The Hindu Business Line : Adidas set to reinvent itself with new MD

While the company's sales in India have not not too impressive compared to that of its competitors, recent reports had suggested that the main reasons for its slow growth and exit of the earlier managing director could be attributed to financial glitches.

However, Mr Andreas Geller, who will take over the Indian operations from August 1 (he is currently Managing Director of Adidas Malaysia), is optimistic about replicating in India the success Adidas has had in other markets.

"India is a high potential market. In fact, it has the capability of becoming the third-largest market for us in Asia, after Japan and China. At present, it is a very small market for us. We have plans to invest significantly in India in manpower and systems."

He added: "We are also looking to up expenditure on marketing activities. The increase could be to the tune of two to three times. Incidentally, the Indian operations recently achieved breakeven."

The company intends to utilise its high-profile local brand ambassadors Sachin Tendulkar and Virendra Sehwag in a more effective manner and create more excitement around these associations. This could include co-branded products such as shoes and apparel with Tendulkar.

Adidas plans to continue aggressively on its retail expansion in India by opening 30-60 new stores over the next 1-2 years. Adidas products are currently sold through 75 exclusive stores and 20 shop-in-shops across the top 10 cities.

Another key area where Adidas sees high potential is the apparels segment. "The apparel market in India is very big. Also, the apparels are priced very competitively, more so because 99 per cent of the manufacturing for apparels is done locally," Mr Geller said. Mr Geller also said that Adidas is studying India as a sourcing base for the American and European markets for apparel.

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