E-Commerce, an Expansion of the Retail Strategy

Q: What are the opportunities that the Mexican market offers to Decathlon’s e-commerce department?

A: The Mexican market is the biggest in Latin America after Brazil and is of great value for our company. Mexico is a country where we find all the elements to make sports accessible to the many. We believe that sports have an important role to play in the development and well-being of society. In Mexico, we have a high segment of the population struggling with overweight and also high rates of childhood obesity. We have a responsibility to contribute in the fight against these ailments.

On the other hand, not only in Mexico but worldwide, people are turning to e-commerce platforms, so it is of vital importance to the company to be present in this platform. One clear example of its importance is the actual situation that we are living with the COVID-19 crisis. Many companies are depending entirely on their e-commerce platforms to keep their businesses running. Though in Mexico e-commerce is not the main option, we believe that in the near future this trend will change and we will continue evolving our way of doing business.

Q: What is Decathlon’s strategy to position its e-commerce alternative among Mexican consumers?

A: We see e-commerce as an extension of our customer experience, which consists of providing all the specifications on the use of the product, such as functionality and recommendations, which allows our users to have the best sports experience possible. E-commerce is seen as an ally to our physical store, not a competitor; that is a key point in our strategy. Thanks to this, our stores also have the functionality of warehouses, which allows the shipment of online orders directly from stores in a faster and cheaper way. At the same time, our Clic&Collect feature allows customers to buy our products online and collect them at their closest store just 2 hours after purchase.

Our teams, all of them active sportspeople, are also available through chat to help our customers on their journey with personalized attention. Also, through our MyDecathlon Club program, we offer exclusive benefits to our users, such as the possibility to test a product for seven days completely free of charge before purchasing it. We are currently working on our e-commerce platform to integrate unique experiences, like artificial intelligence and full-range availability in stores.

Q: What balance is Decathlon trying to establish in Mexico between its physical retail and e-commerce operations?

A: We have a specialized team focused entirely on our expansion strategy to continuously open physical stores so we can be closer to our customers all around the country. However, e-commerce is gaining more relevance in the retail market every day and the trends indicate that at some point in the future the way people acquire products will be mainly through e-commerce platforms. Currently, our goal is for e-commerce to account for 10 percent of our total sales.

Q: What are the local elements that are impacting the implementation of a local e-commerce strategy?

A: Logistics and payments are today the most important fields to be optimized in Mexico so we can assure the buying experience for our customers is positive and that we win their trust.

Another important point that we struggle with is digital frauds. The rate of fraudulent transactions is still very high and hinders our stock, logistics and payment processes. It is of great importance that the government and banks are involved in the solution. Meanwhile it is important to propose different payment and delivery options to the customers, whether online or physical, so we can assure they get their products in the fastest and safest way possible.

Q: How does Decathlon work alongside its logistics providers to ensure the company offers national coverage through its e-commerce operations?

A: We choose our logistics providers very carefully through a very thorough and standardized process of selection. A key point for us is the capacity to integrate the logistic provider within our IT system, to offer transparency in our processes and the best tracking experience for our users. Many providers in Mexico do not prioritize their technical capabilities, so there is a huge opportunity in this area.

Q: How can retail companies work to strengthen e-commerce operations in Mexico?

A: It can be done by working together. Since I arrived to Mexico a few years ago, I have seen several initiatives to join forces and make the e-commerce ecosystem stronger. It is a slow process but definitely will bring results shortly.

Also, there are some companies that are executing great strategies and best practices that are boosting the market to evolve and that we retailers and other industries can learn from. On the other hand, there are a lot of innovative tools and platforms that are being developed that facilitate processes and give a wider and segmented range of visibility so we can reach more audiences.

Q: How do you expect that a more robust e-commerce operation in the country will impact traditional retail?

A: I believe traditional retail will never disappear but the trends are already changing drastically. E-commerce is changing the way consumers buy their products. They search for security, efficiency and comfort with every purchase. However, the buying experience in a digital platform is limited. When a customer acquires sport products, it is important to feel and test them so they can be sure it works for them. That, clients cannot get through an online store. At our physical stores there are test areas where customers can try our products. These areas are an extension of our sales area and bring a whole new experience to our customers shopping experience. For example, if you are looking for hiking boots you can put them on and go through an installation which is designed to try the different types of terrain and obstacles you could encounter outdoors.

Decathlon is a French designer, manufacturer and distributor of sports equipment. It has strong presence in the European and Asian continents. In Latin America, Mexico is its second largest market after Brazil