Decathlon launched its first store in India in Bangalore in 2009 and direct consumer retail in 2013.
In 2018, Decathlon had earned more revenue than combined revenue of Nike, adidas and Reebok .
📌 Current Statistics:
- Present in 20 states with 105 stores
- Serves 1 million+ customers
- Average annual sales per store was about Rs 28 crore in FY 22.
- Sales Rs 3,000 crore.
✔️ Reason for growing craze-
- Increased emphasis on fitness across age groups.
- Increase in health consciousness after the pandemic
Strategy at play:
✔️ Decathlon operates 2 kinds of stores: Experience and Connect.
📍 Experience Stores offer 5,000 products at the store and Connect Stores just 600, with the balance being made available through express delivery offering a seamless shopping experience
📍Huge Stores: The size of Decathlon stores are anywhere between 5000 to 130000 sq ft an equivalent of 2 tennis courts and 2 football grounds giving the customer enough space to touch and feel and test the product.
✔️ Vertical Integration of supply chain: It controls the entire value chain from R&D, to production, distribution, and retail which in turn allows it to offer competitive prices while maintaining control over product quality.
✔️ Create products for all- it produces over 5000 SKUs from 80 different sports to choose from, clustered into roughly 24 in-house brands.
✔️In house Brands: The company has 24 of its own in-house brands such as B’Twin (cycling), FLX (cricket), Kalenji (running), and Quechua (hiking and camping).In India, they only sell their private brands within their stores which gives them leverage of setting the prices.
✔️ Decentralisation- Regional stores have the autonomy to decide stocks, pricing and inventory.
✔️Hiring people with sports backgrounds: It hires people who have a balance of education and a background in sports which allows for seamless customer experience.
✔️ Revenue Strategy:
Decathlon operates on retail format while the likes of Nike, Puma etc operate on franchise model.
📍If Nike is selling a pair of shoes for Rs 4,000, they will book revenue of only Rs2,000 because that’s the price they sell it to their franchises, 35% margin plus 15% to 18% GST.
📍Decathlon, who does their own retail, will sell for Rs 4,000 and book revenue of Rs4,000.
To strengthen the product story and better appeal to its Indian consumers, Decathlon has also announced that it will produce 85% of its products in India by 2026
#business #india #retail #revenue
In 2018, Decathlon had earned more revenue than combined revenue of Nike, adidas and Reebok .
📌 Current Statistics:
- Present in 20 states with 105 stores
- Serves 1 million+ customers
- Average annual sales per store was about Rs 28 crore in FY 22.
- Sales Rs 3,000 crore.
✔️ Reason for growing craze-
- Increased emphasis on fitness across age groups.
- Increase in health consciousness after the pandemic
Strategy at play:
✔️ Decathlon operates 2 kinds of stores: Experience and Connect.
📍 Experience Stores offer 5,000 products at the store and Connect Stores just 600, with the balance being made available through express delivery offering a seamless shopping experience
📍Huge Stores: The size of Decathlon stores are anywhere between 5000 to 130000 sq ft an equivalent of 2 tennis courts and 2 football grounds giving the customer enough space to touch and feel and test the product.
✔️ Vertical Integration of supply chain: It controls the entire value chain from R&D, to production, distribution, and retail which in turn allows it to offer competitive prices while maintaining control over product quality.
✔️ Create products for all- it produces over 5000 SKUs from 80 different sports to choose from, clustered into roughly 24 in-house brands.
✔️In house Brands: The company has 24 of its own in-house brands such as B’Twin (cycling), FLX (cricket), Kalenji (running), and Quechua (hiking and camping).In India, they only sell their private brands within their stores which gives them leverage of setting the prices.
✔️ Decentralisation- Regional stores have the autonomy to decide stocks, pricing and inventory.
✔️Hiring people with sports backgrounds: It hires people who have a balance of education and a background in sports which allows for seamless customer experience.
✔️ Revenue Strategy:
Decathlon operates on retail format while the likes of Nike, Puma etc operate on franchise model.
📍If Nike is selling a pair of shoes for Rs 4,000, they will book revenue of only Rs2,000 because that’s the price they sell it to their franchises, 35% margin plus 15% to 18% GST.
📍Decathlon, who does their own retail, will sell for Rs 4,000 and book revenue of Rs4,000.
To strengthen the product story and better appeal to its Indian consumers, Decathlon has also announced that it will produce 85% of its products in India by 2026
#business #india #retail #revenue
