Foraying into the direct-to-consumer model, this store will be New Balance’s first centrally run store i.e independent of a franchise partner.
New Balance Athletics, headquartered in Boston, Massachusetts is run and operated by its franchise partners Apparel Group in the UAE. New Balance employs more than 6,000 associates around the globe and in 2020 reported worldwide sales of $3.3bn. The flagship store in Dubai Mall aims to be a true statement about the direction the brand is taking and its presence in the Middle East.
“One of the key things for us was to control our destiny in the region. We wanted to set up a regional hub here in Dubai to help provide the best service in the gulf market and Africa. The first thing was to set up a Middle East LLC and the next step was the flagship store,” said Stuart Henwood, General Manager of New Balance Middle East, Africa & India. “It will be the first unique design of this particular ilk to be launched. It will have a very eye-catching facade that will sit above the store, a digital portal entrance on the list line, and digital screen at the back of the store that will house some of our collaborations and lifestyle products,” he said.
Many sporting brands have taken the D2C route in the past decade, having realised its opportunity to enhance engagement and build direct relationships with customers. Nike, for instance, remains bullish on the growth of its digital and direct-to-consumer (D2C) business projecting that digital will account for 50 per cent of the sports apparel company’s business by 2025. Under Armour will restructure its brick-and-mortar business to leverage a direct-to-consumer (D2C) model that will help it reduce costs and reach younger customers.
