Adidas Group, the German sports footwear and apparel maker, is all set to open its first fully owned outlet in India in the second half of fiscal 2016, with it getting the clearance to invest in local retail operations.
The company had filed an application with the Department of Industrial Policy & Promotion (DIPP) for setting up fully owned flagship stores in July. India had in January 2012 allowed 100% foreign investment in single-brand retail, but with conditions which included sourcing at least 30% of the raw materials by value from small and medium enterprises in India.
Adidas Group India Managing Director Dave Thomas said having its own retail outlets and ecommerce channel, complemented by the current franchise network, will drive growth for the company’s brands and business in India.
“We strongly believe own retail will enable us to take our market leadership position to an even higher level. It will give us additional flexibility to bring in global concepts across all categories in larger stores, thereby enabling us to further enhance the premium experience for our consumers,” Thomas was quoted as saying.
The company, which has 760 franchise retail stores in India under Adidas, Adidas Originals and Reebok brands, is planning to take this number to 1,000 by 2020.
The company will also work on augmenting the omni-channel retail approach wherein it has equipped around 150 stores with tablets that can be used to buy their products online, which are then delivered to the consumers’ homes. Adidas is also looking to increase the number of stores covered under this approach to 200 by the end of this year and to 400 by April 2016, from 150 now.
According to media reports, US-based sportswear brand Nike has also approached DIPP for approval to set up fully owned outlets in India for a second time in August after its earlier request was rejected by the department.