3G Capital’s Skechers acquisition ignites a new front in the global footwear battle, pitting its value-focused model against Nike’s innovation engine and Adidas’ sustainability push.
Market Share Goals:
- North America: 3G Capital targets elevating Skechers’ market share from 15% to 22% by 2027 through zero-based budgeting (ZBB) efficiencies, optimizing supply chains, and reallocating savings to aggressive retail expansion.
- Asia: Leveraging Skechers’ existing footprint of 4,000+ stores in China, 3G plans to implement ZBB-driven inventory controls and hyper-localized marketing to dominate budget-conscious segments.
- Europe: The firm aims to disrupt Adidas’ stronghold by launching cost-optimized performance footwear, using ZBB to slash production expenses and undercut rivals on pricing.
Competitor Responses:
- Nike: Accelerating investments in direct-to-consumer (DTC) e-commerce platforms to bypass third-party markups and counter Skechers’ price-focused strategy.
- Adidas: Prioritizing sustainability with plans to double recycled-material product lines, differentiating itself as Skechers pivots toward austerity-driven designs.
- On Running: Forging partnerships with luxury designers to cultivate a premium brand identity, insulating against Skechers’ budget-friendly positioning.
