UK (Parliament Politic Magazine) – Businesses in the UK are under threat after a popular footwear Brand Asics halted their supplies. The company has shared that they will be halting their supplies to all the small retailers and will be favoring the big chains. Asics also plans to directly sell its products online to earn more profit. Asics is a Japanese footwear brand that designs footwear products.
Small business owners will be losing a lot of Asics customers as they will prefer to buy products from Asics online. The business of Independent sports retailers is under threat as Asics have ditched supplies to hundreds of small outlets in the UK. The company has joined giant companies like Nike and Adidas and has ignored the existence of small retail owners.
Asics Shifts Sales Strategy, Leaving Small-scale Sports Retailers in The Dark
Asics have changed their sales strategy without any notice to small-scale sports retailers. This is a big blow to the companies who were already under pressure due to the rising costs and the low demand for the products. Some of the large independent sports retailers have been ditched by Asics as they will no longer be getting any supply from the company.
Asics has decided to reduce its product distribution and has chosen bigger chains instead of small-scale businesses. Several small-scale business owners have sent emails to Asics but they have not received any reply from them. Asics was an important brand in the UK and many small-scale sports retailers were dependent on the company.
Supply shortages as Asics shifts Focus from Independent To Larger Retailers
Adidas has already stopped supplying its products to small retailers. Asics was the only choice for the sports retailers in the UK and this is why the shortage of the supplies is a big blow to them. Big companies like Nike, Adidas, and Asics have built up their online stores and intend to sell their products online. At least 30 percent of the sales at small-scale sports companies were reliant on Asics. Several businesses are under threat because of the shortage of supplies.
The running sports products range from children to adults in Asics. It is a massive part of their business and cutting off Asics could be a serious damage to their business. The supply shortages have become a serious problem for sellers and their profit rates have gone too low with the instant cut-off by Asics.
Asics To Follow The Footsteps of Nike and Adidas
Asics was the only company that was stuck with independent sellers in the past few years. Nike and Adidas on the other hand were always supplying their products to bigger chains. The rising popularity of online shopping is also the major reason for the downfall of small-scale companies.
Asics has been supplying products to independent services. James Ellis of the Run Company, who has four stores in Brighton, Chichester, Southampton, and Woking, shared that Asics gear was one of the most popular products at his shops. They made up half of his sales and cutting off the supplies could be a serious disaster for his business.
Asics Supply Halt Leaves Small Sports Shops Questioning Their Future
Small business owners in the UK shared losing Asics has come at a tricky time as the cost of living crisis is always a problem in the UK. The problems have shifted from the COVID lockdown and taken a new turn. It has been a challenging situation for all the small-scale sports retailers and tackling the cut-off from Asics has added to their problems.
Asics supply halt has left many small-scale businesses questioning their future. Most shop owners believe that Asics would not be successful in making their fan base in the market. The existing popularity of big names like Nike and Adidas would make it impossible for Asics to survive on their own.
Asics would probably fail to earn their fan base and might end up returning to selling their products to independent sellers. Many believe that Asics would come back to their old customers who have built strong professional relationships with them. Some sports retailers also believe that some other company might come in and fill in their place.