In a strategic move to solidify its position in the Indian market, Decathlon India, under the leadership of CEO Mr. Sankar Chatterjee, has announced an ambitious €100 million investment over the next five years. This significant investment is designed to enhance Decathlon’s retail and digital presence across the country, increase local manufacturing, and strengthen its supply chain and logistics capabilities. India remains a key market for Decathlon globally, and this comprehensive plan reflects the company’s long-term commitment to the country’s fast-growing sports and fitness sector.
€100 Million Investment to Power Expansion
Decathlon’s growth plan revolves around four primary sectors: expanding its physical retail stores, investing heavily in digital platforms, ramping up local manufacturing, and improving logistics and last-mile delivery. The company plans to open new stores in major cities and towns across India, aiming to reach untapped regions, particularly in Tier 2 and Tier 3 cities. Currently, Decathlon operates stores in 12 Tier 3 cities and is looking to expand further. According to Mr. Chatterjee, this investment is expected to double the company’s market size in India, a country that Decathlon sees as critical to its global strategy.
‘Make in India’
As part of its expansion, Decathlon is committed to significantly increasing its local manufacturing footprint under the ‘Make in India’ initiative. The company currently works with multiple partner factories across India, and this network is set to grow further. Decathlon is exploring the possibility of establishing new production units, particularly in sectors like plastic, composite, metal products, and bicycles, which are relatively new segments for the company in India. This local production focus is aimed not only at meeting the rising demand in the Indian market but also at strengthening India’s role in Decathlon’s global supply chain. Mr. Chatterjee emphasized that local manufacturing is crucial to the company’s success in India.
Enhance Customer Reach
Decathlon’s strategy includes the expansion of both large-format and small-format stores, catering to the varying needs of customers in different regions. While the company operates flagship stores of over 3,000 square meters in major cities, it is also expanding its “Decathlon Connect” concept—smaller stores between 200 and 500 square meters, located in busy urban areas, tech parks, and even airports. This shift aims to provide customers with a more convenient shopping experience, especially in smaller cities and towns where access to large stores may be limited.
Strengthening Digital Ecosystem
In addition to expanding its physical presence, Decathlon is heavily investing in its digital infrastructure, including its website and app. Currently, 11-15% of the company’s revenue comes from its Direct-to-Consumer (D2C) platform, and Decathlon aims to increase this share in the coming years. The company’s omnichannel approach allows customers to seamlessly shop across both physical and digital platforms, catering to their preferences for convenience and accessibility. This investment in digital platforms is expected to play a key role in reaching Tier 3 and Tier 4 cities, where physical stores might not yet be feasible.
Logistics and Supply Chain Enhancement
Another critical area of investment is Decathlon’s supply chain and logistics capabilities, particularly focusing on last-mile deliveries. With an emphasis on building a robust value chain, Decathlon is streamlining its logistics operations to ensure faster and more efficient delivery across India. This initiative is expected to support the company’s growth goals and enhance the overall customer experience by improving product accessibility in remote regions.
Beyond retail, Decathlon is exploring B2B opportunities, particularly in sectors such as education and government institutions. The company is looking to expand its wholesale channel by providing sports equipment and solutions to corporations, educational institutions, and other organizations. This B2B expansion is expected to contribute to Decathlon’s growth in India by tapping into new markets and customer segments.
Decathlon India’s €100 million investment over the next five years marks a bold step towards becoming a leader in India’s sporting goods market. By focusing on expanding retail stores, enhancing digital infrastructure, increasing local manufacturing, and improving logistics, Decathlon is poised to capture the growing demand for sports and fitness products across the country. With India accounting for 7-10% of Decathlon’s global sales and the potential to increase this share, Mr. Sankar Chatterjee’s vision reflects a strategic approach to making sports accessible to all while fostering local economic growth through manufacturing. This comprehensive plan will not only position Decathlon for sustained success in India but also further cement its role in the global sports retail market.
