With the advancement in the technology, new businesses have evolved over the years and this has led to a scenario where it becomes difficult for new entrepreneurs to start their own venture and build a brand from scratch. Hence, many business owners show a keen interest in acquiring a Franchise of a well-known brand in the market. With so many different industries and different brands competing in the market, it becomes difficult to choose the right brand. However, when it comes to apparel and footwear, the first brand that crosses every individual’s and business owner’s mind is Adidas.
The brand needs no introduction, Adidas has been the most preferred and trusted company by the customers when it comes to footwear and apparel. Adidas is a German-based multinational brand that is renowned and favored worldwide by the people on a large scale. Currently, the brand has been able to maintain its dominance in the market or rather the footwear and apparel industry since more than 80 years. The brand’s success and scale of business are no different when it comes to India, the Indian market is also dominated by Adidas and is the first choice of every consumer when buying footwear.
Although the brand needs no presentation of statistic value to prove its worth, in the financial year of 2017-18, the net profit of the brand in all aspects reported an increase of around 53 %. The reason why regarding these statistics is important is because Adidas is one of the very few brands that had reported such a huge-scale profit in the Indian market. Be it Footwear or apparel or even the sports equipment, Adidas has been able to grab the upper hand in every segment of the market it enters, all thanks to the brand value that it has created over the years.
Advantages of Acquiring
Every potential Franchise unitholder goes with the intention of acquiring the Franchise of a brand to take advantage of the brand value. However, when it comes to Adidas, there are several other benefits that can be derived by the interested candidates. The various advantages are mentioned as follows.
- One of the crucial advantages of acquiring the Adidas Franchise is the brand value that has evolved over many years. As discussed above, Adidas is the first choice of every consumer who wishes to make a purchase in the footwear segment. There are various brands in the market that has won the hearts of many in the footwear segment, however, despite all of this, Adidas remains the first choice of every consumer as a result of its brand value.
- Another advantage that unitholders can benefit from is the wide range of products and segments that the brand deals in. Initially, the brand started its operations and gained momentum in the business by the selling of footwear. However, in the recent years, Adidas has also started its operations and created a huge engagement in the segment of Apparel and even the sports equipment. This gives unitholder a wide range of segments and products through which they can earn profits.
- One of the reasons why many interested and potential Franchise unitholders prefer or think of acquiring Franchises of brands like Adidas is because of the low-cost high-profit model that the brand offers. Usually, all the other brands in the market that rivals the brand value of Adidas, offer their Franchise that requires an investment that crosses even more than 50 Lakhs INR. However, Adidas offers their Franchise at a very reasonable price.
- As a unitholder of Adidas, you do not need to reserve any capital for the marketing of your business, all thanks to the brand value that has been developed by the brand. With a wide range of varieties to offer, business owners can easily focus and scale their business.
Investment Required for Acquiring
Being one of the renowned brands in the footwear and apparel industry, Adidas has developed a strong brand value and trust in the minds of the consumers. The initial or the total investment amount that is necessary for acquiring Adidas Franchise ranges between 25 to 50 Lakhs INR. The mentioned investment amount covers all the marketing costs, furniture, interior, fixtures, and so on. Hence, an interested candidate can expect to have a total investment of around 50 Lakhs INR and cover all the aspects that are necessary for starting the business.
Requirements for Starting
To acquire the Franchise of such a renowned brand, the interested candidates are expected to fulfil certain criterions to be eligible to acquire the Franchise. The necessary requirements are mentioned as follows.
- For every Franchise that you wish or plan to acquire, you always need to follow the criterion of having the required space for running your business. For acquiring Adidas Franchise, you need an area around 1000 to 1500 sq. feet and your unit should be around a busy area or a street, preferably malls.
- There is no directives or specific mention from the brand with regard to the minimum number of employees that are necessary in each unit. However, one may consider hiring at least the minimum employees that would be necessary to handle a business running within 1000 to 1500 sq. ft.
- There is no mention of any specific experience qualifications. The brand also provides with the necessary training to the employees of the staff members of the unit that helps to adhere and maintain the standard of the brand.
The easiest way to apply and get in touch with the representatives of Adidas is to visit the official Indian website of the brand. On visiting the website, you would find various ways to contact the representatives or you can fill an application form with the necessary details. On doing so, the representatives of the brand would contact you on their own and the process would move further. The official website of the brand is mentioned as follows,
Is Adidas still a Profitable business?
Yes, depending on how you build your customer base.
Do you need any experience in the footwear industry to acquire Adidas Franchise?
No, you do not require any special qualification to acquire the Franchise of Adidas.
Which segment of Adidas brand is incurring good profit?
As compared to Apparels and sports equipment, the footwear segment of Adidas is making a huge profit.
What is the royalty fees of Adidas?
There is no official mention of royalty fees, you can enquire about the same by contacting the brand representatives.
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