You are on page 1of 34

Global Revenue Analysis in Billion Dollars​

Source- Statista​
Revenue Analysis in Indian Market

Revenue in 2019 Revenue across years


Source- Forbes India
Our Primary Research
Value Parameters Derived from the Research
Attribute Preferences for a Sport Shoe
Stakeholder Analysis
Digitas, a Publicis Group's digital agency, is its digital
partner for the Puma range as well as One8 in India.
Agencies Working With Adidas

The Adidas Group has announced its


decision to sign Carat as its media partner to
handle the planning and buying of media for
both Adidas and Reebok brands worldwide.
Beyonce signed a partnership deal
with Adidas, which will involve the launch of a
new footwear and apparel range as well as the
relaunch of her athleisure brand Ivy Park.
Cheil India has been signed on by Adidas as
its social media agency. 
Other agencies that work for Adidas
are Firstborn, Artificial Rome, Kokokaka, etc
         WORLD ATHLETICS NORMS
•From 30 April 2020, any shoe must have been available for
purchase by any athlete on the open retail market (online or in
store) for a period of four months before it can be used in
competition.
 Any shoe (whether with or without spikes) has to meet the
following requirements:
• The sole must be no thicker than 40mm.
• The shoe must not contain more than one rigid embedded plate
or blade (of any material) that runs either the full length or only
part of the length of the shoe. The plate may be in more than
one part but those parts must be located sequentially in one
plane (not stacked or in parallel) and must not overlap.
• For a shoe with spikes, an additional plate (to the plate
mentioned above) or other mechanism is permitted, but only for
the purpose of attaching the spikes to the sole, and the sole
must be no thicker than 30mm.
• The formation of the
council for the footwear and leather
sector is in line with the Industrial
(Development and Regulation) Act, 1951. 
Government Policies​in India
• The government is also providing duty
protection to these sectors from dumping of
Chinese products.​

• The Union government has formed a 25-


member development council to build a
robust supply chain for the footwear industry
that would make the sector
competitive in both domestic
and export markets

• The budget 2020 ,had raised import duty


on footwear from 25% to 35%.

• The existing challenge with our tax structure,


wherein the footwear below INR 1000 is taxed
at 5 per cent and anything higher than INR
1000 is taxed at 18 percent, has been
discouraging value addition as the tax
increase is steep.

• This dual rate of GST also causes possible


evasion by under-invoicing to below INR 1000. 
Porter's
five forces
Value Chain For Sports Shoes

Inbound Logistics Operations Outbound Logistics Product & Services


Companies The products received Apart from shoes, its
have established an from the suppliers are
 Over 1000 suppliers, from unrivaled network of manufactures Apparels,
80% are Asia based. They stocked at the facilities football kits, referee kts,
consumer touchpoints from where they are sent
are the major supplier even that include company- toiletries, fragrances,
for whole of America to the stores or to
owned retail stores, customers. Apart from sports equipment and
mono-branded that, the brand stores also accessories
franchise stores as well act as fulfillment centers
as wholesale stores. for e-commerce shoppers. 
• In its distribution channels, Nike focuses
on direct selling to the consumer with Nike
Direct. Comparing Nike’s distribution
channels, direct sales to the consumer
provide higher margins than do sales to
wholesalers. Nike’s DTC sales have
increased considerably, as has its
contribution to its overall sales mix.

• On a constant-currency basis, Nike’s sales to


wholesale customers increased by 6% in
fiscal 2019 compared to fiscal 2018. The
company’s sales through Nike Direct
expanded 13% over this period. The
Nike Direct and distribution company’s DTC sales rose to $11.7 billion in
fiscal 2019, up from $5.3 billion in fiscal
strategy 2014. That’s a CAGR (compound annual
growth rate) of 17.2%.
•PUMA distributes its products via
three different distribution
channels: wholesale, PUMA-owned
and operated retail outlets, and
eCommerce stores.
•Wholesale accounted for 77% of
net sales in 2019 and remains the
biggest sales channel for the PUMA
Group.

•Direct-to-consumer sales
represented a share of 25.4% of
total sales in 2019 compared to
24.3% in 2018. PUMA's gross profit
in the financial year 2019 increased

Distribution Channels
by 19.4% from € 2,249.4 million to €
2,686.4 million.

of Puma SE
Centralization of warehouses
• In 2018, Puma, one of the world’s leading sports footwear,
apparel and accessories brands, decided to invest in a
new distribution center in Geiselwind, Germany.

•  The main goal was to consolidate several warehouses


across Europe into one facility, creating the perfect
omnichannel DC.

•  Previously, Puma’s distribution channels were mainly


retail and wholesale. With the rise in e-commerce
demand, smaller and more frequent orders increased the
requirements for system performance.

•  The DCs in use were limited in their ability to adapt to the


change in order structure. So Puma executives decided to
move operations to a new, Central European warehouse.
How Puma Bringing it the Indian Way: Story of
India grew Ace •Turley’s Rubicon 2.0 
Inventory Management & Order
online sales by Management System​
Single Inventory Feed​
6X over one Global Inventory ​
Endless Aisle​
year?
Puma India had set up a multi-
channel (both online and •Catalogue Management System​
offline) business but they were
facing multiple problems in India.
Control over Pricing & Online
presence
Manufacturing in India
How it is done?
    SSIPL- The  Brand Hub is the largest authorized manufacturer of 
     Nike, Puma & Lotto for the Indian market.
They have dedicated development centers
• They manufacture footwear for certain international brands
for different brands. 
Use  all the globally accepted best such as Nike, Puma, Asics, Lotto and United Colors of
practices and processes such as Benetton. 
computer stitching, direct no sew, • Their first athletic footwear manufacturing facility in India was
vulcanization, foxing & auto clave, set up in 1995 at Kundli, Haryana followed by two
midsole painting and sublimation.  manufacturing facilities in Paonta Sahib, Himachal Pradesh in
They have an in-house capacity of all the year 2003 & 2005 along with an acquired footwear
rubber and injection phylon bottom manufacturing unit in Paonta Sahib, Himachal Pradesh in 2013
making.  They have hot and cold and which is run by M/S Shree Shoes.
TPU injection molding facilities as well.
• Average output : 24 lac per annum shoes

 KVIC (Khadi and Village Industries Commission) launches Khadi


fabric footwear.
How India is coping The China Connection
with China Supplies add text
• Americans purchase more than 1 billion pairs of shoes
a year, and at least 9.5% of them are manufactured
 Supply of raw material imports overseas, mainly in Asia.
such as laces, shoe lining, • About 65% of the footwear that goes on Americans'
buckles, ornaments, insoles, feet is made in China. Some carriers now offer 10-or
outsoles, cellulose board, shank 11-day transit times from Yantian, China, to Los
board, foam and packing Angeles-long beach.
material from China had stopped • An emerging trend for footwear importers is the move
completely since January 2020. toward direct shipments from Chinese ports. Hong
Kong used to be the largest port for footwear exports
 Footwear components can be from china, but shippers lose at least a day in the
imported from Italy or Spain, but move over the border into Hong Kong.
they cost more as compared to •  The footwear industry, however, is well-positioned to
China and these are not deal with tougher security regulations. Direct
importers like Nike inc. And k-swiss are major
manufactured in India, as it is importers. 
too expensive here.
Adidas Parley Collection
Click Forever Faster  
 Gym Designing
• Establishing a gym from the
scratch, including construction,
selection and setting of
equipment, & the interiors.

• Proper Gym with both online and offline functionality


• Special services like personal trainers also at online
Gym and mode, customized schedule and workout according to suitability &
availability of customer, complete & timely health checkups,
Nutritive Cafe meditations, Yoga and Herbal treatments.
• In built nutritive café where customers could get their personalized
meals as per the Diet Chart.
Thank You!!

You might also like