Umbro lesson #1: Take advantage of Nike’s platform-based supply chain

[This post is part of a series on how Nike masterfully applied a set of product strategies to turn around Umbro. For more context see original post]

The most cost-effective way to introduce variety in your product portfolio and not spend millions in different new products is to apply a platform strategy to a limited set of products. This gives consumers an illusory sense of choice (even though this is just superficial) and the company has an easier time managing the supply chain.

In Umbro's case, since introducing new products could not be done with a big bang (note: I have no facts here; my assumption is that Nike wanted to mature the new Umbro slowly to make sure there was ample room and time to correct any mistakes happening along the way) the simplest way to renew the stale portfolio was by focusing on product platforms. Nike is fantastic at this, and surely could pass its know-how to Umbro's product teams.

This strategy manifests itself at its maximum in two of their most visible products: football boots and track jackets. With only one model of each they have managed to have virtually infinite SKUs make Umbro look larger than what it actually is (so far).

The boots are all the same but the look of the sole can be customized graphically. Being Nike very good at creating limited editions in the sneakers category and signing up street artists for special collaborations (e.g. Futura + Syracuse), it is not hard to figure out where the idea came from. Funny enough, the idea of having different soles for football boots has a direct visual relative in the way skateboard companies offer the same piece of wood but with different visuals and endorsed by a different skateboarder. It is not about the product at all. It is all about the additional cultural meaning applied on top of the product.

The Ramsey jacket is another good example. Taking the historical model as starting point, the product team singled out the elements that would be desirable to change, and redesigned the manufacturing process around this new modularity.

The result is a garment in which many parts can personalized in terms of color, pattern and fabric, thus creating endless combinations that can fit any style and team sponsorship requirements. The same jacket with different collar, cuffs, and color can work both for England's national team as well as for Pele on his NYC Cosmos gear.

Proof that this strategy has trickled down from Nike is the fact that an exact same strategy has been applied to the jacket National 98 which has been used as product platform for a wide range of nike-sponsored athletes and teams.

Tennis player Roger Federer

Footballer Wesley Sneijder

Boxer Manny Pacquiao