Adidas gets Govt nod to open own retail stores in India

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Three years after applying for 100 per cent foreign direct investment (FDI) approval, Germany’s sportswear major Adidas AG has received government approval to open its own company-owned outlets, according to media reports.

This will allow the brand, which also owns Reebok, to open retail stores owned, operated and managed by Adidas and Reebok. The first company-owned outlets will open in the second half of 2016.

Currently, Adidas sells its shoes and apparel in India through local distributors. There are 760 franchisee-owned stores that sell Adidas and Reebok products across India.

“We are delighted and thankful on being given the go-ahead to introduce our own retail format stores for Adidas India. We strongly believe own retail will enable us to take our market leadership position to an even higher level,” said Dave Thomas, Managing Director of Adidas Group India.

In January 2012, the Indian government allowed 100 per cent foreign investment in single-brand retail, but with conditions which included sourcing at least 30 per cent of the raw materials by value from small and medium enterprises in India.

Adidas plans to take the number of stores up to 1,000 by 2020. 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.

“While we are excited to introduce our own large footprint stores here, we continue to be committed to our partners and will strengthen our existing and successful franchise distribution network,” said Thomas. (SH)

Source: Free Textile and Fashion Industry News RSS XML Feeds – Fibre2fashion

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