Reliance Brands May Propel Adidas Retail

Economic Times:

Adidas may bank on Reliance Brands, a subsidiary of Reliance Retail, for expanding its store network in the country. Reliance Brands is in discussions with Adidas to pick up store franchisee rights.

Sources said Reliance has pitched in to accelerate store development plans of Adidas. Reliance Brands and its parent, Reliance Retail, till now have stayed focused on striking equity joint venture or exclusive licensing deals to launch lifestyle brands in India.

But the move with Adidas is a pure distribution play, which is considered the single biggest challenge for the global lifestyle companies. There are just a few independent distribution companies focused on the lifestyle sector, with Aryan Lifestyle, part of Emaar MGF, and Primus being the prominent ones. These entities primarily pick up store franchisee rights for global brands operating in India, and the entry of Reliance into this space is significant, industry observers added.