Thursday, March 13, 2014

Running is Competition so Let it Begin

Let's take a look at the running landscape right now.

Running Shoes

 New Balance Fresh Foam
Adidas Energy Boost 2
Altra Torin 1.5

All three do the same thing. Provide a ton of cushion on a neutral platform. I could add another 15 brands at least playing on this platform. 

And then there is Retail. 

Road Runner Sports and the Run Specialty Group are having a throw down in Denver. They were both bidding on Boulder Runner Company and RSG won. A new BRC was just opened in a Mall in Denver and a new RRS was just opened in Denver. These stores do the same thing, sell the same thing and will eventually trade employees. 

The point of all of this is that running is a very healthy sport. Everyone wants a peace and everyone is competing to do so. In shoes I believe everyone is playing Long Tail Economics. Brought on by the internet, long tail works because the rent is low. The traditional set of economics is at play in Denver and cities across the USA. Supply and Demand. Demand is high so the supply of running stores is increasing. There is a point where the Supply will go beyond the demand and the suffering will begin. It would be great if that is a function of aggressive competition and not because the demand shrinks. If the demand shrinks and the supply increases the pain will be huge. 

For the brand I work for it's my job to make sure we are still standing and growing when the tail shortens and the economics are not in our favor. I love the people I work with and feel we stand a good chance in the playground. 

It's a good life...
Post a Comment