We can’t exactly say unrecognized. On the contrary, Puma is recognized by a significant portion of the US population. A survey conducted by Statista shows that 92% of respondents know the brand. So, in terms of recognition, Puma ain’t lacking one bit. But in terms of having a significant market share and being hyped, Puma is far from being sneaker-giant-like. But will this change change anytime soon? Is the Puma future looking bright?
Now, you might be questioning the reason we brought Puma’s future and its fate out of the blue. You see, in the sneaker industry, every single tiny change can affect the whole equilibrium. And let’s just say there’s been a heck of a lot of said events. But one thing they’re NOT, is tiny.
For one, you’ve got the whole Adidas x Yeezy drama (read more about it here). Which alone can reshape the hierarchy of the sneaker world. Because Yeezy left quite the empty spot in the footchain. And maybe Puma ain’t the one to fill in that spot, but it sure can give the brand the boost it’s always been waiting for. They say one man’s misfortune is another man’s joy. And they couldn’t have been more right!
The Puma Future … Past and Present
Founded in 1948, Puma is a well-known sports and lifestyle brand that was actually the result of the two Dassler brothers feud. The other brother? Well, he was the owner of Adidas. Their rivalry didn’t stay in the sneaker industry, but it even divided their hometown- the town of Herzogenaurach. However, at a certain point, fans toned this rivalry down a notch when Adidas and Puma participated in a friendly soccer match in 2009 to signify the end of this animosity.
But how has been Puma doing and what does the Puma future look like? Are the numbers looking good, or are they crashing down the ground like Foot Locker’s been doing lately? Well, you be the judge of that.
So, in 2022, each of Puma’s Quarter reports looked better than the previous one. By the end of the year, Puma’s sales had increased by 18.9% to reach o € 8,465 million. While their gross profit margin had reached 46.1%. They also reported a 38.9% improved OPEX, as well as improved net earnings. And by the end of that year, they reached earnings per share of € 2.36 (a € 0.29 improvement compared to 2021).
As for 2023, like nearly all fashion brands, Puma witnessed a 2% decrease in shares. However, the brand expected this dilution in profitability due to unstable currencies, and higher freight rates and raw material prices. We expect the gross profit margin to be under more pressure in the first half of the year than in the second half, the brand said in a statement.
Future of Puma
You see, the Puma future is not about selling products. Of course, the company needs that. But this only comes after leasing, which is its main priority. In other words, Puma’s main objective does not rely on expanding the consumer circle. But it’s rather working towards leasing its products through a new consumer model that focuses on using loyalty initiatives to boost sustainable business. So, the main objective is to shift their work from zombie consumerism to a place where consumers are involved in product design and manufacturing every step of the way.
In the future, we may not even sell the shoe. What if we lease it or what if it’s a benefit of a membership where we’re talking about brand loyalty, or a bigger service-based package? How do we shift from a Pavlovian zombie consumer to one who is informed, engaged and aware? That is the next step for how we market this and create brand value. It’s a whole different environment for creatives and marketing. Puma’s head of sustainability strategy, Justin DeKoszmovszky, said in a statement at the D&Ad White Pencil Laboratory event on the 11th of June.
Meaning that, the Puma future is built on rebuilding the brand, by taking a different approach than other brands in the market. Because the main aim Puma’s got does not only involve generating profits and attracting the highest number of consumers. The dream’s much bigger than that. Puma wants to close the loop when it comes to consumerism, manufacturing, and sourcing. And it intends to achieve that by making sustainability a priority. And we all can’t deny the fact that is one clever move the brand is pulling!
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