Written By: Nikita Janiya

Ever dreamed of having your own business in the booming activewear and sports industry? Look no further than the amazing Adidas franchise opportunity! Known for its cutting-edge technology, high-performance apparel, and timeless style, Adidas offers a unique opportunity to be a part of a global sporting powerhouse This blog explores the exciting world of Adidas franchises in India, and it gives you the skills to turn your aspirations into growing businesses.

Why Adidas Franchise in India?

Ownership of the Adidas franchise presents a compelling opportunity to tap into the growing activewear sportswear market in India. Here’s why it stands out:

• Brand heritage and recognition: Adidas boasts a rich heritage of over 100 years, synonymous with innovation, performance, and strategy. This brand establishment builds customer trust and a loyal following, giving your franchise a fundamental start.
• Diversity: Adidas caters to athletes and fitness enthusiasts. From work shoes and running, training, and sports apparel to fashionable sportswear, your franchise can offer a wide range of products to meet the needs of different customers.
• Marketing and Support: Adidas provides extensive marketing and administrative support to its franchisees. This includes assisting with store planning, marketing campaigns, staff training, and inventory management, ensuring you have the tools and strategies for success
• Quality and Innovation: Adidas is known for its commitment to cutting-edge technology and quality products. Your franchise stays ahead of the curve by offering customers the latest in functional clothing and footwear.

Requirements for Adidas Franchise Ownership in India

While Adidas doesn’t make its full requirements public, here’s a general idea of ​​what you’ll need:

• Passion for sports fitness: Genuine passion is important for the activewear industry and the Adidas brand.
• Entrepreneurial spirit: You will need dedication, drive, and entrepreneurship to run a successful franchise.
• Financial Capacity: The initial investment in an Adidas franchise can be substantial.
• Sales Experience (Desirable): Previous retail management experience may be an advantage, but training and support are often provided.

Investing in the Adidas franchise

Though Adidas does not officially disclose exact franchise costs, industry estimates suggest that the total investment in an Adidas franchise in India could range from ₹25 lakh to ₹50 lakh (US$33,500 to US$67,000) Cost:

• Franchise Fee: The initial fee paid to Adidas for the right to operate under their brand name. (Contact Adidas for more information)
• Setting up a store: Costs associated with retail lease, store layout, furniture, and fixtures.
• Inventory: Purchase Adidas merchandise in advance for your store, preserving the original products of your Adidas franchise is an important part of attracting customers and ensuring a smooth operation from day one.

• Balancing Inventory and Demand: It is important to find the right balance between having enough inventory to meet customer needs and avoiding overstocking. Use existing Adidas-recommended stock levels and franchise sales data to guide your initial purchase.

• Seasonality: Activewear trends change with the seasons. Stock up on summer essentials like lightweight clothing and running shoes for the warmer months, and prioritize winter clothing and training gear for the colder months

• Create an optimized inventory system: Create a robust inventory system that will track inventory levels, identify fast movements, and prevent inventory outages.

The benefits of working with Adidas on inventory

Adidas provides valuable inventory management support to their franchisees:

• Minimum Order Quantities (MOQs): Negotiate minimum order quantities with Adidas to get the best price on bulk purchases.
• Inventory management systems: Adidas may provide access to inventory management software or products to facilitate stock control.
• Seasonal Recommendation: Adidas can provide guidance on seasonal trends and recommend appropriate stock levels at different times.
• Fast replenishment system: Benefit from a reliable system to replenish stock quickly and reduce the risk of stockouts.
• Other listing ideas

By following these strategies and utilizing the support provided by Adidas, you can offer a multi-faceted Adidas franchise that caters to the requirements of your target market to win over Indians in the dynamic activewear and sportswear market.

Attractive Adidas Franchise in India: Profits and Bright Future

Current status of Adidas franchise in India

• While Adidas does not officially disclose the number of franchises in India, market research shows steady growth in recent years. This is in line with the growing demand for premium sportswear and the increasing popularity of formal wear in India. Here are some of the key trends shaping the Adidas franchise landscape:

• Tier II and Tier III urban expansion: Adidas franchises, which were earlier focused on metro cities, are now strategically expanding to Tier II and Tier III cities this addresses increasing spending and caters to the growing wellness consciousness in these areas, presenting exciting opportunities for prospective franchisees
• Focus on omnichannel retail: Recognizing the growing importance of online shopping, Adidas is integrating online and offline channels to provide customers with a seamless shopping experience Franchisees are using online channels to to a wider audience through their stores. You can take advantage of this approach by adding sales.
• Emphasis on customer experience: Adidas has made it a priority to create a positive and enjoyable customer experience within its franchise. This can include interactive displays, knowledgeable staff, and personal service, all of which contribute to customer satisfaction and loyalty.

Activewear and sportswear landscape in India

The Indian activewear and sportswear market is experiencing impressive growth, fueled by rising fitness consciousness and rising disposable income A report by Zion Market Research projects the market to reach ₹92,200 crore (US). A staggering $12.3 billion) by 2024, at 18. This increase, reflecting a staggering compound annual growth rate (CAGR) of 2%, is driven by several factors:

• Growing physical activity: A growing number of people are embracing health and wellness, leading to a dramatic increase in gym participation, participation in marathons and other sports, and the transition to a lifestyle in a more dynamic way
• Increasing disposable income: As the Indian economy grows, people have more money to invest in their well-being, including sportswear and high-end shoes
• Increasing urbanization: India’s rapid urbanization is driving demand for stylish and functional activewear that seamlessly transitions from gym to everyday life.
• Rising brand awareness: The impact of social media and global sporting events has increased brand awareness for international sportswear brands such as Adidas, creating a greater interest in authentic products.

Statistics highlighting the opportunity

Let’s examine some statistics that complicate the profitability of the Adidas franchise in India:

• Market Growth: As mentioned earlier, Indian casual wear and sportswear is expected to swing ₹92,200 crore (US$12.3 billion) by 2024. This huge growth indicates a growing market with plenty of room for new players including the Adidas franchise.
• Profit Growth: Industry estimates show that a well-run sportswear brand in India can earn a profit margin of between 10% and 20%. This profit window is extremely attractive to potential franchisees.
• Consumer Spending: Indian consumers are spending more on premium sportswear, according to a Deloitte report. This trend fits perfectly with Adidas’ positioning, allowing your franchise to benefit from this growing financial power.

Conclusion

The Adidas franchise in India presents a compelling opportunity to tap into the budding activewear sportswear market. Backed by a globally recognized brand, a wide range of products, and comprehensive support from Adidas, you can be a thriving company. With the Indian market poised for tremendous growth and Adidas actively expanding its franchise network, now is the time to explore this exciting opportunity.

Contact us at Franchisebazar to get your Adidas franchise.

FAQs

 Q.1. What are the advantages of having an Adidas franchise in India?

There are many benefits, e.g., Brand Identity and Reputation: Take advantage of the huge popularity and trust associated with the Adidas brand.

Benefits: Wide brand acceptance and high pricing can yield attractive returns.

Diversification: Adidas caters to athletes and fitness enthusiasts with a wide range of products.

Q.2. What are the investment costs associated with opening an Adidas franchise in India?

The total investment can range from ₹25 lakhs to ₹50 lakhs (US$33,500 to US$67,000). This includes the franchise fee (contact Adidas for details), store setup costs, and initial inventory purchase.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.