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Sportswear Retailer Umbro Branching Out Into Other Markets
Sunday 08th of July 2007 04:57:35 PM
Umbro, an international sportswear company is hoping to increase its profits by creating new lines of football clothing rather than depending solely on the sales made from replica football shirts and other promotional Clothing. Selling their clothing in other countries is one way to achieve this. "We have about 1,800 shops at the moment around the world and the target is to double that to 3,500 to 4,000 stores worldwide within the next 3 to 5 years," said Umbro Finance Director Paul Masters.The company also sponsors the English football team, but does not want to rely only on how well the team performs each season. If the team does not perform well during a season, sales of promotional Clothing will decline. Even hosting football tournaments can have an impact on sales for the company. The team did not host any matches for 2007. "As long as we have got the England contract, there will always be an element of cyclicality," said Masters.
This is why expanding into other clothing markets is important. Growing their business in countries like the US, China, France, Italy, and the UK will help offset any loses the company may face. The breakdown of a licensing agreement in Benelux, Germany and Austria may stall the company's attempts from entering this particular region of the marketplace until 2008. "The termination of the agreement could potentially have an impact on the turnover in the second half of 2007 and maybe going into 2008, but it will not be significant," said Masters.
Increased sales of Umbro clothing worn by six clubs in the English Premier League for 2007/2008 will give the company added exposure and profits. This should help the company make strides in their expansion into manufacturing other types of sportswear.
(c)Dominic Morel, www.sxc.hu
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