he prospect of cooperation in the Indian sales market drove Adidas shares to their highest level since June last year on Thursday. The paper went up by one percent to almost 187 euros, while the leading German index Dax was on the spot. The Adidas price has now doubled from the recent low in November 2022.
According to a report by Indian pay-tv broadcaster CNBC TV18, Indian Bata is in talks with Adidas about a collaboration. Bata is a shoe manufacturer and retailer. The talks are at an advanced stage and the scope of the cooperation is emerging, according to informed persons. Bata India shares rose 5.5 percent on the Mumbai Stock Exchange.
“Adidas is looking at ways to accelerate revenue growth over the next three to five years, and India offers interesting opportunities,” wrote Deutsche Bank analyst Adam Cochrane. With 2000 branches in India, Bata is one of the leading suppliers. Last year, 48 million pairs of shoes were sold there.
According to Cochrane, Adidas has two strategic options. The Franconians could either supply Bata as a wholesaler or offer Adidas shoes themselves in Bata’s shops according to the “shop in shop” principle. In the first case, Adidas could insist on exclusivity as a western brand. In both cases, however, the Dax group would accelerate growth in a market that will be important in the long term. (dpa)