Adidas eyes larger chunk of e-commerce market in India

By

Maverick Martins

Published
Jul 4, 2017

German sportswear giant Adidas is looking to capitalise on the booming e-commerce market in India and expects online to contribute around 30% of total company revenues in India by 2020, said a top company official.

The company, which sells Adidas and Reebok, clocked Rs 1000 crore (US$154 million) revenue in the last financial year with e-commerce contributing around Rs 250 crore ($38.5 million) of the company's total revenue in India.
 
"Today e-commerce business accounts for 25 percent of the total turnover of Adidas India," Abhishek Lal, senior e-commerce director at Adidas India told the Economic Times. "By 2020 the revenue from e-commerce may contribute to up to 30 percent of the total revenue,” Lal added.

The Indian sportswear market is growing at a rapid pace and global sportwear firms are trying to cash in and make inroads in the booming market. According to Euromonitor, by 2020, sportswear sales are expected to reach a whopping $8 billion.
 
"At present 80 percent of the revenue for Adidas India comes through pure play e-commerce players and the remaining 20 percent through its own e-commerce channel. We hope the gap would narrow down as we go forward. It may become 60:40 by 2020. But pure players are very important part of our business and it will continue to remain so," said Lal.

The sports category dominated sales on Myntra, Jabong, Flipkart and Amazon in their recently concluded sales, which makes it clear that India prefers shopping online when it comes to sports products.