21 August 2024, Mumbai
German sportswear giant Puma is refocusing its India strategy to emphasise on the sports and performance industry, rather than just lifestyle and athleisure. Currently, about a quarter of Puma's sales in the country come from sports performance products, a figure that the brand expects could increase to a third in the near future.
In line with its performance-first strategy, Puma has partnered with the Athletics Federation of India as their official kit supplier to provide over 400 athletes with footwear, apparel, and accessories. The brand has also teamed up with the Indian Olympic Association as its official footwear partner, supplying podium and travel footwear, along with accessories for the Olympics.
Maintaining its position as India's leading sports and apparel brand, Puma recorded a 10 per cent sales increase last year despite challenges such as top management turnover and declining demand for discretionary products. For the fiscal year ending in December, Puma's revenue reached Rs3,274 crore, significantly surpassing competitors like Adidas, Nike, Reebok, Skechers, as well as fast fashion brands Zara and H&M.
Last year, Puma's former Managing Director AbhishekGanguly, along with sales and operations head Atul Bajaj and CFO AmitPrabhu, left to start their own sports firm. KarthikBalagopalan took over as the new managing director during a period when growth in the lifestyle and apparel segments was slowing after three years of post-pandemic ‘revenge shopping.’
Acknowledging the slowdown in demand, Balagopalan says, however, the overall growth rate of the category remains in the high single digits as consumers continue to invest in health and fitness. Sales are anticipated to recover by the upcoming festive season, he adds.
