The CK Jaipuria Family Office has signed a retail franchise agreement with Adidas India to open Adidas retail stores across India.
"The Adidas stores will be set up exclusively by us in tier 2 and 3 markets," CK Jaipuria said. He stated that the group intends to open 100 Adidas footwear and sportswear stores by the end of 2024. This will be Adidas' largest franchise collaboration in the country.
An email sent to Adidas India seeking comment went unanswered as of press time on Sunday.
The development comes at a time when brands are looking to rapidly expand their offline presence amid predictions of a healthy recovery in consumer demand.
The Retailers Association of India (RAI) reported in January that retail industry sales in December 2022 showed healthy demand for footwear and sports goods. According to the report, overall retail sales increased 16% last month compared to pre-pandemic December 2019, with footwear and sports goods increasing 29% and 25%, respectively.
Retailers reported that the relaxation of Covid-19 restrictions has increased demand for athleisure and sporting apparel. Even before the pandemic, athleisure sneakers, sweatshirts, fitness clothing, and high-performance sportswear had become popular, with consumers wearing them even for casual wear and the lines between casual and sportswear blurring, they said.
PepsiCo's franchise bottler in Andhra Pradesh and Jammu and Kashmir is the CK Jaipuria group. It has a stake in the D2C eyewear company ClearDekho as well as the social media app Explurger. Ravi Jaipuria, PepsiCo's largest bottler in South Asia, is CK Jaipuria's brother.
Adidas, which competes with Nike, Puma, and Skechers, opened its first concept store of the year earlier this month in order to expand its physical retail presence. Some of the brand's existing physical stores sell global lines like Ivy Park by Beyonce, Pharrell Williams, and Jeremy Scott.
However, as was the case for the entire category during the pandemic, when people stayed indoors and gyms and offices were closed, Adidas India's revenue fell by 23% to Rs 945 crore in FY21, down from Rs 1,228 crore in FY20, according to company filings with the Registrar of Companies.