Decathlon Plans To Transform India's Athletic Landscape By Opening 10 New Stores Every Year!
Who doesn¡¯t know about Decathlon, right? Even those who aren¡¯t into sports must have shopped from the brand at least once in their lifetime! Such is the charm of this French sports retailer. Be it their vast varieties or competitive prices, Decathlon has won the hearts of the majority of Indians ever since it opened its first store in 2009 in Bengaluru.
India holds significant importance as a market for Decathlon, with the brand prioritizing its growth within the country. The company anticipates that India will emerge as one of its top five global markets over the next five years. This projection is supported by Decathlon's plans to expand its network of stores across India and to increase its sourcing from local suppliers. These strategic initiatives reflect Decathlon's confidence in the potential of the Indian market and its commitment to furthering its presence and operations in the region.
Decathlon Plans To Open 10 New Stores Every Year In India
As part of its expansion strategy, Decathlon aims to open 10 new stores annually in India while bolstering its online sales channels. Additionally, the company plans to ramp up its local sourcing efforts, aiming to surpass 90% within the next five years, up from the current average of 60%.?
Steve Dykes, Chief Retail & Countries Officer at Decathlon, highlighted that these initiatives are geared towards enhancing competitiveness in India's rapidly growing sports and athleisure market. Moreover, increasing local sourcing will facilitate Decathlon's exports to global markets, leveraging its Indian manufacturing facility for broader international reach.
India ¡°is a top priority for us. We have five countries, which we call as leapfrog jump countries and one of them is India,¡± Dykes said, while speaking at a Decathlon global event.
For Decathlon, India is already among the top ten (markets globally in revenue terms). ¡°We wanted to get it into the top five,¡± Dykes said, adding that this would happen within the next five years.
Decathlon Recorded Jaw-dropping Sales In 2023
In the fiscal year ending on March 31, 2023, Decathlon India reported sales of Rs 3,995 crore, marking a significant growth of 37%.
¡°We want a good rhythm of (opening) 10 stores per year. We are really accelerating online at the moment and positioning ourselves digitally because of the convenience element,¡± he said, adding besides large format stores, Decathlon is also working on small stores in big cities.
Idea Behind Opening New Stores In India
These new stores could be smaller stores between 1,000 to 2,000 square meters or could also be large experience stores spread across 4,000 square meters, with a bigger play area and other amenities.
¡°We have two in Bengaluru at the moment but we feel that in cities like Mumbai and Delhi, we should follow that kind of concept,¡± he added.
The leading sports retailer also believes it has a role to play by encouraging more people towards sports and creating a market in India.
Decathlon, which competes with leading athleisure brands such as Nike, Adidas, Reebok, Puma and Asics in the Indian market, is currently operating around 100 stores across formats.
Regarding the potential of the Indian market, Dykes said India has a high number of young people in its demography, who are looking at sports as a career option. Moreover, there are some big Indian cities such as Mumbai, whose GDP is expected to be broadly equal to countries like Romania. ¡°We would like to treat these cities like a country,¡± he said.
Moreover, cities like Bengaluru, Delhi, Hyderabad, Kolkata etc follow different kinds of sports passions. For example, in cities like Hyderabad Badminton is popular, while running is picking up in Delhi. Similarly, Mumbai and Kolkata have different sports passions.
Over domestic sourcing, Dykes said Decathlon plans to increase it to 90 to 95 per cent.
¡°We put a vision to get there in about five years by 2028,¡± said Dykes, who earlier led the India business of Decathlon as its CEO there.
About Decathlon
Decathlon is a French multinational retailer specializing in sports equipment and clothing. Founded in 1976 by Michel Leclercq, Decathlon operates over 1,500 stores in nearly 60 countries worldwide. The company designs, manufactures, and sells a wide range of sports gear, equipment, and apparel for various activities such as cycling, running, hiking, swimming, fitness, and team sports. Decathlon's mission is to make sports accessible to everyone by offering high-quality products at affordable prices. They also emphasize sustainability and innovation in their product development and operations.
