In human life, fashion has now taken a significant position. Only accessories with brands have a place in our wardrobe now. Puma emerges amidst them. Housing all of the men's, women's, and children's accessories, Puma stands top as a global provider. Starting from goggles down to shoes, Puma has it all.
When it comes to marketing strategies, the company leaves no leaf unturned. To provide the best quality service and the product is all that their objective has been. That's the reason behind its vast expanse of reach and popularity. Thanks to Rudolph Dassler, who in 1948 did this saintly job of establishing this company. From that, there was no turning back. Now before having an in-depth analysis of how Puma has excelled sky high within a slight turn of the clock, let's have a look at its stats.
About Puma
Business Model of Puma
What's unique in the business model of Puma?
How does Puma make money?
Conclusion
FAQs
About Puma
Since 73 years of its establishment, Puma has served as a public company to audiences from about 120 countries. The brand has also achieved many great heights. Despite its excellence in the field, it hasn't failed to keep up the levels of sustainability. Now, let's move further and decode the business model of this brand.
Areas of operation
With its headquarters at Herzogenaurach, Puma also has four international hubs at various locations. In addition to that, it has about 150 suppliers spread across 32 countries of Asia, Europe, the Middle East & Africa. The Asian market contributes to about 89% of the company's need. Hence, the Americas, EMEA, APAC form the critical areas of operation of Puma
Target Audience
Puma classifies its target audience into two parties- primary & secondary. The primary target audience includes males and females belonging to the age group of 20-30 years with a good social standing. The secondary target audience has males and females belonging to the age group of 7-35 years with the average social standards. Puma mainly focuses on being athletic, bold, active, and individualistic with enthusiasm in their blood.
Business Model of Puma
Owing to its global presence, Puma has never adopted or invested in a single business model for its entire brand. Their business model & strategies vary from place to place depending on the demands & opportunities of the location.
However, we can sketch out a general outline of the revenue streams of Puma, which has helped it generate revenue throughout the years. Speaking generally, Puma has adopted a 3i model, by which it focuses mainly on brand identity, image, and integrity. Based on this model, Puma has tried to amalgamate the growing impact of fashion, sports, and lifestyle to enhance its brand identity. To enhance its brand image, Puma has extended its approach of partnerships with designers. Puma's integration with various brands and endorsers has shaped its brand integrity.
Among footwear, apparel, and accessories, footwear is the product that drives home a significant part of revenue. A high amount of its revenue is due to wholesale products. Wholesale, retails, and e-commerce is the chief sources of income for Puma. Moving on to the sources of revenue of Puma, its key activities include brand sales, consolidated sales, retail businesses, and licensing business. These key activities help Puma generate its revenue.
Puma also has Porter's Five Forces Model by which increases the bargaining power of customers. With its international presence at almost every corner of the globe, Puma also faces fewer threats from its competitors. Due to the strong product portfolio, Puma also has let dangers of losing capital to new entrants. All these factors have contributed to the brand presence and grand success of Puma. Puma's business model is the perfect blend of product desirability and market heat by which they also focus on distribution.
Rishabh Rathi
What's unique in the business model of Puma?
Now, let's discuss how Puma managed to stand out amongst its pool of competitors. The key lies in its business model. The business model of Puma is unique in the following ways:
1. Multiple business models: Yes, as we have discussed, Puma doesn't have a single business model. It experiments with various business models at multiple places. Hence, it crafts a business model perfectly suited for a particular region.
2. Differentiation: Puma mainly focused on being different from the crowd. Its focus on improving the quality and making the business unique has helped it stand out amidst its competitors. You would be surprised to know that Puma focuses more on market penetration than on product development. It has also contributed to the company's success.
3. Creating Products: A constant hunger to present something new always lives in this company's stomach. It has been consistently adding a unique and appealing touch to every product from the beginning. The products help in tackling any discomfort caused. Along with its enormous reach, the company ensures that it doesn't stay behind when it comes to women. Puma considers women the face of fashion and trendsetters. Hence, it ensures equal importance to women as well when it comes to providing accessories.
PV Vyshnavi
How does Puma make money?
Moving on to the revenue streams of Puma, Puma Business model makes money through several financial activities, which includes:
- The wholesale activities of the company contribute about 75% to its revenue.
- The retail activities contributes about 20% to the revenue.
- The e-commerce activities contributes about 20% to the income, contributing about 10% to the payment.
- Brand sales are the most critical revenue source for any brand. Among the various products which contribute to its brand sales, footwear is the chief product which contributes about 47.1%.
- Apparels and accessories contribute about 35% and 17% of sales respectively.
Among the key activities, the company also falls no short of ideas. Puma actively participates in licensing products. They launch a collaborative limited edition product with another company which helps to highlight their lost glitter in the market at times. A subtle move to stand out from the rest of the market with their best of products. Activities like these great hyle the revenue of this company.
Conclusion
With all its market strategies, Puma holds an incomparable position all around the globe. Be it ordinary people, athletes, youth, or adults, it has earned its affection because of its nonstop service. The premium feel which is added to its product might be available somewhere else. But the position it has made already would take lots of sleepless nights for any company to shake.
FAQs
What type of business is Puma?
Puma is a German multinational corporation that designs and manufactures athletic and casual footwear, apparel and accessories.
How many Puma stores are there?
PUMA has 832 stores worldwide.
What is PUMA brand strategy?
Puma uses differentiation model as its generic strategy, broadly applied to business operations in the global market.
What is the PUMA revenue?
In 2020, Puma generated a global revenue of roughly 5.23 billion euros.
Who are Pumas main competitors?
Top competitors of Puma are:
- Nike
- Adidas AG
- ASICS Corporation
- Reebok
- Fila
- Brooks Sports
- Converse
Author: Sushree Sangeeta Behera
Source : https://startuptalky.com/puma-business-model/
Date : 2021-09-06T10:01:20.000Z