Adidas eyes 20% revenue from own stores

In a major retail push, German sportswear maker Adidas is planning to earn 20% revenue from its own stores in India by 2020. At present, it operates a franchise-based model here, similar to ones followed by its competitors Nike and Puma.

To begin with, the company plans to open around six flagship stores in large cities, measuring 5,000-10,000 square feet. Envisaging larger volumes, it has also opened a 2.6 lakh square-feet centralized warehouse near the Capital to streamline its supply chain, akin to the ones operated by e-commerce companies.

"We want to double our turnover to around Rs 1,600 crore by 2020 from Rs 805 crore at present. These large format stores will help us achieve that," said Dave Thomas, MD of Adidas Group India. "Our franchise partners were earlier hesitant to invest in these big stores. That mindset is changing. However, most of these flagship stores will be owned by us."

Last year, Adidas became the first sportswear company in the country to get government approval to open its own stores.

This year, Adidas wants to turn its focus on its lifestyle brand Adidas Originals, which accounts for a third of its global business but only 5% in here. "We will launch new formats of Adidas Originals stores here. Earlier, Originals products wouldn't sell here. But now, with increased awareness, the products are flying off the shelves. There is a lot of potential in that line," said Thomas.

While around half of Adidas's business here comes from apparel, Thomas said the trend is changing. "People are buying more expensive footwear. Two years ago, the average buying price of a pair of sports shoes was around Rs 3,000. Now, it's around Rs 5,000," said Thomas.

Oxford University in talks with Madura Garments for a brand franchising deal for apparels

The University of Oxford may not have made up its mind to set up a campus in India, but it may soon be selling fashion clothing in the country in a tie-up with Aditya Birla Group company Madura Garments. Oxford Ltd, a wholly owned arm of the British university that runs a £50 million-plus retail sales branded merchandise business across the world, is in advanced talks with Madura Garments for a brand franchising deal for apparel.

Chris Evan, MD at Oxford Ltd, said it plans to sell fashion apparel, accessories, education-related products including school bags and stationery, home interior and lifestyle products, luggage and even furniture in India by spring of 2015.

"We have already signed a very important deal with an apparel and accessories partner," he told ET. Oxford has already appointed Vadodara-based Swadesh Essfil as educational toys licensee and , Evan said.

Evan said Oxford plans to occupy a premium to mid-tier pricing structure in the country and its products will be available in both offline and online platforms. "We will be developing various categories further with our licensees to create a decent retail visibility in India, and will also be seeking to develop the home, interior and lifestyle category with the right partnerships," he said.

"We are looking for different franchisee partners for individual categories." Other categories Oxford will potentially explore in the country for brand licences include luxury ceramics, kitchen-ware and home decor, luggage and vintage furniture, Evan said.

The brand licensing market in India is still small, estimated at just $1 billion, less than 1% of the $200-billion global market.