Dechatlon

DECATHLON A rethought business

Houssam Benaim & Luis Gallego

index

Overview

Areas for improvement

Second life interpretation

Introduction

Overview of Decathlon's second life activity

Decathlon has been doing this second life activity since 1986, as other platform of selling products such as LeBonCoin were growing up. As introduction to this topic, Decathlon is a french firm dedicated to innovative, trustworthy and average price in the sports industry. They offer multiple products in their own shops, aswell as they are into online sales, second hand activities and other improvements of the company in the recent years They work in these new markets to win their new competence such as Vinted in second hand business model or Amazon in online sales business model

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Analysis

Second hand system in Decathlon

Trocathlon

Second life

Trade-in

In this case Decathlon acts as an intermediary between the first hand seller and the new customer for the second hand product. Giving a service of inspection and selling for a comision of the final sell

In this last case, these products are given to decathlon by disatisfied users. So Decathlon will sell them with same garantees but for a lower price to the second hand user

In this case Decathlonis the real owner of the products, the first customer gives it back to the company that will repair it and sell it with the same guarantee as first hand products from Decathlon

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Overview

Decathlon's second life activity

Displayed in a second hand corner in big stores of more than 10,000 m2

Gold shops

fAfter those products are collected, repaired and ready to be sold, they are displayed in different shops you can see on the right. Depending in general on the size of the shops that sells these second hand products. After having an overview in general of the decathlon second hand process, we can agree on the complexity an variety of products they give depending on the users need and the complexity of the different shops as sellers of the products Decathlon is selling as second hand. From my personal opinion i see that these business model can be very effective for not proffesional users as their needs can be covered with lower quality products

Displayed in themes shelves with products of the same type in medium stores

Hybrid strategy

Displayed in small outlets with similar first hand products

Outlets

Trocathlon

Improvement that could be done

For the research we had been doing, this trocathlon activity is only provided by a certain schedules and specific place. So i find it very specific for the general public to be able to participate and sell their products. Maybe that is because it is not profitable for the company to be receiving products for longer periods. But what i would propose in this aspect would be to make this space a permanent serivce. So the company will have in every big enough shop a place to ask to sell their used products, like there is a space for returns. All if this makes sense from an economical point of view

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Trade-in

From my personal point of view, it makes sense why this trade-in market is very advanced comparing with the other types of products. As you can easily know how much money Decathlon would pay to you for that used product with a few clicks and where you could deliver it. I think for the future they should incorporate a service of transport collecting those products as they can deliver them aswell at the same time. So it could be easier for the user, as easier as more customers Decathlon could get.

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Did you know that Deacthlon reversed his name to "Nolhtaced" in some Belgium cities to encourage the reverse shopping of online sales?

Customer profile and motivations for second-life purchases

Overview of Decathlon's second life activity

Customers who engage in second-life purchases at Decathlon are typically environmentally conscious individuals who prioritize sustainability. They are motivated by cost savings, access to quality products, the uniqueness of vintage finds, and supporting the circular economy. Decathlon's second-life initiative caters to these motivations by offering affordable, refurbished, and pre-owned sports equipment and apparel that aligns with its values.

Recycling: Customers can bring in their old products, regardless of the brand, and Decathlon will ensure they are recycled responsibly. Repair: Decathlon offers repair services for its products, helping customers extend the lifespan of their items and reduce waste. Reuse: Some products brought in through the "Second Life" program will be refurbished and made available for purchase at discounted prices, giving them a second chance.

why Decathlon's second life activity could be seen as greenwashing

Examples of greenwashing in the retail industry

1) A clothing brand promoting their "organic cotton" collection but failing to mention the environmentally harmful dyes and chemicals used in the manufacturing process.

Decathlon's second-life activity could be perceived as greenwashing if the company exaggerates or misrepresents the environmental benefits of the program. For example: Insufficient Transparency: If Decathlon fails to provide clear information about the actual environmental impact and sustainability practices associated with their second-life initiative, it could be seen as an attempt to create a positive image without substantial action. Limited Scope: If the second-life activity only focuses on a small fraction of their product range or excludes items with significant environmental impact, it could be viewed as a superficial effort to appear environmentally friendly while neglecting larger sustainability issues. Lack of Accountability: If Decathlon does not provide evidence or third-party verification of their recycling or refurbishing processes, there may be doubts about the effectiveness and legitimacy of their claims. Offset of Unsustainable Practices: If Decathlon promotes its second-life activity as a solution to offset the negative environmental impact of its manufacturing, without actively addressing or reducing its unsustainable practices, it could be considered greenwashing.

2) A retailer claiming their products are "green" or "sustainable" while using excessive packaging that is not easily recyclable or biodegradable.

3) A company advertising their "carbon-neutral" operations but neglecting to disclose their significant contributions to deforestation or unsustainable sourcing practices.

how Decathlon's second life activity promotes sustainability

Extending Product Lifespan: By encouraging customers to bring in their old or unwanted sports equipment and apparel, Decathlon's second-life activity aims to extend the lifespan of these products. Instead of being discarded, they can be repaired, refurbished, or repurposed, reducing the need for new product manufacturing and minimizing waste. Waste Reduction: The second-life activity helps divert items from the landfill by providing an avenue for recycling and reuse. It reduces the amount of sports gear and apparel that would otherwise end up as waste, contributing to a more sustainable waste management system. Circular Economy Participation: Decathlon's second-life activity supports the concept of a circular economy by creating a closed-loop system. Products returned through the program can be refurbished and made available for purchase at discounted prices, promoting the reuse of materials and reducing the demand for new production. Environmental Education: The second-life activity provides an opportunity for Decathlon to educate customers about the importance of sustainability and responsible consumption. It raises awareness about the environmental impact of products and encourages individuals to make more conscious choices.

Thank you! questions?