While Hibbett Sports and smaller chains like DTLR/Villa and City Gear attempt to right their wrongs by developing stronger e-commerce platforms, brands continue to implement moves that solidify their connection to their core audience. The sneaker market entered a promotional environment a year and a half ago and it hasn’t moved away from promo. This has shaped releases and led to consistent sales at stores. Customers are no longer excited about shopping new releases because they know the new release will eventually be marked down. Some retail stores have shifted to a model where they set aside retail locations as outlets reducing the price on products that can’t be RTV’d.
This model of creating an outlet within a chain establishes a very shaky precedent; which moves this post into another discussion and away from the title. Earlier this year in my predictions I stated that Fenty and the World Cup would continue Puma’s momentum, but the brand is teetering at the top of a mountain because men’s footwear sales continue to be an issue. While I don’t think what I discovered this morning 4-27-2018, will fix the issue of men’s footwear I do think that it opens the door to building a stronger e-commerce platform and should get shareholders excited.
Puma introduced a student discount program. Not excited? Kind of like, “ummm okay? All of that build up in two paragraphs just to say ‘Puma has a student discount’?” I know on the surface it seems miniscule, but when brands begin to initiate the interaction with their core market by extending them discounts it’s a smart move. One that could further disrupt retail outlets. Let me explain.
- Students are broke, but they create the culture around college towns and create thriving businesses that get stronger as the students grow into grad students and move on into professional schools and careers. Take a look at any city with a college area and look at the establishments around the school. You typically have serious growth in businesses and in commercial developments as well as housing.
- While students don’t have a lot of cash, they do tend to go out more and have more disposable income. A lot of that income they spend attempting to look good. There is a reason fashion is aimed at 16-25 year olds. (Now I think this should be extended from 26-45 now because the demographics of fashion and style have shifted as Hip-Hop has gotten older, but that’s another discussion.)
- As retailers push promo and create ‘outlets’ new release products are not selling through as quickly. This is happening more now in footwear because there is an abundance of product being delivered so people know they can wait. Retailers are also limiting discounts. Foot Locker has moved away from allowing Veteran’s Advantage and they’ve gotten stricter on their discount policy. Hibbett Sports doesn’t have a discount policy at all and neither does Jimmy Jazz, DTLR/Villa or City Gear. The lack of discounts creates a situation where products are constantly being reduced even when a product is fairly new.
- The promotional environment is understandably a problem and a discount for students adds to promo, BUT when brands deliver new products and students who are signed up on e-mail lists are notified that a new Puma Creeper or RS has been released and is available for student discount, it will undoubtedly increase engagement on the platform as well as increase the cart size during a transaction.
Puma isn’t the only brand providing the discount, it’s just during my morning scan of sneaker brand sites I noticed the bold red print for Student Discounts. It reminded me that the promotional environment of the last two years will not be leaving retail. It also reminded me that if Foot Locker, Hibbett Sports, City Gear, DTLR/Villa, Jimmy Jazz and other sneaker companies all implemented Sheer ID styled verified military and student discounts they could replace deep promo cuts with a program that allows for the increase of data on shoppers as well as an increase in “hook ups and additions to the cart on checkout” on check out.
Nice move Puma.
Puma: Puma Student Discount Program
Nike’s Student Discount Page (only 10%)
adidas Canada Student Discount (I can’t find the US program)
Almost all programs have a relationship with Unidays, but they don’t have the feature prominently listed on their sites. Retail stores would do well to follow suit.
