2024-07-09 16:38:26
New Delhi: Mukesh Ambani, the richest man in India and Asia, is preparing to defeat French retailer Decathlon. His company Reliance Retail is planning to launch a sports format, which will compete directly with French retailer Decathlon. Sports related products have seen a huge boom after the COVID-19 pandemic. According to sources, Reliance Retail is in talks to lease 8,000-10,000 square feet of space in malls and high streets in big cities for the new brand. The company has not yet disclosed the name of this brand. A source said that Reliance Retail has expanded a lot in the last few years but sports is not included in its portfolio. There is also a need for a retailer in this category in the country who can compete with global companies. This category has seen a lot of growth and it is expected to continue. Reliance Retail did not respond to the email till press time in this regard. A mall operator said Reliance is looking for a retail space that can be extended outside the mall, where there can also be a play area. Decathlon also has the same model.
Decathlon’s condition
Decathlon opened its first store in India in 2009. According to regulatory filings from the Registrar of Companies, it recorded a revenue of Rs 3,955 crore in FY23, up from Rs 2,936 crore in FY22 and Rs 2,079 crore in FY21. Sales of leading sports brands have surged in the last two years. This is due to growing awareness about fitness and increasing demand for athletic apparel. According to regulatory filings, brands such as Puma, Decathlon, Adidas, Skechers and Asics have reported 35-60% year-on-year growth since FY21. Their combined revenue in FY23 was ₹11,617 crore. Two years ago, the combined sales of these brands were ₹5,022 crore.
Decathlon is also in talks with the Indian government to sell products of rival local and global brands in its stores. That is, it wants to work as a multi-brand retailer. Globally, rival brands account for about 20 per cent of the company’s revenue, but according to FDI rules in India, it cannot sell products of other brands. A source said that India is one of the largest markets for these companies and a large store format on the lines of Decathlon could be a game changer. In view of the pandemic, brands have taken advantage of the popularity of casual style. With a population of 1.4 billion, India is one of the fastest growing and largest international markets for sportswear and footwear companies. Most global brands have been present in India for more than two decades. They have promoted their products by partnering with cricket and other sports activities.