After two years of preparation, Intersport Germany has launched a new retail media service that allows brands from inside and outside the sporting goods industry to advertise themselves through the offline and online channels of some of its affiliated retail members.
The clients will benefit from this new service by targeting specific groups of customers in specific areas of the country. The participating retailers will get a financial reward for the advertising, monetizing their brand names, databases and other assets, with Intersport recieving a commission for the service.
The first clients are two B2C brands that bypass retailers in terms of sales: Peloton Interactive and Vaha. Peloton, the fast-growing American fitness equipment company that we have already reported about, has just entered the German market. Vaha is a German personalized home training subscription program revolving around an interactive HD touchscreen mirror.
They and other future advertisers will be able to connect with the customers of 300 iconic stores carefully selected by Intersport among the 1,500 in its network, including SportScheck and Sport Schuster in Munich and Engelhorn Sport in Mannheim. “We only wanted great stores,” said Richy Ugwu, who is running the project after carrying out similar retail media programs for Metro and its Media-Markt consumer electronics chain.
To select the participating retailers, data were collected on the purchasing power of the region, the positioning and location of the store, store traffic, etc. All the stores had to pass a strict quality check in advance in order to be listed for marketing purposes.
After working for Intersport as a consultant, Ugwu has been made chief executive of a new subsidiary of Intersport, based in Berlin and called Intersport Marketing Services (IMS). As he pointed out, Zalando and Amazon also offer this kind of service, but largely only online.
In addition to exposure on their online channels, measured through impressions per day, the participating Intersport retailers can offer special displays for a fee in their own stores, including show windows and inside pop-up areas. They can also advertise the brands in their printed catalogs.
IMS will also be used to advertise Intersport’s own private labels. It will be open for brands inside the sporting goods sector – Nike being a potential advertising from next year – and other brands in others that want to be associated with sports such as Coca-Cola, for example.
Intersport International Corporation and its licensees in other countries are watching the German project with interest. Other sports retailers may no doubt draw inspiration from it.