Decathlon Aims To Double Indian Procurement, Boosting Local Manufacturing
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Decathlon, the renowned French sports goods company, has disclosed its ambitious plans to double its procurement of goods from India, aiming to reach a monetary value of $3 billion in the next five years. This strategic move will enhance India’s contribution to the company’s global sourcing to 15 per cent by 2030.
Driving Expansion with High-Potential Categories
The intended increase in sourcing from India is set to be propelled by categories of high potential, such as fitness equipment, footwear, and clothing. As of now, India accounts for 8 per cent of Decathlon’s global sourcing volumes.
Decathlon boasts a long-standing sourcing relationship with India, spanning over 25 years. The company predicts that by 2030, locally sourced products will constitute 90 per cent of its sales in the Indian market, marking a significant rise from the current rate of over 70 per cent.
Strong Support from Domestic Operations
Decathlon’s operations within India are robust, supported by 113 manufacturing sites, 83 suppliers, and seven production offices. The company also showcases solo categories like yoga and cricket, which are designed and manufactured domestically.
Frederic Merlevede, the head of Decathlon production, expressed confidence in the company’s strategic investment in India. He said, “Our long-term investment in India reflects the profound trust we have established with our partners.” Merlevede also stated their clear ambition to position India as one of Decathlon’s leading global manufacturing hubs as the company continues to grow.
At present, Decathlon runs 132 retail stores across 55 cities in India.
Questions & Answers
What are Decathlon’s expansion plans in India?
Decathlon plans to double its sourcing of goods from India, aiming for a monetary value of $3 billion over the next five years.
Which categories are expected to drive this expansion?
The expansion is expected to be driven by high-potential categories such as fitness equipment, footwear, and clothing.
What is Decathlon’s future vision for its operations in India?
Decathlon aims to increase the representation of domestic products in its sales to 90% by 2030. Furthermore, the company aims to make India one of its main global manufacturing hubs.