Glasses on the run Newsletter #43
Hi,
I hope you are all well and will enjoy this selection of stories from the business of running.
What was interesting in the business of running
Asics had a great 2023 with its overall sales growing 17.7% to 570.46 billion yen. Half of those sales came from its performance running category (that's how Asics calls running shoes), which grew 10.7% to 285.93 billion yen. Europe was its largest region with 147.98 billion yen in sales, followed by Japan with 135.85 billion yen, and North America with 114.62 billion yen. (Footwear News and Asics financial reports)
Brooks had a record breaking 2023, growing sales by 5% to $1.2 billion. As part of that, it reached $1 billion of sales in North America. On one hand, that is not surprising, considering Brooks's leading market position in the US with 21% share in the performance running market. On the other hand, it also shows a potentially significant international opportunity for Brooks. (SGB Online)
Nike announced it's laying off 2% of its current global workforce or more than 1,500 people, as part of its previously announced objective to cut costs by $2 billion over the next three years. Nike is trying to become more efficient and also simplify its product offering by focusing on key parts of its business like "running, women’s and the Jordan brand". (CNBC)
New Balance is launching its own resale channel. It will allow customers to exchange their used New Balance shoes for a voucher they can then use towards their next online New Balance purchase. The broader recommerce market is expected to continue growing over the coming years, and to quote the Glossy article: "For New Balance, the launch is as much about sustainability as it is about keeping up with consumer shopping trends." I imagine that's the case for the other brands joining in too. (Glossy)
The Nike Alphafly 3 was the most prevalent shoe among the top 25 men’s and women’s finishers in the US Olympic Trials Marathon. There were a total of 11 brands represented among those top 50 athletes. 19 athletes (eight women and 11 men) wore Nike, seven wore Asics, six wore Brooks, and five wore Adidas among others. What is probably even more noteworthy is that four of the top 25 women wore the new Puma Deviate Nitro Elite 3, including the winner Fiona O’Keeffe and number three Dakotah Lindwurm. (Outside Online) That breakdown is interesting because it shows a different picture from the one on the US market in general where Brooks is the leader while Nike struggles to connect with everyday runners.
Adidas has launched a campaign to help reduce the high negative pressure in professional sports. It's good to see this topic receiving more attention in recent years. (Adidas announcement)
And finally, a couple of articles on the benefits (and joy) of getting rid of some of the tracking and metrics we are all so accustomed to nowadays. (Business Insider and The Independent)
Thank you for reading,
Momchil
