In conversation with Ragtrader, NBA Asia vice president in global merchandising Lesley Rulloda reveals how the brand is performing in the Australian market.
Which channels does the NBA Store operate through in the Australian market?
We currently have two brick-and-mortar NBA stores in Australia – the first NBA Store in Australia opened in Melbourne at The Emporium last August, and our second NBA store opened in Sydney in Martin Place later in the year. Both stores are operated by retail giant Lids. Additionally, we have an online NBA store which we launched in 2017.
In addition to online and our two brick-and-mortar stores in Melbourne and Sydney, officially-licensed NBA product can be purchased at more than 200 retail doors nationwide - from sporting goods stores Rebel Sport and Decathlon, lifestyle fashion accounts like Glue, General Pants, or at basketball specialty doors Throwback, Stateside, among others.
What key insights drove the physical launch of NBA Store in Australia?
Australia is a priority market for the NBA, and the opening of our first brick-and-mortar NBA stores in the country is part of our continued commitment to engaging our very passionate fanbase.
We have a longstanding partner in Fanatics, who operate NBAStore.com.au, our official online NBA store in Australia, so it was a natural progression for us to build on that existing relationship with the opening of our first brick-and-mortar NBA stores in Melbourne and Sydney.
What's the market size in Australia compared to the US?
It’s difficult to compare the two given the massive discrepancy in population, but I can say that Australia punches well above its weight across almost every quantifiable metric. Australia continues to be the number one country in NBA League Pass (our premium live game subscription service) in revenue and subscriptions outside of the U.S.
On the court, of the 120 international players from 41 countries and six continents who were featured on opening-night rosters for the 2022-23 season, 10 were Australian - a number which trails only the U.S. and Canada, making Australia the most-represented country outside of North America.
These local heroes are major interest drivers for us.
What are NBA Store's most popular product categories?
Jerseys consistently rank among the most popular categories. We released our annual list of the top-selling player jerseys based on sales from NBAStore.com.au in February, and while the expected names were prominent - including Stephen Curry, LeBron James, and Giannis Antetokounmpo who ranked first, second and third respectively - the list also features Australian-born NBA Champion Patty Mills, and NBL alum LaMelo Ball.
Other popular categories include t-shirts, headwear, sporting goods, and trading cards.
The brand sells exclusive hyperlocal NBA products in Australia. What do you mean by this and can you share examples?
Our NBA stores in Melbourne and Sydney both feature a wide assortment of official NBA and WNBA team and league-branded merchandise and memorabilia, including exclusive hyperlocal NBA products like “NBA Melbourne” and “NBA Sydney” tees and hoodies.
The stores also offer on-site customisation services for fans to personalize jerseys and hats – a signature feature only available at select NBA store retail locations around the world.
Are NBA's Australian sales seasonal with the US sporting schedule? How does the brand navigate this in Australia?
We primarily align our sales around the start of each NBA season (September and October), and around the Christmas period. Jerseys in particular often see a surge in sales towards the end of the year, coinciding with the start of season, the year-end holidays and the warming of the weather.
How is the brand navigating supply chains for the Australian market?
Like most businesses who operate globally, we have not been immune to global supply chain issues. We are fortunate to have terrific partners like Nike, New Era and Mitchell & Ness who have done an amazing job navigating the supply chain constraints during- and post-COVID.
There are still challenges for us in Australia as our stores carry a wide assortment of product from a number of brands, but things have markedly improved, and I anticipate the situation will continue to normalise over the course of the remainder of the year and beyond.
How is the brand being marketed in Australia? Can you share examples?
We engage our fans in Australia through a variety of touchpoints across digital, retail, and on-ground activations. The NBA has the youngest, most diverse fanbase of any major sport, and we have one of the largest social media communities in the world.
We have a combined 2 million followers from Australia, who we engage with through highlights and other content daily across our global and localized social platforms. As we’ve discussed, we have our two brick-and-mortar NBA Stores in Melbourne and Sydney in prime locations to provide our fans with access to the widest range of official NBA merchandise in the country, and we’ve also brought several players to participate in fan meet-and-greets at the stores, including Dallas Mavericks’ Josh Green, Denver Nuggets’ Jamal Murray, and NBA Champion Dirk Nowitzki.
Last August, we also engaged local artists to bring NBA Gallery – a free pop-up art exhibition featuring specially-commissioned works showcasing the impact of the NBA in Australia – to Sydney. In Melbourne, we unveiled a 40-foot mural that stylistically showcased the names of Australian players participating in the 2022-23 NBA season.
Additionally, we are fortunate to have a roster of marketing partners who see the value in associating with the NBA brand, who help us reach a wide, young, and engaged audience. We recently worked with Hennessy and TAB to deliver unique experiences to our Australian fanbase.
Last May, Hennessy constructed a floating basketball court in the middle of the Sydney Harbour as part of their “Court Beyond Limits” series, where pop-up courts are launched in iconic locations around the world to celebrate basketball’s cultural influence on-and-off the court. The floating court in Sydney Harbour was a follow-up to the viral basketball court Hennessy installed in the famed Bondi Icebergs Pool during the 2021 NBA Playoffs.
In addition to Hennessy, our partnership with Australian sports betting company TAB has allowed us to televise NBA TV – the league’s 24-hour television network – on Tabcorp’s Sky Channel in more than 4,400 TAB retail and entertainment venues across Australia.
Overall, we believe we are entering the Golden Age of basketball in Australia, and we are very optimistic about the market’s enormous potential for further growth.