Decathlon: Playing The Growth Game
Decathlon, the world's largest sporting goods retailer, is looking to boost its India business in a big way, particularly by ramping up manufacturing for domestic and global markets
As the €16-billion (approximately Rs1.4 lakh crore) Decathlon, the largest sporting goods retailer in the world, jogs along the growth path, India, a market of tremendous potential, is quickly emerging as a crucial driver of this growth.
Although Decathlon’s India sojourn began in 1999 with contract manufacturing for its global supply chain, it wasn’t until 2013 that the company officially launched its retail operations in India, backed by an initial investment of over Rs 1,100 crore (€100 million). Over the past 15 years, this investment has paid off significantly, with the company reportedly generating 12-14x returns.
India has not only become a key market for the company but also an important manufacturing hub. The 'Made in India' products are not just catering to the domestic market but are also being exported globally, reaching markets in Europe, South America, Asia, and the Far East. This dual role of India as both a consumer base and a manufacturing hub has been central to Decathlon’s strategy.
The Decathlon Difference
Over the past decade, Decathlon India has emerged as a leader through its unique business model. The company offers a comprehensive range of products for over 60 sports, from equipment and customised gear to specialised sporting wear, gym equipment, and accessories. Decathlon is to sports what Ikea is to furniture—a one-stop shop offering a wide range of affordable, high-quality products.
Decathlon’s large-format flagship stores are designed to provide the best customer experience, while its robust online presence ensures convenience and accessibility. The company’s commitment to quality is evident in its strict control over the entire supply chain, from procurement to manufacturing, ensuring that all products meet global standards. This blend of affordability, variety, and quality is a cornerstone of Decathlon’s success.
Sankar Chatterjee, CEO, Decathlon India, recently shared insights into the company’s future plans during an interaction with BW Businessworld. According to Chatterjee, the next five years will see significant investments aimed at doubling the size of the India business. Currently, Decathlon India generates around half-a-billion euros (approximately Rs 4,000 crore) in revenue, with growth projected at 20-25 per cent annually.
Athleisure, which accounts for 30-33 per cent of Decathlon India’s revenue, is one of the fastest-growing segments in the branded garments market. Market estimates suggest that the athleisure business in India could reach Rs 25,000 crore in sales by the end of next year. However, athleisure is just one of Decathlon’s 11 business segments.
Specialised footwear is another major category, offering a wide range of shoes tailored to specific sports and activities. Whether it’s tennis, badminton, cricket, football, hiking, or trekking, Decathlon has a shoe designed to meet the specific demands of each sport. This product diversity, backed by a scientifically developed approach, has been a key driver of Decathlon’s growth over the past 15 years.
Strategic Expansion Ahead
Decathlon has drawn up an ambitious expansion strategy in India. Over the next five years, the company plans to invest €100 million, with the goal of expanding its store network from 127 to 195 locations, reaching 90 of the country’s top cities and towns. Chatterjee notes that a significant portion of this investment will also go toward enhancing the company’s digital platforms, including its app and website, to penetrate Tier-3 and Tier-4 towns. Currently, Decathlon generates about 12 per cent of its revenue in India through online sales, but Chatterjee is confident this figure will more than double over the next five years.
Decathlon’s growth in India is closely tied to the burgeoning sports culture in the country. As more Indians embrace sports as a lifestyle, demand for sporting goods continues to rise. "With Indians getting more sports-centric with each passing year, people are really taking sports as a lifestyle choice. Being an Indian, I am super happy. This sector is not limited to athleisure alone but also to different sports, and that is majorly contributing to our growth," says Chatterjee.
He highlights the growing interest among children in picking up multiple sports from a young age, as well as the impact of India’s recent successes at the Olympics. This focus on sports is driving Decathlon’s growth across its three product levels—beginner, intermediate, and professional. For instance, a child interested in tennis can start with an entry-level racket priced at ₹999. This accessibility, combined with a wide range of products for over 60 sports, makes Decathlon a go-to destination for sports enthusiasts.
Decathlon’s expansion strategy isn’t limited to major cities. The company is also focusing on Tier-2 and Tier-3 towns, particularly those near its flagship stores in Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Pune, and Chennai. "We just launched a store in Jamshedpur in Jharkhand, and the response is extremely heartening," says Chatterjee.
Decathlon’s flagship stores are typically large, spanning 3,000 sq. meters, offering a wide variety of products and an immersive shopping experience. In addition to these, the company also operates smaller stores ranging from 1,000 to 2,000 sq. meters. These stores not only enhance the customer experience but also allow customers to sample a wide variety of sporting goods and apparel. Decathlon also operates ‘connect stores’ in high streets and malls, which serve as touchpoints for customers to experience the products before making purchases online through the company’s app or website.
Rising Competition
Decathlon’s success in India has not gone unnoticed, and the company is now facing increased competition. Reliance Retail, for example, is reportedly planning to launch a new sports format targeting the booming athleisure market. The company is expected to lease 8,000-10,000 sq. feet of prime retail space in major cities for this new venture, which is said to be inspired by Decathlon’s successful model. This move comes as global sports shoe brands like Puma, Adidas, Nike, Skechers, and Asics have also seen significant growth in India, collectively doubling their sales to over Rs 11,000 crore in just three years since 2020.
Despite the competition, Decathlon remains confident of its growth prospects. Steve Dykes, Decathlon’s Chief Retail and Countries Officer, has identified India as a "priority market" with the potential to become one of the company’s top five markets globally. Decathlon plans to maintain its steady pace of growth by opening at least 10 stores each year.
"We would like to wait and watch this space. The category is growing because everyone is growing," says Chatterjee when asked about the entry of bigger brands.
One of Decathlon’s key strategies for maintaining its competitive edge is its commitment to the ‘Make in India’ initiative. The company has established a strong network of over 100 manufacturers in India who have grown alongside Decathlon over the past 15 years. "In India, today 60 per cent of our total sales are of 'Made in India' products. In the next five years, we will scale it up to 80-85 per cent. This initiative is backed with business logic. It supports our business model. It is a long-term sustainable business model. And it also helps us generate large number of employment," says Chatterjee.
Ten years ago, only about 30 per cent of Decathlon’s products were made in India. Today, that figure has risen to 60 per cent. "Our bicycles are mostly 'made in India', which was not the case 10 years ago," Chatterjee points out.
With further expansion, Decathlon expects to create even more jobs, both directly and indirectly, contributing significantly to the Indian economy. At the same time, its commitment to the ‘Make in India’ initiative ensures that the company can meet the growing demand for locally produced goods while supporting sustainable economic growth.
