Modern multi-brand sports retailing appears to be shaping up in India, with the expansion of several specialist store formats. Among the most convincing concepts is that of Planet Sports, which turned into a hard-hitting specialist chain with 45 stores at the end of March this year, up from 34 stores at the same time last year.
Planet Sports is part of the Sports Division of Pantaloon Retail India Limited (PRIL), which was launched less than three years ago. This division itself is part of the larger Future group, owned by the Biyani family, which is an influential player in Indian retailing. The Sports Division has 75 stores in more than 30 Indian towns, consisting of the Planet Sports stores along with 11 Adidas stores, 10 Converse stores, four Puma stores and another five stores under the Sports Warehouse discount format.
Although lifestyle products still account for a large share of the Indian sports market, Planet Sports displays many functional ranges for sports from cricket to swimming, racquet sports, action sports, basketball and football, each of them with dedicated merchandising. It has therefore decided to focus on sizeable store formats and opened what is described as India’s largest specialist store, at the R-City Mall in Mumbai, with a surface of about 6,300 square feet.
Planet Sports’ sales increased by about 45 percent for the financial year until the end of March, equivalent to a comparable sales growth of 18 percent. It intends to expand its retail network with another 10 Planet Sports stores by the end of March next year, and to continue adding sports categories such as boxing, and more indoor and adventure sports. Like many other sports-related companies in India, Planet Sports intends to strongly capitalize on the Commonwealth Games that are to be held in the country in October.
Furthermore, the PRIL sports division has a flurry of licensing and distribution agreements with international brands, from Converse to Wilson, Prince, Spalding, Speedo, Mitre and most recently Salomon. Although the company does not own any manufacturing plants in India, it sources its own products for some of these brands, particularly Converse, Wilson, Prince, Spalding, Speedo and Mitre, chiefly apparel and footwear. Like other large Indian distribution companies, the PRIL sports division relies on a network of about 50 regional wholesalers and agents to sell these brands to more than 1,000 stores across the huge country.
The company estimates that the Indian sports market as a whole has been growing at an annual rate of about 12 percent for the last few years, to reach a sales equivalent of about $425 million for sports apparel, footwear and equipment, including lifestyle products. However, this does not include sales on open markets, which continue to thrive in India, in spite of the rapid rise of organized retailing.
