Adidas, the renowned German athletic apparel and footwear giant, is gearing up to unveil its inaugural outlet in Bangladesh this month, situated at Gulshan-1 in the capital.
Partnering with the prominent local conglomerate DBL Group, Adidas aims to tap into the vibrant Bangladeshi market.
“We have scheduled a soft launch on May 11. A formal inauguration will follow, graced by the presence of Adidas’ regional managing director,” shared MA Rahim Feroz, vice chairman of DBL Group, with TBS.
DBL Group has previously introduced esteemed brands such as Puma from Germany, Nike from the United States, and Levi’s from America to Bangladesh.
This venture marks Adidas’ official entry into Bangladesh, according to Rezwan Habib, head of Business Operations at DBL Lifestyles, the retail arm of DBL Group.
He further expressed plans to expand the store network based on consumer feedback.
Currently, DBL Group manages five Puma outlets across Banani, Dhanmondi, Bashundhara City, Gulshan Unimart, and Chattogram. They also operate a Nike experience store in Banani and a Levi’s store in Dhaka. Future expansion plans include establishing stores in strategic locations nationwide, including the bustling port city of Chattogram.
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Highlighting the immense growth potential, Rezwan Habib emphasized Bangladesh’s predominantly youthful population, known for their keen awareness of lifestyle trends. This demographic presents a promising market opportunity for Adidas and other lifestyle brands alike.
International Brands Elevate Local Partner’s Profile
MA Rahim Feroz, Vice Chairman of DBL Group, emphasized the strategic significance of launching various international brand stores in Bangladesh, highlighting the primary objective of enhancing the group’s brand image in conjunction with these global names.
Feroz pointed out the evolving landscape of Bangladesh’s economy, noting a surge in consumer preference for international brands. He observed a significant shift where consumers, who previously sourced these products from abroad, are now readily embracing them domestically.
The expansion of stores, Feroz explained, is driven not only by the pursuit of profitability but also by the changing consumer dynamics. Initially, there was a preference for mid-range products, but there is now a growing demand for high-end offerings, aligning with the increasing allure of multinational brands.
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Drawing from the success story of Puma, Feroz highlighted an impressive 10% year-on-year growth in sales within the Puma portfolio, driven by the discerning tastes of local consumers. To cater to this demand, DBL Group has increased the import of high-end products to approximately 15%.
In assessing the market dynamics, Feroz positioned Adidas as occupying a premium segment compared to Nike, with Nike superseding Puma in brand segments.
However, Feroz acknowledged a challenge posed by high import taxes, limiting flexibility in pricing and offering discounts to customers. He expressed optimism that a reduction in import taxes would foster a more competitive pricing environment, benefiting both consumers and retailers.
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With the annual sales of apparel in the local market estimated to exceed $15 billion, Feroz highlighted the immense potential for growth and further collaboration within the vibrant Bangladesh textile industry.
