With gym culture sweeping the nation and health-consciousness evolving fast, sportswear giants are gearing up to catch the fitness boom, writes Payal Gulati
The 14th edition of Mumbai Marathon 2017 witnessed a participation of over 42,000 runners, which included sports enthusiasts, celebrities and corporate bigwigs. India is quickly catching up with the growing fitness trend. Driven by the country’s growing wealth, changing lifestyles, and rising urbanization, an increasing amount of Indian consumers are becoming health conscious. This makes the country’s sportswear sector increasingly attractive to a host of local and international brands. A study by research firm Euromonitor shows that in 2015- 2016, the domestic sportswear market alone grew 22 per cent, ahead of the category’s global 7 per cent growth. It also forecasted that by 2020, the sportswear market is likely to grow by an additional 12 per cent at sales of $8 billion.
Franchise Kick
In past few years, a host of franchisees collaborated with aspirational sportswear brands are facilitating a rapid expansion across the country. Nearly 80 per cent of India’s sportswear market is dominated by major global brands like Adidas, Reebok, Nike and Puma, and rest 20 per cent is collectively battled by Under Armour, Fila and Lotto, domestic multi-brand sportswear retailers like Planet Sports and Royal Sporting House, and other emerging local players.
“India is a key market to us, and we are fully committed and focusing on winning the market and mind share in the key cities of the country,” says Dave Thomas, Managing Director, Adidas India. “Our strong emphasis in India is to grow profitably and consolidate our leadership position with an increased focus on the premium segment,” adds Thomas.
“India is a diverse country and to reach every city here is only possible through a franchise model. Only a good multiple franchise models can help to reach the width and depth of the country,” says Sanjay Roy, Executive Director – Sales, Puma Sports India.
To succeed in the franchising business, it’s vital to have a positive franchise relation. Talking about a successful franchisor-franchisee bond, Roy says: “Even in franchising, people have to invest and take the risk. In initial days, many franchisees took a lot of time to get on board but whosoever came stayed more or less with us for over 10 years.”
Customization is the Key
Many sportswear giants are diversifying and adapting the Indian market reality. “We still have a mass-market appeal and in India that appeal goes down to a lower price point. We’ve segmented and brought different products at different price points to the market through different channels,” says Thomas.
Besides, ASICS is now positioning itself from a sportswear to a lifestyle brand in India. “India is changing and it is the lifestyle segment, which is growing at nearly 20 per cent,” mentions Rajat Khurana, Director, ASICS India. The company has been spending on events like Mumbai Marathon by becoming the official sponsors for three years to build its brand in the country.
Meanwhile, Amazon India has signed up as the exclusive retail channel for US-based sportswear brand Under Armour. “The inventory for the brand will be available in our fulfilment centres and we will support the brand with their India strategy by providing data on size, colour and assortment, which goes well in the Indian market,” says Arun Sirdeshmukh, head of Amazon Fashion India.
Business Opportunities
Our Group Sites
Popular Cities
