Adidas India Trading Ltd. plans to add 25 exclusive company-leased outlets to its existing network of 10 in the next three years. The sports footwear and apparel company also expects to double its turnover in the next three years.
The 10 company-leased Adidas outlets account for 18 per cent of Adidas’ turnover. The retail expansion plan is in line with its new positioning which entails a shift from being a ‘sports performance brand’ to a brand that straddles ‘From Competition to Lifestyle.’
Adidas India has 70 exclusive stores, including 10 company-leased stores; and has presence in 500 multi-brand life-style establishments and malls in over 45 cities. Besides focusing on metros — a 2,000 sqft exclusive, company-leased outlet is opening in Delhi this week — the new retailing drive will also accelerate in second tier-towns.
The new format stores — a mix of over 1,000 sqft and over 2,000 sqft carpet area outlets — are designed to be brightly lit, sporty and youthful in ambience. And its new fixtures are said to be around 30 per cent more space-efficient.
To broaden its network at prime retail locations, Adidas India pursues three approaches: first, it forges shop management alliances with individual firms whom it provides location, interiors and inventory support while manpower and routine retail operations are handled by these firms. Second, it scouts for franchisees controlling prime locations; and third, it explores synergistic alliances with major sports speciality stores, lifestyle malls and fashion labels on a case-to-case basis.
Adidas claims that all its larger franchisees are making money. The payback period for franchisees usually ranges between eight months and 12 months.
Though globally acknowledged as a sports footwear major, in India, both apparel (sourced locally) and footwear (sub-Rs 1,900 sourced locally) are said to account for 45 per cent each of the overall turnover, and the remaining 10 per cent by accessories (sourced locally).