Adidas will open its first completely owned outlet in India in the second half of 2016, the German sportswear company said, with it getting the leeway to invest in local merchandising operations. The company had recorded an application with the Department of Industrial Policy and Promotion (DIPP) for setting up completely owned flagship stores in July. India had in January 2012 permitted 100% foreign interest in single brand retail, however with conditions which included sourcing no less than 30% of the crude materials by worth from small and medium undertakings in India.
Having its own retail outlets and ecommerce channel- supplemented by the present franchise system- said Adidas Group India Managing Director Dave Thomas, will drive development for the organization’s brands and business in India. “We firmly trust own retail will empower us to take our leadership position to a much larger amount. It will give us extra adaptability to get worldwide ideas over all classes in bigger stores, in this way empowering us to further upgrade the premium experience for our purchasers,” he said.
The organization, which has 760 franchise retail locations in India under Adidas, Adidas Originals and Reebok brands, wants to take this number to 1,000 by 2020. Adidas will likewise expand the quantity of stores secured under omni¬channel retailing to 200 before the end of 2015 and to 400 by April 2016, from 150 at this point. As indicated by media reports, US¬based sportswear brand Nike has also contacted DIPP for endorsement to set up fully owned outlets in India for the second time in August after the office rejected its prior solicitation.