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German sportswear major adidas is looking to establish its footprint in India not just through increased offline and online presence, but also by firming up the omni-channel strategy.
The omni-channel or multiple channel retailing will let its shoppers order products online from adidas’ standalone stores.
According to Dave Thomas, adidas India, MD, these stores will be equipped with tablet PCs for placing orders.
A successful pilot (for multiple channel retailing) earlier this year, followed by introduction across 25-odd stores so far, has seen increased demand for offerings “by thousands”.
“This is of great benefit to us (the company), especially in the smaller franchise units, where the entire range of offerings cannot be displayed. We intend to increase the number of such stores,” he told BusinessLine . adidas has a product line of 5,000-odd items.
Omni-channel stores will be shored up to 200 by the year-end and, to 400, by mid-2016.
Revenue sharingIn terms of delivery of products, adidas will be relying on its e-commerce partners.
Revenues will be split between the e-commerce partner and the franchisee from where the order has been placed.
“There is a revenue sharing model that is there. It will help both as business will not be taken away from either of them,” Thomas said.
India, currently, accounts for 15 per cent of the company’s emerging market sales. Emerging markets include 78-80 countries across West Asia, South Asia, Indian sub-continent and Africa.
According to sources, the omni-channel presence will also reduce conflicts between online and offline stores.
Online strategy for adidas, include a separate product range dedicated for e-tailers.
Offline presenceThe company is also looking to increase its offline presence (brick and mortar stores).
It currently has 760 stores across three brands – adidas (500-odd stores), adidas Originals (11) and the US-based Reebok that it acquired in 2006 (249-odd).
The plan is to increase the store count to 1,000 over the next three to five year period.
Meanwhile, adidas has also proposed 100 per cent foreign direct investment scheme (for single brand stores) to the Department Industrial Policy & Promotion (DIPP), in addition to ‘only franchise’ format, it currently operates here.
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