Introduction:
When the France-based sports brand Decathlon first entered the Indian market no one expected it to overtake giants like Adidas, Puma, and Nike which had successfully made a place for themselves in the Indian market post much struggle. The year 2009 marked the debut of Decathlon in India and the brand rapidly made its mark in the sports retail industry.
Albeit new it managed to outshine its competitors and become the most recognized sports retailer in India through its strategic move to focus on the vast untapped unorganized sports sector rather than the organized sports sector which formed the focus area of its competitors.
So, what is the reason for its success?
Factors for its Unprecedented Success
Decathlon’s successful stint in India is often attributed to its understanding of the Indian customer’s psyche, their desire to receive value for money, the immersive store experience offered by all Decathlon stores, the strategic layout of the stores that compels buying, the highly trained and enthusiastic salespeople who are passionate about sports and the quality products that Decathlon provides to the never before tapped market of sports newbies with limited funds to spare.
However, the rarely discussed factors contributing to its ongoing successful stint are:
1. E-commerce penetration:
Decathlon is best known for its immersive store experience and its strategic store layout, however, another major factor for its continued success is its increasing online presence. India’s expansive geographical landscape makes it very challenging to reach many areas however, Decathlon has strategically created an online presence to ensure its products are available to customers all over the country despite having physical stores only in limited areas. Foreign businesses vying to enter the Indian market must take a cue from Decathlon and create an online presence to take advantage of the country’s massive online customer base.
2. Mobile app development:
Decathlon’s astute observation of the growing smartphone penetration and the associated mobile commerce in India led to the development of the user-friendly Decathlon mobile app. With features like easy payment, product review, and personalization this app has been enhancing the shopping experience of online customers. Decathlon’s market vigilance helped it enter the mobile commerce market with the right app at the right time. Foreign entrepreneurs looking to tap the Indian smartphone shoppers must take a que from Decathlon and create an app that is best suited to the temperament and tastes of the Indian customer.
3. Supply chain optimization:
India’s massive size coupled with low infrastructure facilities like jampacked roads and unreliable transport systems have been a sore spot for sellers operating within India. For online retailers, this issue poses an added disadvantage as the timely and reliable delivery of products becomes a hassle. Decathlon’s ingenuity in establishing regional distribution centers has been a step in the right direction. Using the latest technologies for logistics and inventory management Decathlon has been beating the competition with its innovative supply chain management techniques. Businesses interested in entering the Indian market must borrow a page from the Decathlon book and invest in setting up systematic and streamlined supply chains to ensure on-time reliable delivery of products throughout India.
4. Understanding the market:
Decathlon’s success can be greatly attributed to its understanding of the Indian market and customers. Decathlon’s consistent efforts in analyzing customer feedback and data have helped it create products that are tailored to the tastes and desires of Indian customers. Decathlon’s tactical move of prioritizing data analytics has helped it to gain insight into the behavior of Indian customers and made strategizing easier.
5. Channel integration:
Decathlon provides a seamless shopping experience to its customers across all channels be it in-store, online, or via mobile app. Supportive technology, an effective team for coordination across channels, and adaptability to the changing tastes and preferences of customers are what have made omnichannel integration possible for Decathlon. The option to purchase products seen online from physical stores or through Decathlon’s mobile app or online website makes the shopping experience for customers wholesome and hassle-free. New entrants into the Indian market are more likely to succeed if they adopt the omnichannel integration strategy adopted by Decathlon to make the shopping experience of their customers convenient.
Wrap Up
From a cash-and-carry retailer in 2009 to being approved for single-brand retail in 2013 and registering a 37% growth in sales at INR 3,995 Crore on March 31st 2023, Decathlon has come a long way on its Indian journey. Decathlon’s unparalleled understanding of the Indian market and on-point strategies are what make it a perfect case study for foreign entrepreneurs looking to launch in India. Using Decathlon as a guide map foreign entrepreneurs can create launch strategies that are tailor-made to overcome the hurdles arising due to the vast expanse and infrastructure issues faced by the country while successfully meeting the needs, tastes, and preferences of the Indian customers.
