New Delhi: French sports retailer Decathlon has announced a significant investment of 100 million euros (approximately Rs 933 crore) in India over the next five years.
The investment will fuel Decathlon’s expansion from 127 to 190 stores, enhance its digital engagement, strengthen the value chain and boost its make-in-India portfolio. Currently, 68 per cent of Decathlon’s products sold in India are manufactured locally. The retailer aims to increase its local sourcing to 85 per cent by 2026.
The investment is in line with the company’s ambitious plans to double its revenue to Rs 8,000 crore within the next 3-5 years. For FY24, Decathlon’s unaudited revenue stands at Rs 4,000 crore, Sankar Chatterjee, CEO, Decathlon India told ETRetail.
Delving deeper into the company’s proposed investment, Chatterjee said that the brand will invest in automation to strengthen its value chain and last-mile deliveries.
Without sharing concrete details, he confirmed that the sportswear retailer is working on a plan for its quick commerce foray. Currently, Decathlon drives 11 per cent of its orders via e-commerce.
“We will be in the quick-commerce mode for a specific range of products. Presently, in seven cities we offer next-day deliveries. I am talking about 85% of our products – the essentials. Normally, customers don’t look for a treadmill the next day. But for categories such as rackets, badminton, football, apparel, and footwear, customers prefer next-day delivery. We deliver the next day in seven cities and plan to reach faster.”
Decathlon doesn’t own facilities in India and produces via contract manufacturers. Declining any plans to set up a manufacturing factory, “One of the heroes of our total business evolution is our products. We don’t compromise on the quality of the product and in India, we have our partner factories with whom we have maintained a longer relationship.”
In addition to 3 warehouses, Decathlon also runs 3 dark stores, Chatterjee said adding that the company is planning to add a new warehouse in the East.
Taking note of headwinds and retail inflation, the chief executive said that India is in the top 10 sporting countries. Thus, it will be interesting to see how the market is moving.
“Investments in India are not for a quick win. We have been here for the last 15 years and we will be here for many decades in the future. I don’t see a slowdown in future in the sports market,” Chatterjee stated.
