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Simone Biles Is Vertically Integrating
It starts with athletic wear and could end being a trillion-dollar platform
Simone Biles is the most decorated American gymnast in history. Today it was announced that she is leaving her endorsement deal with Nike to partner with Athleta. The strategy behind this move is for Biles to start taking more control of her brand via vertical integration.
Vertical integration is a company’s ability to control the end-to-end customer experience by owning as much of the value chain as possible. Vertical integration is typically associated with the oil and steel tycoons from the turn of the 20th century who looked to control raw materials, manufacturing, and the railways for delivery.
Today companies like Apple are the ones taking advantage of vertical integration: make the device, control the store experience (app store, and in real life), then deliver the content.
Biles is dipping her toes into the vertical integration waters by entering a more supportive agreement with Athleta. This would include her own performance wear line and products to wear to and from the gym.
Louise Radnofsky from the Wall Street Journal adds, “ The company (Athleta) has also pledged to support the post-Olympic gymnastics tour that she is planning to mount…
