Private Sport Shop has experienced impressive growth to become the number one private sales club in the sports sector. It has done so by focussing on customer loyalty, recruiting wisely and spotting trends early.
- Private Sport Shop has grown 40 percent annually for the last 5 years
- Refurbished products and full-price brands are bringing in a bigger proportion of revenue
- Appointing mother-tongue staff and digital natives has helped boost sales
Private sales clubs – e-commerce sites that sell brands at discount prices to clear excess stock – are growing fast. Private Sport Shop (PSS), the leading platform specializing in sporting goods, was founded ten years ago and has grown by 40 percent annually for the last 5 years, generating sales of approximately €100 million with a team of 200.
Consumer loyalty
Speaking with SGI Europe, Sebastien Rohart, CEO of PSS, said that staying true to sports lovers has been key to building loyalty. As one of the few platforms selling discount track and field shoes, equestrian airbags and avalanche kits, it can afford to rely on a specialist consumer base.
76 percent of members come to browse the site for deals rather than to locate a specific product, Rohart says. Making the platform fun and interactive, such as offering consumers surprise discounts, helps convince users to keep coming back.
Building loyalty among brands is equally important. PSS treats brands as customers, which means working hard to convince them that the platform is the right place to sell their products, Rohart says.
Riding new waves
Any strategy for e-commerce companies should be valid for just three years, as this allows companies to adapt to an industry that is rapidly evolving.
Having the prescience to spot emerging trends has been key to PSS’s success. The company quickly went mobile with a dedicated app, which now accounts for 50 percent of traffic and orders. The company also recently started trading refurbished goods – especially popular given the growing trend for eco-friendly commerce – and initial sales figures are promising.
Having built sufficient credibility among consumers, PSS can now afford to venture beyond its original flash sales model. Sports brands sold at full price account for an increasing proportion of total revenue.
Until recently, flash sales accounted for almost all of PSS sales revenue. However, that figure has now dropped to slightly below 90 percent and could go below the 50 percent mark within four years, Rohart says.
Recruiting wisely
PSS knows the importance of appointing professionals who understand the sectors they work in. When the platform was rolled out in Germany, the company appointed mother-tongue natives to talk with brands and consumers. PSS now has a strong presence on social media platforms, including TikTok, Strava, Facebook and Instagram. Social media platforms are managed by young, recently-appointed digital natives.
