Decathlon: low prices that defy the competition, but what about the quality?

With its 1,749 stores and more than 100,000 employees around the world, Decathlon has become the third global player in sports equipment, just behind Nike and Adidas. The French brand, owned by the Mulliez family, now aims to become world number one by relying on a well-established strategy: offering excellent value for money, with prices up to 30% lower than those of its competitors.

To maintain attractive prices, Decathlon relies on a model that limits intermediaries. In fact, nearly 80% of the items available in store are designed and produced directly by the brand, covering a wide range of products, from simple swimsuits to more sophisticated sports equipment. This integrated model allows the brand to reduce costs and offer technological innovations. Among them, an innovative diving mask, which integrates a communication system like a walkie-talkie, demonstrates Decathlon’s ability to innovate while remaining accessible.

Slashed prices: but what about the quality?

In store, the prices are particularly attractive: backpacks for €4, hiking shoes for €15… But how does Decathlon manage to maintain these prices? In a survey carried out near Lyon, Pierre Brunier, a French sportswear specialist, compared two running t-shirts: an entry-level model from Decathlon sold at €5, and a Nike t-shirt displayed at €34.99.

The difference in price comes with a difference in quality. “The Decathlon model is made of simple mesh, with a fairly rigid and rough fiber, which risks scratching after several kilometers of running”analyzes Marc, the sales manager of the workshop of Pierre Brunier, French sportswear specialist. Conversely, the Nike t-shirt has more careful finishes, such as a thin collar and reflective elements, offering a softer and more pleasant contact on the skin.

Similar production costs, very different margins

Interestingly, this difference in quality does not translate into a much higher production cost for the Nike t-shirt. According to experts, the cost price of the two models would be relatively similar. Made in Egypt, where the monthly labor cost is €170, the Decathlon t-shirt would cost around €1.70, while the Nike t-shirt, produced in Sri Lanka with labor cheaper work (€85 per month), would cost €1.90.

The difference in in-store prices is rather explained by the marketing budget and the margins applied. “The final price of the Nike product includes development, athlete sponsorship, and a large portion of marketing, which adds considerably to the bill.”specifies Marc. Decathlon, on the other hand, invests little in marketing and applies reduced margins, particularly on entry-level products.

A recipe that has proven itself for 50 years

Thanks to its strategy focused on controlled costs and limited margins, Decathlon has succeeded for almost half a century in offering affordable sporting goods, without completely neglecting quality. This model has allowed it to become a key player for sports fans looking for good deals, and could well help it achieve its goal of becoming the world leader in the sector.

Find all the secrets about the world’s third giant of sporting goods in “Whatever costs” this evening from 7:45 p.m. on RTL tvi and streaming on RTL play.

CQC Cost whatever it costs Benjamin Maréchal decathlon