Run Run Away

Question:

 In a recent Road Runner catalog, there was a note thanking everyone for their support of mail order with respect to Asics.    Does anyone know what this is about?  Is Asic trying to get away from discount schedules that most mail order companies usually seem to provide?  As I find most running shoes overpriced, I’ve come to rely on mail order as a source of shoes.  Most provide decent discounts and have liberal return polices which make it worth the extra hassle.  It would be a shame to see the brand I like unavailable through the mail. — — Ian Clements,                   |

Response:

In a recent Road Runner catalog, there was a note thanking everyone for their support of mail order with respect to Asics.   Does anyone know what this is about?  Is Asic trying to get away from discount schedules that most mail order companies usually seem to provide? —

[...] Ian Clements,                       |

Asics is planning to pull out of mail order entirely, beginning January, 1993. Most of the mail-order companies will have inventory on hand for several months into 1993, but once it goes it’s gone for good. Obstensibly, the reason that they are pulling out of mail order is that mail order companies cannot provide the level of service (i.e. proper fitting, advice, knowledge) that a retail store can provide. However, if you compare a Road Runner Sports, with their unconditional satisfaction guarantee and generally very knowledgable telephone reps, to your average Sportsmart or even Foot Locker, this argument seems pretty hollow. The real reason for Asics decision (IMHO) is pressure from retail stores — the Foot Lockers of the world. They say to Asics: "Why should we even carry your shoes? People come into our stores, try the shoes on, then order them from Road Runner Sports [because they're  $20 less].  Pull out of mail order or we’re dropping your line". Nike did this several years ago with all of their "air" product, with — arguably — great success. Road Runner sent a letter to many of their customers asking them to protest the situation with Asics. The result was overwhelming — most customers indicated that they would switch brands before paying retail store prices. The letter writing campaign apparently has not influenced Asics decision, however. One person in the Asics organization told me that he thinks Asics must go through with their decision in order to pacify the retailers, but that after a period of time has elapsed they can go back to the retailers and say: "OK, we tried it your way and it didn’t work. We’re going back into mail-order in the same low-key way we’ve always been there, and get off of our backs". On the other hand, he also thought it was possible that Asics had a long-term marketing strategy that precluded mail order — ie., compete on the level of a Nike or Reebok. In the short term, at least, Asics is going to take a certain loss, as mail order is a very significant part of their total sales. They are a well run company, however, and certainly not in business to lose money, so they must have some confidence in their decision. It will be interesting to see if there is any dramatic shift in their marketing stratagies after the change takes place. FYI and disclaimer: I work for Road Runner Sports (in our retail store ironically) at a non-management-just-a-worker level. While I may have learned some of the information in this post at work, I write this post solely in my capacity as a concerned citizen of these United States of America and do not represent Road Runner Sports in any way. Brad Biddle

Response:

 Concerning ASICS decision to withdraw from supplying mail-order houses–  Could a lawyer enlighten us on the legality of this? Wouldn’t this be considered restraint of trade? Couldn’t the mail-order companies file some sort of class action lawsuit against a company that refuses to sell to them solely on the basis of the way the product is distributed? — Brooklyn NY usa                                Design & Consultation

Response:

- Hide quoted text — Show quoted text – In a recent Road Runner catalog, there was a note thanking everyone for their support of mail order with respect to Asics.   Does anyone know what this is about?  Is Asic trying to get away from discount schedules that most mail order companies usually seem to provide? Asics is planning to pull out of mail order entirely, beginning January, 1993. Most of the mail-order companies will have inventory on hand for several months into 1993, but once it goes it’s gone for good. Obstensibly, the reason that they are pulling out of mail order is that mail order companies cannot provide the level of service (i.e. proper fitting, advice, knowledge) that a retail store can provide. The real reason for Asics decision (IMHO) is pressure from retail stores — the Foot Lockers of the world. They say to Asics: "Why should we even carry your shoes? People come into our stores, try the shoes on, then order them from Road Runner Sports [because they're  $20 less].  Pull out of mail order or we’re dropping your line". Nike did this several years ago with all of their "air" product, with — arguably — great success. Road Runner sent a letter to many of their customers asking them to protest the situation with Asics. The result was overwhelming — most customers indicated that they would switch brands before paying retail store prices. The letter writing campaign apparently has not influenced Asics decision, however.

Yep. I called Road Runner for an order today, and ended up talking to the sales rep for quite a while, and I mentioned "the Asics thing," for which his response was, "Yeah, they’re pulling a Nike on us." That seemed to sum it up quite well. — A small mind is easily filled with faith.                 =^-| |____| | Blessed is a mind too small for doubt.                        _}B   _}B

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