, 76% of Team in
Training running program participants
are women. They also represent 93% of
the walkers. In 2004, 35,000 people wore
the recognizable purple and green singlet
of Team in Training.
Founded in 1977, as an offshoot of J.P.
Morgan Chase Bank’s sponsorship of the
New York Marathon, the Corporate Challenge has evolved into a worldwide event
pitting 2,000,000 runners from 7,000 different companies in 3.5-mile competition.
Chase makes a donation for every entry to
non-profit organizations in the community, with a special emphasis on organizations that
support education and
the arts.
The lasting effects of the
event often go farther
than the finish line. Phillips offered, “It’s a wonderful social experience.
It’s a safe environment for
people to come and take on what can be a
daunting challenge. People may go into it
thinking the physical side will be the biggest challenge, but in fact the fundraising
is a greater challenge.”
Performance sports retailers see increased
interest and opportunities to build relationships with runners as event dates
get closer on the calendar. “There is an
excitement that builds around the event
and that’s how the retailers get involved,”
noted Aucoin. Finishing a Race for the
Cure event often motivates first time runners to continue their workouts. “All it
takes is one race for someone to get the
running bug. Many of our local events
have included pre-event activities to help
beginning runners and walkers prepare
for the race. People come back year after
year,” she said.
Raising money for non-profit or charitable
organizations seems to be as much a part
of running events as race bibs, compli-
2
The Arthritis Foundation used three different
events to raise $9 million
in 2005. The Arthritis Walk, Jingle Bell
Run, and Joints in Motion educate runners and raise awareness in addition to
fundraising. Held in November or December, the Jingle Bell Run/Walk is the oldest of the three events. The Arthritis Walk,
the newest program, is used to kick off
National Arthritis Awareness Month each
May. Similar to Team in Training’s marathon preparation, Joints in Motion is the
Arthritis Foundation’s training program
to lead people through a marathon. The
majority of participants have never run
or walked a marathon before registering
with Joints in Motion.
Running for a cause has created a lasting
social and economic legacy that everyone,
runner, corporate sponsor or manufacturer can look at with pride. Raising billions of dollars placing one foot in front of
the other, one must ask what more could
be accomplished with this collection of
individual philanthropists?
by Lou Dzierzak
Performance Sports RETAILER
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Performance Sports RETAILER
July
Ju
ly 2006 • Volume 2, Issue 3
Feature
4
Marketing to Women: Tapping into Trillion Dollar Spending
Specialty Market RETAILER Takes a Look at Targeting the
Female Consumer and How It Can Best Benefit You...
MarketWatch
8
Millions of Female Runners
Need New Shoes
10
The Secrets of
Experienced Shoe
Fit Experts
12
Retailer Spotlight:
See Jane Run Sports
13
Vendor Spotlight:
Saucony
NewsWire
14
Industry
Performance Sports RETAILER
4
3
Specialty FEATURE
Marketing to Women:
Tapping into Trillion Dollar Spending
by Sharon Barbano
I’m a Home Depot addict. So it was a
mixed blessing that a broken sump pump
turned a rainy nor’easter into my very
own Poseidon Adventure. With the basement water level rising, plastic picnic
plates floating, and the laundry basket
sinking, it was time for a fix.
Walking into The Home Depot always
blasts my senses: the smell of fresh cut
lumber; the wide vista of brightly lit
aisles; the high-pitched buzz of circular
saws. As I stood before the myriad display of sump pumps, an orange-aproned
associate named Rudy approached. “Need
help?” After asking a few questions about
my basement, Rudy not only helped me
select the right pump and hose, he also
sketched a diagram showing how the
whole thing laid out. Two hours and two
hundred bucks later, my basement was
dry, and I couldn’t wait to tell my friends
just how handy I, well … Rudy, was.
Behind every successful retailer are multitudes of satisfied female shoppers. Case
4
in point: according to the NPD Group,
which tracks retail sales and trends,
The Home Depot is the second retailer
of choice for women shopping for home
improvement products. With an updated
shopping experience that appeals to the
growing legion of female “do-it-yourselfers,” the Depot is building a connection
with a very loyal and lucrative market.
The All-Consuming Sex
Just how lucrative? In the U.S. today,
women’s combined earnings are estimated around one trillion dollars a year. And
get this: Her spending power overall is
estimated at over two trillion dollars per
year. Not only are women spending their
own paychecks, but they’re controlling
a great deal of their husband’s, as well.
And it’s not just for household, apparel or
children’s items. Women purchase 50 percent or better in traditional “male” categories like automobiles, consumer electronics and, yes, sump pumps. Demographic
experts expect that by 2020, women will
control most of the money in America.
Follow The Money…
There is an old journalism adage: “Follow
the money, follow the women or follow
both.” I’m suggesting that marketers do
the same. If you are ready to focus your
efforts on the female consumer, you will
be rewarded with loyalty, sales, and a
passionate word-of-mouth network.
I have worked with some clients who
feared that marketing to women would
make their brands unmarketable to men.
Targeting women does not mean alienating your male customer. Rather, by
raising the benchmark to meet the high
expectations of women, you will attract
more male customers in the process.
The 10-C “Chicklist”
The following is a checklist I’ve developed
while consulting with companies targeting
the female consumer. I recently had the
opportunity to share these concepts with
Walter J. Salmon, Professor of Retailing,
Emeritus, at Harvard Business School,
Performance Sports RETAILER
who confirmed that today’s marketers must
not underestimate these ten criteria.
1. Connection
A woman’s purchasing decision is based on
how a certain product will improve her life.
Over the past 20 years, I’ve pitched women
on soft drinks, frozen entrees, sports bras,
health clubs, athletic shoes, and panty hose.
The message usually centered on technical
features, nutritional info or cup-size.
It wasn’t until I was trained as a QVC product spokesperson that the notion of “consumer benefit” became a brilliant light: it’s
not about the second density EVA; it’s about
better stability and pain-free running. It’s
not about the waterproof lining; it’s about
enjoying your walk, even in bad weather.
Tell women how your product or brand will
improve her life, her family’s and her friends’.
“The benefit of the benefit of the benefit.”
Make that your selling mantra, and you will
see the benefit to your own bottom line.
2. Communication
Those who believe that communicating with
the female consumer requires a microphone
would be more successful using a hearing
aid. Stop talking and listen for once.
Understanding the difference between listening and hearing are crucial in the communication process between a brand and its
women customers. In the book, Don’t Think
Pink, authors Lisa Johnson and Andrea
Learned note its importance: “Really listening to women is the bottom line. The goal is
to involve women sooner and more fully in
your development of products, packaging,
and marketing. And, the fastest and most
accurate way to learn what your women customers want is to ask them, listen carefully,
and see your brand through their eyes.”
female customers, respond—to her desires,
needs, and concerns. Only then will she
know she’s really been heard.
3. Community
To celebrate the 100th anniversary of the
first sports bra, Hind, a leading supplier of
performance athletic apparel, sponsored a
Ladies’ Night Clinic Tour to educate women
about sports bras. Held at local specialty
running shops nationwide, Hind’s female
bra experts measured participants and discussed the type of bra that would be appropriate for various fitness activities. I had the
opportunity to represent Hind at the clinic
held at the Athletic Annex Running Center
in Indianapolis. Midway through the clinic,
everyone was sharing snacks and workout tips, and making plans to run or walk
together. Each of the thirty participants
left purchasing at least one Hind bra, some
two or three. Best of all, a group of runners
and walkers had formed a community with
an important commonality—the Athletic
Annex.
5. Customization
If the shoe fits, she’ll wear it. But only if it
fits her really well. Today’s female consumer
expects products created just for her. They
need to fit, feel, and perform to her specifications.
6. Cause-Related
U.S. sponsorship spending on cause-related marketing will hit $1.34 billion in 2006,
according to the IEG Sponsorship Report.
Receptivity to cause marketing is greatest
among those most likely to make key purchasing decisions—women.
Continued on Page 6...
Create opportunities
for women to bond
with one another over
your brand or in your
store. Fun runs, clinics, and even blogs
create a community
of loyal supporters.
4. Choice
Mary Lou Quinlan, CEO of the marketing
agency Just Ask a Woman, agrees. “The
quickest way that retailers can find out what
a woman wants is to stand next to the cash
register or listen by the door of the fitting
room, something that’s face-to-face. You’ll
end up hearing a rundown of what’s going
on in their lives and what’s not going on in
your store,” says Quinlan.
How many pairs of
shoes are in your
closet? According to
The NPD Group, the
average 30-year-old
woman has nearly
two dozen pairs. Why
so many? Today’s
woman wants choices: she works at the
office and works out
at the gym; she runs
errands on Saturday
and 10K’s on Sunday; she’s a mom, a
wife, a fashionista.
She needs a lot of
shoes for her 360º
lifestyle.
I’ll add one more step to the above recommendations: once you’ve listened to your
Performance sports
retailers can be the
Performance Sports RETAILER
active lifestyle outfitter for women runners and walkers. “Specialty run shops like
Marathon Sports do extremely well in giving
active women choices,” said Emily Carano,
manager of Saucony’s Shadow Rep Program,
a team of nationwide brand representatives
who provide technical education to performance retail associates. “They can outfit
women from head-to-toe, in any size, color,
or brand that she desires.”
5
Continued from Page 5...
More and more, marketers are investing
in cause marketing to leverage the emotional bonds women have with causes in
a manner that translates into increased
purchases and brand loyalty.
7. Consistency
Defection comes easy. Let your female
consumer down once, and she’s off into
the arms of another brand. It’s not fickleness; its unmet expectations. If your
female customers trust that their experience with your brand will consistently
delight, they will go out of their way to do
business with you.
Starbucks is a great example of a consistent experience that keeps on giving. I’ll
drive out of my way to find a Starbucks
when there is a neighborhood coffee
shop right down the block. At Starbucks,
I know I will never be let down—by the
service, the music, the cleanliness and, of
course, the lattes.
8. Customer Experience
Until a few years ago, research
showed that the amount of time a woman
stayed in a store determined how much
she would buy. The longer she stuck
around, the more the register would
sing.
But today’s hectic lifestyles have changed
the way women shop. According to Todd
Hale of ACNielsen’s Consumer Insights,
“What used to be a rather leisurely activity has turned into a rushed, stressful nuisance for some shoppers. Retailers that
acknowledge this stay one step ahead of
the game. These days, retailers are looking for ways to keep customers happy
by selling them unique products, getting
them in/out of stores quickly, smothering them with good service, and/or saving
them money.”
“Women demand more of shopping environments than men do,” writes Paco
Underhill in Why We Buy: The Science of
Shopping. “Marketing, advertising, promotion,
and
location
can
bring shoppers
in, but then it’s
the job of the
merchandise,
the employees,
and the store
itself to turn
them into buyers.”
The more shopper-associate
contacts
that
take place, the
greater the sale.
It is critical to
empower every
store
associate to know
their products
and deliver topquality service.
Female
customers who do
pre-shopping
research
get
upset when they
walk into a store
and know more
about the prod-
6
ucts than the floor associate. The retailer
then loses both credibility and sales.
9. Convenience
Time is a valuable commodity for today’s
multi-dimensional woman. By streamlining her life, a brand can become part of
her solution, and she becomes part of the
brand. With little time to shop, she connects with the brand that anticipates her
needs.
According to the study, How America
Shops (WSL Strategic Retail), ‘convenient
location’ and ‘always in stock with what I
want,’ are basically today’s shopping fundamentals for women. While price is still
very important to consumers, it is no longer uppermost since most shoppers know
where to get good prices every day.
10. Credibility
It’s been said that credibility is the ultimate shortcut in the consumer’s decision-making process. Credibility occurs
when the consumer trusts the brand to
do what it says it’s going to do. Credibility
takes disciplined brand focus. It means
being an expert at one thing and not overextending. Women can see right through
the smoke and around the mirrors of a
brand trying to be something that it’s
not.
The ever-growing relationship that The
Home Depot has with women is proof that
the brand is meeting many of the above
practices. And even though Lowe’s is the
number one home improvement retailer of
choice for women, the number two Depot
has something that Lowe’s will never be
able to have: orange shopping baskets,
orange aprons, and an orange-blooded
associate named Rudy.
Sharon Barbano has been a key player in brand and product marketing
for nearly two decades. An industry
leader, she has appeared nationally
on television, radio, and in print as
a consumer marketing expert. She is
the creator of Women: The All-Consuming Sex—The 10-C’s of Catching
the Female Consumer, a proven sales
and retail marketing strategy.
Performance Sports RETAILER
Specialty TRENDwatch
Millions of female runners
need new shoes...
by Lou Dzierzak
A
ccording to the National Sporting
Goods Association, women represent a strong, involved, and growing segment of the performance running
shoe market. The NSGA reports the largest age group of female runners is 18-24
with 2.4 million participants. Runners
in the 12-17 and 25-34 age groups follow closely with 2.3 and 2.2 million runners, respectively. The purchasing power
of millions of female runners demands
attention and performance running shoe
brands like Saucony, Nike, and New Balance are listening.
Mike Gossette, Nike’s footwear product
manager for women’s running notes the
running community has changed over
the last ten years. “A woman training two
times a week preparing for a 5k event is
as serious as about what she wants in
her footwear and what she needs as a
former college athlete running 6 days a
week. Women are looking for technical
shoes that are going to fit, feel good, and
8
perform. Shoes that make that running
experience that much better.”
The increase in the number of races serving non-profit and charitable causes has
brought new women to running. “We definitely see more new women coming into
it. We’re also seeing runners run a 5k
move up to a 10K and higher. It’s pretty
cool to see how women are reaching for
the next assignment,” he said.
Tapping into the purchasing power of
female runners requires meeting their
needs and expectations. Saucony has
earned a loyal following based on their
attention to fit. “We have one of the best
fit for women in the industry. What’s nice
about that is any shoe we make provides
that fit. Our goal is to continue to grow
that loyalty. Every time they purchase a
new shoe they want to come back to the
Saucony fit and feel,” explained vice president Patrick O’Malley.
One of the benefits of Stride Rite’s acquisition of Saucony is the creation of an
advanced testing lab. O’Malley offered, “In
the past we outsourced our testing. We
have all kinds of toys now to prove that
our theories, technology, and footwear
are working well.”
In 2007, Saucony will launch an update
to the existing Grid Technology, called
PRO Grid. “Over the last few years, we’ve
been able to create grids at the Hurricane
and Triumph level that will actually be a
full length system that sits under foot to
offer greater cushioning, resiliency, and
response,” O’Malley said.
The PRO Grid will be launched in December with the Triumph and followed with
the Hurricane and Omni in February and
March 2007. “We’re going to make an
awful lot of noise when it comes to technical running,” he said.
Providing specific solutions to biomechanical and anatomical issues faced by
female runners drives Nike’s approach.
“From a running standpoint, one of our
overlying themes is natural motion and
Performance Sports RETAILER
letting the foot do what it does naturally,”
explained Gossette.
Nike addresses gender specific subjects
like body mass, gait, and stride in its shoe
designs. “Women tend to have more forefoot issues. Pregnancy changes the body and high heels
that aren’t very kind lead
to forefoot issues. We also
know a woman is much
more discerning when
she is looking at a shoe
in terms of how the arch fit
goes,” explained Gossette.
ize it. Once they find something, they want
to come back to essentially the same shoe
every time.”
New Balance is committing resources to
walkers as well as dedicated runners. “The
walking segment covers everyone from
the cardio female walking several
times a week to a much older
consumer buying walking shoes through
a medical referral,”
said Katherine Petrecca, product manager for walking.
Saucony’s Womens Grid Trigon 4
Nike’s research labs and
innovation teams create solutions and
incorporate them into specific shoe styles.
“We are so excited about the shoes that are
in and coming to the market and what we
are bringing to the female runner that no
one in the industry has addressed yet,” Gossette said.
“It’s 100%, 360º about the female runner,”
that’s how Gossette describes the Zoom Precept. An isolated lateral crash pad is one of
the key technologies offered in the shoe. “We
found that when women were running barefoot they tended to land centrally located on
their heel. With a running shoe with a traditional flair they are landing more on the
outside. We give them a much more stable
landing and a better ride on the shoe,” he
said.
New Balance has supported the Susan G. Komen Race for the Cure
series for 15 years and is in the third year
of sponsoring the Komen 3-day walk. A promotion of Oprah Winfrey’s O magazine also
raised awareness for the health benefits of
walking and the New Balance brand.
While walking is a relatively small part of the
performance running specialty store sales,
the opportunity is there. Smaller stores have
restrictions on how much space they have
on the wall. “When it comes down to it, they
will carry a small selection of walking shoes.
Every walking shoe they put up takes away
a running shoe that should be on the wall,”
Petrecca explained.
Creating partnerships with healthcare providers can result in significant new business.
Petrecca described the benefits. “The doctors
Nike is also workknow they can send people to specialty
ing to address
stores where the staff will
consumers’ conspend time with them,
cerns
about
and try on 5-10 pairs of
product changshoes before they settle
es from year to
on something. They will
year.
Gossette
spend time with the walkexplained, “We have
ing consumer who comes in as a
Nike’s Womens Air Zoom Precept
not been as consistent
medical referral.”
as we should have been in the past. Instead
of a revolution each time, we are trying to Performance running retailers provide the
slowly evolve the shoe. We know there is bridge between manufacturers and female
a lot of equity in shoes like the Pegasus or runners or walkers. “That’s the great thing
Structure Triax. People want to come back about our industry. It’s a great partnerto these shoes,” Gossette said. “Reinforcing ship with the specialty retailers; they do a
brand loyalty requires a delicate balance of great job of representing our brand. There is
adding technical innovation and meeting the
nothing more valuable than having someone
runner’s expectations about the shoe.
spend 15-20 minutes with a person listening to what they are going through in their
When we update them it’s slowly making running and put them in the right shoe,”
them better, but not trying to revolution- said Saucony’s O’Malley.
Performance Sports RETAILER
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9
The secrets of experienced
shoe fit experts
courtesy as the elite masters or college
runners. Shoe experts understand that
people new to the sport are often self-conscious and even intimidated to go into a
sporting goods store. If they sense any
condescension, elitism, or negativity they
will leave and tell their friends about their
horrible experience. However, if they are
treated with respect and especially if they
are treated as an athlete, they will tell
their friends and be a loyal customer.
• Wear every shoe in the store.
Specialty FEATURE
• Listen to your customers – you will learn
how they perceive the shoes.
by Dr. Paul Langer
Runners do their homework and often
come into the store armed with computer
printouts or the latest shoe reviews from
consumer magazines. While most experienced shoe fitters know that shoe reviews
are so subjective as to be of little use,
runners treat them like gospel; therefore,
a knowledgeable shoe fitter can gain the
trust of their customers and become more
efficient at helping them while raising the
status of the store. A great resource for
any retailer that sells to endurance athletes is Distance Running by Robert M.
Lydon. Of particular importance is the
chapter by Peter Cavanaugh Ph.D. on
running shoes and injuries.
• Know the structure of the running shoe.
The structure of the shoe influences its
performance. Shoe experts understand
the differences between carbon rubber
and blown rubber, between EVA and polyurethane, between semi-straight lasts and
semi-curved lasts, between a long dual
density medial post and a small plastic
post. Shoe experts do NOT have to know
about “cushioning systems” such as air,
special polymers, etc. In the 1980’s shoe
companies engaged in a battle to distinguish themselves with cushioning devices. These products were added to shoes
for marketing reasons and none has been
proven to be superior to another.
10
• Understand that running gait is almost
as unique as a fingerprint and foot shapes
can vary dramatically.
• Shoe experts don’t play brand favorites.
• Individual opinions about shoes do not
matter, but patterns do. Asking customers specific questions and listening to
their answers is important so you can
build a mental file on each shoe. Ask customers what it is they like or dislike about
shoes they’ve tried.
• Just because a shoe feels comfortable/
stable/supportive to one customer does
not mean it will to others. Comfort is subjective. In fact, researchers have attempted to study and define comfort, but found
no obvious patterns in how it is determined. You cannot tell a customer what
is comfortable – they have to tell you.
• Runners do their homework, so you
should, too. Read shoe reviews, but with
a grain of salt.
• Never pick one shoe for a customer even
if they want you to. There is not a single
“shoe expert” on the planet who can guarantee that the shoe they select for someone will work well. Runners MUST be
given a minimum of 3 shoes to evaluate
and then must select the one that works
best for them. An expert can listen to the
comments that a runner may make while
evaluating the shoes and use that information to assist them in narrowing the
choices, but to the inevitable questions
“Which one would you get?” or “Which
shoe do you run in?” a shoe fitter should
emphasize that the runner should trust
their instincts and select the shoe that
has the best fit and feel for them.
An experienced shoe fitter knows more
about shoes than just what the manufacturer’s rep tells them. The job of the rep
is to sell one brand, while the fitter’s job
is to provide the best shoe for the runner.
Keep in mind that every manufacturer
uses similar midsole foam, the same types
of lasts, and similar stability devices, so
focusing too much attention on a “cushioning technology” or other feature can be
a disservice to the runner. Runners don’t
want sales pitches recited from memory;
they want useful, concrete information
from someone who is experienced.
• Treat the new runner or overweight
charity walker with the same respect and
• Learn the unique characteristics of each
shoe so that you can evaluate the foot
shape, arch height, and injury history
and come up with 3-4 shoes to start.
Paul Langer is a podiatrist with Minnesota Orthopaedic Specialists. He serves on
the clinic advisory board of the American
Running Association and is an editorial
board member of Running & FitNews.
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PSR Retailer Profile: See Jane Run
by Lou Dzierzak
Specialty FEATURE
I
n 1998, Lori Shannon spent her days
working as a computer engineer in
San Francisco. After work, she put
her passion and energy into running marathons. Finding shoes, apparel, and running gear tailored to women’s needs was a
frustrating experience for her. “I would go
into stores and I didn’t think I was being
represented. There weren’t a lot of sports
bras to be had at the time. Finding them
was a real challenge,” she recalled.
Sometimes you have to take matters into
your own hands. Shannon opened See
Jane Run Sports in April 2000. Shannon
described her inspiration, “The idea started out of personal need and drive because
of what was missing in the world of sports
retailers.”
From the first day, See Jane Run Sports
focused the business plan on one gender. “I’ve always focused on women. I just
really felt that women were marginalized
in the industry and I wanted to create a
store that flip-flopped that. Our stores are
open to men, but everything we buy we
are thinking of women,” she explained.
Over time, manufacturers have
come to understand the purchasing power of women and
created gender-specific gear.
“I’ve seen a huge change at the
manufacturing level. Some of
them are putting a lot of energy
and effort into addressing the
women’s market.”
Creating
women’s
running
products means more than
adding feminine colors to the
men’s small or medium shoes,
singlets, and shorts.
Shannon explained, “Women come
in a lot of different shapes and
sizes. Women have hips and
every woman’s hips are a differ-
12
ent size and shape. We also have breasts,
which is a part that has been overlooked.
That’s why we love Moving Comfort so
much, because they really focus on fitting
a woman for a bra the same way we look at
shoes. There are so many different types
and shapes, you can’t just throw one bra
out there and expect it to fit everybody.”
Women also base their purchases on a
combination of technical performance
and personal fashion sense. Shannon
explained, “It’s important that it looks
good. Women want something that will do
the job that it needs to do and it needs
to look good on them when they do it. At
times they will move toward the looking
good. On the technical side, we need the
basic functionality. Fashion will be the
next question.”
See Jane Run Sports reaches out to
women in all stages of life. Professional,
mother, enthusiastic participant or tentative beginner, Shannon and her staff
approach each customer as an individual
with unique questions and needs. “We
went into this targeting women who came
to sports later in life. We recognized there
was a market there with women who
weren’t as comfortable in the traditional
retail setting. Shannon’s approach to customer service reflects the personality and
experience of this audience. “They don’t
want to be talked down to. They are going
to look for a place that is more welcom-
ing to their lack of knowledge. They may
not be so quick to ask because they don’t
know,” she said.
Customers run, bike, swim, and practice
yoga. “We have an older market, women in
their 50’s who may be doing a marathon
or triathlon for the first time. The customer is finding us as a place where they can
feel comfortable,” Shannon said.
Once the sale is made, See Jane Run
Sports offers marathon and triathlon
training clinics and training programs.
The third annual See Jane Tri will be held
in September. Open only to women, the
triathlon donates a portion of the entry
fee to the Breast Cancer Fund.
Since the store opened in 2000, sales
have increased every year.
See Jane Run Sports’ product selection,
customer service, and specialization have
created a very loyal following. Customer
demand led Shannon to open a second
store. “We are for women, by women. They
will find what they need when the come
in the store, and they will get exceptional
service. Our customers come for life.”
Shannon has also added online sales
to the store’s website. “Our customers
are from all over the country. The local
customers will also buy online for convenience. They buy on line and it shows up
on their doorstep.
The store maintains two
different lists and markets
to them differently based
on where they live.
Shannon opened the store
without any retail experience. A clear vision and
commitment to her customer allows her to pursue her passions all day
long. “I have a great vision,
I know what I want to do
and I think we can do it,
but getting the capital has
been a huge challenge,”
she said.
Performance Sports RETAILER
PSR Vendor Profile: Saucony
by Lou Dzierzak
Long term, sustained consumer loyalty is
the result of that approach and vision.
Metcalfe described the target audience’s
mentality. “I don’t think our customers
are influenced by the ‘next hot fashion
technical shoe’ from Saucony. It’s based
purely on our ability to deliver the consumer benefits that allow runners to participate whether it’s 20 minutes a day or
three hours a day. We want to help them
participate safely and get a competitive
edge, whatever their goal may be.”
Shoe design starts with the specific biomechanical needs of each type of runner
Saucony serves. Shoe construction and
features address neutral cushioning, stability, and motion control from the perspective of the runner.
Like all performance running shoe
brands, maintaining loyalty as product
lines evolve can be a challenge. Consistency is key at Saucony. “We ask how
can we be appropriately consistent so
that each time we update a shoe they are
familiar with the product and they can
count on the new features to give them
an edge in their training and workouts,”
Metcalfe explained.
Consistency is also important in marketing messages. “We want to be viewed as
an authentic and relevant brand for runPerformance Sports RETAILER
“There’s a lot of folks in the market who
are coming from trail hiking and trying to
be credible in trail running. I see that as a
much more difficult leap than a running
shoe company being authentic in their
features and benefits moving to the trail,”
Metcalfe said.
Addressing niches like trail running or
walking isn’t the only way Saucony is
approaching the market. In February
2006, Saucony launched the Run for Good
Foundation to raise awareness about the
fitness levels of American kids. A Surgeon
General report announcing that children
born today may have a shorter life expectancy than their parents spurned the
company into action. “We don’t expect to
be the sole eliminators of childhood obesity, but we believe it’s important to have a
voice to bring awareness to the problem.”
Metcalfe understands the importance
of first impressions, especially with new
customers. “We feel it’s just as important
to deliver a good first experience for a less
disciplined or budding runner. You have
one chance to make that first impression.
Whether they are starting at $90 or even
at a $50-$60 price point, we need to deliver what we stand for as a brand in fit and
function. The care and attention to fit and
Saucony’s retailers will have a significant
function that
role in the prowe put in from
gram and in the
“We feel it’s just as important to
the
opening
brand’s plans for
deliver a good first experience for
price
point
the future. Metcala less disciplined or budding rungoes all the
fe said, “Specialty
ner. You have one chance to make
way through
retailers are our
the line,” he
#I focus. Going
that first impression. Whether
said.
forward, we see
they are starting at $90 or even
an opportunity to
at a $50-$60 price point, we need
Saucony’s
continue to refine
to deliver what we stand for as a
product mix
the brand posibrand in fit and function...”
includes shoes
tion and be more
for training,
effective reinforcMike Metcalfe
General Manager, Saucony
racing,
trail
ing the feel of the
running, and
brand as well as
walking
for
the properties and
both genders. Trail running, which is technologies of the product. I think that’s
becoming the latest “hot” sport in con- best communicated on the sales floor by
sumer recreation magazines isn’t neces- highly qualified people.”
sarily that new to Saucony.
Serving new niche markets and introducFrom Metcalfe’s point of view, “runners, ing new marketing initiatives address
especially ones putting in significant
the same goal. “If you think of branding
workouts, continue to try and look for as making great soup, these are critical
ways to find variety. I don’t think trail run- ingredients for us to remain authentic
ning is really new on the market. There’s and in touch with our consumer base,”
a little more ‘trail speak’ around, but in
Metcalfe explained.
the broader market that’s more about the
look than the end use.”
Through its every day strategy, tactics,
and execution, Saucony is a running
Shoe brands and hiking boot manufacshoe company. “An important part of the
turer are trying to reach this audience strength of this brand is that purity of
segment, often with different approaches. focus,” Metcalfe said.
Specialty FEATURE
“We are a running shoe company,” reports
Mike Metcalfe, general manager of Saucony, Inc. It’s difficult for words on a page to
transmit the conviction behind those spoken words. Metcalfe believes that focusing on that corporate description is what
sets Saucony apart from other brands.
“We are not set up as a multi-category
brand. We don’t spread our design and
development efforts across a lot of other
sports categories. We don’t have to cloud
it with anything but the needs of the end
user runner, “ he said.
ning. There are people who deem themselves as runners and there are others
who use running as part of an overall fitness and wellness regime. Both groups
are very important to us. We need to be
relevant to people who define themselves
as runners. Whether they are running
their first mile or fifteenth they see the
features and attention to detail are just as
important. That gives us permission and
authenticity to communicate with the fitness runner,” he said.
13
Industry
Sugoi Opens Distribution
Center in Pennsylvania...
Specialty NEWSwire
Though many things were the same when
the first Sugoi Fall 2006 Prebook order
left the company’s Distribution Center on
June 9th, one crucial detail was very different: the origin address written on the
box. This order shipped from within the
United States. Bedford, Pennsylvania to
be exact.
Sugoi has spent several months duplicating its Vancouver distribution model
within parent company Cannondale’s
Bedford, PA facility in order to offer U.S.
accounts better and more consistent
service. With this new DC, the company
effectively bypasses the hassles inherent
in shipping internationally.
“We not only removed an international
border,” said Sugoi’s Project Leader Tony
Reznick, “but in analysing and duplicating our existing processes, we were able
to make some key operational refinements which have been implemented
throughout Sugoi.”
While Sugoi’s design, sales, and marketing departments all remain in Vancouver,
British Columbia, along with the distribution centers for Canada and Europe, this
new facility will help overcome the shipping difficulties that all Canadian-based
manufacturers have faced since 9/11.
“A Distribution Center in the U.S. has
been in Sugoi’s strategic discussions for
years,” commented President Stan Mavis,
“and we’re seeing the benefits of having
a U.S.-based partner with the operational capacities and willingness to help us
implement it.”
Crocs Settles Patent
Infringement Suits
Crocs, Inc. settled several trade dress and patent
infringement lawsuits outside of court over the past
month. The company first
settled with Acme EX-IM, Inc., followed
14
that with a settlement with Shaka Holding, Inc., and finally came to an out of
court agreement with Inter-Pacific Trading Corporation, Inc.
In all three cases, the companies agreed
to settle the lawsuits concerning Crocs’
proprietary footwear, which were pending
in the United States District of Colorado
and alleging that the defendants infringed
Crocs’ U.S. patents and its trade dress. In
addition, the parties have settled administrative actions pending in the International Trade Commission alleging unfair acts
concerning the importation of infringing
footwear.
The lawsuits were resolved with the entry
of a Consent Judgment finding infringement by certain of Inter-Pacific’s “Sunsurfer Shoes,” Shaka’s “Shaka Shoes,”
and Acme EX-IM’s “Pali Clogs,” as well as
recognizing Crocs’ patents as valid.
Berkshire/Russell Deal
Passes through Antitrust
The waiting period
for U.S. antitrust
review under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976
expired on May 30, 2006 for Berkshire
Hathaway’s pending acquisition of Russell Corporation, parent company to
Brooks Sports and Moving Comfort.
Russell Corporation and Berkshire Hathaway have entered into a definitive merger
agreement pursuant to which Berkshire
Hathaway has agreed to acquire Russell
Corporation in exchange for the payment
of $18.00 per share for each outstanding
share of Russell Corporation stock. The
transaction remains subject to certain
closing conditions, including Russell Corporation stockholder approval.
Fleet Feet Turns 30
Yue Yuen Sales and Profits Jump During First Half
Yue Yuen Industrial Holdings Limited
first half turnover surged 16.5% to $1.72
billion and net profit increased by 15.1%
to $168.3 million.
The Group has produced a total of 96.6
million pairs of shoes, up 6.9% from last
year. Turnover from wholesale and retail
operations rose year-on-year by 110.7%
to $138.0 million, which underpinned the
Group’s overall sales growth.
Sales from athletic shoes accounted for
59.1% of total sales, compared to 62.2%
last year. The decline in contribution
from the core manufacturing operation
was mainly due to accelerating sales from
wholesale and retail operations, which
accounted for 8% of total sales, up from
4.5% last year.
Sales to the U.S. increased 9.0% to $648.7
million during the first half, while EU
sales increased 12.2% to $448.3 million.
Sales into Asia were up 29.1% to $502.9
million.
Fleet Feet, Inc. marked the 30th anniversary of the first Fleet Feet store at its
National Franchise Conference. The first
Fleet Feet opened in Sacramento, California, in 1976, and the company began
offering franchises in 1980.
Saucony Boosts Stride
Rite Q2
The Stride Rite
Corporation
second quarter sales were $194.0 million, an increase
of 22% compared to the same period in
the prior year. Net income for the second
quarter totaled $16.9 million or 45 cents
per diluted share, compared to net income
of $11.8 million or 32 cents per diluted
share in the second quarter of 2005. Saucony net sales were $25.6 million for the
second quarter and $50.2 million for the
first half of 2006. Management said that
Saucony technical running product “continued to perform well.”
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