Business Desk : dhakamirror.com
Adidas, the German athletic apparel and footwear giant, is set to open its first outlet in Bangladesh this month at Gulshan-1 in the capital.
The three-stripes will partner up with leading local conglomerate DBL Group, which will facilitate its entry into the Bangladesh market.
“We have planned a soft launch on 11 May. There will be a formal launch later with the presence of Adidas regional managing director,” MA Rahim Feroz, vice chairman of DBL Group, told TBS.
Previously, DBL Group introduced the German sportswear brand Puma, the American athletic footwear and apparel brand Nike, and the American fashion brand Levi’s in the country.
It will be the first official outlet in Bangladesh, said Rezwan Habib, head of Business Operations at DBL Lifestyles, the retail business concern of DBL Group.
He said there are plans to increase the number of stores based on the response received from consumers.
According to company officials, they currently operate five Puma stores in Banani, Dhanmondi, Bashundhara City, Gulshan Unimart, and Chattogram.
Additionally, there is a Nike experience store located in Banani and a Levi’s store in Dhaka. They also plan to open stores in key locations across Bangladesh, including the port city.
Rezwan Habib also mentioned that the market has huge growth potential, as the country’s population is mostly youth-centric and they are very aware of lifestyle trends.
Int’l brands help to brand local partner
DBL Group’s Vice Chairman MA Rahim Feroz, said, “The primary objective of launching a number of international brand stores in Bangladesh is to brand our group, the DBL Group, in connection with these global brands.”
“Besides, the country’s economy is experiencing growth, and there is a rising number of individuals regularly using products from international brands. Earlier, these customers used to bring these products from abroad,” he added.
He also said the expansion of stores was driven by profitability, although they did not anticipate significant profits initially.
“Customers focus on high-end products from mid-range. Initially, customers were looking for mid-range products, but now some of them are keen to buy high-end products, in line with the growing demand for multinational brands,” he mentioned.
Referring to the experience from Puma, Feroz said, “We are enjoying about 10% year-on-year growth in sales under the Puma portfolio. Considering the local customers’ demands, now we are importing about 15% of high-end products.”
He also noted that Adidas occupies a higher segment in the market than Nike, while Nike is over Puma in brand segments.
He said that some customers wanted discounts because they felt the prices were a bit high. “However, we can’t give discounts because we already pay 100% to 125% in duties and taxes when importing.”
If the import taxes were reduced, it would enable them to offer products at a more competitive price, said Feroz.
According to the Bangladesh textile mills association the annual sales of apparel in the local market is estimated to over $15 billion.
– Input from TBS was used in this article.
