Lafuma is a brand specialized in sports and leisure equipment. Founded in 1930, it is still today one of the main leaders in the segment even if, for some years, the competitive pressure has been increasing. In 1936, the first backpacks appeared. These were the first products developed by the group. They were followed in 1954 by camping furniture. In 1984, the group was taken over by Philippe Joffard. The brand is present in more than 12 countries. In 2022, more than 15,000 euros were dedicated to environmental projects, and all products, without exception, are first tested in the laboratory. The group also has 720 employees worldwide, including 43% in France. The main objectives of the group are to promote a circular economy as much as possible, to produce eco-responsible items, but also to focus the marketing strategy on people and respect nature.
In 2022, the company's turnover was 188.7 million euros for the entire group, which includes Lafuma, Lafuma Furniture, Eider, Millet and Oxbow.
BCG Matrix of Lafuma
The star products
The star products are those in the growth phase, which bring a lot to the company but which still require multiple investments to be able to counter an increasingly present competition in the sector. In the case of Lafuma, this category includes textiles, clothing and novelties in terms of footwear, which today represent a large part of the turnover. These products have passed the first phase, which is that of the launch, and their position tends to be strengthened in the market. These products are finally becoming profitable, but the company must pay attention to what the main competitors also offer. Indeed, Lafuma is a group that is part of an ultra-competitive field of activity, and efforts are still to be made for them to become cash cows.
Cash cow products
Cash cow products are those that have reached maturity, which no longer really require investment, but they are nevertheless the most profitable. These are multi-activity backpacks, accessories and shoes specialised in trekking or hiking. The profits generated are very important. It is these profits, that allow the group to invest in innovations over the long term. The market share of these products is significant, and so is its competitive position. These products are likely to help articles that are in the dilemmas category.
Dilemmas
The dilemmas are products that, at some point, have low market penetration, despite having a high-demand market. Lafuma finds itself blocked by very intense competition, and its brand image is sometimes impacted. In this category, we find hiking poles and certain accessories, which only represent less than 5% of turnover. Competition is very strong, with international players like Decathlon or Intersport, which are very popular with consumers and take up a lot of space in the overall market. Dilemma products may have an uncertain future, but the company can manage to raise the bar and make them star products thanks to innovations, in particular.
Deadweights
Deadweights are generally defined by low market penetration and low market growth. Profitability is almost zero, and companies can choose to keep them because other products largely ensure the profitability and sustainability of the company or choose to withdraw them from the catalogue. In some regions, the hunting and fishing department falls into this category because there are a large number of stores specialising in the field.
CONCLUSION
The
BCG matrix is an analysis tool that is generally supplemented by other analyses, such as the
SWOT and
PESTEL matrices, in particular. The Lafuma group enjoys a good reputation worldwide, but it is, nevertheless, subject to very strong competitive pressure that forces it to create frequent innovations to continue to retain its customers. It should be noted that compared to the competition. Lafuma's communication can be considered more discreet, and this may serve the brand in the years to come. The sports sector is constantly improving and changing. It is essential for the group to ensure a constant presence on the net as well as on social networks so that consumers are always more interested in this brand. The main competitor is Decathlon, and this is particularly strong competition, especially in terms of prices, since the French group is renowned for charging the lowest prices on the market for undeniable quality. Lafuma remains particularly renowned for the quality of its bags, all categories combined, as well as for its textiles and shoes, especially in the outdoor sector, in which it has been the specialist in the world for several years.
