Thanks to surging demand for fitness wear and sports equipment, Decathlon’s India sales increased 37 per cent to Rs. 3,955 crore in FY ’23. But the French company also posted a net loss of Rs. 18.6 crore during the year ended March 2023 compared to a net profit of Rs. 36 crore a year ago.
According to its latest filings with the Registrar of Companies, the company had sales of Rs. 2,936 crore in FY ’22.
Decathlon is the world’s biggest sporting goods firm. By selling only private labels, Decathlon, controls almost every bit of operations, from pricing and design to distribution, and keeps costs and selling prices low.
Apart from a strong online presence, through its 100+ stores across India, which are large, warehouse-like stores, it sells products catering to 85 sporting disciplines.
The company’s product pricing is almost 30-40 per cent lower than competing products and its sells a large variety of products like running shoes, athleisure wear to mountaineering equipment under its own brands.
It also has a powerful format across different sporting activities and has something for both active and casual wear shoppers.
Devangshu Dutta, CEO, Third Eyesight a retail consulting firm believes that for Decathlon India, the market is still under penetrated with the kind of comprehensive product range they sell for outdoor sports beyond shoes and clothing.
It is worth mentioning here that Decathlon targets 85 per cent products made in India by 2026. Currently, Decathlon produces 80 per cent of the textiles, leading to overall production of 65 per cent of its total product portfolio in India.
