Spinoff of Sportmaster Creates Options for Supplier Expansion in Russia

For many years, the biggest sporting goods brands in Russia have been on a mission to open outlets selling their own brands. However, it has been suggested that sporting goods manufacturers are now getting more opportunities in the country.

With headquarters in Moscow, Sportmaster is known to source products from around 120 different suppliers in Southeast Asia; this includes companies with facilities in Taiwan, Vietnam, and China. However, recent moves from the company suggest they want to expand both their supplier base and their own label.

Currently, Sportmaster is considered the third-largest chain for sportswear and sporting accessories in Europe (10th in the world). With a huge presence in Kazakhstan, Belarus, Russia, and Ukraine, they have nearly 500 stores in these four countries alone. Additionally, they’ve also teamed up with a company in China to open seven ‘joint-venture’ stores, a relationship that began in 2014.

Originally, Sportmaster were the Russian distributor for some of the global names including Puma, Nike, and Speedo. Over time, they opened branded franchise outlets in important markets for suppliers such as Weekender and Columbia. Soon enough, retailing third-party brands became a key target for the company and this led to their own label called Demix. After success, this paved the way for the likes of Delmare, Outventure, Nordway, and Joss. Unfortunately for the company, the labels that followed never quite hit the peaks of their first label.

With ten solid years of experience (and success), the company has now been persuaded to build a high-street presence in the coming years. At a competitive price point and with consumer demand at a comfortable level, the Demix range now includes more than 2,200 product lines and represents 5% of the company’s total inventory.

Why this goal to make Demix a retail chain? In 2017, the brand outsold both Adidas and Nike in Russia. Suddenly, the perspective offering Demix as an inexpensive solution for amateur sports hobbyists had been transformed and they were considered a mid-market option that could help hobbyists as well as professional athletes. While the likes of Reebok, Nike, Under Armour, and Adidas focused on premium solutions, Demix realigned with two features in mind; affordability and quality.

First launching in the Gagarinsky Shopping Mall in Moscow in September, many have praised the company for this move since this particular area is close to the foremost universities while also lying in a middle-to-upper class catchment area. Ever since opening, this site has been a testing ground for new brands to the country thanks to the somewhat desirable demographic. As well as location, the timing also seems to be fortuitous for the company since the last twelve months have been full of growth for Russian sportswear and accessories.

In truth, this is something corroborated elsewhere since the athleisure niche seems to be everywhere at the moment. Casualwear, sports shoes and sports clothing seem to be the norm in many locations. In Russia, many people are wearing sweatshirts, tracksuits, trainers, tennis shoes, and other sports clothes even away from sporting scenarios. In both value and quantity, sales in this niche are expected to increase in the time ahead.

Of course, Sportmaster is hoping to capitalise on this market trend and develop new retail property as quickly as possible. According to reports, 14 Demix-branded outlets are currently in the planning phase with an expected opening date of 2019. As well as boosting the number of locations, the number of product lines is also expected to increase from 2,200 to 3,500. When all is said and done, this should bring the brand in line with the average for a sports brand in Russia. As 1,300 new product lines are pitched, this again opens opportunities for sporting goods manufacturers.

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