Reliance Retail is planning to launch a new sports brand to compete with French retailer Decathlon. They aim to take advantage of the growing athleisure market after the COVID-19 pandemic.
Leasing Space in Prime Locations
Reliance Retail is in talks to lease spaces of 8,000-10,000 sq ft in malls and on high streets in major cities for this new venture. The name of the new brand has not been disclosed yet.
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Decathlon’s Success in India
Decathlon was founded in 1976. It is known for its high-quality, affordable and durable products. It entered the Indian market in 2009 and achieved a revenue of INR 3,955 crore in the financial year 2022-23. This was way up from INR 2,936 crore in 2021-22.
Pandemic Boosts Athleisure Market
The pandemic has led to a renewed interest in health and fitness. This caused a surge in demand for athleisure products. This has created a booming market that Reliance Retail aims to tap into with its new sports brand.
Reliance’s Diversification Efforts
If this new sports venture succeeds, it will be part of Reliance Retail’s broader diversification strategy. Reliance is also looking to enter into the consumer durables market and the diagnostic healthcare sector.
Reliance’s Other Plans
In May, reports suggested that Reliance Retail plans to launch its own brand of white goods and electronics called ‘Wyzr’. The company on an initial basis, plans to manufacture these products under contract. They will focus on independent production once volumes are sufficient.
Expanding into Healthcare
Reliance is considering expanding its business into the USD 150 billion diagnostic healthcare market. Reliance is reportedly looking for a partner with a nationwide presence to scale its business effectively.
Decathlon’s Future Plans
Decathlon continues to see India as a priority market. It plans to open ten new stores per year. They aim to tailor their offerings to suit the unique needs of each city. Decathlon is also enhancing its online presence to strengthen its market reach in India.
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Shein’s Return to India
In another related news, Reliance Retail is set to bring back the Chinese fast-fashion brand Shein to India. Shein was banned in India in 2020 but is expected to return soon through Reliance Retail’s app and stores.
Reliance Retail’s new sports brand aims to capture the booming athleisure market. Thus, by this, they will compete with established players like Decathlon. This move is part of the company’s broader strategy to diversify its offerings and tap into new markets.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
