Home / Knowledge / News / Apparel/Garments / Puma, Adidas seek govt nod for e-commerce portals
Puma, Adidas seek govt nod for e-commerce portals
08
Mar '16
German athletic footwear and apparel makers Puma and Adidas have sought the government's permission to operate their own e-commerce portals.

They are the first among foreign companies to take advantage of a change in law that allows single-brand overseas retailers to sell online as well in India, The Economic Times has reported.

The two firms have also sought clarification and approval from the government on whether their existing wholesale entities can engage in direct retailing and e-commerce.

"Based on the new regulation on single-brand retail, we have sought approval for Puma Sports India to do retail and e-commerce. The same entity was originally allowed to do wholesale of Puma products," said Abhishek Ganguly, Managing Director of Puma India.

Puma had filed an application on march 3 with the Department of Industrial Policy & Promotion (DIPP), the nodal agency for foreign direct investment in India. Adidas has sought a similar approval from the DIPP in an application on the same date.

In November 2015, the government had relaxed the rules for FDI in retail, permitting manufacturers to sell their products through wholesale, retail and e-commerce channel as well for the first time.

Even as India allowed single-brand retailers to set up their own stores, such companies also maintained wholesale subsidiaries to supply to their chain of franchisees.

That made things cumbersome as such companies had to set up separate entities for retail and wholesale, with different warehousing, inventory and accounting.

"The government's new FDI policy on single brand makes things easier and simpler for a foreign entity to invest in retail.

It will bring efficiency in supply chain, inventory, sourcing and generating employment in retail," Ganguly of Puma said. "It's a very progressive approach from the government. Once our approval comes through, it will make business much smoother for us."

Adidas had in November 2015 announced its intent to open its first fully-owned outlet in India in the second half of the fiscal, after it got clearance to invest in local retail operations. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Apparel/Garments | On 25th Apr 2017

Walmart's Project Gigaton to help reduce emissions

Walmart has launched a sustainability platform called Project Gigaton ...

Courtesy: Arvind

Fashion | On 25th Apr 2017

The Arvind Store launches ready-to-wear brand for men

The Arvind Store has announced the launch of its own ready-to-wear...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search