PUMA has reinforced its position in the Indian market through strategic initiatives and collaborations. In November 2024, PUMA India partnered with Accenture to enhance its supply chain and distribution network using digital twin technology, aiming to expedite order deliveries by up to 70% and reduce supply chain costs by approximately 10%.
Globally, PUMA reported a 4.4% currency-adjusted sales growth in 2024, totaling €8,817 million. However, net income decreased to €282 million from €305 million in 2023, prompting the launch of the “nextlevel” cost-efficiency program to optimize expenses and target an EBIT margin of 8.5% by 2027.
In India, PUMA’s marketing strategy includes engaging content featuring local influencers and celebrities, such as brand ambassador Anushka Sharma, to strengthen its connection with consumers.
These efforts underscore PUMA’s commitment to growth and operational efficiency in the competitive Indian market. A comprehensive SWOT analysis—assessing Strengths, Weaknesses, Opportunities, and Threats—provides insight into PUMA’s current position and future prospects.
Strengths
- Strong Brand Identity and Heritage: PUMA’s longstanding presence in the sportswear market has cultivated a robust brand identity associated with quality and performance. Collaborations with high-profile athletes and designers, such as the partnership with renowned footwear designer Salehe Bembury to design its basketball sneakers, have enhanced brand visibility and appeal.
- Diverse Product Portfolio: PUMA offers a wide range of products, including footwear, apparel, and accessories, catering to various sports and lifestyle segments. This diversification allows the company to appeal to a broad consumer base and mitigate risks associated with reliance on a single product category.
- Strategic Partnerships and Sponsorships: The company has secured significant partnerships, such as the long-term deal with the Portuguese Football Federation, set to commence in 2025. This agreement positions PUMA prominently in the football segment, enhancing brand credibility and market reach.
- Commitment to Sustainability: PUMA’s “FOREVER. BETTER.” sustainability strategy underscores its dedication to environmental and social responsibility. Initiatives include sourcing 100% of leather from certified suppliers and nearly all cotton and paper from sustainable sources, reflecting a commitment to reducing environmental impact.
Weaknesses
- Profitability Challenges: Despite revenue growth, PUMA has faced profitability pressures. In the second quarter of 2024, the financial result decreased to €-42.6 million, attributed to higher currency-related losses and a lower interest result, leading to a 23.8% decline in net income compared to the same period in 2023.
- Currency Fluctuations Impact: PUMA’s global operations expose it to currency exchange risks. In the first half of 2024, currencies were a major headwind, negatively impacting sales in euro terms by approximately €150 million.
- Market Share in Key Segments: While PUMA has made strides in various sports categories, it continues to face challenges in gaining significant market share in segments dominated by competitors. For instance, despite reentering basketball and distance running with new products and sponsorships, PUMA remains behind established competitors in these areas.
Opportunities
- Expansion in Emerging Markets: PUMA’s focus on expanding its presence in emerging markets presents growth opportunities. The company’s strategic emphasis on winning in the important U.S. market and accelerating its rebound in China aligns with this objective.
- Women’s Sportswear Segment: The growing demand for women’s sports apparel offers PUMA an avenue for expansion. By developing a comprehensive product line for women, PUMA aims to capture a larger share of this burgeoning market.
- Digital Transformation: Investing in digital infrastructure and e-commerce platforms can enhance customer engagement and streamline operations. PUMA’s strategic focus on digitalizing its infrastructure is expected to improve efficiency and customer experience.
- Sustainability Initiatives: With increasing consumer awareness of environmental issues, PUMA’s commitment to sustainability can serve as a differentiating factor. The company’s efforts in sourcing sustainable materials and promoting ethical practices align with consumer preferences, potentially boosting brand loyalty.
Threats
- Intensifying Competition: The sportswear industry is highly competitive, with major players like Nike and Adidas, as well as emerging brands, vying for market share. PUMA’s ability to differentiate its products and maintain brand relevance is crucial in this environment.
- Economic Uncertainties: Global economic fluctuations can impact consumer spending on discretionary items like sportswear. Economic downturns may lead to reduced sales and affect profitability.
- Supply Chain Disruptions: Reliance on global supply chains exposes PUMA to risks such as political instability, trade restrictions, and logistical challenges. Disruptions can lead to inventory shortages and increased operational costs.
- Regulatory Compliance: Evolving regulations related to labor practices, environmental standards, and trade policies require continuous monitoring and compliance. Non-compliance can result in legal penalties and damage to brand reputation.
Conclusion
As of 2025, PUMA stands as a resilient and adaptive entity in the global sportswear market. The company’s strengths, including a strong brand identity, diverse product portfolio, strategic partnerships, and commitment to sustainability, position it favorably for future growth. However, addressing weaknesses such as profitability challenges and market share in key segments is essential. By capitalizing on opportunities in emerging markets, the women’s sportswear segment, digital transformation, and sustainability initiatives, PUMA can enhance its competitive edge. Simultaneously, mitigating threats from intensifying competition, economic uncertainties, supply chain disruptions, and regulatory compliance will be crucial for sustained success.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
