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Home » SWOT of Brands » SWOT analysis of Fila

SWOT analysis of Fila

March 8, 2019 | By Hitesh Bhasin | Filed Under: SWOT of Brands

In 1911, Fila was created by Giansevero Fila in Italy. The brand first started by making clothing for people living in the Italian Alps and now it manufactures sportswear for athletes, men, women, and children. Now the company is based on Seoul Korea after it was purchased in 2007 by Fila Korea.

The company now operates and is owned by South Korea. The brand is now headed by Yoon-Soo Yoon who is the chairman and CEO of the company. The brand is present in many countries globally. It is Korea’s largest sportswear company.

Fila Korea now holds all the rights to the worldwide use of the clothing and footwear brand of the parent firm. Fila Korea reported $706 million dollar revenue in the second quarter of 2018, which was increased compared to last year $619 million.

Table of Contents

  • Strengths in the SWOT Analysis of Fila
    • 1) The legacy of the brand
    • 2) Popular sports brand ambassadors
    • 3) Nostalgia brand
    • 4) Innovation
  • Weaknesses in the SWOT Analysis of Fila
    • 1) Competition
    • 2) Stores and distribution:
  • Opportunities in the SWOT analysis of Fila
    • 1) Expanding into casual clothing and sports equipment
    • 2) More advertisement
  • Threats in the SWOT analysis of Fila
    • 1) Brand Presence
    • 2) Changing trends

Strengths in the SWOT Analysis of Fila

SWOT analysis of Fila - 1

1) The legacy of the brand

It is an authentic sports brand with the essence of Italian heritage. The brand pride itself in the legacy of its heritage. Fila uses premium fabrics that allows maximum flexibility and performance and the products depict the sophistication of Italian craftsmanship.

The brand understands the beauty of sports and commits to standing out and not blending in.  The sports label is rebranding itself as a heritage brand. The brand has been bringing back its products that were famous in the ’90s into the mainstream market and is successfully rebranding them.

2) Popular sports brand ambassadors

The brand has always enjoyed and maintained relationships with remarkable athletes and people who have the great passion for sports and performance. Fila supported Kim Clijsters, who was the first person to win back the US opens in 2009 after 18 months of retirement.

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Fila continues to sponsor sports events like BNP Paribas Opens in Indian well, Porsche Tennis Grand Prix, and also the official footwear licensee at Wimbledon. The brand has a rich history of aligning itself with people who have created a positive impact in the sporting history. The brand in India is in collaboration with Rannvijay Singh promoting its motorsports wear.

3) Nostalgia brand

Fila’s “heritage” category is taking much of the market. The “Ugly Shoe” movement has brought the old bulky shoes back in fashion. The brands “heritage” category is building revenue for the brand and the sale of the segment up 1465 in 2018.

A lot of people are able to connect the brand as a nostalgia brand. There are no celebrity or athletic endorsers and it is just about the brand. The look has become the most in-demand style of this season.

4) Innovation

Fila uses innovation in the heart of most of its designs and evolution of the brand has been driven by the philosophy of innovation. Fila Skates is changing the art of skating with its performance equipped designs in both ice skates and inline scenario.

The brand also introduced unisex toiletries for sports which were called “Change the game” which assures protection and freshness throughout the day. The Fila sneakers named Disruptor are the must-have trainers of the season. The product range is water repellent, breathable and stylish.

Weaknesses in the SWOT Analysis of Fila

1) Competition

Fila has very slow growth compared to its much famous competitors like Addidas and Puma. In 1997, Fila’s US sales peak of $687 million in 1997 and the problems started following when the brand tried to enter the luxury segment.

Nike is one of the leading brands in the sports segment as far as footwear is concerned, no company can come any close to Nike. Addidas brand specializes in sporting goods manufacturing and gives tough competition to Fila. Reebok has a strong market presence and is the 3rd highest competitor of Fila

2) Stores and distribution:

The brand needs to establish a good presence in the multi-brand stores across India and has to further expand its retail presence. The brand was struggling to define its identity because of the changing ownership.

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The brand in India has only 4 standalone stores in Mumbai. It needs to build Omni-channel retail format to serve the Indian consumers. The brand has only 250 large style format stores pan-India. The brand needs to expand through franchisee network of standalone stores. Fila needs to boost its online sales which only make up to less than 10% of the sales currently. The brand needs to work on its presence, spruce of the distribution network and increase visibility with advertising and marketing.

Opportunities in the SWOT analysis of Fila

SWOT analysis of Fila - 2

1) Expanding into casual clothing and sports equipment

The demand for the logo-centric tops and sneakers with retro look have been increasing. Fila apparels seem to be merging well and are shaping sports fashion. Fila’s sneakers Disruptor which was a huge hit in the 90s is growing to be the most popular women shoes of 2018. The tops by the Fila brand are the most stocked category of the brand.

The brand concentrated much of the business in the sports shoe category and now needs to invest in the growing share of the apparel industry. The motorsports category has good potential in India and needs to specifically design and develop products for the Indian market.

2) More advertisement

The brand needs to advertise more to boost the image and presence. It is seen that the brand is not active on the traditional mediums like Television and print but is spending on the digital channel. However, its competitors are making huge investments in the advertisements resulting in the creation of a strong brand community.

Nike in their advertisements sell more than shoes, they never talk about the products but they create the strong story that connects the brand to better performance and quality. The CEO of Fila India plans to create a good presence of brand and plans to connect Fila with movement rather performance.

Threats in the SWOT analysis of Fila

1) Brand Presence

The brand has been around for a long period of time but needs much to do to revamp its image. It is not very aggressive in its marketing and promotional strategies like Addidas and Nike who are well entrenched in this aspect.

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Fila needs out-of-box strategies if it is only focusing on the digital medium for its advertisements. It has a good community on social media but it has a lot to cover before being at par with its competitors. Newer brands are coming up with better strategies to increase brand visibility and Fila might get diluted in the competition. The availability of the brand is not an issue, but to build a brand presence in the aggressive sports category is a difficult task.

2) Changing trends

To keep pace with the younger generation and appeal to them is one of the most challenging areas for the brand. Fila needs to look at collaborations with the influencers and content marketing strategies to stay relevant in the minds of the millennials.

The trends keep moving, it is difficult to reach the top and create engaging products to the millennials whose taste keeps changing. The focus should be engaging with the consumers and giving them brand experiences. Fila is relying on its past as it is revamping its older products and bringing it to the market. The brands that live in the past tend to have a shorter life. The brand needs to balance the past, present and the future.

Liked this post? Check out the complete series on SWOT

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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