Latest reports have revealed that Reliance Retail intends to use a new sports model to take on French retailer Decathlon.
Following COVID-19, the growing athleisure sector will be the focus of the new sports format.
Reliance Retail To Use New Sports Model To Compete With Decathlon
For the new brand, Reliance intends to lease 8,000–10,000 square foot facilities in prestigious locations in major cities.
However, the new brand does not yet have a name and Reliance wants to adopt Decathlon’s profitable business strategy.
In 2009 Decathlon made its debut in the Indian market.
From ₹2,936 crore in FY22 and ₹2,079 crore in FY21, Decathlon’s revenue in India increased to ₹3,955 crore in FY23.
Prominent athletic labels like Asics, Puma, Adidas, and Skechers experienced notable expansion in India.
The combined revenue of these sports businesses increased to ₹11,617 crore in FY23 from ₹5,022 crore in the previous year.
Decathlon’s Priority Market is India
Decathlon’s Chief Retail and Countries Officer, Steve Dykes, highlighted the significance of India, referring to it as a “priority market.”
Dykes stated that India might be one of Decathlon’s top five international markets. Additionally, Decathlon intends to open ten stores in India year, with sizes tailored to local tastes. Decathlon customizes their products to fit the distinct features of every Indian city.
In order to fortify its digital foothold in India, Decathlon is increasing its online visibility. In addition, Decathlon plans to supplement its main stores with smaller satellite locations.
This news comes amid rumors that Reliance Retail is also introducing the Chinese fast-fashion brand Shein to the Indian market.Chris Xu launched Shein, a well-known brand throughout the world, in 2008.
Founded by Chris Xu in 2008, Shein has gained international recognition. However, 2020 saw the Indian government ban Shein as part of a crackdown on Chinese apps amid escalating border tensions.
Shein will make her comeback to the Indian market following a four-year absence.
