Adidas to broaden footprint via omni-channel stores

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 said. 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.

In 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-retailers.

The 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.

CarZ Xpress plans 100 outlets

Multi-brand car repair and maintenance services company CarZ has unveiled its new franchisee programme under the ‘CarZ Xpress’ brand. The company said it will open 100 franchises in the next 36 months under CarZ Xpress.

 CarZ currently operates 12 company-owned car service centres under the ‘Grande” brand in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.

These facilities offer a full range of repair services for all makes and models of cars,  routine and preventive maintenance, electrical and mechanical repair, accident repair – denting and painting, tyres and services, battery, variety of styling and performance accessories, interior and exterior detailing, extended warranty and nationwide 24x7 road-side assistance. These services are offered at convenient neighbourhood locations. The company will continue to expand the Grande formats as well.

According to Venu Donepudi, managing director, CarZ, the first CarZ Xpress outlet was launched recently in Hyderabad, Telangana. This model improves accessibility and service to the car owner as well as provides tremendous opportunity for entrepreneurs seeking entry into the fast growing car service sector. 

The CarZ Xpress franchise network will offer a menu of cost-efficient quick repair and maintenance services with quick turnaround times and at convenient neighborhood locations. Each facility shall have advanced diagnostic and repair equipment along with highly trained manpower to provide best-in class service and experience to the customers.

Donepudi said, “Presently, only about 30 percent of the cars are repaired and serviced at authorised dealers/service centres. There is a huge opportunity for organised, independent and multi-brand car repair and service providers, considering that India has a current car parcel of over 20 million. And every year over 2.5 million cars are sold in India, making it the seventh largest auto market in the world. By 2017, it is estimated that this number will grow to 7 million cars sold each year.”

Vijay Gummadi, CEO of CarZ, said, “The CarZ Xpress franchise is programmed in such a way that the entrepreneur gets a quick return on investment while the end-customer is assured of top-end service. A CarZ Xpress franchisee gets start-up guidance, operational and marketing support. We believe that entrepreneurs who have fire in their bellies will join us and revolutionize car service.”

He said the CarZ franchise program will provide franchisees with comprehensive support at all stages from planning to operation. This includes site selection and facility set up; training and continuing education; operational support; spares sourcing support; marketing material and aids; proprietary shop management software; marketing and branding support;  and customer relationship management.