Beyond sports competitions, nowadays clubs also compete as brands to exploit around the world, thanks to the fan bases. Globalization, Internet access and the dominance of social media have allowed to multiply exponentially the influence and reach of clubs in different parts of the world. Also, as if it were a multi-million dollar transfer, clubs have bet heavily on e-commerce as a constant source of income that will allow them to invest more in improving their squads, stadiums, etc.
The days when presenting a new shirt was a formality are long gone. Today the presentation of the equipment has become a major campaign for the expansion of sports brands.
In this post we will try to clarify the keys for sports clubs e-commerce, from the analysis of the rivals, to be more competitive and increase sales and income.
Brand appearance; e-Commerce in effect
The importance of sponsorship on jerseys (clothing brand + company that pays for advertising) has been increasing over the years, but with the boom in electronic commerce, sports teams decided to take advantage of the situation.
In this sense, two world giants, Futbol Club Barcelona and Real Madrid have regained the exploitation of their brand in products instead of leaving it in the hands of clothing manufacturers. Another scenario that opens the doors to many clubs is the creation of an online store in the commercial giant Amazon. This is what Naples did in 2018, becoming the first football team to land in Jeff Bezos’ multinational.
Therefore, clubs like Barça want to sell products in which their brand participates at the best price. If we look at their online shop, we can see how they sell a wide range of products, from official kits to fashion products such as sweatshirts, polo shirts and accessories.
Since Barcelona signed the new contract that allowed them to exploit their own brand as an e-commerce, they have generated a new source of income, but also issues to be taken into account, such as the competitiveness of the online store with respect to other rivals, or knowing if they are selling the best products at the best price, which will make the business increase its sales and income.
Analyze the competition
As if preparing a match, studying your opponents is basic to the success of online stores. From the analysis of the competition through Big Data tools like Netrivals, you will obtain a primary advantage over your rivals, acquiring knowledge that will allow you:
- Recognize who else is selling your products
- Identify which products are more profitable
- Knowing your competitive level in the market
- Knowing the competition’s stock level in order to act accordingly
This tool is very useful to analyze the different distribution channels, see how the rivals are selling the products in the market, as well as a basis to carry out an effective pricing strategy through the Dynamic Pricing module, which allows you to update the prices of the items automatically based on certain established rules.
These rules can be activated at certain times of the year, for example when you want to activate inventory rotation or sell products out of season that could be causing costs. The Dynamic Pricing tool will always safeguard your minimum margins, to avoid reducing the net income of your online store.
Improve performance through the use of pricing software
Several companies in the sports sector have managed to drastically improve fundamental metrics that measure the performance of online stores such as Customer Acquisition Cost (CAC) or sales. Netrivals has helped sporting goods businesses increase sales by 60% while reducing CAC by 25%, thereby increasing the companies’ net profits and profitability.
Clubs are facing a new emerging paradigm to be solved in order to generate extra income for the viability of sport projects. The use of e-commerce to exploit sport brands has been a differential factor to be able to make the most of the products. For example, the FCB online store adapted its catalog for the Asian market, thus achieving better customization for the client, which finally translates into an increase in sales.
The use of product tracking tools becomes essential so that the Clubs’ online stores can continue to compete, since although they may look like brands, they compete as retailers against rivals in the sports products market.