French sporting goods giant Decathlon is set to significantly boost its operations in India, planning to nearly double the country’s contribution to its global production by 2030.
India: A Growing Global Hub for Decathlon
Decathlon aims for India to account for 15 percent of its worldwide production by the end of the decade, a substantial increase from its current 8 percent share. This ambitious plan includes an investment of $3 billion in sourcing from Indian suppliers over the next five years. This sourcing will cater to both the burgeoning domestic market and international exports.
Currently, India plays a crucial role in Decathlon’s global supply chain for specific products. For instance, Indian suppliers produce 60 percent of Decathlon’s rugby balls, 35 percent of its umbrellas, and 20 percent of its textiles.
Boosting Local Manufacturing for the Indian Market
The company also has a strong focus on local production for its Indian stores. By 2030, Decathlon expects 90 percent of the products sold in India to be manufactured within the country. This is a significant jump from the current 70 percent.
India already boasts high local production rates for several popular Decathlon items. Nearly all bicycles (99 percent) sold in Indian stores are locally made. Textiles follow at 75 percent, bags and accessories at 65 percent, and footwear at 55 percent.
A Quarter Century of Partnership
Decathlon established its first production office in India 25 years ago in Chennai, initially focusing on leather products for horse riding. Today, the company operates seven production offices across India, collaborating with 83 local suppliers. Annually, Decathlon spends around $480 million through these partnerships, with suppliers manufacturing goods according to Decathlon’s precise technical specifications.
Catering to Every Athlete
While known for its affordable range, Decathlon is increasingly expanding into high-end sporting gear to serve a wider spectrum of customers. Frederic Merlevede, Decathlon’s global production head, emphasized that the company aims to support beginners, intermediate players, and professionals alike.
Merlevede also highlighted Decathlon’s competitive pricing strategy, stating that their top-tier products are typically 20-30 percent less expensive than those from competitors.
India’s Bestsellers and Future Focus
In India, everyday items like socks, 10-litre backpacks, skipping ropes, bottles, caps, and t-shirts are top sellers. Deepak D’Souza, Decathlon’s India production head, noted the surging popularity of outdoor sports like hiking and trekking, along with fitness activities such as running and yoga.
Looking ahead, Decathlon plans to expand its Indian production of footwear, fitness equipment, and technical textiles like swimwear. Over the next five years, there’s also a focus on developing fitness electronics to help monitor vital signs.
Global Ambitions and Trade Agreements
While India is a key market, Europe still accounts for 60 percent of Decathlon’s global business. The company sees the ongoing India-EU Free Trade Agreement (FTA) negotiations as highly beneficial. Frederic Merlevede expressed hope for the FTA to be signed by year-end, which could reduce tariffs and facilitate easier supply of European markets directly from India.
- Decathlon aims to double India’s share in its global production to 15% by 2030.
- The company plans to invest $3 billion in Indian sourcing over the next five years.
- By 2030, 90% of products sold in India are expected to be locally manufactured.
- Decathlon is expanding its focus to include high-end sporting gear while maintaining competitive prices.
- Future production in India will concentrate on footwear, fitness equipment, technical textiles, and fitness electronics.
This strategic expansion underscores India’s growing importance in Decathlon’s global manufacturing and retail footprint, positioning the country as a vital hub for both domestic demand and international supply.
