At the beginning of the year I did an analysis of Puma and what it would take for the brand to maintain the growth they had over the last year.
How Will Your Favorite Sneaker Brand Perform in 2018? | Puma SE ($PMMAF)
In this post I established that Fenty would begin to cool off a bit and that the brands inability to reach men in the North American market would affect the company’s ability to grow. I explained that the only reason Puma would not begin to stumble is because they would be loaded during the World Cup. Unfortunately Puma only had two teams make it to the World Cup which placed the brand in a difficult position. In one of the boldest moves of the year by a brand they launched Puma Hoops and announced that Jay-Z would be the president of Puma Basketball. They did this during the World Cup which is incredible when you consider that Puma is an international brand.
Puma is now about to dive back into an arena that they have been removed from for years. I discussed this point in the article below. The last endorser the brand had was Vince Carter who broke his contract to get away from the Cat:
Insider Ties Episode 110: Marvin Bagley x Puma | Will It Work?
My question a few days ago was “Will it Work?” This was before Bleacher Report released that Jay-Z would head up the new division. It was also before Deandre Ayton announced he would be rocking with Puma and that Zhaire Smith would also be rolling with the Cat. It’s a very interesting moment, but the real question remains, “Will it Work?” Having three top draft picks for the NBA is groundbreaking for a brand returning to basketball. They’ve done a good job by connecting to their history and giving Walt ‘Clyde’ Frazier a lifetime deal and rolling out an event.
What exactly does Jay-Z bring?
Jay-Z obviously has experience in sports marketing. His RocNation Sports is responsible for a host of professional athletes. He also had minority ownership in the Brooklyn Nets. What is most important here is that he’s helmed two different footwear and apparel ventures and they both performed admirably for a time. His line with Reebok under S. Carter was popular, but once it was released in general/commercial numbers the shoe died on the shelf. He has collaborated with several footwear brands, but not to the acclaim that someone like Kanye has been able to accomplish.
With his apparel label RocaWear that brand was hot for a moment and has since become associated with lower tiered wholesale accounts. Of course he is an international spokesperson and brings immediate brand awareness, but as many companies have found a big name does very little to move the needle. Rihanna is really the only entertainer to have pushed a brand from zero to a hundred in a way that is verifiable. Kanye’s influence on adidas isn’t as easily measured. That means that Jay-Z is going into unchartered territory and will have to surround himself with a committee of well informed footwear industry vets if this is really going to take off.
Will the Top Players in the NBA Draft Create Interest?
Zhaire Smith is the type of player that has the build and explosiveness of a Russell Westbrook. He is the steal of the signing class for Puma. It is a known fact that big men don’t sell sneakers so Ayton and Bagley aren’t really the best pickups for a brand looking to reestablish itself. Also rookies very rarely inspire a connection to the brand. A quick look at the draft class that adidas signed a few years back and Nike and those athletes have done very little to inspire a connection, but is that the athlete or the brands’ fault?
Insider Ties: The Next Wave Is Here: adidas Adds Eight to 2016 Rookie Class
In 2016 adidas signed 8 of the top draft picks. A couple of those guys are already out of the league and the other players haven’t created any interest in adidas. adidas also signed Kristaps Porzinghis away from Nike. At the time I thought this was great since KP plays in New York and has international appeal. adidas did nothing with him and he’s been injured.
Nike has signed a host of athletes and those players are very rarely featured in any campaigns. That doesn’t mean that these endorsements don’t work:
Right now there are analyst who are stating that the sneaker world will have to watch out for Puma. The reality is when you visit Puma’s website Fenty dominates the home page. They haven’t announced anything on their own platforms except for this newly founded Twitter account above. The breaking news is generating interest, but the brand doesn’t have a splash page, a signup option or any information or storytelling being generated on their own platforms. They haven’t had any pictures featuring Big Sean and The Weeknd with any of the athletes. There is a snap shot of Ayton with Walt Frazier, but if you asked a young kid who Clyde is they would probably think it was Ayton’s dad:
Puma is pulling off a major coup by scooping brand affiliated guys away from the Swoosh, but honestly that isn’t really a big deal. If I’m a rookie and a brand is throwing an obscene amount of money at me, more than what my rookie contract in the NBA will be I’m taking the money. Here is the thing though, a player who signs because of the money will become the next Vince Carter and as we all know Vince paid 13 million to get out of Puma and ended up with the Swoosh.
If Puma really wanted to make a splash it’s not with unknown entities entering the league. It’s not with Jay-Z who is infamous for rocking all white Air Force 1s (Nike just re-released the Rocafella Air Force 1 recently). These are temporary bumps for a brand that will have to fight a battle that begins with either regaining shelf space or driving a ton of traffic to their own platforms to generate interest.
Will this Work?
It definitely has potential, but this isn’t the way the brand needed to gain access to men’s footwear in North America and the U.S. It’s not a bad play, but to use one of Jay’s lines, “I don’t believe you, you need more people.” You lead with product, not people. I don’t care how famous those people are.