PESTEL Analysis - Decathlon

Extract

[...] The company currently has a 70-80% brand share within their chain and are looking to expand that in the future. Decathlon has allocated each sport group its own unique brand name, known as the Decathlon Passion brands, for example, Aptonia for products related to Nutrition, Healthcare and Triathlon and Kalenji which covers all products related to Running. They have also developed technical brands which support these Passion brands, namely Equate Clothing which is designed for the active removal of sweat and the Supportive range, which as the name denotes, offers Support and compression products, to name just a few. [...]

[...] The issue was highlighted by an IAS officer in Bengaluru. The current policy states that customers need to record their mobile numbers and or e-mail ID at the sales counter. The French company defended this policy in a letter addressed to Captain P Manivannan stating, ‘It is our company's firm stance that we will not take the risk of selling to a customer who cannot be contacted for any emergencies, or whose purchase history is not recorded in our database. [...]

[...] Legal Decathlon is experiencing its fastest expansion in China, this, however, poses a significant threat to the brand as it is a market which has the most sophisticated counterfeiters in the world. The most common counterfeit items are shirts and balls. The Chinese government offers little protection to International brands, so Decathlon needs to make clever decisions to prevent issues and protect themselves from this significant threat. The company currently registers around 40 new patents per year in an effort to combat some of these threats and protect its brands. There are various safety standards which exist to protect consumers when using certain products. [...]

[...] The rivalry in this market is high due to the large distribution and availability of a variety of brands globally. Rivals, Go Sport and Sport 2000 have joined forces and now have a common purchasing centre in Switzerland, this has enabled them to supply their brands at a lower much more competitive price range. Decathlon's success has relied on three major points; margin, market share and highest turnover per square metre of retail space. They will need to explore advertising media tactically to create high brand awareness in order to maintain their position in the market. [...]

[...] Social Decathlon has always had a strict policy in terms of employee welfare. All their contractors follow Human Responsibility in Production (HRP) process in all activities, which designates the management system and resources implemented by Decathlon and prescribes workplace conditions at production sites and with suppliers. Since 2003, Decathlon has adopted a social charter set out by the Social and Environmental Responsibility World Forum regarding human rights, health and safety, respect for the environment, corruption and management and communication. However, there is some controversy over the company's suppliers in Sri Lanka which will need to overcome. [...]