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Bauer Working Out Logistics To Achieve Growth In Russia's Hockey Equipment Market

While the '14 Sochi Games and Capitals LW Alex Ovechkin give Bauer Performance Sports "two out of three key ingredients for its Russian invasion, the last piece is the hardest one: logistics and distribution," according to Grant Robertson of the GLOBE & MAIL. Beyond the complications "the sheer vastness of the nation presents, just finding retailers that can sell the brand properly is a challenge." Russia is attractive as a market because as a public company Bauer "can't stand still." Its stock price has "more than doubled in the past two years, and is now being watched closely by investors to see if it can maintain that torrid pace." The brand in Russia "sits atop the pro market, commanding the lion’s share of players in the Kontinental Hockey League ... over brands like Easton, Reebok, CCM and European-focused manufacturers such as Torspo and Russia’s EFSI and Miklin." Data from Bauer shows that "of the 472 players in the KHL, 257 of them use Bauer sticks (representing about 54% of the league), 394 wear Bauer skates (83%), and 324 wear Bauer helmets (69%)." But outside the metropolitan centers, top hockey equipment "becomes more expensive or, depending on where you live, a lot harder to get." Bauer is attempting to solve the issues of price and supply by "cracking the distribution nut and making gear, including entry-level gear, available in cities across Russia." That is "where Ovechkin comes in as brand ambassador." Ovechkin for the past two years has been "the marquee attraction at special events Bauer stages to showcase its equipment for Russian kids -- and their parents." Ads showing Ovechkin in his Capitals uniform have been "rolled out in advance of the Olympics" throughout the country and digitally (GLOBE & MAIL, 11/29).

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