New Delhi: Mukesh Ambani, the richest man in India and Asia, is gearing up to challenge French retail giant Decathlon. His company, Reliance Retail, is planning to launch a sports retail format that will directly compete with Decathlon.
Since the COVID-19 pandemic, there has been a significant increase in demand for sports products. Sources say Reliance Retail is negotiating to lease 8,000-10,000 square feet of space in malls and high streets in big cities for the new brand. The name of the brand has not been revealed yet.
A source mentioned that while Reliance Retail has expanded significantly over the past few years, it does not currently have a sports segment in its portfolio. There is a need for a retailer in this category in India that can compete with global companies.
This category has shown much growth and is expected to continue growing. Reliance Retail did not respond to an email request for comment by press time. A mall operator stated that Reliance Retail is looking for spaces that can extend outside the mall, potentially including a play area, similar to Decathlon’s model.
Decathlon’s Current Situation with Reliance
Decathlon opened its first store in India in 2009. According to regulatory filings with the Registrar of Companies, it recorded a revenue of ₹3,955 crores in FY 2023, up from ₹2,936 crores in FY 2022 and ₹2,079 crores in FY 2021. The sales of leading sports brands have increased significantly in the last two years, driven by growing awareness of fitness and rising demand for athletic apparel.
According to regulatory filings, brands like Puma, Decathlon, Adidas, Skechers, and Asics have recorded annual growth rates of 35-60% since FY 2021. In FY 2023, their combined revenue was ₹11,617 crores, up from ₹5,022 crores two years ago.
Decathlon is also in talks with the Indian government to sell products from rival local and global brands in its stores, aiming to operate as a multi-brand retailer. Globally, about 20% of Decathlon’s revenue comes from selling competitor brands, but Indian FDI rules currently prevent it from selling other brands’ products.
A source stated that India is one of the largest markets for these companies, and a large store format like Decathlon’s could be a game-changer. In light of the pandemic, brands have capitalized on the popularity of casual styles. With a population of 1.4 billion, India is one of the fastest-growing and largest international markets for sportswear and footwear companies.
Most global brands have been in India for over two decades, promoting their products through partnerships with cricket and other sports activities.
