Sports Retailinf in India: Opportunities, Constraints and Way Forward

Sports retail is a small but fast growing segment of modern retail in India. Recently, thecountry has been hosting many international sports and this has given a boost to thissector. Many foreign and domestic corporate retailers have entered sports retail. Sportsgoods manufacturing is a focus area in the Foreign Trade Policy (2009-2014) and thegovernment is taking a fresh look at the current foreign direct investment policy inretail.In the above context, this paper provides an overview of the sports retail sector in India.Specifically, it presents the different retail formats, consumer profile, retailers’ supplychain and sourcing. It also examines the retail and sports policies and their implicationsfor this segment of retail, analyses the barriers faced by this sector and suggests policyreforms.The study found that the policy of allowing 51 per cent FDI in the single-brand formathas not benefited this sector. The FDI ban on multi-brand retail is not an entry barriersince foreign retailers can establish their presence in India through other routes. Thestudy found that since this is a niche segment of retail, FDI would not have an adverseimpact on traditional retailers. It concludes that government should allow 51 per centFDI in multi-brand sports retail. This will increase sourcing from India, lead todiffusion of technology, proliferation of brands, investment in sports and sportspromotion, among others.