2021 is set to be a year of growth for many companies, and Lidl has not been far behind in establishing an alliance with Nike. With this unexpected agreement The online store of the German supermarket giant already has a selection of products from the sports brand.
A low cost deal
This trade agreement is focused on a market low cost, in which Lidl is usually handled, therefore the variety of products available is not as wide, with some models of sweatshirts, pants, t-shirts and bags. These products from Nike’s basic line will only be available at prices ranging between €14.99 and €39.99.
, to bet on their own digital commerce, which is why this alliance can be seen as unexpected. Based on this, the sports brand began a process of converting from a wholesale market model with a network of distributors, to a direct customer sales model led by its official store.
Strategy that undoubtedly bore fruit, since for the last months of 2020 online sales of its own store accounted for 30% of the total. However, with the agreement with the supermarket, Nike intends to promote its low-end products at a time when its distribution network has been reduced.
why lidl
On the other hand, the interest of the American brand in Lidl is not without foundation. This company has had constant growth, and in the field of fashion it has also managed to stand out. For example, in 2014 it made an agreement similar to the one established with Nike, but with the brand Cost helping to boost your wholesale sales.
Similarly, their forays into the clothing market are not only through alliances with different brands. Last year they started selling some sneakers with the brand’s colors and logo, without great pretensions. However, the reception by the public was incredibly positive, to the point that they ended up being manufactured and sold on a massive scale.
At first it was presented as a limited edition of 400 pairs, running out in a few hours, which caused them to be resold on websites like eBay at exorbitant prices. A situation that was revived in the different countries where they offered the shoes, even collapsing their website in Spain, where in three hours they were already sold out.
As we can see, Lidl is not just a supermarket chain, but has a great reach and a solid position in the European market. In 2019 alone, the Schwarz group, to which this company belongs, had a turnover of 100,000 million euros, with 80% of its income coming from Lidl.
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