Decathlon, a French retailer, is expanding its online presence in India by listing products from competitors such as Adidas and Garmin, alongside its own offerings.
Decathlon Begins to List Rival Brands on its Platform
While Decathlon stores across the country continue to sell their branded products, around 15-20% of its US $529 million (Rs. 4,500 crore) annual revenue in India now comes from online sales, with footwear contributing 30% and apparel making up 32%.
Continue Exploring: Shein Returns to India with Reliance Retail Partnership, Under Strict Data Rules
Globally, Decathlon generates about a quarter of its revenue from third-party brands. However, in India, the company primarily focuses on selling its own branded products, including everything from running shoes to mountaineering gear, in line with local regulations.
India’s FDI Regime is Smartly Crafted
India permits 100% Foreign Direct Investment (FDI) in single-brand retail, where a company can sell multiple products under its own name. This strategy is used by companies like Decathlon, Ikea, Nike, and Adidas. However, FDI is restricted in multi-brand retail, which involves offering a range of brands under one roof.
Continue Exploring: Funding Boost: KiranaPro to Transform Local Stores into 10-Minute Delivery Hubs
A Decathlon India spokesperson explained that while the company showcases third-party products to provide customers with a broader selection, it directs them to the brands’ own websites for purchasing and delivery. Decathlon’s global CEO, Barbara Martin Coppola, mentioned last year that the company was in discussions with the Indian government to explore the possibility of selling third-party products directly in its stores.
