Adidas Franchise Cost in India- Requirements, Profits & Margin and Applying Process
Are you interested about clothing and accessories franchise and beginning a new career? In India the garment and accessories business is the second biggest contributor of the economy having a great business sector space, with huge new growth opportunities for each domestic and foreign player consequently taking clothing and accessories franchise is a good decision for the people.
Modern India is progressively inclined towards the possibility of a brand, opening the doors for establishments to stretch out their portfolio to the booming Indian market. If we are talking about foreign brand then we could not skip the name of Adidas.
In this article, we have shared the total details about the Adidas and how to start the Adidas franchise. Please read the article completely to know the details.
About Company Details:
Adidas is a German-based company; it deals in sports footwear and sports accessories over 80 years. In recent years it deals in cloths. In India it is started in 26th February 1996 and more than 1000 outlets has established in India. Adidas run its business by 3 parts- Adidas, Adidas Kids and Adidas Original. Products of the Adidas are accessible in every country of the world. The company’s system is very straight so it helps to strengthen the technology and products to develop their position and financial performance. Adidas produce almost 900 million sports accessories and products with independent manufacturing partner around the world. Presently Adidas offering franchise to expand the business worldwide by building market for new investors.
|Product||apparel, footwear, premium fashion, sports brand, football, running, training, basketball, and originals|
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Advantages of Investing in Adidas Franchise:
Every potential investor invests in a franchise for taking the advantages of that brand value. When it comes to popular brand Adidas, there are several advantages that can be determined by the investors. The advantages are as follows-
- One of the main advantages of obtaining the Adidas franchise is the brand value that has maintained over many years. Adidas is the best option of each and every customer who wishes to buy the footwear. There are many brands in the market those have achieved popularity in the footwear segment, despite all of these; Adidas stays the best option of each and every buyer because of its brand value.
- Another advantage of taking the Adidas franchise is it has the large number of products that the brand deals in. At first, the brand began its works and speed up the business by the selling of sports footwear. In recent years Adidas has started its business in clothing and, sports accessories. This gives investor wide range of segments and products through which they can earn profit.
- Investors choose Adidas due to its low investment high profit model that the company offers. Another rival brand of Adidas the investment is more than 1Crore INR but Adidas offers franchise in a reasonable cost.
- The franchise holder does not reserve extra fund for the promotion and marketing work, the company handles everything so the franchise owner can focus on their business.
Eligibility Criteria for Adidas Franchise:
- The applicant should have experience in running a business, preferably in the retail sector.
- The applicant must have the proper financial resources to invest in the franchise and operate the business.
- Need necessary license and permits.
- The franchise owner must go through the training program by Adidas.
- The franchise owner must have required educational qualification to run the outlet.
Requirements for Adidas Franchise in India:
There are few requirements if you want to make your career in Adidas franchise. Those are as follows-
- The candidate must have capacity to invest 50 lakhs- 1.5 crore INR.
- There must be at least 1000-1500 square feet space for an outlet in the prime location of the city.
- The candidate must be passionate about the sports products and accessories.
- He/She must have leadership quality and dedication towards the business.
- The candidate should have an attractive business plan.
- The franchise owner must follow all the guidelines and fulfill the criteria of Adidas.
- Athletic Footwear: Adidas offers a wide range of athletic footwear for men, women, and children, including running shoes, training shoes, and sports-specific shoes for football, basketball, and tennis.
- Apparel: The company produces a diverse range of clothing items, including t-shirts, shorts, jackets, and tracksuits, as well as sports-specific apparel for activities such as football, basketball, and tennis.
- Accessories: Adidas offers a variety of accessories to complement its product line, including bags, hats, socks, and sports equipment such as balls and gloves.
- Lifestyle Footwear: Adidas also produces a range of lifestyle footwear.
- Collaborations: Adidas collaborates with various designers and artists to produce limited edition and special collections of footwear and apparel, often incorporating unique design elements and materials.
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Investment Required for Adidas Franchise:
The investment of the franchise depends upon the city, area, space and location of the store. The initial investment ranges from 50 lakhs to 1.5 crore INR. The franchise fee is not disclosed, only concern person can give the actual price. The franchise agreement term is for 5 years and if the business runs properly then the company renews the franchise agreement.
- The initial investment for a small Adidas franchise store in India ranges from INR 50-70 lakhs.
- For a larger flagship store, the investment can range from INR 3-5 crores or more.
- The investment includes expenses such as franchise fees, store setup, inventory, staff salaries, and marketing costs.
- The franchise fee for the Adidas Franchise ranges from 10 lakh to 20 lakh may vary depending on the location and type of store.
- The cost of store setup will depend on the size and location of the store, and can include expenses such as leasehold improvements, fixtures, and equipment.
- Inventory costs will depend on the size and type of store, as well as the local market demand for Adidas products.
- Staff salaries will depend on the number of employees required to run the store, as well as the local minimum wage laws.
- Marketing costs will include expenses such as advertising, promotions, and events to drive customer traffic to the store.
We always recommend to check with Adidas directly for specific investment requirements and guidelines for their franchises in India, as these can vary depending on the location and type of store.
Space Required for the Adidas Franchise:
The space required for an Adidas franchise in India depends on several factors, including the type of store and location. Generally, a small Adidas franchise store can range from 500-1000 square feet, while a larger flagship store can range from 2000-5000 square feet. The area should be in the prime location, in any market area or in any shopping mall. The Adidas store must be opened in high footfall areas. However, we always recommend to contact with Adidas directly as they may have specific requirements and guidelines for their franchises in India.
Profit Margin of Adidas Franchise:
Operating an Adidas franchise in India can be a profitable business venture. But the profits and margins are depends on factors such as the location, size, and type of store, as well as the local market demand for Adidas products. However, as a well-known and reputable brand, Adidas can offer a promising return on investment for franchisees who are willing to put in the necessary effort and resources to establish and promote their store.
Adidas franchise in India can expect a profits and margin of between 30%-40%. This can vary depending on factors such as the cost of goods sold, overhead expenses, and sales volume. The sales ratio is not fixed for all stores so the profit margin varies. And the franchisees are often required to pay a percentage of their sales as royalties to Adidas, which typically ranges from 3-6%. Here we have given you some idea as per the assumption. So, for more correct information about the profits and margin contact to the company directly.
To increase profits and margins, franchisees can focus on effective inventory management practices, optimization of pricing strategies, and providing excellent customer service. They can also take advantages of adidas marketing and promotional support to increase sales and customer traffic.
|Shop Rent||(90,000) Rupees|
|Electricity and Water Cost||(10,000) Rupees|
|Staffs Salary and their Expenses||(70,000) Rupees|
|Other expenses||(10,000) Rupees|
|Total Expenses||1.8 lakh Rupees|
Here the given data as per the assumption so before making any decision please contact to the company directly.
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Must have the following documents-
- Franchise agreement
- Proprietor’s Aadhar card copy
- Proprietor’s photo
- Proprietor/Business PAN card copy
- GST registration certificate
- Proprietor/ Business Aadhar proof.
- Shop address proof
- NOC of shop
Franchise Training Support by Adidas:
Adidas is a popular sports products brand in India. It is expanding its business through franchise and company also provides full support to develop the business in India. Here are some major supports those are provided by the Adidas.
- The company provides a representative after signing the franchise agreement with the investor, who will assist the franchise owner in every step.
- The company representative helps in selecting the location of the outlet and help in establish the outlet.
- Adidas help in all types of promotion and marketing of the brand. The franchise need not worry about the marketing of the store.
- The business owner and the staffs must join the training those are provided by the company.
- The company helps in install the company software in the franchises computer and always provides software and hardware support to the franchise.
- The company also provides in-service training while running the outlet and also provides necessary brochures, catalog, banners etc.
How to Apply For the Adidas Franchise in India ?
If you want to take Adidas franchise in India then you have to go through some steps then an applicant can consider as a franchise. Let’s see the following steps-
- Visit the site- Visit the official website http://www.adidas.co.in/ and fill-up the online application form. You have to provide details of education, professional background, financial details and personal details.
- Screening- After submitting the form the Adidas will conduct a screening process to evaluate the candidate’s sustainability for a franchise. This screening is based on dedication towards sports products, financial strength and business acumen.
- Meeting with representative- If the initial screening is completed properly then the applicant is invited to meet with Adidas representatives. Here discussion about the business plan, overview of the franchise, terms and conditions of the agreement.
- Location selection- When the franchise agreement is signed the candidate proceed for location selection along with the Adidas representative. The location must meet the Adidas location criteria.
- Training- Before opening the store the franchise owner and the staffs go through the training process. This training is designed to give proper knowledge about the products, store operation and customer service. The training team provides knowledge how to run the store successfully.
- Launch the outlet- After the training and outlet set-up the franchise is ready to launch the outlet in India at their location. Adidas consistently stays beside the franchise and provides support whenever require. All the promotional and marketing work is done by the company.
Before applying for an Adidas franchise in India, it is important to ensure that there are no other Adidas stores located within a 4-5 km radius of your planned store location. This will help to avoid competition and ensure that the franchise has a better chance of success. Conducting thorough research on the local market and competition can help to identify a suitable location for the franchise store.
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Adidas Franchise Contact Details:
If you want to know about Adidas Franchise cost in India or you have any query related this franchise then you may contact to the company via given details as I’ve mentioned below:
Address: Adidas India Marketing Ltd, Plot No-93 Institutional Area, Sector-32, Gurgaon
Landline phone No.: 0124 4569100
Fax No.: 0124-4569160
Opening an Adidas franchise store in India can be a great business opportunity for entrepreneurs who have a passion for the brand and a good understanding of the retail market. However, it is important to carefully research the investment required and eligibility criteria set by Adidas. To be eligible for an Adidas franchise, an applicant should have prior business experience, financial stability, a suitable location with good market potential, and a good understanding of the Adidas brand and its products.
It is also important to comply with the terms and conditions of the franchise agreement, which may include payment of franchise fees and royalties, adherence to brand standards, and participation in marketing and promotional activities. By meeting these requirements and selecting a suitable location, entrepreneurs can benefit from the established brand reputation and marketing support provided by Adidas, while also building a profitable business for themselves.
FAQ(Frequently Asked Question):
Q. What is the tagline of Adidas?
Ans: The tagline of Adidas is “Impossible is Nothing”.
Q. Is the Adidas franchise profitable in India ?
Ans: Adidas is a leading brand and very popular in India. Taking a franchise is a good choice and if it is managed effectively it will earn a good profit margin. The profit depends upon many factors like location, area of the store and how you manage the store.
Q. What is the profit margin of Adidas franchise ?
Ans: The profit margin ranges from 10%-15% on total sales. Initially the profit is less but after sometimes if it is managed properly and efficiently it can earn a handsome profit.
Q. Is any special qualification required for taking Adidas franchise ?
Ans: There is not any special qualification required for Adidas franchise. You should have general qualification and ability to manage the business.
Q. What support does Adidas provide to its franchisees in India ?
Ans: Adidas provides support to its franchisees in India in the form of training, marketing and promotional support, and ongoing assistance with operations and inventory management. They also provide access to their established brand reputation and customer base.
Q. Which segment of Adidas can earn good profit ?
Ans: Adidas has a wide range of products, as compare to cloths and accessories the footwear segment earns more profit.
Q. What is the Adidas Franchise cost in India ?
Ans: The franchise fee is not disclosed by the company, you can talk to the Adidas business representative for this query. He will tell you everything regarding the franchise.
Q. How long it takes for return on investment ?
Ans: It takes approx 2 years for ROI from the opening of the store.
Q. Who are the Adidas potential customers ?
Ans: The targeted audience or potential customers of Adidas are the sports person, or non-athlete person who is passionate about the sports, fitness conscious people etc.
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