The race for leadership in the Indian sports gear retail market is hotting up by the day. Earlier in the month of February this year, global sportswear giant Puma has declared themselves as the sportswear market leader in India. With-in two months of that announcement now French sporting goods retailer Decathlon has overtaken Puma in sales revenues for the financial year 2018.
According to a report published in the leading business daily Economic Times, with revenue of Rs. 1278 crores in last financial year, Decathlon has become the number one sports Nretail brand in the country.
According to the data published, Decathlon garnered 1278 crore revenues in the fiscal 2018, with a profit of 33.8 lakhs. In comparison Puma clocked 1157 crore sales in 2018. Adidas which has seen muted growth this year could only move their sales number of 1100 Cr in 2017 to 1132 crores. Indian cricket’s kit partner Nike had another dormant year with 828 crores of sales revenues.
According to the experts, with 70 large, warehouse like stores, Decathlon product pricing is about 30-40% lower than competing products and that has played role of catalyst in the brand’s growth in the Indian market. Not only in terms of top-line numbers, Decathlon for the first time also could post profits in the Indian market. The brand had a net loss of 53.1 crores for FY16-17 and in contrast Decathlon did profits of 33.8 lakhs in 2018.
Earlier Puma had emerged as the sportswear market leader in India, relegating its German rival Adidas to the second position in annual retail sales for 2018 fiscal. The brand, endorsed by Virat Kohli, had grossed ₹ 1,157 crores during the January-December 2018 fiscal. adidas had netted ₹ 1,132 crores from its annual sales. Puma had made significant gains from its brand association with Kohli. The impact can be gauged from the fact that brand One8, jointly launched by Puma with Kohli, had aggregated over ₹ 100 crores during its first year in the market. The company had signed India’s leading brand icon for eight years in a record ₹110 crores in February last year. The deal is unique in the sense that no other single brand in India has committed ₹ 100 crores to one player or celebrity. The company has reportedly target India to among its top five markets across the world by 2020.