Decathlon, the renowned French sports retailer, has unveiled ambitious plans to invest €100 million (approximately ₹933 crore) in India over the next five years. This significant investment is poised to expand the company's retail footprint and manufacturing operations in one of its most dynamic and rapidly growing markets, as reported by PTI.

Strategic Investment in India

The investment marks a critical step in Decathlon's long-term strategy to solidify its presence in India, a country that has shown remarkable growth potential for the company. Sankar Chatterjee, CEO of Decathlon India, expressed strong optimism about the company’s future, stating that Decathlon expects to double its business within the next three to five years. This projection underscores Decathlon's commitment to making India a central hub in its global operations.

Expansion of Retail Network

As part of its growth strategy, Decathlon plans to expand its retail network significantly. The company aims to increase its store count from the current 90 to an impressive 190 stores by 2029. This expansion will involve opening 10-15 new stores annually, ensuring Decathlon's widespread reach across the country. In addition to physical stores, a substantial portion of the investment will be directed toward enhancing Decathlon’s digital channels as part of its omnichannel approach. This strategy aims to integrate online and offline shopping experiences seamlessly, providing customers with a comprehensive and convenient retail experience.

Boosting Local Manufacturing

Decathlon is also focusing on increasing its local manufacturing capabilities in India, which is integral to its expansion plans. Currently, 68% of the products sold in Decathlon India stores are manufactured locally, with 8% of the company's global product range sourced from India. Decathlon aims to increase domestic manufacturing to 85% by 2026, further reducing reliance on imports and promoting local industry.

This move aligns with Decathlon’s broader objective to not only cater to the Indian market but also to use India as a manufacturing hub for its global operations. By boosting local sourcing, Decathlon is poised to enhance efficiency, reduce costs, and support the Indian economy.

Commitment to Innovation and Community Impact

Steve Dykes, Decathlon's Global Chief Retail and Countries Officer, highlighted India's importance to the company's global strategy. He described India as a "unique and exciting market with numerous opportunities" and emphasized Decathlon's commitment to making a societal impact by encouraging more Indians to participate in sports. This commitment is reflected in Decathlon's plans to explore new sales channels, including B2B partnerships, which will broaden its market reach and impact.

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Dykes also hinted at the potential for India to play a larger role in Decathlon's research and design processes. With over 2 million people globally engaged in sports activities through the Decathlon app, the company is keen on developing future talent from India, further embedding itself in the country's sports culture.

Future Prospects

Decathlon’s €100 million investment is more than just a financial commitment; it represents a strategic push to make India a cornerstone of its global operations. The company’s plans to double its business, expand its retail network, enhance digital channels, and boost local manufacturing underscore its long-term vision for the Indian market.

With a focus on innovation, sustainability, and community engagement, Decathlon is not only positioning itself as a leader in the sports retail industry but also contributing to the growth and development of sports culture in India. As the company rolls out its expansion plans over the next five years, it will be interesting to see how Decathlon navigates the challenges and opportunities in one of the world's most dynamic markets.

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