The Italian conglomerate, BasicNet SpA, after struggling to achieve the same sales number as pre-covid times, has finally been able to revive its heritage sports brands like Kappa, Superga, and K-Way.
Apart from these decades-old European brands, BasicNet also has the American boat shoe brand Sebago under its umbrella along with Robe di Kappa, Jesus Jeans, Lanzera, Sabelt, and Briko.
Established in 1995 the BasicNet brands have found it difficult to keep up with the sports giants Nike and Adidas who have an excessive monopoly in the sportswear industry.
However, they have been able to find relevance, once more, with the help of marketing strategies that involved collaboration with luxury brands, diversifying into other forms of sports, and focusing on giving their most iconic and recognizable products the centre-stage limelight they deserve.
This has resulted in the company recovering from the slack it suffered in the first half of 2021 due to the pandemic. They have been able to make a consolidated turnover of more than 162 million USD in sales and profits in the first six months of 2022.
A 26% increase from 2021, which had also seen the shutting down of several of their shops. They have also managed to double their net profit to 10.7 million USD.
“The second half of 2022 should still be positive, but certain geopolitical factors are not making things easier,”
Vice-president, Lorenzo Boglione said in an interview.
What Strategies of Revival did BasicNet Apply to its Brands?
Absence of Nike in the Wholesale market
Nike, due to the pandemic, was forced to shut more than 900 stores across the world and had also lost its sales with major wholesale partners like Nordstrom and Foot Locker because they had to do the same.
But the sportswear giant was able to turn an unfortunate event into something truly iconic by performing exceptionally through its online sales and thus, showcasing that the brand had strong roots in the industry.
Using their age-old but extraordinary skill to market brand aspiration the brand took over its control of distribution and shifted focus on e-commerce, and fast-moving trends.
It was able to deepen its connection with consumers by using the power of branding and eliminating wholesale boutiques.
In all this, BasicNet saw an opportunity to regain its place in the sportswear industry. Their biggest strategy was to take advantage of the absence of Nike from the wholesale industry.
“For our sports brand [ Kappa], we’re competing against humongous giants but there is always space for challengers,” Lorenzo commented. “Everyone knows about their strategies — where they are going in and out of markets — that leaves room for smaller players if you are fast and reactive.”
Collaborations with Luxury Brands
BasicNet is using collaborations with luxury brands as a way to find its presence in the industry again.
Sebago and Saint Laurent of the Kering conglomerate got together and launched a collaboration on Monday. Iconic shoe brand Alaïa also partnered with BasicNet’s Sebago
Other collaborations include K-Way x Fendi and K-way x Comme des Garçons Play. The collaboration with Comme des Garçons Play may give BasicNet the same success as received by Converse with their heart-emblazoned high-tops.
Targeting Aspirational Luxury Consumers
The company aims to drive sales from consumers who would be okay with buying more accessible luxury products from brands under its umbrella that are immensely rich in heritage.
Aspirational consumers who would appreciate luxury at lower prices like €100 K-Way windbreakers or €160 Sebago boat shoes.
Diversifying to Other Sports
The Turin-based group has also entered other sports like US snowboarding and skiing for its brand Kappa which has originally always been part of football.
They have been able to get sponsorships for these said sports for the next two Winter Olympic Games, in 2026 and 2030.
They also have plans of manufacturing jerseys for the Formula 1 team French carmaker Alpine.
Focusing on Brands That do Well
Apart from K-Way, which is BasicNet’s one of the more successful brands and also the brand they have most invested in; the brand has also invested in relaunching Sebago, which they acquired not so long ago in 2017
Kappa remains their most important brand with almost 70% of their total sales coming from it.
Basic Village is now in Milan
After opening a Basic Village, in their place of origin, Turin, BasicNet has also opened one in Milan today as part of the fashion week. 4,500-square-metre in area, the campus will have offices, a showroom, a restaurant, commercial areas, and lofts.
With the idea to replicate the concept of Basic Village in a different location and increase the company’s desirability as an employer and at the same time ensure convenience for wholesale buyers and licensees.
“In Italy, the talent for our industry is in Milan—it’s hard to take them outside that ecosystem. And when you want to attract talent from [outside Italy], it’s easier to bring them to Milan,” Boglione said.
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