Adidas looks at doubling turnover to Rs 1,600 crores by 2020

German sportswear brand Adidas is aiming to earn 20 per cent revenue from its own stores in India by 2020. The company hopes to double turnover to around Rs 1,600 crores by 2020 from the present Rs 805 crores.

The plan comes on the heels of the company getting ready to open its own six flagship stores in leading metros. These stores will help to achieve its target. The stores will be 5,000-10,000 square feet in area. The company has already opened a 2.6 lakh square feet centralised warehouse near the capital in order to streamline its supplies. So far, Adidas operates franchise-based model similar to its competitors Nike and Puma. In 2015, Adidas was granted an approval to open its own stores after it applied to Department of Industrial Policy and Promotion (DIPP). Also, now the franchise partners are not hesitant to invest in bigger stores like they were earlier.

Also, Adidas wants to focus on its lifestyle brand, Adidas Originals, which constitutes about a third of its business internationally but in India it is only five per cent. There are plans to open Adidas Original stores here. Earlier Originals products didn’t sell here but with greater awareness, people have started buying them. Even though most of Adidas’ business comes from apparels in India, people have started buying footwear too. Dave Thomas, MD, Adidas Group India, points out that till two years back, the average price of a pair of sports shoes was around Rs 3,000 but now it has shot up to Rs 5,000.