After India’s Tata giving Indian a Rupees 1 Lakh car, the Nano, Adidas, the German sportswear and equipment maker, is soon going to launch a shoe costing just one dollar or Rupees 50 a pair in India.
Reported the Adidas boss Herbert Hainer yesterday.
[Do you Know: ADIDAS is a acronym for All Day I Dream About Sports]
Notably, India is the first country to get Adidas’ One USD shoe. The sportswear giant launched the same shoe in Bangladesh last year and failed. In Bangladesh the company managed to sell just 5,000 pairs during test phase and sustained losses as the shoe costed Adidas approximately 6.5 USD or Indian Rupees 325 to make the shoe (3 USD manufacturing cost + USD 3.50 in import duty ). But Adidas is hopeful that unlike in Bangladesh mass production would be possible to supply the growing Indian market.
Adidas plans to sell the One Dollar shoe in villages through a distribution network. The company is still silent regarding when or where it would be launched (Hope that it launches the shoe in colder and fashionable regions).
Best of Luck to Adidas for its One Dollar Shoe in India. But, there are many factors which will contribute to Adidas’s success or failure in India as well. For instance, a large region of India doesn’t have a shoe culture, because of tropical temperatures. That apart, Adidas must also look at how Indians spend whatever money they make. Indians may be money minded; but many a times they seem to be money minded for things, which are still unknown to big businesses. For instance, an Indian will depend on PDS for food. But when it comes to clothing and fashion, their buy will be solely on aesthetics.
Adidas may be aiming at make a loyal fan base in India, a group which will enter the Adidas sway with a Rupees 50 shoe; but later transition to pricier Adidas shoes; But the fact that the company is hinging on the premise — Indians capable of buying a 50 bucks shoe can shell out more in future; contradicts the company’s move to sell shoes in Indian villages. As wherever it markets the shoe, the shoe must be good looking.
Hence, it would be better for Adidas to market the shoe among those demographies which can appreciate the Low price attribute of the shoe and give weightage to comfort more than the aesthetics. One such group can be the College going population.