Glasses on the run Newsletter #21
Hi,
There are a number of interesting articles today, which intertwine in a couple of fascinating topics - the evolution of some of the most prominent (more than) 100 year-old running brands and the state of the performance running market. Enjoy.
What was interesting in the business of running
Starting with one of the 100 year-old brands - Brooks Running. This is a short intro article by Brooks CEO Jim Weber of his new book "Running with Purpose". It is more of a promotional piece, but it gives a glimplse into a major strategic change Brooks undertook when Weber took over 20 years ago - it focused entirely on the core running market and divested of any parts of the business that didn't fit that focus.
And here is a fascinating interview with Brooks President and COO Dan Sheridan. It covers a range of topics, including the current state of the company, which continues to be focused entirely on its core running market and growing to $1.2 billion in revenues for the last fiscal year as a result.
Now on to New Balance - another iconic brand that's more than 100 year-old. GQ has a long story on the company, walking us through New Balance's journey in pretty much the opposite direction of Brooks, shifting "gracefully out of the cutting-edge performance category and into the vanguard of high-fashion streetwear". It underwent a major shift in its marketing philosophy over the last 6-7 years, pursuing partnerships with designers, sports stars, and influencers. And in the process New Balance's revenues grew from $125 million in 1994 to $5 billion in 2022.
At the same time, New Balance is apparently not immune to blunders. Hundreds of new New Balance shoes were recently thrown out in a dumpster outside of a factory shop in the UK. Apparently, they included "single shoes that could not be paired, damaged product and samples", but not less wasteful nonetheless.
And in a final point about Brooks and New Balance, here is what the CEOs of the two companies share about the impact of a potential recession on the running market.
Now moving on to Saucony, which is celebrating its 125 anniversary. I would have thought that, similar to Brooks, it is also focusing entirely on the performance running market, but the collaborations for its anniversary show that this may be changing.
And one more on performance... Adidas shared its 2022 annual results and its "currency-neutral revenues in Performance grew at a strong double-digit rate, while Lifestyle revenues declined". And of course, Adidas has a very specific predicament with the huge existing Yeezy stockpile, which the new CEO Bjorn Gulden hasn't yet solved.
A few more interesting stories
Running and TikTok - running content on TikTok and how major brands are utilising it.
A useful perspective (and motivation) on switching from Garmin to Coros.
And one of Strava's regular data shares - showing that Gen Z women in the UK dedicate 11% more time than men to exercising.
Thank you for reading,
Momchil
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