With a broader product line and increased distribution across disparate retail channels, U.S. Olympic Committee officials expect to easily surpass the $100 million in retail sales around the 2012 London Olympics for this summer’s Olympic Games in Rio.
But creating a business vibrant enough for non-Olympic years remains a long-term goal.
“We’re on target for what looks like our biggest Games ever from a retail perspective,” said USOC Chief Marketing Officer Lisa Baird, “but just as important is building a year-round licensing business.”
For its licensing business, the USOC has been moving in that direction since the 2008 Beijing Games, by providing more Team
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Since the 2008 Games in Beijing, the USOC has been providing more Team USA products and increasing national retailers, up to 22 now.
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USA products and increasing national retailers from four in 2008 to 22 this year, including Old Navy, Macy’s, Bloomingdale’s, and Express. The USOC also is relying on the brand strength of Ralph Lauren and Nike, two of its largest licensees, to expand distribution and sales.
The 600-plus-store Dick’s Sporting Goods chain is backing its USOC sponsorship with a large buy of Nike/USOC performance product, extensive in-store
branding and a marketing campaign spotlighting the nearly 200 U.S. Olympic and Paralympic hopefuls who work at Dick’s.
Since the USOC’s 3,500-square-foot store at USA House will be open to the public for the first time, sales there are expected to triple.
“We’ve got expanded distribution at retail, and we’ve had product there earlier than ever,” said Peter Zeytoonjian, USOC managing director, direct marketing, consumer products and events. “But we’re still not a 365-day-a-year offering, which is the ultimate objective.”
An enhanced effort in the mid-tier and mass retail channels through licensee Outerstuff looks like it will see the biggest increase. Hard goods have expanded with licensees like Swarovski and Alex and Ani offering trinkets ranging up to $170.
In keeping with Rio’s character, Nike’s Hurley surf brand is offering USOC-licensed board shorts, flip-flops and caps for the first time. Swatch is another product pioneer, offering its first Team USA Swatches. Another sign of the expanding non-apparel side of the business are three licensed teddy bears, ranging from a $39.99 version United Airlines is offering as an incentive to Olympic donors, to the $89.99 “Spirit” bear from Vermont Teddy Bear, to Ralph Lauren’s deluxe $240 bear, which comes wearing closing ceremony garb and is available only at Ralph Lauren stores and its websites.
Ad support for USOC licensees includes social media, catalog mailings and NBC on-air talent in a “Go Team USA” TV campaign directing traffic to the TeamUSAshop.org, administered by Fanatics. The goal this year is to double sales on the site, and currently, sales are exceeding that.
“We looked at our social media activity and our appeal across men, women and kids and we realized that we [Team USA] are a top-50 team brand,” Baird said. “It’s just a question of building the program enough to support that position in the market.”
