Decathlon in talks with Indian government to allow it to sell products from rival, global brands

Decathlon store

Decathlon's global chief executive officer (CEO) Barbara Martin Coppola said that the sporting goods retailer is in discussions with the government of India to allow it to sell products from rival local and global brands in its stores, according to a report by The Economic Times on March 2.

“We are a single-brand retailer — so we are asking (the government) for the possibility of selling different brands in our shops,” the 46-year-old CEO told ET.

Coppola joined Decathlon in March 2022, she was the chief digital officer at Ikea before joining Decathlon.

“Right now, we only sell Decathlon products and what we would want is to have the licence or opening up to other brands," she added.

India permits 100 percent foreign direct investment (FDI) in single-brand retail, which means several different products can be sold under one brand. For example Ikea, Nike, and Adidas. However, FDI in multi-brand retail, that is the sale of many brands under one roof directly to consumers is not permitted, the report added.

“We believe in offering our customers the widest choice across sporting products and categories, including seeking a provision for sports industry in India where single-brand retailers can also offer up to 20% of their inventory from other local and global brands across their sales channels,” CEO Coppola told ET.

“We are asking for a simplification and easiness for sure, so that is part of the dialogue,” the CEO told ET. “We have people that are in constant dialogue with the government on very good terms. India has been a good country to do business in and that’s why we want to accelerate.” According to the report, India is the first market she’s visiting with Decathlon’s entire leadership team after she joined the company in March 2022.

Decathlon has about more than 100 large stores and 110 factories in India and its pricing is about 30-40 percent lower than its rivals. It sources nearly 8 percent of its global requirement from India across sporting goods, as per the report.

"Today 60 percent of the products sold are made in India and by 2026 it will be 85 percent. So we are increasing production capabilities in India,” Coppola told ET.

Decathlon India’s sales rose 41 percent in the year ended March to Rs 2,936 crore, the report said.

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