GERMANY: Regulator checking sportswear sales tactics

By | 2 July 2012

The German competition regulator is looking at the way sportswear companies restrict the distribution of their products, especially over the internet, following complaints about moves to limit sales to authorised retailers.

The investigation has been prompted by Japanese athletic footwear and apparel company Asics, which is in the process of rolling out its 'Selective Distribution Policy' throughout Europe.

"Under this policy, Asics selects its authorised retailers on the basis of pre-defined criteria which every authorised retailer must meet in order to sell Asics products going forward," the company told just-style.

A separate statement from the Bundeskartellamt, the German competition regulator, said it was simply checking Asics' new delivery conditions rather than launching a blanket "investigation" against brand manufacturers.

However, it said several complaints have also been made by retailers against Adidas and Nike, although no probes are currently underway.

"We have a range of complaints from traders - also regarding the planned changes at Adidas," the statement said. "In this context, we are currently conducting an investigation for the delivery of the rules changes at Asics. Restrictions also play a role in online sales."

Asics said it wants to "ensure that the distribution meets the high requirements of the Asics products and the Asics brand image" including the shopping environment, product variety, product information, after-sales service and interaction with the consumer.

Adidas said it has been "following this strategy for several seasons now. As part of the implementation of this strategy we are regularly analysing and differentiating our distribution channels across Europe. Our new e-commerce guidelines will ensure that Adidas and Reebok will be presented in the right environment at all times."

Nike also told just-style it has a selective distribution policy in place in Europe under which it only appoints authorised retailers to sell Nike products.

"To be an authorised retailer you have to meet particular terms of sales and competencies. This model helps guarantee that consumers can be sure that all the products purchased online are genuine and meet all the requirements regarding the quality and customer service."

Sectors: Apparel, Footwear, Retail

Companies: Asics, Nike, Reebok

There are currently no comments on this article

Be the first to comment on this article

Related research

Nike Inc in Apparel (World)

Nike has secured market leadership by spending on endorsements and innovative product development. Brand equity across its portfolio, but above all the Nike brand itself, is exceptional, underpinning high levels of consumer loyalty. Nike is cementing...

NIKE, Inc. : Retail - Company Profile, SWOT & Financial Report

Canadean's "NIKE, Inc. : Retail - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts,major products and services, swot analysis, bu...

Performance apparel markets: business update, 3rd quarter 2011

This report provides information, analysis and insight on: acquisitions, divestments and mergers; brand development; corporate social responsibility (CSR); events; financial results; joint ventures, cooperation, licensing and distribution; legal issu...

Related articles

US: North America and emerging markets boost Nike Q2

Sporting goods giant Nike Inc has booked a 9% jump in profit from continuing operations during it second quarter, helped by growth in all key categories, product types and geographies except China.

Top ten news stories on just-style in 2012...

Instead of our regular look at the most read stories on just-style during the week, we thought a fitting end to the year would be to take a look at the top stories on just-style in 2012. From Nike's Flyknit seamless running shoes to garment factory strikes, innovation and labour problems were some of the issues that made the headlines.

HONG KONG: Yue Yuen FY profit jumps 12.5%

Yue Yuen, the world's largest manufacturer of branded athletic and casual footwear, has seen its full-year profit jump 12.5% helped by higher sales and more stable material prices.

Tag line

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page