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Relatively unknown in the U.S., Decathlon is a behemoth overseas.
Relatively unknown in the U.S., Decathlon is a behemoth overseas. (Photo: RNMitra/iStock)

Decathlon Is Here to Disrupt the Gear Industry鈥擶ill It?

The European outdoor-retail behemoth is flooding the U.S. market with $3.50 backpacks. Will wary consumers buy in?

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Relatively unknown in the U.S., Decathlon is a behemoth overseas.
(Photo: RNMitra/iStock)

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A lot of factors add up to your name-brand synthetic down jacket鈥檚 $249 price tag.

There are the raw materials, the research and development, and the marketing, of course.聽But if you鈥檙e looking for a comprehensive聽explanation, says retail analyst Matt Powell, it comes down to a mindset. 鈥淭he industry is entirely focused on the 鈥榩innacle consumer,鈥欌 Powell, a vice president at the , says. The jacket鈥檚 materials are impossibly packable yet breathable; its prototypes were tested and retested in labs and real-world conditions; maybe someone like Conrad Anker wore the thing on the face of Meru. Add it all up聽and you get an extremely high-quality down jacket for the cost of a car payment.

That鈥檚 what makes walking into such a discombobulating experience.

When I entered the French outdoor retail mega-chain鈥檚 downtown San Francisco shop this fall, the first product I saw was a ten-liter backpack, with a few simple pockets and a passing glance at style. Above it, a poster announced the price in large script: . The shock and awe pricing continued: ski poles for $8.95, wetsuits for $16.90, tents for $48.90, down jackets for $57.90. For an American raised in the cult of carbon fiber, a worshiper at the altar of brand-name gear, it聽was dumbfounding.

Ange Diaz, Decathlon USA鈥檚 chief financial officer, has seen this reaction before. In the two decades he鈥檚 been with the company, it has conquered markets around the world (including Mexico, Colombia, and Malaysia, ). America is just the latest target. Compact and well dressed for my tour of the inaugural U.S. store, Diaz聽reacted to my aw-shucks disbelief with Gallic bemusement.

鈥淪ome brands in America only focus on the expert sports athlete鈥攖hat鈥檚 their niche,鈥 Diaz said. 鈥淪o we focus on making sport available and accessible from the beginner to the expert. We try to offer all the range of products.鈥 The company鈥檚 tagline: Sports for All, All for Sports.

Although relatively unknown in the U.S., Decathlon is a behemoth overseas. The company has聽some 1,400 warehouse-size stores in 48 different countries. It sells only its own brands; no North Face or Arc鈥檛eryx here. A 700-person-strong R&D department designs products for every sport you can think of鈥攃ycling, climbing, badminton, Basque pelota鈥攁nd releases, on average, a staggering 2,800 new products each year.

But despite the garage-sale prices鈥actual garage sale, not REI Garage Sale鈥擠iaz recoils when I suggest that the gear is cheap. 鈥淧eople, when they see the product, they are amazed by the price, the value,鈥 he says. But Decathlon, he argues, makes entirely capable gear at a price regular people can afford. 鈥淭he big thing we are learning is that we have to focus on explaining the value of the product.鈥 Clearly, it鈥檚 an approach that has resonated abroad: last year, Decathlon sold more than a billion individual items while generating over $12 billion in sales. In terms of revenue, it鈥檚 now聽more than likely聽the largest outdoor retailer in the world.

As exciting as cheap stuff is, though, 顿别肠补迟丑濒辞苍鈥檚 beachhead on our shores raises a question: With聽environmentally conscious buyers increasingly fetishizing gear crafted to last a lifetime and brands like Patagonia priding themselves on , is now the right time for this mass producer of cheap, fast gear to conquer America? 聽


Certainly, the idea that quality gear can be had for cutout-bin prices goes against decades of retail experience for most American buyers.

Simeon Siegel, a senior retail analyst at who covers high-end sporting companies such as Nike and Under Armour, says that top-tier producers price their gear high for a reason. 鈥淭hat group of companies, they are technical innovators of products,鈥 he says. 鈥淏ut at the same time, they are among the strongest marketers in the world.鈥 The high-end companies, Siegel says, allocates an average of 10 to 12 percent of their revenue for聽marketing, while a typical apparel company spends聽perhaps 3 to 6 percent. 鈥淭hey pioneered the use of the influencer鈥攖hey just called them athletes,鈥 he continues. 鈥淭hey pay endorsers a lot of money to create a halo around the brand and help get customers to believe that the technical innovation behind these products will actually make you jump higher,聽play better, and run longer.鈥

(Courtesy Decathlon)

Decathlon, unsurprisingly, doesn鈥檛 do influencers or splashy ad campaigns. Its stores, in the words of its CFO, are 鈥渘ot luxurious.鈥 The San Francisco shop is fluorescent and lined with cheap shelving; the shopping experience feels more Payless聽than Patagonia.聽Elsewhere in the world, Decathlon is frequently compared to聽Aldi, the discount supermarket chain that sells eyebrow-raisingly cheap groceries. (One Yelp reviewer, commenting on 顿别肠补迟丑濒辞苍鈥檚 San Francisco store, wrote 鈥渢hink REI meets Trader Joe鈥檚.鈥)

When I ask聽Powell about how REI, Dick鈥檚 Sporting Goods, and other presumed competitors in the U.S. market will react to 顿别肠补迟丑濒辞苍鈥檚 presence here, he corrects me. 顿别肠补迟丑濒辞苍鈥檚 real competitors, he says, are聽Target and Walmart鈥攚here most consumers buy their gear. 鈥淚鈥檝e been hammering the industry about this for some time. They keep making the products for the pinnacle consumer when the good-enough, everyday consumer is where the money is,鈥 he says. 鈥淚gnoring that market is unwise. Some people look down their noses, but family camping is a huge business, car camping is a huge business. Not everybody is interested in doing a three-week hike-in.鈥

And just because 顿别肠补迟丑濒辞苍鈥檚 products are priced to move, that doesn鈥檛 necessarily mean that the quality is suspect. 鈥淵ou can make a sneaker that costs $10 wholesale鈥攖hat鈥檚 not hard to do,鈥 Powell says. 鈥淚f you go to Walmart, you鈥檒l find $20 shoes.鈥 But instead of marking up the cost of each pair dramatically, Decathlon aims to make its money by selling millions and millions of cheaper shoes at smaller profit margins. Surfing over to 顿别肠补迟丑濒辞苍鈥檚 website, I see that, 80 years after聽聽founded REI on the idea of selling reasonably priced ice axes, Decathlon sells one for 47 percent less than REI鈥檚 lowest-priced model.


At the San Francisco shop, near a filth-strewn block of Market Street, Diaz and a couple of press people lead me through the company鈥檚 product line. Decathlon sells gear and clothing for 60 different sports in the U.S., including baseball and Ping-Pong. The company has about two dozen house brands, and the gear is separated into tiers. The most affordable tier鈥攖he stuff priced to compel beginners to try聽new sports and to titillate deal hunters鈥攊s not designed for performance, Diaz says. The $4 running shirts, for example, he says, will get someone interested in taking up running through a nice short-distance jog; tackle聽a half marathon in the thing and you might experience some chafing. And the ski pants are designed assuming that the wearer will spend a significant amount of time on his or her ass, and are thus聽more waterproof (but less breathable) than more expensive models.

The step-up, intermediate level improves material quality, but I wouldn鈥檛 mistake 顿别肠补迟丑濒辞苍鈥檚 $9 rash guard for something produced by, say, O鈥橬eil. Then comes the advanced equipment, which is still around 30 percent cheaper than name-brand competitors but has familiar bells and whistles. This stuff, Diaz argues, is directly comparable to what big-name companies produce. The $109 70-liter pack reminds me of the REI Co-op intro-level offerings, if a little heavier.聽The wildly popular $28.90 full-face snorkel mask, which I later bought for myself online, exceeded my聽expectations (several strangers asked to try it out during a subsequent trip to SoCal鈥檚 Cardiff Reef). The high-end bikes, which start at around $1,100, are 鈥渁bsolute cracker鈥 value for the money, per a聽.

Indeed, in part due to its disconcertingly low prices鈥攁 ski helmet 鈥攖he company has serious admirers. 鈥淒ecathlon has a reputation for selling quality bicycles and cycling accessories at very sharp price points,鈥 the UK鈥檚 . Hit the trails anywhere in Europe and you鈥檒l be bombarded with Quechua garb鈥敹俦鸪Σ钩俪蟊舸遣遭檚 in-house mountaineering brand. Even 国产吃瓜黑料鈥檚 own gear team is sold. 鈥淲e wanted to know whether this startlingly cheap gear was any good, so we got our hands on a sampling of hiking and camping products,鈥 Ariella Gintzler and Emily Reed wrote. 鈥淚n short, we were pleasantly surprised by how solid everything seemed.鈥

(Courtesy Decathlon)

When I tell Diaz that the prices of some goods are so cheap that they make me question the value of everything in the store, even the high-end stuff, he explains that that鈥檚 part of the model. 鈥淪ometimes people say, 鈥榃hy don鈥檛 you raise the prices so people will understand the quality?鈥欌 he says. 鈥淏ut that鈥檚 not who we are. At the beginning it鈥檚 difficult, we know, but after trying the products, people will continue to buy them. Why buy other products for twice the price?鈥 The customer who comes in for the $6 running shorts, Diaz says, will eventually move their way up to the $27 compression socks and $78 shoes.


But 顿别肠补迟丑濒辞苍鈥檚 bargain prices do come at a cost, critics say.

Although the company talks a big game when it comes to its sourcing and supply chain, promising to put people first聽and ensure that , some international labor activists disagree. 鈥淭hey are lagging far behind the industry forerunners,鈥 says Paul Roeland, of the , an alliance of garment-industry labor organizations and unions. While Patagonia, for example, has worked聽to improve human rights at the factories and farms that produce its garments and raw materials鈥攅ven fessing up publicly when it found wage slavery in its Taiwanese contract factories鈥擠ecathlon doesn鈥檛 talk much about specifics, activists say.

And although the company doesn鈥檛 make it easy to figure out which factories make its goods, when a reporter from the聽German newspaper聽Die 窜别颈迟听, she found conditions that didn鈥檛 gel with the company鈥檚 stated values. Pay was around 150 euros a week鈥攁 sum that makes it hard to afford basics like shower gel鈥攍aborers lived in single-room, barracks-like lodgings, and legally mandated benefits like sick pay and days off for holidays were not enforced. 鈥淭hat is a recurring theme: nice words, vague promises, but a complete lack of verifiable, transparent information and concrete, enforceable improvements,鈥 Roeland says.

Decathlon disputes that its ethics鈥攍aid out in its code of conduct鈥攁re toothless. The company contracts with suppliers in 49 countries, all operating under a tapestry of different labor laws, and says each 鈥渕ust comply with all applicable laws, regulations, and general principles related to environment, labour, safety, and human rights.鈥

鈥淒ecathlon regularly audits suppliers鈥 sites, using both internal and external assessment teams. In our manufacturing centers, we have a team of managers鈥擲ustainable Development in Production Managers鈥攄edicated to ensuring standards are achieved by our suppliers,鈥 the company wrote in a statement to 国产吃瓜黑料. 鈥淭hese managers are local recruits who understand the country鈥檚 culture and languages and are continually working with production teams to improve the tools and methods they use to ensure requirements are met.鈥

Still, Nayla Ajaltouni of , a French pressure group that鈥檚 part of the Clean Clothes Campaign, says that although Decathlon appears to have good intentions, its business model prevents it from paying fair wages to international laborers. 鈥淚t鈥檚 based on minimizing production costs and thus wages鈥攖hat鈥檚 the basis of selling large quantities of聽cheap garments,鈥 she wrote in an email. This is why companies like H&M, Primark, and other producers of fast fashion will never be labor leaders. 鈥淯p to now, we鈥檝e had no improvement of working conditions and salaries in garment-producing countries, because this business model is profitable and decision makers in the company have not decided to change it.鈥

Decatholon says that it has lofty environmental goals, too, and that it aims to use only sustainable聽cotton and polyester by 2020. It鈥檚 a laudable target, though the company鈥檚聽2017 sustainable-development report showed that the company was a long way from reaching its goals, using less than 10 percent sustainable polyester and 55 percent sustainable cotton.

Rather than focus on the price of its products, Decathlon and its employees like to talk about accessibility.聽鈥淲hat is the sport you always wanted to try?鈥 . 鈥淲e鈥檙e a gateway into learning new sports, because sports can be so expensive,鈥 Diaz says. And in an era when the outdoor industry has woken to its upper-middle-class whiteness, the point is聽a good one. 鈥淲e want people to start sport, to practice sport,鈥 Diaz says. 鈥淚f we can offer them the product at a lower price, it works for us.鈥


As my tour of the San Francisco store winds town, Diaz and the PR team walk me through 顿别肠补迟丑濒辞苍鈥檚 expansion plans. The downtown location is just a foothold.聽The next store, , will be a whopping 47,000 square feet. After a year of operation in the States, talking to consumers and working with local sports clubs, the retail team believes it has a better idea of what Americans want鈥攁nd how to convince real athletes that Decathlon is worth a shot. 鈥淚f a person comes in for the $3 backpack and it lasts more than the two weeks they expected, they鈥檒l come back in and look around,鈥 Tom Mulliez, 顿别肠补迟丑濒辞苍鈥檚 head of outreach, told me. 鈥淎ll of a sudden, selling them on a $159 jacket is not all that inconceivable.鈥

On the way out, as we exchanged pleasantries, Diaz and the team gifted me one of those backpacks with a grin. Go to town on it, they told me, it鈥檚 got a ten-year guarantee.

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