Mike's Sports: 'Time to reinvent ourselves'

 

Cape Town, W. Cape, SA - "If you're confused about the status of school and amateur sport in South Africa this year, join the club," said Mike Augoustides, a partner with his brother, Casey, in Mike's Sports, Cape Town, W. Cape, SA. "Communication by the authorities hasn't been good."

Mike's Sports is a hybrid business; mainly a manufacturer and wholesaler of soccer team wear, under its own brand and also under licence for many of the other brands over the years, it's also a wholesaler of soccer balls and a retailer of those products and branded soccer boots and related items.

"I believe all team sports will be reopened," he said. "I also think that's the right and sensible thing to do. It appears that the current corona virus is no longer a major health issue for the majority of the population, and people who are at risk should take appropriate measures."

He said Mike's Sports, which has been trading for 73 years - of which he has been involved for half - had been "hammered" by lockdown restrictions for the past 2 years.

And footwear - specifically soccer boots - has been "a thorny issue".

"When the pandemic started, our 2 major soccer boot suppliers, Nike and Adidas, were both very considerate," he said. "They allowed us to cancel some orders, and they didn't pressurise us, in the new season, to place new orders.

"But last year, it became clear there was a change in sentiment. Yes, we'd cancelled some orders, but last year we received less than 5% of the orders we'd confirmed - in some instances, less than 1%.

"It seems that both brands have taken the decision to close hundreds of accounts in this country, and to concentrate on their 'direct to consumer' business.

"You can see it in their increased retail footprint in big malls, and you can understand the thinking in the increased profitability of going direct to consumer, cutting out retailers and even their own sales staff.

"Our account isn't yet officially closed, but we can see the writing on the wall. It's the way of the world. We're not bitter about it. We will just have to reinvent ourselves and keep evolving as we have over the decades.

We will achieve this by offering what the big brands cannot. Quick turnarounds, customisation, attention to detail as well as flexibility. Catering for what the customer wants and not just what we have in stock. Great service and great prices!! In short seeing this challenge as an opportunity rather than a setback and raising the bar for the brands as well as all the other independents”

"Most South Africans are underprivileged, and when it comes to the soccer playing community, that's even more so. The top end of the branded soccer boot market retails for around R5000 a pair, but demand is in the R500 to R1000 price range, and those are difficult to come by.

"Another trend is that brands are holding less and less stock. I had a contract in December to supply boots. It was an eye-opener how I had to scrounge for stock.

"In the sports industry, replacement stock is very important for retailers because you can never be sure when there will be demand."

One possibility is importing their own boots. "Strada is our brand for our team wear and soccer balls, and it has a reputation for good value for money. I've thought a lot about building our own boot range under our own brand. Nonetheless, we'd have to pay our dues to get into the boot market."

The other obvious option is sourcing from the other brands which haven't - yet - switched focus to direct to consumer.

"There is a gap for middle tier brands to support independents - brands offering a mix of recognisability, quality and price - and there are a number of options. Watch this space."