Salomon is ready to enter the billion euro league
Since 2010, Salomon has grown from 400 million to 900 million euros in net sales. Now the brand is ready to pursue the one billion bar.
This year, Salomon has many reasons to celebrate. Established in Annecy in 1947, Salomon is celebrating its 70th birthday. With strong net sales growth since 2010, it is the biggest brand in the Amer Sports portfolio.
“In ten years, we have transformed ourselves from a 400 million euro winter sports equipment brand to a 900 million outdoor brand with 70% sales from soft goods,” says Jean-Marc Pambet, President of Salomon.
Now Salomon is ready to take the next step ahead.
In addition to growing in softgoods, Salomon also wants to maintain its global leadership position in the winter sports equipment market. Pambet knows what this requires:
“We have to keep bringing innovations to the market, developing the sports we are in, supporting the specialty dealers, and mastering all commercial fundamentals.”
Salomon operates in a fast-changing business environment.
“The relationship between brands and consumers is changing, sports and practices are evolving, and the shopping experience is undergoing a rapid transformation.”
“The recent US wholesale slowdown is impacting our sales. At the same time, the consumer demand continues to be dynamic, the Salomon brand and our categories are healthy, and the ranges are well accepted. In the wholesale turbulence, we as a brand need to do even more by ourselves, leveraging our owned channels.”
“We need to sell more, and accelerate the brand. We need to constantly renew ourselves to fully leverage the potential of the brand.”
To start with, end of 2016, Salomon has renewed its brand positioning with its “Time to Play” motto. Deeply rooted in a universal human truth, the Salomon purpose is to enable people to play outside again, reconnecting them with their inner child. This has given the brand a powerful platform for future growth through a deeply emotional consumer connection.
Growth from road running
One example of Salomon’s future building blocks is road running. While the brand will strive to further grow its leadership in a growing trail running market – leveraging the fact that 70% of runners would prefer to run in nature – the first dedicated road running footwear collection will be launched in the market in Spring 2018, with a strong point of difference.
“We have no legacy, no baggage in road running and we can come with a different bio-mechanical approach, leveraging both new technologies and our unique brand point of view.”
According to Pambet, a unique design platform is also the key to success.
“When you look at a Salomon shoe, you know it is a Salomon. It has this unique DNA. And this needs to be true for any Salomon product, whatever the sport or category.”
Engaging the consumer
To activate consumer demand, Salomon leverages all touchpoints, with a strategy based on very engaging content (80.000 pieces of content used per year), rooted in the sport and managed by an eco-system of community managers. A rich content created at the place of practice, like at the Mont Blanc Marathon (10 000 participants) and then powerfully distributed on social networks, with Salomon TV (45 million views/year) being a key vehicle and now also available on Apple TV.
In retail, the best possibilities to engage directly with consumers are Salomon’s own brand stores and online platform, Salomon.com (24 million visits/year)
“With almost 200 Salomon brand stores, we have achieved solid double-digit growth in D2C sales, supported by a very dynamic ecommerce business.”
Although the growth trend is global, Pambet expects a lot from the two major growth markets, USA and China. Especially in China, the potential is enormous.
Source: Amer Sports newsroom