Are you really passionate about international sports retail brands? Have you been witnessing extensive growth or inclination among Indian customers towards sports?
Well, you aren’t the only one witnessing this growth; actually, the number is growing exponentially, and entrepreneurs like you are trying hard to grab their chance to partner with strong retail businesses in this segment.
On the top 10 lists of international sports retail brands, Decathlon can certainly be placed among these top 10 brands. Then, why not delve deeper into it and discover the potential opportunity with the Decathlon franchise in India?
- Brand: Decathlon
- Founded: 1976
- HQ: France
- Industry: Sporting Retail
- Founder: Michel Leclercq
- No. of outlets: Over 2000+ worldwide
- Expansion: Self-owned & operated
- Franchise: Not a franchise
- Revenue: 13.8 billion euros
Table of Contents
Overview of Decathlon Franchise in India
Incepted in 1976 by Michel Leclercq, a French entrepreneur in Lille, France, Decathlon is one of world’s most popular and rapidly growing sporting goods retail chains, offering a wide range of sports wear, accessories, gym activewear, and equipment for men, women, and kids.
Decathlon is also renowned as one of the largest sporting goods retailers in the world, with more than 2100 outlets in 56 countries. But how do they manage everything, and how did it grow so exponentially?
The answer lies in their business model, as Decathlon completes and manages the entire operation on its own, which includes research, design, production, logistics, distribution of its products in-house, and marketing its own brands directly to consumers in Decathlon-branded big-box stores.
As per the resource, Decathlon operates with over 100+ outlets across India and also outsources its products from 95 factories that indirectly employ more than 70,000 people. It manages its complete stock with over 4+ warehouses and 8 partner factories.
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Decathlon – The Journey
Decathlon embarked on its ambitious journey in Bengaluru, India, in 2009 by introducing its large-format niche retail and quickly expanded its outlets to major Indian cities such as Mumbai, Hyderabad, Delhi, and Chandigarh.
Their entire outlets had received a great response, and that also forced the chain to pour in extra cash to boost expansion.
Currently, the chain offers over 6,000+ products for over 60+ sports, including equipment for sports like Badminton, Cricket, Football, etc.
Key facts about Decathlon
| Sr No. | Type | Private |
|---|---|---|
| 1 | Trade Name | Decathlon |
| 2 | Industry | Sporting goods retailer |
| 3 | Founded | 1976 in Lille, France |
| 4 | Founders Or Parent Company | Michel Leclercq |
| 5 | Corporate Headquarters | France |
| 6 | Number of locations | Over 2000+ |
| 7 | Area served | Worldwide |
| 8 | Model | Company-owned and Operated |
| 9 | Product offering | Sports wear, accessories, Gym activewear and equipment |
| 10 | Revenue | 13.8 billion euros |
| 11 | Website | https://www.decathlon.in/ |
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Does Decathlon allow franchise stores in India? | Does Decathlon give franchises?
The word answer is no. Decathlon doesn’t work on a franchising model, and all of its outlets are company-owned and operated. It follows a company-owned and company-operated (COCO) business model, which allows them to have better control over their quality products, services, and consistent customer experience.
There could be several reasons for not offering franchising in India:
- Brand consistency:
- As a renowned brand, Decathlon may want to maintain strict control over its brand image and customer experience, and that could be difficult if they opt for franchising.
- Quality control:
- Quality, affordability, and innovation help Decathlon stay ahead in a highly competitive market. It also owns and partners with a few factories that produce high-quality products for them.
- Sustainable growth plan:
- Decathlon believes in expanding its outlets at a sustainable pace without relying on franchising.
- Business model:
- The chain completely manages its designing, manufacturing, and selling of its products directly to consumers, which could be difficult to replicate through franchising.
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How much does a Decathlon franchise cost in India?
Although, as per Decathlon Sports India CEO Steve Dykes, India is a priority country that has been operating over 100+ outlets in India, and with more outlets to be planted in the near future, this may create tremendous opportunities for aspiring candidates.
But can you own it? No, you can’t, because the company has to offer its franchise in the first place.
Alternatively, it is advised for the candidates to look out for other sports retail franchising, which may cost a total initial investment of ₹50 lacs to ₹3 crores.
Moreover, we wanted to inform you that most of the highly valued franchises, such as Zudio (offers franchises), DMart, and Reliance Smart point are owned and run by the company itself.
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How much is Decathlon franchise profit margin?
To entail Decathlon’s profitability, we need to understand its growth plan and offerings for their customers.
The chain primarily operates more like a department store or warehouse-type retail store. Indeed, this French retail giant is a bigger brand than its peer competitors, including PUMA, Nike, and Adidas.
In 2023, Decathlon posted impressive growth in its revenue numbers that clocked ₹3,955 crore, which were at ₹2,936 crore in fiscal 2022, showcasing a jump of nearly 37%. However, the bottom lines (net profit) were in red, which resulted in a loss of ₹18.6 crore, as compared to a net profit of nearly ₹36 crore in FY22.
Despite all these ups and downs, Decathlon manages to expand its presence strategically across India.
According to the data available at Economics times, on average, a decathlon store in India generates average annual sales of ₹28 crore in FY22, which eventually equates to monthly sales of nearly ₹2 crore for every decathlon store. That’s certainly impressive.
There are several other aspects that support its robust profitability, and some of them are mentioned below:
- Company-owned and operated chain
- Complete control over its quality and services
- A wide range of product portfolio
- In-house production capabilities
- Enormous Inventory and much more
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Can I Own a Quechua Franchise?
No, you can’t own it. Quechua is one of the trademarked products of Decathlon, which mainly offers hiking and camping apparel and equipment. It was founded in 1997 by Decathlon, and its name comes from the Quechua people, who live in the Andes Mountains of South America.
It also specializes in producing quality, affordable, and functional outdoor gear for hiking, camping, and trekking. Their products include sleeping bags, backpacks, clothing, tents, and other accessories that are sold in Decathlon stores worldwide.
Is Decathlon a Indian Company?
No, Decathlon isn’t an Indian company; it’s a French retail brand. As mentioned earlier in this post, Decathlon is one of the leading and rapidly growing sporting retail chains that has a robust network of outlets worldwide.
They are present in more than 50 countries, namely, India, Germany, France, Malaysia, Spain, Italy, Turkey, South Africa, the Philippines, and many more.
While there is huge demand for its franchise program, it is quite unfortunate that they don’t offer any franchising opportunities, as all of their stores are company-owned and operated.
How to Get Decathlon franchise in India?
There is no legitimate way to own a Decathlon store in India; its entire outlets are managed and owned by the company itself.
Usually, A Franchise like Decathlon may require a huge carpet area of at least 2500 sq feet to 4000 sq feet with an initial investment of at least ₹3 crore to ₹5 crore, where the majority of its investment can go into inventory.
The Editor’s Thought
For every sports enthusiast looking for an opportunity in the sports retailing sector, Decathlon can be considered a first-go-to brand, and its impressive average monthly sales figure of ₹2 crore adds further value to the brand.
Since the first day of their operation in India, Decathlon has continued to operate as a company-owned and operated entity, where chances of selling their franchises are unlikely in the near future.
Additionally, key executives at Decathlon have confirmed their clear focus on expanding the company’s presence in India. With nearly over 100 operational outlets established in just 8 years and an annual revenue exceeding ₹3,000 crore, it undeniably showcases the strong demand and loyal customer base Decathlon has cultivated in India.
These figures, the news, and the immense demand for Decathlon may seem exciting, but can you buy one of their franchises? Certainly, No. You may need to look out for some alternatives.
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FAQ
Can you franchise a Decathlon brand?
Eventually, No. To be true, Decathlon stores aren’t franchises; instead, they operate all of their locations on their own.
Who owns decathlon in India?
Ans: Decathlon is a French sports retail brand that competes with brands like Nike, PUMA, and Adidas. The brand is managed by the company itself, and they don’t sell franchises.
Is Decathlon franchise profitable?
The net margin is bound to change every year. In fiscal year 2023, the chain posted gigantic revenue of over ₹3,000 crore, but the net margin was in red. It had a net loss of ₹18 crore, but that wasn’t the case in fiscal 2022, which had a profit of ₹36 crore.
