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Decathlon S.A. SWOT & PESTLE Analysis

ID : 521122353| Feb 2022| 21 pages

COMPANY PROFILE -Decathlon S.A.

Business Sector :Sports Wear Retail

Operating Geography :France, Europe, Global

About Decathlon S.A. :

Decathlon S.A. is a sportswear retailer headquartered in France. The company opened its first store in Lille, France, in 1976, founded by Michel Leclercq with the company’s name being Oxylane. The firm conducts its own product research, design, manufacture, logistics, and distribution in-house, collaborates with global suppliers, and sells its brands directly to consumers through Decathlon-branded big-box stores. The shop primarily supplies a wide selection of athletic items, ranging from tennis rackets to advanced scuba diving equipment, in massive, big-box superstores averaging 4,000 square metres in size. The firm also markets clothes and watches, as well as waterproof LTE Android phones and nautical and water sports gear. Decathlon sells sports nutrition and health items, as well as sports electronics and sports-specific optical products. The Decathlon Group conducts its business under more than 20 different labels. It has research and development sites all around France, where it creates product designs and registers up to 40 patents every year. Decathlon operates 1,655 Decathlon locations in approximately 1,000 cities throughout 65 countries as of May 2021. In 2022, Decathlon announced its partnership with Fashion rental platform, Hirestreet, to launch its flagship UK rental collection, consisting of an exclusive ski-wear and outerwear edit.
Decathlon's USP lies in it being the world's largest athletic goods retailer. The mission statement of Decathlon reads, "At Decathlon, our aim is to make sport accessible for the many, and we live by this phrase. ... Helping them to rediscover the joy of life and laughing through sport is our mission come to life".

Decathlon S.A. Revenue :


€ 11.4 billion - FY 2019-2020
€ 12.4 billion - FY 2018-2019
€ 11.3 billion - FY 2017-2018

Competitive Analysis of Decathlon S.A.

SWOT
PESTLE
The SWOT analysis for Decathlon S.A. is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. The company provides a wide range of products in various segments for men, women and children
2. Decathlon is an established sports wear and gear brand with exceptional global presence
3. Decathlon has a clear focus on product innovation, improvement and R&D overtaking competitors
4. Decathlon has a differentiated and unique customer experience
5. Decathlon has created a strong and loyal community of customer through events and FROSMO
1. Decathlon’s online retail efforts are below competitors
2. Decathlon has high dependence on European and Russian markets
3. Inability to be successful in several locations
OpportunitiesThreats
1. Expand and increase presence in emerging markets
2. Expand product offerings and improve existing products
3. Increase marketing and communication efforts through brand ambassadors in different regions
4. Continue M&A activity to tap into larger markets
1. Threat from competitors in different regions
2. Threat of counterfeits and imitations of Decathlon’s products
3. Bike shortages in the UK; inability to meet demand
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Decathlon S.A.

Strength

1. The company provides a wide range of products in various segments for men, women and children: Established in 1976 in Lile France, Decathlon is a sportswear and gear company offering numerous products in various categories. Decathlon has over 1700 stores in 61 countries, with the largest number of stores in France. The company offers products for men, women and children catering to over 75 sports and other activities. Decathlon provides biking, hiking, exercise, running, water sports and sportswear and gear such as bikes, bike helmets, tents, camp furniture, Yoga mats, Stand up paddles, specific sportswear, shoes, jackets, tops and more for men, women and children. Decathlon provides products for a wide range of sports activities from Soccer, Squash, tennis, Volleyball to Kayaking, Surfing, Ice Skating, Kite boarding, climbing and Boxing. The wide array of products Decathlon offers provides customers a single source proposition that meets all their needs in one place. The price to quality proposition is also favorable for customers as Decathlon is fairly priced. Consequently, customer satisfaction with the brand is quite high.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

1. Threat from competitors in different regions: Decathlon has many direct competitors in the industry. While Decathlon has been extremely successful in Europe and Russia, with 67% of Decathlon’s in the said locations. However, Decathlon’s success in the United States was limited and the company had to shut down its stores in the US due to its inability to compete with well-established giants such as Nike and Adidas in the states. Nike is the largest players in the sportswear, sports gear and related products in the world and is extremely popular in the USA. In 2006, Decathlon USA had to shut down all operations, especially in Massachusetts due to unprofitable and unsuccessful performance, facing stiff competition from existing large players. The company had to re-launch itself in USA after many years. The company also failed to established itself in Singapore due to a gap in understanding clients and failure to market itself well in the country. Decathlon’s close competitors globally as well as regional competitors, provide stiff competition in locations outside of Europe and Asia.

The remaining section under "Threat" is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Decathlon
  • Aptonia
  • Artengo
  • b'Twin
  • Caperlan
  • Domyos
  • Fouganza
  • Geologic
  • Geonaute
SWOT & PESTLE (combined)
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Check Out Analysis of Other Relevant Companies

References used in Decathlon S.A. SWOT & PESTLE Analysis Report

1. Decathlon United - https://www.decathlon-united.com/en/about/

2. Innovation Collection | Decathlon - https://www.decathlon.com/collections/innovation-products

3. Decathlon Fights Pentathlon, Delhi High Court Restrains Usage of ‘BOSS’ - https://www.bananaip.com/ip-news-center/decathlon-fights-pentathlon-delhi-high-court-restrains-usage-of-boss-and-more/

4. Brexit delivery issues: How Amazon, John Lewis, Dunelm and other companies have been affected by Irish Sea border - BelfastTelegraph.co.uk - https://www.belfasttelegraph.co.uk/business/northern-ireland/brexit-delivery-issues-how-amazon-john-lewis-dunelm-and-other-companies-have-been-affected-by-irish-sea-border-39934086.html

5. Fashion Friday: Athleisure and Sportswear Trends in North America - https://fashionunited.uk/news/business/fashion-friday-athleisure-and-sportswear-trends-in-north-america/2021050755369

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2022). Decathlon S.A. SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/decathlon-sa/ [Accessed 18 May, 2022].

In-text: (SWOT & PESTLE.com, 2022)

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Decathlon S.A. SWOT and PESTLE analysis has been conducted by Muskan Arya and reviewed by senior analysts from Barakaat Consulting.

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