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Adidas India’s top sports goods maker, Retail News, ET Retail

 Adidas extends contract of CEO Hainer until 2017
Adidas extends contract of CEO Hainer until 2017

NEW DELHI: German sportswear maker Adidas has emerged as the top sport goods maker and one of the largest international brands in the country by revenue, surpassing direct rivals such as Puma and Nike. Earlier this year, German sporting lifestyle brand Puma had reported Rs 766 crore as domestic revenues for the calendar year 2014, which made it the top international brand in the country by revenue. This signals a shift in consumer preference towards a sporting goods as Indians are looking to adopt a healthy lifestyle in line with their global counterparts.

Adidas Group India, the local arm of German MNC Adidas AG, has notched up total revenues of around Rs 805 crore, for the year ended March 2015. While Puma, part of the French luxury goods conglomerate Kering, follows calendar year for reporting business numbers, most other brands, including the ones that retail pure lifestyle products, follow the April-March financial year format.

Adidas India’s top sports goods maker

In FY14, Adidas had reported (Rs 737 crore), Nike (Rs 624 crore), Benetton (Rs 594 crore), Levi’s (Rs 599 crore) and Zara (Rs 580 crore) as revenues. Reebok, owned by Adidas, has raked in revenues of around Rs 330 crore with losses of Rs 57 crore for the year ended March 2015. When asked about current figures, a Nike India spokesperson said, “Our company policies do not allow us to share financial data at a country level.” Adidas Group India MD, Dave Thomas could not be reached for comment.

“The potential of the active lifestyle market reflects the young demographic of the country with very special needs. Take the growing trend of buying affordable SUVs, crossovers and going for adventure vacations. As a brand, Puma has been very aggressive over the last three years, and to be honest, the big daddies of the sportswear world, Nike and Adidas, ignored them in the beginning. Puma disregarded all conventions in terms of branding and reached out smaller cities apart from the big ones and this resulted in good sales. Only recently, Adidas has been quick to respond and give them some solid competition in terms of expanding reach and opting for innovative marketing and retail practices. With housing complexes in major cities boasting in-house fitness centres, this segment will grow very rapidly in the coming years,” said Arvind Singhal, founder of retail consultancy, Technopak.

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