Decathlon to invest €100 million in India over a five-year period

New Delhi: French sports goods retailer Decathlon on Wednesday announced plans to invest €100 million (Rs932.6 crore) in India over a five year period largely to expand its store network to reach 190 stores across India, up its digital engagement, and source more made-in-India goods.

The retailer currently operates 127 stores in 50 cities. It will add 63 new stores in 40cities over the next five years. Globally the retailer operates over 1,700 stores.

“India is a cornerstone of Decathlon’s global ambition,” said Steve Dykes, Global Chief Retail and Countries Officer, Decathlon.

“We are committed to accelerating our growth here, expanding our reach, and making a positive impact on people's lives through sports. India's potential to become a global manufacturing and innovation hub for Decathlon is immense and we are excited to nurture local talent and contribute to India's journey towards becoming a sporting powerhouse,” he said.

In 2009, Decathlon set up its first outlet in India in Bengaluru in the wholesale cash-and-carry format, where the government allows 100% FDI. However, in 2013, Decathlon won government approval for 100% foreign direct investment (FDI) in single brand retail in India. It had then promised an initial investment of Rs 700 crore to open stores across India.

It operates large format retail stores that sell sporting goods and apparel—across sports categories such as cricket, gold, swimming, outdoor actvities, etc.

To be sure, India’s sports apparel market was worth $14 billion in 2020 and touched $21 billion by 2023, according to a report by brokerage Anand Rathi Investment. Overall, the size of the sports sector in India—comprising media rights, apparel, sports nutrition, sports equipment etc is set to touch $100 billion by 2027 from $27 billion in 2020, the report said. The market is split between small sports goods traders as well as large sports clothing manufacturers such as Nike, Puma, Reebok, Adidas, among other.

“India is a dynamic and growing market with a burgeoning sports culture. This investment reflects our unwavering belief in the country’s potential and our commitment to contributing to its economic growth. We aim to make everyone enjoy the benefits of sports, and this investment will enable us to reach a wider audience and offer a more comprehensive sports experience,” Sankar Chatterjee, chief executive officer, Decathlon India.

Focus on Indian manufacturing

Retail expansion aside, the retailer is also planning to “significantly” increase its commitment to Indian manufacturing. Currently, around 8% of its global product range, including all cricket bats, accessories, and most hockey equipment, is produced in India.

In India, 68% of goods are made locally; the company plans to increase this to 85% by 2026, solidifying India as a major manufacturing hub. Decathlon has, been sourcing products from Indian suppliers since the late 1990s. It used to initially source textiles and horse-riding equipments and gradually diversified into other categories.

Earlier this year the retailer unveiled a new brand identity along with a new and simplified brand portfolio. It sells goods under brands such as Quechua (mountain), Tribord (water and wind), Rockrider (outdoor cycling), Domyos (fitness), among others. It also announced plans to refurbish 1,700 stores around the world with a new setup, increased product visibility and engaging physical and digital displays.