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Germany based PUMA has been one of the leading sporting brand companies since the 1920s. However, in more recent times, PUMA has presented itself as an edgy, unique company that has been focusing on not only its technical sporting brands, but also on its sports-lifestyle brands: 96 HOURS, Mihara, nuala, Mahanuala, and STARCK. PUMA strives to be a leader in fashion and technical sporting wear drawing its inspiration from the worlds of sport and fashion. PUMA provides a unique alternative to Nike, Reebok, and Adidas.

Trading on the Frankfurt and Munich stock exchanges and as American Depository Receipts, PUMA’s shares are held mainly by European and American investors. PUMA distributes products to more than 80 countries, and has almost 4,000 employees worldwide. PUMA operates under the PUMA name as well as their sports-lifestyle labels, and owns Scandinavian footwear company, Tretorn Group. For 2004, PUMA’s revenue was 1,530.3 million Euros, with 66.1% of sales due to footwear, 27.2% due to apparel, and 6.7% to accessories.

PUMA’s History

PUMA was founded in 1924 as “Gebruder Dassler Schuhfabrik” and years later, in 1948, became known as “PUMA Schuhfabrik Rudolf Dassler.” PUMA began establishing itself as an athletic brand, with many Olympic athletes and gold medalists wearing PUMA shoes. In 1960, a year after transforming into a limited partnership called “PUMA – Sportschuhfabriken Rudolf Dassler KG,” PUMA became the first shoe manufacturer to use technologically advanced production techniques. In 1968, PUMA had another first, being the original shoe company to offer Velcro fasteners on their shoes.

In 1986, known as PUMA AG Rudolf Dassler Sport, the company went public with stock offered on the Munich and Frankfurt stock exchanges. Over the next few years, PUMA continued to introduce new and innovative systems for their footwear, including the high-tech PUMA Disc System and the “INSPECTOR” children’s shoe with a mid-sole window that enabled growth to be monitored. In 1991, PUMA began an exclusive partnership with Pittards, an English company specializing in premiere leather manufacturing.

In 1993, Jochen Zeitz was appointed as CEO and chairman of PUMA, and with that came phase 1 of PUMA’s long-term corporate development plan, which hoped to establish a solid financial footing for the company. A year later, PUMA showed the first profit since its public offering in 1986.

For the past 9 years, since 1996, PUMA has been opening concept stores around the world and has been attempting to improve their brand awareness. In 1996, PUMA acquired a license in North America, establishing “PUMA North American, Inc” (a wholly owned subsidiary of PUMA) and then in 1997, they followed suit in Italy and Chile. In 1998, PUMA began its first sports-lifestyle venture, offering a footwear collection in collaboration with designer Jill Sanders. That year, the brand also managed to have successful product placement in the movie “City of Angels” and a KORN music video. With its popularity and brand awareness growing, PUMA managed to outfit 23% of the players in the ‘98 World Cup (soccer).

1999 brought more acquisitions for PUMA, taking over Dunlop Slazenger, a UK company, and turning it into another wholly owned subsidiary. That year, PUMA also opened their first major concept store in Santa Monica, California. With the yoga boom starting in 2000, PUMA and model Christy Turlington launched “nuala,” a yoga inspired sports-lifestyle brand. Looking to expand further into Europe, PUMA bought out “Tretorn Group” in 2001. The Scandinavian company would allow PUMA to have wider European distribution.

This year, “PUMA AG Rudolf Dassler Sport” has had 16.91% of its shares acquired by “Mayfair Vermogensverwaltungsgesellschaft mbH.” Mayfair, an asset management company, invests their money in property, financial, and business assets.

Recent News

In February 2005, PUMA opened its newest concept store in New York City’s trendy Meat Packing District. The new store is dedicated to PUMA’s sports-lifestyle brands, 96 HOURS, nuala, Mihara, STARCK, and Dassler. Each brand has been designed alone, and this is the first time that they will be showcased together. The store is somewhat of an experiment, meant not only to see how the brands do individually, but also to see how they do being sold together. The new store has been specifically designed to display the brands on a black, neutral backdrop to show off the unique garments. “The basic concept for collections within this PUMA store is to utilize the strengths and alternative perspectives of the different designers/brands to emphasize joint ambitions while maintaining strong and distinct personality of each,” (www.puma.com). As well, the location of the store clearly speaks to the brands’ clientele, being placed in the trendy and very hip Meat Packing District.

In spring 2006, PUMA will launch a new line of sports-lifestyle footwear in collaboration with designer Alexander McQueen. This new men’s and women’s line will provide another innovative approach to fashion fused with sports. The new line will be released during women’s fashion week in London this September, and will be officially available in the spring of 2006 in high-end retailers around the world.

McQueen, who was the chief designer at the couture house Givenchy from 1996 until 2001, will bring a trendy and unique look to the PUMA footwear line. McQueen also owns 50% of Gucci Group, which he acquired in 2000. Gucci Group is responsible for labels such as Gucci, Yves Saint Laurent, Balenciaga, and McQueen’s own line, Alexander McQueen. “I have always has a great passion for trainers, so I am very excited about this collaboration with PUMA. I am confident that my design philosophy, combined with PUMA’s excellence in the field, will result in a totally unique product,” Alexander McQueen (www.puma.com).

This year, PUMA has also introduced its “Mongolian Shoe BBQ.” This traveling shoe BBQ allows people to design their own, one-of-a-kind sneakers. Starting out with the 1980s Cabana Sneaker as a base, people can design exactly what they want, using a variety of colours and patterns to create shoes to fit their wants, needs, and personal style. The name, which is inspired by Mongolian cuisine, is meant to be symbolic of the unique shoes that you can create using vintage materials. The shoes cost $130 in the United States or 130 Euros throughout Europe, and take 4-6 weeks for delivery. The traveling shoe BBQ stays in PUMA concept stores for only 6 weeks, and has debuted in stores throughout the United States and Europe.

PUMA’s Brands

PUMA

The PUMA label sells PUMA’s technical sporting brand, as well as their street style clothes and shoes. The PUMA label is plastered over bags, shoes, tracksuits, and a variety of other accessories and apparel items. Shoes are their biggest seller, not only for street wear, which PUMA has become increasingly popular for over the past few years, but also for a variety of technical sports, such as soccer. The classic PUMA shoes are very popular, and the uniqueness of the brand, as well as the variety of products offered, makes PUMA a popular choice for funky and unique street wear.

96 HOURS

96 HOURS offers apparel, accessories, and footwear for men and women. With designer Neil Barrett behind the line, 96 HOURS is geared toward on-the-go professionals who are style-conscious. The style is sleek, sophisticated, and fashionable. Although the general style and philosophy behind 96 HOURS remains the same from season to season, each collection is inspired by a different sport, remembering that all PUMA lines are based around sports. For the spring and summer of 2005, 96 HOURS draws its inspiration from motor-sport, with a lot of jackets and jeans with a motorcycle look. Like all of PUMA’s sports-lifestyle brands, 96 HOURS is targeted toward people who wear PUMA’s technical sports lines for sporting activities, and want to bring the style and philosophy behind PUMA into their everyday style and clothes.

Neil Barrett, a British designer, has been the head designer for companies such as Gucci and Prada, as well as his own label “Neil Barrett Brand Name Collection.” In 2003, he was appointed for a 4 year contract as the creative director of PUMA International for a series of new collections. Barrett also partakes in the MTV and Channel 4 program, “Fashion House,” which reaches nearly 55,000,000 households throughout Europe.

The current clothing line for 96 HOURS is clearly inspired by the world of motocross. The men’s and women’s lines are stylish without being too trendy, and offer clean cut lines. The clothes, which range from $90 to about $1,200, are offered in mainly shades of black, grey, and white. The footwear is the only part of the collection that is quite trendy, as that is what PUMA does best. 96 HOURS is available in 18 countries worldwide, but currently has no Canadian availability.

MIHARA

Mihara is a sports-lifestyle brand that is meant to challenge the boundaries of sports and fashion. Although the footwear is sporty, the shoes are not meant for sporting activities. Designer Mihara Yasuhiro has attempted to create a line of footwear that is neither running shoe, nor leather shoe, but resides somewhere in the middle. “PUMA Mihara apparel collection is a new and innovative approach to sportswear. The garments aim to look beyond sports or fashion as separate entities,” (http://mihara.puma.com/).

Designer Mihara Yasuhiro was born in Fukuoka, a western part of Japan. His mother was an artist, who instilled him with an artistic influence from an early age. In 1998, Yasuhiro opened up his first store in Tokyo called, “SOSU MIHARA YASUHIRO.” SOSU, which Mihara still runs today, means “prime number” in Japanese. Mihara, who taught himself traditional shoe making ways, has a philosophy to break boundaries that have been set in the fashion industry. He is dedicated to producing unique products, and is opposed to mass production. In 2000, his collection with PUMA began and he has managed to keep each season unique and different from the last.

Mihara’s clothes tend to be extremely trendy. Inspired by the Harajuku street style of Japan’s trendy neighborhood, which has most recently been popularized by musician Gwen Stefani, Mihara’s designs are unique and they stand out. His men’s and women’s lines are funky and bright, making a bold statement. His footwear follows suit. Mihara is available in Canada, in Toronto and Montreal, at stores such as “Browns” (Montreal and Toronto) and “Get Outside” (Toronto)

STARCK

Philippe Starck and PUMA present a very unique and modern footwear line with “STARCK.” There is nothing ordinary about the shoes presented in the STARCK line. Described as “…a shoe with all the contradiction and charm of its iconic parents” (http://starck.puma.com), PUMA and Philippe Starck present a shoe that is based around originality and comfort. The inspiration for the line is centered around fun, passion, and originality.

Philippe Starck was born in France in 1949, and is probably the best known designer in New Design Style today. Starck designs everything from clothing to lamps to interior spaces to toothbrushes. He was educated in Paris, and in 1968, he founded a design firm that specialized in inflatable objects. Since then, Starck has made a name for himself doing a variety of things, including working along side Pierre Cardin, and designing interiors for renowned buildings around the world. In 1982, Starck designed the interior for a private apartment for the French president at the time, Francois Mitterrand. Starck has also designed an inexpensive line of products for American big-box, Target. Recently, besides his ventures with PUMA, Starck has designed yachts, packaging for beer companies, and a mouse for Microsoft.

STARCK footwear, which runs in the $200 (US) range, is funky and bold. Based on comfort, it is very trendy and different from anything else on the market. It offers its customers with a funky alternative to the mainstream market.

NUALA

nuala is a yoga-inspired sports-lifestyle brand. The name nuala is an acronym standing for natural, universal, altruistic, limitless, authentic. The everyday line is yoga inspired and geared toward busy, fashion conscious women who are looking for comfortable, practical clothes in their everyday lives. “The goal of nuala is to create a symbiosis between the outer and inner being, the individual and collective experience, using yoga as a metaphor to make this balance possible” (http://nuala.puma.com).

Along the lines of altruism, nuala is dedicated to giving and helping those who are in need. In November of 2001, ChristyTurlington and nuala sponsored a London event, Yoga 4 Peace, which consisted of a weekend yoga retreat featuring classes, workshops and seminars. The money raised went to help a number of organizations including The Afghan Crisis Appeal Campaign and the Norbulingka Institute, an institute for Tibetan refugees set up by the Dalai Lama. This season, all sales from black “wide neck t-shirts” will benefit the “Peace Women” organization, a charity that helps women on a global level in dealing with issues such as world peace, and illiteracy.

Christy Turlington’s face has graced many fashion magazines and catwalks. Model turned entrepreneur, Turlington has a strong passion for yoga. Having studied comparative religion and philosophy at New York University, Turlington wanted to bring her yoga and eastern interests and her love of fashion together in nuala, an elegant, practical fashion line that can compliment busy work, travel, and exercise schedules, similar to her own.

nuala’s collection is tranquil and feminine. It features a lot of bright, bold colours and prints. These comfortable clothes are fashionable but not too trendy, and focus on femininity. In Canada, nuala is available in Montreal, Toronto, Vancouver, and Whistler at Holt Renfrew (Montreal, Toronto, Vancouver) and Whistler Blackcomb Signature Boutique (in the Four Seasons Whistler hotel).

MAHANUALA

Mahanuala is PUMA’s line of technical yoga wear. Working once again with Christy Turlington, PUMA has designed a yoga line that is created specifically for Asanas, which is a physical limb of yoga. Adding onto the “nuala” acronym, Maha is another acronym for: movement, affords, higher, aspirations. Mahanuala is designed with a balance between yoga and daily activities in mind. The clothes, while specifically designed for yoga, could be worn in life’s daily activities as well. Featuring bright, bold colourful yoga wear, Mahanuala offers women’s tops, bottoms, bags, and footwear.

TRETORN

Tretorn was established in 1891, and since then, the Scandinavian company has remained an innovator in footwear, making a worldwide name for itself. Very popular in the 1980s, Tretorn’s Nylite canvas shoes were worn all over North America on college and school campuses. Tretorns of today are regularly seen on tennis courts, and in country clubs and hunting lodges. Today, Tretorn makes running shoes (including their famous Nylite classics), rubber boots, and tennis balls. They are at the forefront of research for fire, farm, forestry, and industry rubber boots, focusing on safety and technology.

Competition

PUMA competes with the major players in the sporting industry, including Nike, Reebok, and Adidas. However, PUMA finds itself in a unique position because of all its sports-lifestyle companies. Mahanuala, for example, competes with different yoga wear labels, including Nike, Reebok, and also companies like Lululemon, which has a very strong Canadian brand awareness, following, and availability, and is expanding into the United States. PUMA’s technical brand competes with Nike and Reebok’s technical brands. It also competes with smaller companies such as Running Room and their own products. Their sports-lifestyle brands compete with a variety of apparel outfitters, which offer good products at a marginally more expensive price.

However, PUMA does stand out from the competition. PUMA has a good brand awareness worldwide, especially in Europe. While PUMA used to be mostly popular only in Europe, today it is growing in popularity in North America as well as Asia, with many people recognizing the PUMA symbol. PUMA is also seen as less “mainstream” than companies such as Reebok or Nike. For that reason, it appeals to a much larger audience. PUMA prides itself on being unique, edgy, and different, and while PUMA itself focuses on this, many of its sports-lifestyle brands, such as Mihara, feel very strong about this, producing extremely unique pieces in limited quantities.

While Nike and Reebok may be good at what they do, in terms of technical sporting products, they are not seen as “cool,” especially among younger audiences. PUMA maintains a “cool” image, and is very popular for not only technical sporting wear, but for street wear as well. PUMA has always had a strong following in technical sports, as seen with many Olympic athletes choosing PUMA as their sporting brand of choice. Their popularity in street wear has been growing rapidly over the past few years, especially among bags and shoes, which are seen all over the streets of Toronto and other major cities.

By bringing in top designers, PUMA creates a certain exclusivity associated with its products. Designers like Alexander McQueen and Neil Barrett are well known, and have worked for major couture houses in Europe. Fashion being what it is today, companies like Gucci and Prada have a very good following, as do their designers. By bringing in these great designers, PUMA has created a following with people who buy these designer brands, people who know a thing or two about fashion and who are willing to shell out some cash for good products.

Personal Experience

PUMA produces a good quality product, and I have found this through my own experiences, as well as the experiences of others. Their items last for a long time and wear well. Shoes and bags are big sellers for PUMA, and the quality level of these products is good. This appeals to consumers since PUMA’s products tend to cost a bit more than some other products on the market. People are willing to pay for quality. I have also used PUMA for technical sportswear, and I have found their technical products to be just as good, quality wise, as their street and lifestyle products.

Concerns

Canadian availability of PUMA is fairly good; however there is extremely limited availability of PUMA’s sports-lifestyle brands. Those that are available in Canada are in to only a few major cities and exclusive stores. However, while this is a concern, it also works with PUMA’s desire to be unique. If these brands were too widely available, they would become far too mainstream, and would lose much of their appeal. The same is true for the PUMA label. PUMA is not available in every store, and one often has to shop around for certain styles or products. PUMA generally offers limited styles and colours in stores like Foot Locker and Sporting Life.

In my opinion, PUMA would do well to open a Concept Store in downtown Toronto. Currently, the Toronto Concept Store is located uptown on Yonge Street. While it is in a nice area, it is not located in the shopping core, so it does not capture the potential audience.

Conclusion

PUMA offers a great product. It is edgy, exciting, and fun! PUMA is growing and expanding into North America and is becoming very popular among people of all ages. It offers a product that is more unique than its competitors, Nike and Reebok, while still offering great technical sporting products. PUMA’s sports-lifestyle brands offer high quality products backed by talented designers.

Sources:

www.puma.com

www.mongolianbbq.puma.com

www.96hours.com

http://mihara.puma.com

http://starck.puma.com

http://en.wikipedia.org/wiki/philippe_starck

http://nuala.puma.com

www.mahanuala.com

http://finance.yahoo.com

Photo Credits:

http://www.gyroworldwide.com/i/puma/puma_lg.gif