SAPO Sport visited the facilities of CDT – Equipamentos Desportivos, founded in 2012 with the ambition to create a reference sports brand in Portugal. A brand in which national production and use of the Portuguese product were a business card.
"Our brand distinguishes itself by offering a personalized service that allows us to design and develop a unique equipment and / or clothing line for each club," says Bruno Salgado, the brand director of Oliveira São Mateus, in the county of Vila Nova de Famalicão.
Quality products at a competitive price are the main concerns of this small company, which, besides wearing Moreirense and Tondela, both of the I Liga, are present in modalities such as handball, futsal and roller hockey. With its family roots and a tradition of four decades in the trade of all accessories for sports, personalization is another of CDT's great assets – Sports Equipment, which "does not want to face the big world brands, preferring to be great among the small ".
The Sublimation Process of CDT – Sports Equipment
The personalization of the equipment is achieved through a technological process called sublimation. The sublimation process consists of printing on a paper basis which will subsequently be used to decant those on a textile basis.
The paper and fabric are overlaid and pressed at high temperature, and thus the ink printed on the paper is transferred to the base of the machine.
Thus, this technique allows you to apply badges, advertisements, names and numbers directly on the fabric, without additional costs. In addition, it has the great advantage of being very resistant to washing, keeping the colors bright and vivid.
Moreirense's equipment, produced by CDT, was voted the most beautiful of FIFA19
Moreirense's equipment was chosen last October as one of the ten most beautiful in the FIFA 19 video game, in a list compiled by the British magazine FourFourTwo.
"As the equipment of the Croatian team proves, chess is always the right choice. We are not saying that the Portuguese club missed, but it seems that someone drank green wine, made the layout unstable and an apparently random approach to filling a sweater. Anyway, it still works, "wrote the journalist for the magazine.
The Moreira de Cónegos club was the only Portuguese club to be present on this list, which does not have a specific order.
Rayo Vallecano (third team), Kaizer Chiefs (alternative), Shimizu S-Pulse, Sampdoria, Atletico Huila, Velez Sarsfield, Betis, Lazio, Bayer Leverkusen (alternate) were the other clubs elected to this list full of beauty.
In the opposite direction, we will show a selection of gear selections that should never have left the sketch.
Nike is the sports brand with the highest overall revenue
Nike is the sports brand with the highest overall revenue. The finding is based on a survey by Sports Value consultancy considering the financial analysis of the last 16 years of Nike, Adidas, Under Armor and Puma. Currently in the world, the annual turnover of the sports retail sector is 230 billion euros. Of this amount, € 72.5 billion comes from sales of sports equipment and equipment.
Nike leads with sales in 2018 of 30 billion euros. Adidas closed last year with a turnover of 21 billion, Under Armor with 4.3 billion and Puma with 4.1 billion. In a historical comparison, Nike had a turnover of 8.7 billion in 2002. Adidas was 5.75 billion that year, Under Armor 44 million and Puma 800 million.
"The study demonstrates the strength of the four sports material giants globally. They are brands that indicate trends, awaken the passion of millions of consumers across the globe and with solid and creative marketing and communication strategies. Much of what they create and develop can and should be understood by companies from all walks of life, "says Amir Sommogi, Managing Partner of Sports Value.
According to the research, one of the elements directly linked to this success in sales is the investment in sports marketing. "Companies heat demand for their brands, the more they invest in marketing and communications strategies. Sponsorships to athletes, clubs, events and different competitions are fundamental to building on branding projects, "says the survey.
Marketing share of annual sales, according to the period analyzed, was 10% in the case of Nike, representing three billion euros. Adidas spent 13%, the equivalent of 2.75 billion. Puma's investment was 12%, reaching 530 million, the same value of Under Armor that allocated 11% of its sales.
While Nike alone reached 3.7 billion euros in net profit in 2018, the sum of the profits of the three other companies was 1.2 billion.
"It seems that Adidas's investment in sports marketing ultimately affected its profitability. The Adidas money is very similar to the one of its rival, although it springs much less. Under Armor after a string of good profits, ended 2018 with a loss of 42 million. Puma after a period of stagnation saw its profits reach a 122% increase compared to 2017, "the survey points out.
Soccer jerseys or advertising stands?
Sponsorship, television broadcasting rights and investment by an adept (box office and merchandising) are the main sources of income for a football club.
The most appealing place for a brand to leave its footprint is in the jersey that a club player will wear during the 90-minute game. We're not just talking about a sweater, but eleven. Perhaps this brand will appear for, perhaps, the whole world through television broadcasts. Values range from thousands to millions, depending on the league entered, the football event and the value of the club.
In the Portuguese championship, the national operators NOS and MEO have made a great investment in the national clubs, in this way some could breathe of relief when they saw the budget for the next seasons. These agreements involve the purchase of television rights and the front space of the shirts to put the brand image. According to a Shifter publication, "22% of sponsorships are derived from telecom operators and, above all, are the business area most adept at sponsoring soccer jerseys."
The I League is the one that has a rare case of clubs with the 'space' on the shirts. Feirense, Moreirense and Nacional are not sponsored by any brand, always having the chance to occupy this space with a unit sponsorship.
Who benefited, and enough, with the new advertising contracts were the 'big three'. Benfica, which went from MEO to Fly Emirates, and Porto and Sporting, MEO and NOS respectively, signed solid contracts and very financially advantageous.
Love the sweater or love of money?
The twenty Premier League clubs broke their own record with sponsorship deals for the 2017-18 season: € 333 million, according to consultancy Sporting Intelligence, an increase of more than 65 million compared to the previous year.
The reality is that although fans complain about the clubs, a small group of manufacturers get most of the profits from selling football shirts in the UK. They are: Nike, Adidas, Puma and, to a lesser extent, smaller suppliers such as New Balance.
On average, "Nike earns more in three months than all the Premier League clubs will collect together next season," says Jake Cohen, a sports lawyer. Generally, "5.8% of the cost of a shirt of 71 million is related to the material used, to production and transportation."
"Already 11.5% of the sales price is profit for the manufacturer, while the club receives only 3.6% of the sales price as a license fee. Retailers take up a sizable portion of the pie: 22% of face value The remainder is attributed to VAT, distribution and marketing costs. " says Peter Rohlmann, marketing analyst specializing in sportswear.
The fact that the two most important brands in the world, Adidas and Nike, only provide equipment for more profitable clubs, this makes the market open to smaller manufacturers such as Puma, Umbro or New Balance.
"In that case, these sweaters would not be as expensive as those of Nike or Adidas. This greater competition could end up holding or even lowering prices, says Rohlmann
Rohlmann makes an association between what appears to be a change in the sponsorship contracts of Premier League teams and the price of equipment. For example, Manchester United has a 10-year contract with Adidas worth € 88 million, according to which the clothing manufacturer pays money to the club in advance to secure the distribution license.
Traditionally, the sponsors used to sponsor everything that was associated with the club, from stadiums to socks. But more recent agreements have changed that logic. Now they can use the club's intellectual property, and, ultimately, the players' image rights.
The sportswear manufacturer can set the price of jerseys to get a concrete return on their investment. It is, therefore, a different strategy than the one used in the past, when the return on investment was linked to sometimes abstract concepts such as "brand value", "exposure" and "loyalty" of supporters. These deals also determine the design of new shirts every season, says Chris Stride, a statistician at the University of Sheffield in England who studied the evolution of football jerseys.
"Football jerseys were initially a product whose main purpose was to be used by players on the pitch, but then became part of the casual wardrobe of fans," explains Stride.
Now the designs are influenced by the tastes of the fan market, with sweaters that often appeal to nostalgia