How Fanatics changes trade with Sport Merchandise.Joachim Hilke

Joachim Hilke has already experienced a lot in sports.Only as a board member of the HSV and now at the sports supplier Fanatics, a vertical dealer and service provider for sports clubs.Understanding fanatic is not at all trivial, as you can see in the first minutes of the podcast. The business model itself is very convincing and already ensures sales in the clearly single -digit billion dollar sector.The new sponsorship strategies from Nike and Adidas, who try z.B.Just sponsoring the one top club Pro Liga (football))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) to make fanatics successful, whereby Fanatics is not a competitor of the classic supplier.Roger that?Just listen to it!

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Sport Merchandise with Joachim Hilke, Managing Director at Fanatics

HSV fans already know: Joachim Hilke did not only make friends in his time as a board member.However, cash zone is an e-commerce and not a "spick" podcast, which is why Alex leaves these controversy on the left and is in the experiment to understand the complicated and promising business model of the Sporter Fanatics, for which Joachim for around 18 months as awesome globalPartnerships rights of clubs, clubs and league shopping.Alex experiences in this podcast how Fanatics gets new potential out of it.

Diet transcription is sponsored by Payback - here more experiences and the app download.This episode is supported by Checkoutportal.

"What should Bayern send to China itself?"

3:10

Alex: In an OMR article, the following heading is listed: "Thanks to Softbank-Milliarden: Nike and Adidas are attacking this well-known company."

Joachim: The article is actually good, but the heading is totally wrong!Because we are not a supplementary stamp. Zwar produzieren wir selber, aber so Marken wie Nike, Adidas& Co.Let's not attack at all.On the contrary: we are probably the largest buyer for such manufacturers. So wird man nie „Fanatics" als Markeauf irgendeinem Turnschuh sehen.Not as a supplier on the jersey of any Bundesliga club or Premiership Club.

Alex: If I can't buy a fanatic jersey and your fanatic shoe, what do you do?

Joachim: We are partners and owners and owners.To make up for examples from Germany (although it is not our core market))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))): We take over the Merchandising von area of a football club and then develop this area across all channels.This means that we, for example, produce clothing ourselves, market it and then drive it out via the e-commerce channel, which is operated by us and through classic inpatient trade routes and wholesale.

Alex: In the article, your contract with Mitenglische Fußballverein Aston Villa is listed as an example. Also, ihr sagt„Bitte gebt uns euer Vermarktungsrechte".Then what exactly happens?

Joachim: Aston Villa is a good example: We have taken over the complete range of the rights - including the supplier partner, because the club is difficult to find a new supplier.They had relegated to the second division.We really take care of everything - including the equipment that this bears during training and in the game.We then produced everything, did not write our brand on the clothes, but rather marked a third party who went on a jersey with his fire.The business also included taking over all channels that Aston Villa had previously operated.

Here we divide branded and unbranded business.The former is what the supplier places-that is what the player wears on the skin, where the Swoosh or the triangles are on it-and the latter is what only the club brand has and what we produce what we produce ourselves.Fanatics buys branded from the supplier: the highest sales is the jersey.Unbranded-Käppis, hoodie, T-shirts with club logo etc..Let us produce ourselves and pass through the club's own channels.

Alex: So would you make aastone villa toaster like this?

Joachim: Although that would not be partially partially of its own verticality.Apparel - so clothing that are not jerseys - we produce ourselves.So products such as key rings or toasters are external.

7:45

Alex: Suppose a club makes sales of 100 million.10 million of them get over the sale of merchandise: jerseys, toaster, sneakers, etc..In the case of a classic installation contract, Adidas or Nike would be in it: Have you sold the jerseys so far?

Joachim: Adidas or Nike have so far produced jerseys and then sold them to the club as a wholesaler.The club deserved then on his own channels the retail margin.

Alex: Example bill?

Joachim: A jersey costs 90 euros.Beadidas you buy it for between 35 and 40 euros.The club then gets the Retail Marge (who is rarely the full))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))).A special feature of many European associations: Completion goods stand for 70%, sometimes even 80%of total sales in merchandising.Of the 10 million that duke, 7 to 8 million would come from jerseys and the like.It can calculate that the retail margin that has been achieved as a whole is not a moon..Incidentally, proceeds from the unbranded business traps here, because the club live in the mouth, so to speak, depending on the sporting success and are therefore very reserved when it is about stocking up with its own goods.That's why Merch is the only one in the Bundesliga, the sinks.

10:30

Alex: Sun: The proceeds for such a small club as ... let's say Holstein Kiel are at most a glory.And now you come.What is your pitch?

Joachim: We start with the fact that we with the clubs go a Dilligencedäng to determine what the bottom line is.We will then secure this bottom of the bottom for you.So the whole business only works if we are of the situation to generate growth.You can achieve this under other people that you expand the ranges - which the clubs do not do because this is a planning risk.

So we are a bit of us fast fashion providers: we expand the ranges and change them all the time.We can quickly get emotional momentary reader (and that's what sport is all about))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) because we have our own production capacities, warehouses and fulfillment.This is our infrastructure in which we invest.

Alex: Let's take on, Holstein Kiel's go from Puma (I think that's her supplier))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) to you ...

Joachim: Then Holstein would give us Holstein and Puma would sell us the jerseys and other articles such as T-shirts and backpacks.The range would also be directly on the trade.We would then sell the puma goods-in addition to the most likely common Holstein range consisting of T-shirts, hoodysusw.Without the puma brand (i.e. unbranded))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))).

(Alex summarizes: The club has more proceeds without a trade risk.Joachim Bejaht: Through range skills and investments in your own platform, on which Chelsea or NFL products are also sold, Fanatics would be able to promise Holstein additional income from Merch.Then Joachim describes the risk of goods with experiences from his time at HSV: In sporting bad times, no more club products buy, which entails depreciation.Double bad for clubs because trade is not their focus and therefore it is a real challenge to perform it optimally.That explains why everything-from TV rights to hospitality-in the Bundesliga, just not grow, just don't merch.Only through special effects, for example through cup victories, start up strongly.Portfolio management better succeeds in fanatic to become a risk of the goods, while thanks to skills such as Made-to-Order production, the company benefits from skills caused by sporting success.)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

17:00

Alex: I think I have understood that many of the great suppliers such as Adidas or Nike pass on only to have a large club per league-and that many first league clubs therefore no longer have a supplier.Is that correct?And does that open growth opportunities for you?

Joachim: No, it doesn't work that way.The big suppliers are extremely successful: Adidas and Nike Sindheute 25-30 billion companies, of which the Official Licenced Products area only makes up for 3-5%.However, the location that the suppliers have to make available is, according to multi -width: It takes around 30% of their total range.Economically, that makes little sense.

This is the most important semester: Sure, you could represent this bandwidth, you don't want to do it because it is maximum inefficient.Well, at a Bayern Munich or Real Madrid, decent volumes come about.But at a HSV it is no longer worthwhile to get a real diligence on your feet outside of the jersey.And the further you can get away from the home market - into markets such as China or the USA, which Bayern wants to conquer, the other is the available range.You don't have your own infrastructure: what should Bayern send to China yourself?So it makes sense to work with a partner.Cooperation also makes sense for suppliers who work with large clubs.

(Alex votes first statement by Joachim to: The OMR heading is insofar as Fanatics is making his own market and does not take away any customers.)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

20:45

Alex: The customer comes to you because he wants to have a jersey.Do you then also sell the real Madrid fan Wasanderes, where you have customer access?The question is aimed at direction platform economy ...

Joachim: I can only answer that with a clear no.Ultimately, for example, we work in the Realmadrid case.This means that the customer goes to Real Madrid, but is in reality with us.

Alex: That means Real Madrid.com be you?

Joachim: Yes, you're already in our white label World.This is our CCP platform that we are increasingly overlooking Europe from America.Only: The customer's data record, of course, belongs real.And the core business of Real Madrid is not to sell products.They earn very much money to sell sponsorship - even outside the home market.

What is interesting for the clubs: So far, they didn't know if any fan in India bought a jersey who it was.We can deliver this data record.Why is that interesting?If Real Madrid negotiates Sponsoring with an Indian relocation provider, for example, you can say: "Look, you can communicate with the and the customers." Unddas ist eben das Kerngeschäft von großen Sportvereinen: Kommunikation zuverkaufen.Not to sell products-and certainly not to set up your own commerce infrastructure ...

(Joachim is on the development of Fanatics. Eigentlich eineamerikanische Firma, die durch einen Zukauf in Manchester (UK))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))) eine Expansionnach Europa angetreten hat.Joachim is number one in Germany, where Fanatics are still at the beginning.Through warehouses in Asia, Fanatic's growth market, for example via Tmall, can be supplied well, which is a strong argument for the acquisition of new customers.

Fanaticswurde founded by e-commerce veteran Michael Rubin, who offered Logistik.In 2011 he sold Gi Commerce to Ebay and all sports assets went into the new fanatics.From the beginning of 200 million annual sales, the company has now grown to $ 3 billion annual.American sports contribute most of it: there are a lot of contracts, which has a lot of sales on a blanket.)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

28:25

Alex: If I think about it like this: yoursid actually a Spryker competitor!If I went to Aston Villa with our commerce solution, you would say: "No, the Joachim was beautiful ...."

Joachim: Sure, if you start to address football clubs, we will meet very often.Or also large events: Ryder Cups, Formula one ...

Alex: So at Ryder Cup you would be your pitch: “Before you make your own cap for the coming year, Lassuns do that.We buy the rights for an amount X and can operate the Ryder Cup shop and expand the range: Ryder-Cup bathing clapes and bathrooms ...

Joachim: Sure, with Ryder is difficult because it takes place every two years every two years.Of course, there is a lot of grateful FC Bayern!But Ryder Cup is a great brand with a very giving powerful audience - and for the organizers it is not so easy to assess how much of what are they should shop.However: Last year this took place in Paris and we made them unlicked with them on site over 10 million euros.Only with merch!I honestly don't trust my eyes;It wasn't clear to me.But of course we would also get there for 10 million euros!In addition, Ryder also sells licenses to the large brands in the golf area and of course they also have our e-commerce solution.The business only makes sense in the verticalist..However, the organizers have the task of getting 35 tournaments per tour, which is why there is no meaning for them to bind the jacket on such a topic.

(Alex clicks on the Ryder Cup shop.Fact!He looks like that of Real Madrid!And also formula1.com ... incredible!Joachim - once again, based on his experience at HSV - describes how German football clubs hung after the illusion.It is enough if the shop in the club's look.He prefers to buy a.But it is important to him fan: Fanatics can offer that better, as a single Bundesliga club.)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

36:30

Alex: Your argument is captivating.Gibt es denn Gründe, für unseren Manager von Holstein Kiel zu sagen: „Nein,Joachim, das machen wir nicht"?

Joachim: The argument against us is: We want to keep our rights in our own hands.But that is of course a commercial argument, but rather an emotional one.And there are really different clubs in Germany.The view of the fans on decisions of management is of greater importance than elsewhere, which influences the decision -making process below.Clubs in Germany are not so commercial as clubs in Great Britain, Italy, France and Spain.There is more clarified-and not only in the merch area-for commercial solutions.

You can find that how you want.Some see this a last bastion of football tradition.From my perspective - I have been working on the other business side of sport for 25 years - it is rather absurd to strike a better commercial offer from the consideration that manemotionally driven to have its trademark rights in the house - although it is used to do worse bottom line in lineer.But that's just my opinion.

Alex: And Europe is it interesting for Fanatic's outstanding role of football?

Joachim: As of today, we are making 90%of our 3-mill sales in America.Football is the only real -global sport - and we want to become a global company.American Football/NFL: There are a lot of fans of them in Germany.Also basketball/nba.In South Korea, MBL/Baseball is the most important sports organization.But that's all of this and therefore not a worldwide phenomenon.

(Alex throws that Cricket should be interesting.Joachim replies that Fanatics just haunted the cricket world.Alex could look at the site to see that it is the same store.Just what did that mean again ...?Anyway, that worked great.In addition to England, Cricket is very popular in India, Australia and New Zealand.)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

41:00

Alex: What do you want to achieve with fanatic in next time?If the big suppliers everywhere withdraw from the segment of medium -sized clubs, the door open for you, right?You will have a lot to do soon ...

Joachim: However, our focus is still on the big clubs that make sales properly.In addition, we edit the topic of dealers/marketplaces.So we recently agreed with a sports check for your web shop access to our complete assortment.So we take on an entire category for the retailer - and now you now have 200, but 200.000 articles.He is more attractive than provider.And it makes sense for us because it gets it in the volume of our own infrastructure.Likewise, consideration with marketplaces.

Alex: But there she gives her margin.Isn't it better if people are directly on Real Madrid.buy com?

Joachim: From the principle.However, we will then be width with the range.And thought of the club: The Realmadrid fan in the USA wants to access the entire range, not just the 25 articles that are more or less happen to sit in America in a warehouse.As global consolidator want, we offer the clubs that your entire range worldwide is available.We are not yet there, but marketplaces will play a role in this.You can just provide your fan much better.

Otherwise back to your question from before: Sure, I would like to conclude contracts with a few big clubs.And there we are very optimistic.

Alex: in Germany?

Joachim: As described earlier, it is not my main focus.In some other large European countries we have beautiful deals in the pipeline - still highly secret!With our strong growth, we have to make sure that we bring our own infrastructure behind.This is how we are now using our Cloud commerce platform: it has been working in the USA for years, is-mobilized and will be a huge step forward for our partners.This is an important goal.And if we have a strong team in the retail team in all five major European markets, then we have achieved a lot.

(Alex finds the market and the business model so interesting that he would like to put on the next call to the next - maybe at Holstein Kiel in the stadium ...?)))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))))

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Alexander Graf, *1980, E-Commerce Unternehmer & Analyst, Gelernt bei der Otto Group, danach über 10 Unternehmen gegründet, heute Co-CEO des führenden Commerce Technologieanbieters Spryker Systems. Im Juni 2015 hat er das E-Commerce Buch veröffentlicht, das seitdem die E-Commerce Rankings anführt. Weitere Infos hier, oder direkt kontaktieren unter: [email protected]