In a bid to foray into country’s most preferred retail formats i.e. eCommerce, international sportswear retailers Puma and Adidas are now looking to come up with their own online portals. The two German brands are seeking government’s nod not just to launch their online portals but are also seeking clarification on their existing wholesale entities to engage in direct selling.
Puma and Adidas are the first overseas brand that has approached government to nab the benefits of changed law that permits overseas retailers to sell through the eCommerce route in the country.
As per Abhishek Ganguly, Managing Director, Puma India, the changed guideline on single-brand retailing has attracted them to sought approval to sell products online as well as offline.
On March 3, 2015, Puma filed an application with the DIPP (Department of Industrial Policy & Promotion) to allow foreign direct investment in India. Adidas had too filed the same application last year.
Government lightened up the rules for FDI in retail in November last year allowing manufacturers to sell their products through wholesale, retail and even online.
Many retailers are of the opinion that this relaxation in single-brand retail trading will help streamline business operations. According to them the government's new FDI policy on single brand makes things easier and simpler for a foreign entity to invest in retail.
Ganguly also said that this change in FDI policy will bring competence in logistics, inventory management, sourcing and employment as well.
Last year, Adidas announced its plans to come up with its fully-owned store in India and got clearance to invest in local retail operations.