PUMA targets tech-savvy youngsters on TikTok

The world’s third-biggest activewear maker uses local influencers to connect with its market.

German sportswear brand PUMA is harnessing the power of TikTok and Instagram to connect with younger, tech-savvy consumers and boost sales.

“PUMA is pretty much at the cutting edge of new things happening,” Sanjay Roy, managing director for Southeast Asia & Oceania at PUMA Group, told Retail Asia. “I think we are associated with everything [that is] interesting and new with the youth.”

Revenue from e-commerce has been growing steadily for PUMA, the world’s third-largest sportswear manufacturer, with high double-digit growth continuing after a global COVID-19 pandemic. Roy expects e-commerce to soon become the second- or third-largest revenue stream for PUMA.

PUMA has had 4.9 million followers and more than 40 million likes since it posted its first Tiktok video in November 2019. The brand now has 13 million followers on Instagram, where it started in 2011.

“The consumer is far younger, far more conscious, far more knowledgeable, and it's a different consumer that we are attracting on e-commerce than what we're attracting in the other channels today,” he said.

Roy, who is based in Singapore,  said PUMA needs to be present in virtual places like TikTok, where consumers are searching for the brand. “These are the places where we are focusing a lot more to further gain market share.”

South Korea has emerged as a new hub for innovation after the pandemic, he said, citing the success of Korean fashion and music. In June, PUMA welcomed Rosé, a member of K-pop quartet Blackpink, as its newest ambassador in the Asia-Pacific region.

Roy noted that whilst PUMA's global influencers do have an impact, Asian consumers look up to and are more impressed by ambassadors from the region because they can relate to them more. He added that regional trends have had a big influence on PUMA's market innovations.

He also cited rising consumer interest in performance sports, particularly running. For this reason, PUMA has been involved in events like global fitness race Hyrox and Standard Chartered’s marathons.

PUMA is also seeing a shift from a male-focused market to women of all ages embracing sports brands across training, fashion, and unisex apparel. This demographic is becoming a key focus for Puma as it adapts to the changing consumer landscape.

PUMA's digital transformation involves both customer-facing and backend improvements. 

On the front end, PUMA is tapping new e-commerce channels and integrating customer relationship management systems and omnichannel strategies to enhance consumer experience.

On the back end, the company has invested heavily in system applications and product automation, as well as artificial intelligence, Roy said. These technologies are critical in ensuring that PUMA products reach consumers on time.

Genuine connection

PUMA’s growth in Southeast Asia, however, has not come without challenges.

“Every country has a different positioning or a different nuance,” Roy said. “[But] Southeast Asia doesn't. It is not seen as a one single region. We see it as… six different beautiful countries, and each country behaves very differently from the other.”

“So understanding the local nuance of the consumer and then reacting to that is what we are all learning at this stage and adapting to,” he added.
PUMA has set up local marketing teams to cater to the region’s specific cultural and consumer needs. It is also adopting digital-first strategies and investing in local ambassadors who can connect to their target audience.

“[Consumers] are looking for genuine emotional connection, and that's what we are attempting to do in every single market — be as genuine, as innovative, and as local as possible,” Roy said.

Local talent and knowledge transfer are important, as are logistics and brand awareness, he added.

PUMA’s presence in Southeast Asia started in Singapore and Malaysia, and it has recently expanded to Thailand, Vietnam, the Philippines, and Indonesia. “We're still making a mark in most of the countries,” Roy said.

In the short term, PUMA seeks to stabilise its operations, build teams, and make a positive impact on the market. In the long term, the sportswear maker wants to cement its position as a household name by boosting brand recognition, he added.