NEW DELHI: German sportswear giant adidas on Tuesday pointed out unstable import duty rates that too without warning on most occasions in India as one of the biggest obstacles for the company when it comes to its operations and future investment planning, Press Trust of India reports.
The MNC sells both locally-sources and imported products in India. However, adidas India’s MD, Dave Thomas believes that bringing more imported ones were a must for adidas to showcase its ‘full story to India’, something which he feels consumers deserve.
“Import duties go up with no notice and you are charged retrospectively and immediately, or back three months. (It is) very had to do business that way because we plan for investment for future,” Thomas was quoted as saying to PTI.
“I think stability on that front would help us to have more faith in the market so that we can invest and be clear on what the future holds for certain degree. That would be helpful.
“We have a good balance of local manufacturing and imports but I think, if you try and make it too difficult to import, it hurts international brands like us.
“We want to bring our best products in and that usually are imported range…India deserves a full story and deserves the best we can bring,” he added.
Take such obstacles out of the equation and Thomas believes that the Indian market has a lot to offer for it has embraced digital revolution exceptionally well and can no longer be considered a cricket-centred country due to emergence of football and kabaddi for example. This has made the MNC change its corporate strategy from becoming bigger to better in terms of retailing and branding both.
At present, the adidas brand has 450 stores while it operates 220 stores as Reebok across India. The MD confirmed that despite closing down some stores, the company has much to expand on after opening four independently-owned ones in the country for the first time as it gained the license to do so last year. Although there are factors such as the availability of the right space at the right time and cost, adidas is moving on gradually from the franchise system of expansion.
“In the last few years, we have definitely focused on getting better and not bigger.
“The next two to three years is a journey of much more rapid expansion and growth in channels, which include multi-brand channels, online and brick and mortar format but also in franchise.
“There is change in strategy. Earlier cricket used to be core… but now India is changing and no longer remains a one sports country” Thomas signed off.
It was on the same day that adidas confirmed the signing of U-20 athletics world champion and Asian Games 2018 silver medallist, Hima Das as its brand ambassador in a deal brokered by iOS Sports and Entertainment, the Indian talent management company.
