Adidas gets DIPP nod to open fully-owned stores

German sports major Adidas has got a green signal from the Department of Industrial Policy & Promotion (DIPP) to open its first fully owned outlet in India in the second half of fiscal 2016. The company had filed an application with DIPP in July.

The company expects that the combination of its own retail outlets, online platform coupled with franchise network, will boost its business in India. The company already operates 760 franchise-run outlets under Adidas, Adidas Originals and Reebok brands in the country. The aim is to increase this count to 1,000 by 2020. Adidas also plans to open at least 50 new stores under its omni-channel model by the end of this year and 400 by April 2016.

Along with Adidas, DIPP had said to have received eight proposals from global brands including Skechers, Kiko International, Ryohin Keikaku, Nike and Swarovski to open stores in India through single-brand retail that allows 100 percent foreign investment in the sector. Some applications like that of Nike were earlier rejected since the company wanted to retain its existing franchise-run outlets, which was then against the policy framework.