Observations of public companies in Indonesia from independent analyst

Sportswear Giants Shift to DTC and It’s Threats to PT MAP Aktif Adiperkasa Tbk (MAPA)

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nike logo in an apparel store

Global sportswear brands have long relied on wholesale partners as a key strategy of their market expansion needs. In Indonesia, PT MAP Aktif Adiperkasa Tbk (IDX: MAPA) have earned the trust of many brands, including Nike, Adidas, and Puma, as their wholesale partners.

Amidst the success of this strategy, which allows global brands to leverage the expertise of their partners in networking, distribution channels, and sales, major players such as Nike, Adidas, Under Armour, and Puma have been striving to strengthen their DTC business models in recent years.

DTC, short for direct to consumer, entails selling products directly to consumers through the brands’ own brick-and-mortar stores or digital channels, without intermediaries or wholesale partners.

By selling directly to consumers through owned channels, brands can capture higher profit margins, exercise greater control over their brand image and customer experience, and gain valuable insights into consumer behavior and preferences.

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