Adidas denies downsizing report, says committed to growth in Indian market

By

Maverick Martins

Published
Sep 8, 2017

German sportswear major Adidas has denied a report which stated that the company is planning to downsize in the Indian market and stated that is it committed to growth in the country.

The Times of India reported this week citing sources that Adidas is planning to lay off 25% of its staff in India in the coming months.
 
Rubbishing the report, an Adidas spokesperson told the Fashion Network that it is fully committed to grow its brands Adidas and Reebok in India.

“Over the years the company’s strategic focus to invest on its resources to generate sustainable growth has resulted in Adidas India surging ahead as a market leader in both revenue & profit. We will continue to strategically increase our focus and investments in India," said an Adidas spokesperson.
 
The company had clocked around Rs 1000 crore ($156.4 million) revenue for the fiscal year that ended March 31, 2017 which is a remarkable feat to achieve as the Indian sportswear market is roughly Rs 7,500 crore (approx $1.18 billion) according to a recent report by consulting firm Ernst & Young.
 
Adidas has confirmed that it will scale up its business in the coming years however did not disclose any figures or partnership details regarding the same.
 
“We regularly explore business partnerships across the industry, however, as a company policy we do not comment on any specific opportunity,” the Adidas spokesperson added.
 
Adidas India has already got an approval to bring in FDI (Foreign Direct Investment) in retail through its existing wholesale entity to open company owned stores and had earlier stated that it will open 30-50 outlets by 2020 along with its own online portal.
 
“In addition to opening company owned stores, Adidas India will also start its ecommerce website,” Adidas Group's managing director for India, Dave Thomas had earlier said in a statement.
 
The company is likely to add its first company owned store in Ghaziabad this year, sources told the Fashion Network.
 
Reebok India has also sought government’s nod to set up single brand retail stores in the country. The company has submitted its proposal to the Department of Industrial Policy and Promotion (DIPP) for the same.
 
Adidas currently has around 450 stores while Reebok has 220 stores all franchises across the country.