Other BriefingsDecathlon’s Playbook: Cracking the Indian Sports Retail Market
French sporting goods giant Decathlon has become a model in India for building a profitable and sustainable business in a competitive sports retail market. We analyze its market entry, localized business model, expansion strategy, challenges, sustainability efforts, and key lessons for future growth.
India’s sports retail market has expanded rapidly over the past decade, driven by a young population, growing health consciousness, and increasing disposable incomes. Yet for many global retailers, the market has proven difficult to crack, with regulatory hurdles, infrastructure gaps, and price-sensitive consumers limiting growth.
Against this backdrop, Decathlon has charted a distinctive trajectory since its entry in 2009. By combining scale, affordability, and experiential retail, the French sporting goods giant has become a dominant force in India’s sports retail sector.
In this article, we explore Decathlon’s journey in India – covering its market entry, operational adaptations, expansion, competitive challenges, and sustainability initiatives – while drawing insights into how global brands can adapt to the complexities of the Indian market.
Market entry and early business strategy
Decathlon entered India in 2009 with a cautious approach, initially adopting a cash-and-carry model targeting institutions, clubs, and bulk buyers. This strategy allowed the company to build brand awareness without immediately confronting multi-brand foreign direct investment (FDI) rules that limited direct consumer sales at the time. As India’s regulatory framework evolved, Decathlon transitioned to operating as a 100 percent owned subsidiary, a move that gave it greater freedom over pricing, operations, and brand positioning.
Early hurdles included complex customs procedures, high import duties on sporting goods, and real-estate constraints. To counter this, Decathlon accelerated local sourcing, simplified supply chains, and opted for large land parcels on city outskirts rather than costly high-street locations. This combination of long-term regulatory navigation and operational flexibility laid the groundwork for the company’s later expansion.
Business model adaptation
Decathlon’s success in India rests on three defining adaptations:
1. Large-format, experiential stores: Unlike compact urban showrooms, Decathlon’s sprawling outlets – often over 20,000 square feet – serve as both retail destinations and recreational spaces. Customers can try products on-site, from bicycles to cricket bats, creating an engaging environment that builds trust and conversion. Locating these outlets on city fringes helped contain costs while offering ample space for product variety.
2. Omnichannel integration: Decathlon has steadily grown its online presence through its website, mobile app, and tie-ups with third-party platforms. Market reports also highlight the retailer’s ongoing investments in digital channels, including click-and-collect services and hyperlocal deliveries, ensuring consumers in tier-2 and tier-3 cities also have access to its product range.
3. Affordable in-house brands and local sourcing: Rather than competing in the premium sportswear space dominated by other major global players such as Adidas, Nike, and Puma, Decathlon focused on affordability. Its in-house labels, spanning over 70 sports, are designed and produced with an emphasis on functionality and value. According to an Indian Express report from July 2025, Decathlon has doubled down on domestic manufacturing, sourcing everything from rugby balls to umbrellas locally, which reduces costs, shortens supply chains, and improves resilience.
Expansion and growth
From opening its first Bengaluru store in 2009, Decathlon has expanded to over 100 outlets across India as of 2025, along with a parallel push into digital channels. Its financial performance reflects this scaling-up: Decathlon India posted INR 40.08 billion (US$451 million) in revenues and INR 1.97 billion (US$22.2 million) in net profit in FY 2023-24.
The growth strategy blends physical and digital expansion. Large-format stores remain the anchor for consumer engagement, while online platforms broaden access. Partnerships, such as Decathlon’s tie-up with India’s Reliance’s AJIO, extend its reach to millions of new consumers. With rising brand visibility, Decathlon is targeting smaller markets, where demand for affordable sports products is surging.
Challenges and opportunities
Despite its notable success, Decathlon has faced structural challenges in India. Logistics remains costly in the country due to underdeveloped warehousing networks and fragmented last-mile delivery systems, particularly in smaller cities. Real estate acquisition continues to be a hurdle for large-format outlets. Counterfeit goods and price-sensitive consumer behavior also pressure margins, requiring continuous brand education and trust-building.
On the competitive front, Decathlon straddles a unique market space. Premium global brands like Adidas and Puma compete on lifestyle positioning, while local retailers target specific sports niches. Decathlon’s competitive edge comes from its breadth – covering over 70 sports categories under one roof – combined with affordability and quality assurance. This positioning allows it to serve a mass-market base that many rivals struggle to capture.
Looking ahead, the company plans to source up to US$3 billion worth of products from India by 2030 and create 300,000 jobs, as per a BW Marketing World report. These targets showcase Decathlon’s role not only as a retailer but also as a partner in India’s manufacturing and employment ecosystem.
Wider market impact and key lessons for foreign manufacturers
Decathlon’s approach is reshaping the Indian sports retail sector. By offering affordable products across a wide spectrum, it has raised consumer expectations around accessibility and variety. Its emphasis on local sourcing supports the growth of Indian manufacturing, while its omnichannel integration pushes the broader retail ecosystem toward more efficient physical-digital synergies.
For global retailers, the Decathlon case demonstrates the value of patience, adaptation, and local embedding. Success in India requires not just capital and brand strength, but a willingness to redesign operations – whether through store formats, supply chains, or sustainability practices – for long-term relevance.
ALSO READ: India’s Sports Goods Manufacturing and Export Outlook 2025
Conclusion
The French company’s India journey illustrates how an international brand can thrive in India by balancing global strengths with deep local adaptations. Decathlon’s story is not one of rapid, unsustainable expansion, but of carefully calibrated growth built on affordability, accessibility, and sustainability. For other multinationals eyeing India, Decathlon provides a clear lesson: in this market, long-term commitment and operational agility are the true differentiators.
(US$1 = INR 88.71)
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