Interview with Matt Powell

There has been a lot of change in the sports industry over the past five years. A surge in demand during COVID that has now normalized. A wave of new brands entering the market. And a consumer that behaves differently than before.

I spoke with Matt Powell on an episode of The Marketing Meeting podcast. Matt has analyzed this industry for decades and remains one of the clearest voices to understand where it stands today, with both broad perspective and deep operating insight.

From Hype to Accessibility

One of Matt’s main points was that the industry has started to move on from drop and hype culture. In his words, it is shifting “to a more inclusive and accessible fashion world.”

He pointed to products like Adidas Samba and Birkenstock Boston. In his view, these were not created by brands deciding they would be the next big thing. They were already in the market, and consumers elevated them, especially through social media. That is a different dynamic from the years when brands tightly controlled supply, release timing, and who got access to product. As he sees it, the market has moved from exclusivity toward inclusivity.

The Sneaker Cycle Is Not Over

Matt does not think the sneaker cycle is over. He said, “I just think it’s different.”

His point was not that sneakers matter less, but that the market has broadened. Other categories may have moments, but that does not mean sneakers are disappearing. What he does think is changing is how brands market and how retailers buy. In the past, allocated product did a lot of the work. Now, there needs to be more curation. Retailers cannot rely on the same old formula.

Consumer Loyalty Is More Changeable

On brand loyalty, Matt’s view was nuanced. Younger consumers are still loyal, but “until they’re not.”

What he means is that they can be deeply into a brand, often because of a celebrity, styling, or what they are seeing on platforms like TikTok, but they are also willing to move on if something else gives them a reason to. He connected this to the consumer desire for uniqueness. People still wear familiar categories like sneakers, hoodies, and jeans, but they want different brands within those categories. That is part of why he believes this is a very good moment for smaller brands.

Why Small Brands Have an Opening

Matt said, “There’s never been a better time to be a small brand right now,” because being small gives a brand uniqueness immediately.

At the same time, he also pointed out that this advantage changes as brands grow. He used On and Hoka as examples, and was specific about why they were able to scale. It was not only the product. It was that their ownership had deep enough pockets to keep investing through years of losses until the brands reached scale. Most small brands do not have that runway, which makes the opportunity real but the path narrow.

He also noted that maximal cushioning was once distinctive, but as those features spread across the market, what was unique became more common.

Full Price Still Matters Most

One of the clearest points in the conversation was pricing. Matt has said before that “the product that sells at full price wins,” and he still sees that as one of the strongest signals in the market.

He mentioned New Balance alongside On as brands that have done a better job protecting pricing by curating the marketplace carefully, turning through styles, and not letting products become over-assorted or overdistributed. His point was not that discounting never happens, but that brands that manage supply well are in a better position to keep price integrity.

Demand Has Normalized

Matt sees the industry returning to what had historically been normal growth, around 3 to 5 percent annually.

He contrasted that with the unusually strong pandemic period, when growth was much higher. He sees the current environment as healthier. At the same time, he said consumers are buying fewer units, while dollars are still up because prices have gone up significantly. In other words, the consumer has accepted higher prices more than many expected, but that does not mean they are buying the same volume.

Retail Has to Be More Selective

Matt’s point about retailers buying differently was very specific. He talked about the past period when allocated products could carry a business almost on their own. In that environment, buyers did not need to curate as carefully.

He thinks that period is largely behind us. Retailers now need much more curation, tighter assortments, and a clearer understanding of what belongs in the market. He also said that many retailers are not really creating value for brands. In his view, the ones that matter are the ones that elevate the brand, educate the consumer, and understand how to curate an assortment around a specific customer.

Physical Stores Still Matter

Matt’s view is that stores remain an important part of the business, but the structure is changing.

The industry simply has too many stores and too many malls. He expects more rationalization and sees that as healthy for the long term. He does not think malls are entirely dead, but he does think there are a lot of dead malls, and that reality is starting to affect the market more visibly now.

For New Brands, Product Still Comes First

When discussing what matters most for an emerging brand, Matt did not reduce it to one thing only. His view was that product, marketing, and distribution all have to work together.

Still, when pushed to choose, he said he is a product person, so product comes first. At the same time, he was equally clear that even the best product will not succeed if people do not know what the brand is doing, or if the distribution is wrong. So his point was not “product only,” but that product is the foundation and the rest has to support it correctly.

Where the Industry Is Heading

Matt came back to clarity around the customer. Brands and retailers need “a much clearer vision” of who their customer is and what products are right for that customer.

He also said consumer insights have never been more important. The market has become too broad and products too ubiquitous, which makes curation and specificity more important than before. Brands with a clear point of view will do well, while brands without that clarity will struggle.

From my side, that was one of the strongest takeaways. The industry may be more fragmented now, but it is also asking for more precision. Less excess, less assumption, and a much clearer understanding of who the product is really for.