German sportswear firm, Adidas AG, which sells Adidas and Reebok brands in India, saw 25 percent of the company's total revenue in India coming from e-commerce business in financial year 2016-17, driven by its renewed global online strategy, said a top official of the company.
Abhishek Lal, Senior Director, e-commerce, Adidas India, said, "Today e-commerce business accounts for 25 percent of the total turnover of Adidas India in a matter of 3 years."
Lal further added, "By 2020 the revenue from e-commerce may contribute to upto 30 percent of the total revenue."
In 2015, Adidas India received government approval to open 100 percent foreign-owned stores in India and plans to open 30-40 company owned big flagship stores in the country by 2020.
Adidas India at present sell its products through four pure-play e-commerce players including Amazon and Flipkart, through its own e-commerce portal and through the large retail network of its franchised retail stores.
According to Lal, the majority of the e-commerce business for Adidas India still comes from e-commerce players Amazon, Flipkart, Myntra and Jabong.
He said, "At present 80 percent of the revenue for Adidas India comes through pure play e-commerce players and the remaining 20 percent through its own e-commerce channel but own e-commerce has grown 100 percent between 2016 and 2017. We hope the gap would narrow down as we go forward. It may become 60:40 by 2020. But pure players are very important part of our business and it will continue to remain so."
Adidas India is also coming up with a new feature called, Ship from Store by the end of this year and it will be rolled out at 5 different stores to begin with. By the means of this new feature, the company will map the store inventory online and will enable online customers to buy products through offline stores anywhere in the country.
Lal said, "So basically a store in CP can now sell across the country. Once the pilot is up and running we will connect more stores to this functionality."