Adidas Group, the global leader in the sports goods industry, has been around for the last 80 years. During this period, it has become a part of the sports world at every level, be it in state-of-the-art sports footwear, apparels or accessories. As a resu
Adidas Group, the global leader in the sports goods industry, has been around for the last 80 years. During this period, it has become a part of the sports world at every level, be it in state-of-the-art sports footwear, apparels or accessories. As a result of its commitment towards quality, it boasts today of a broad portfolio of products, available in virtually every country of the world.
The Franchising World (TFW): Tell us in brief about the company.
Andreas Gellner (AG): Adidas India Marketing Pvt. Ltd is the Indian subsidiary of Adidas Group, which offers a broad range of products through three core brands namely, Adidas, Reebok and TaylorMade-Adidas Golf. Headquartered in Herzogenaurach, Germany, our group has more than 31,000 employees and recorded a sale of around €10 billion in 2007. Adidas products are marketed in more than 160 countries. In India, our products are available in more than 120 cities. Our share in the Indian market for international sportswear is around 25-30 per cent. A majority of our apparels and 60 per cent of footwear is manufactured in India, the rest is imported.
TFW: What lead to the launch of the Sania Mirza apparel and accessories collection?
AG: Sania is one of the most admired athletes in India. Her name is synonymous with style and performance. Therefore, we decided to show her fashionable side plus her on-court performance apparel through her lifestyle signature range.
TFW: What do you have to say about the Indian market as compared to other emerging economies of the world? What is your strategy to deal with the increasing competition here?
AG: We are used to stiff competition all around the world, but yes, India is a key market for us. To stand out, we stay true to our company values like authenticity, performance and innovation. We also see retail and our capabilities here as key factors for success. We are confident that within the next three years, our group`s turnover in India will propel us into the top 12 markets globally.
TFW: How do you select franchisees? What kind of training and support is offered to them?
AG: 60 per cent of our growth comes from franchise-based business. It has been and will always be instrumental in our growth and success in India. Available funds, retail space, retail skills and culture fit well into our strategy. We are looking for master franchisees in clusters to run 10-20 stores over a period of four years. We provide our franchisees with training on retail operations, retail university for sales staff, merchandising, retail talent management, technology training and customer service.
TFW: What are your expansion plans?
AG: We intend to extend our franchise activities in countries like Turkey, Korea and Poland. We are looking at increasing the number of our franchisee-run stores in India from the current 325 to 450, and plan 1,200 stores by 2012. The company is also planning to run its own store, especially in Russia, where 100 new stores have been planned for 2008.
TFW: What factors do you keep in mind before zeroing in on first tier and second tier cities? How much area and investment is required per store?
AG: Purchase power, retail rentals and consumer preferences are some of the main factors. Area and investment depends upon store size, but for a typical 1,200 sq.ft store, it would be 40-50 lakh, including security deposit, renovation and stocks.
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