Ecommerce in Sport - Thematic Research
Summary
An analysis of the how the ecommerce industry intersects with sport, and its trajectory in the coming years
The growth of the internet has, for obvious reasons, seen an enormous rise in the financial power of the sector. Online shopping has become popular due to its convenience and ease, with people not even needing to leave their house to purchase goods. Improved delivery speeds have also led to more people adopting these services, with Amazon’s Prime one-day delivery proving highly popular among consumers.
Both Nike and Adidas are well clear of the rest of their competitors, including Puma and New Balance. The two leaders generate billions in revenue each year, and their sales have been bolstered by the ease and accessibility of their online platforms. Despite their strength in the market, both have come under fire for ethical reasons, specifically Nike, whose usage of sweatshops has seen the brand come under multiple investigations for poor working conditions.
Brands like Nike, Adidas, Puma, and New Balance have built up their brands by securing endorsement deals with some of the world’s biggest athletes. Michael Jordan’s deal with Nike has been one of the biggest sponsorship deals in history, giving Jordan his own brand of trainers under the Nike umbrella. While this is a rare example due to the size and scope of the deal, it highlights just how much an athlete and a brand can grow their profiles in collaboration with one another.
Amazon is the only example of an ecommerce company successfully breaking into the area of sports streaming. Its enormous wealth has afforded it the ability to acquire valuable sports rights for sizable sums to boost traffic and subscriber count to its streaming platform. Leagues that have partnered with Amazon include the NFL and the Premier League, both of which signed multi-year deals.
Key Highlights
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