Brand loyalty can’t be offer-driven: Decathlon India CEO on winning consumer trust – ET Retail


Delhi: “It is important to create long-term brand loyalty, not just offer-driven loyalty,” said Sankar Chatterjee, CEO, Decathlon India, at The Economic Times Great India Retail Summit held in Mumbai on February 20 and 21. In a fireside chat titled The Attention Economy: Winning the Battle for the Indian Consumer’s Mindshare, Chatterjee emphasized that genuine consumer trust is built through purpose, quality, and accessibility—not just discounts and promotions.

“The relationship between a brand and its customer is no longer just about shopping frequency—it’s about connection frequency,” he noted.

Chatterjee identified three critical factors shaping consumer behaviour: price-value balance, convenience, and a seamless shopping experience. “Consumers today want instant access to products. Whether it’s buying a shuttlecock in 10 minutes or seeking expert advice on sports gear in-store, brands must provide a 360-degree experience,” he explained.

Decathlon has positioned itself not just as a retail brand but as a movement promoting sports in India. “Ten years ago, only about 5 per cent of Indians actively played sports. Today, that number has jumped to 12%, and it’s incredible to see this transformation,” Chatterjee said. He credited Decathlon’s commitment to quality, affordability, and accessibility for this growth, reinforcing that linking brand purpose with consumer needs is crucial.

On the marketing front, Chatterjee stressed the importance of long-term brand loyalty over short-term promotional gains. “For a brand like Decathlon, which has been in India for 15 years and globally for 44 years, the focus is on building lasting customer relationships rather than relying on offer-driven loyalty,” he reiterated. He also acknowledged the evolving marketing landscape, saying, “There’s no single right answer—brands must find the right mix between viral marketing and deep storytelling.”

A significant part of Decathlon India’s future growth strategy lies in local manufacturing. The company has announced plans to increase its Make in India production to 85 per cent by 2026. “Today, 60 per cent of our product value and 70 per cent of the quantity come from India, and we are committed to scaling this further,” Chatterjee revealed. He believes that localization will enhance consumer trust and strengthen Decathlon’s presence in the Indian market.

Decathlon is also expanding its footprint across multiple retail channels. The company runs 132 stores across 50 cities and has a digital presence covering 21,000 pin codes. The company has also entered the quick commerce space by partnering with platforms like Zepto and Blinkit. “If a customer needs a cricket ball or a swimming goggle instantly, why not make it available in 10 minutes?” he said, highlighting the importance of balancing speed and experience across different shopping channels.

  • Published On Feb 24, 2025 at 03:29 PM IST

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