Adidas plans quadrupling retail points by 2006

Adidas India Marketing Pvt Ltd (adidas India) is planning on nearly quadrupling its retail network from the current 73 showrooms to about 200-300 by the end of 2006.

"The Indian market is booming, we expect it to become bigger than all the other south east Asian countries over the next few years as the consumer sector is displaying huge growth. Our expansion drive is dependent on the growth in the number of malls in the country, all the stores will be franchisee led as we will not invest directly into any one of them," said Andreas Gellner, managing director, Adidas India.

The company in August 2004 became a separate entity, distinct from the south east Asian entity as it was felt that India needed special focus and attention.

Adidas India, which sub-contracts nearly 60 per cent of its footwear up to the price range of Rs 3,000 and 100 per cent of its apparel to about 10-12 Indian companies, is planning on manufacturing a few of its high-end footwear in India rather than just lower and middle level footwear.

"Indian apparel has world-class quality, it also has low labour costs, but there is still no economies of scale unlike China. So there is a need for consolidation. However, in footwear, they do not possess the ability to manufacture high-quality shoes, we shall slowly transfer technology and make investments unlike the past when the market size did not warrant it," added Gellner.

The company has also launched 'adidas aces' a national tennis scholarship programme for young tennis talent in India. There will be 20 tennis players who will be selected by All India Tennis Association (AITA) and adidas India based on performance and potential.

They will be trained by five national coaches and awarded adidas tennis gear worth Rs 50,000 each. The scholarship will be open for both boys and girls in the under-14 and under-18 category.

"Besides cricket, adidas India plans on agressively promoting tennis, hockey and football in the country through sponsorships and provide financial aid at the grassroots level.

Adidas India also launched Barricade 3, a top-of-the-line tennis shoe, that was unveiled by its brand ambassador high-ranked tennis player Paradorn Srichaphan.

"Indian players have the potential to become world-class players, all they need to do is play more tournaments and work hard, I am an example of an Asian player making it to the top," said Srichaphan.