In Trends

Puma partners with Cloud9

PUMA

The German sneaker maker Puma announced a multiyear partnership with esports brand Cloud9 to create an apparel collection for gamers.

SEE ALSO : Puma partners with Manchester City

In January, Puma signed a sponsorship deal with Cloud9 to provide official game day shirts and pants for league players. It is similar to the uniform sponsorship or “kit deal” Puma has with Manchester City in the English Premier League.

Nike and Adidas have also partnered with esport brands, while Hanesbrands’ Champion and K-Swissesport sell esports apparel and sneakers, respectively.

Esports – or electronic sports – is a form of gaming where people or organized teams compete at video games. Esports is growing in popularity globally as a spectator sport online and in person at stadiums.

According to Morgan Stanley, 194 million people are expected to watch esports this year and they are within a key demographic: 79% are under the age of 35 years old.

“Tapping into the world of esports, and its broad, dynamic consumer audience, is critical to our marketing strategy moving forward,” said Adam Petrick, global director of brand and marketing at Puma.

“Being able to transcend esports and elevate our brand within a broader global audience is the natural evolution of the growth of Cloud9,” added Jordan Udko, executive vice president, commercial partnerships for Cloud9.

Puma is actively working to reshape its brand image. The company re-entered the basketball sneaker segment last October after a 20-year absence in the space, naming hip-hop mogul Jay-Z creative director of Puma Basketball.

It is also taken a page from Adidas’ lucrative partnership with Kanye West, by offering products in partnership with celebrities like Rihanna, Adriana Lima, and Selena Gomez, in addition to sponsoring sports stars like Olympian Usain Bolt and golfer Rickie Fowler.

But the effort to capture consumers interested in esports to buy sneakers and apparel may be difficult for Puma and others, according to Matt Powell, a senior industry analyst for market researcher NPD Group.

“It is really going to be interesting to see if anyone can monetize it. There is an opportunity for a connection. Players want to identify themselves as players. If this is how they choose to do it, there is a monetary opportunity. Whether the esports player is focused on that as much as the real sports player remains to be seen,” Powell said.

SEE ALSO : Puma reports strong sales, profitability in 2018

Puma’s global sales improved 16.8% in the first half of the year, and according the company, its U.S. sales are growing by 18%, the biggest gain by a top 10 sportswear company in the U.S.

 

(Source: CNBC)

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