Indian government rejects Decathlon plan

French sports goods retailer Decathlon’s plan to open a single brand online store in India has been rejected by the Department of Industrial Policy and Promotion (DIPP).

Decathlon argued that by allowing it to undertake retail trading through e-retail channel, it expected that local sourcing from Indian vendors would increase in the long run, thereby benefiting the Indian vendor base, both qualitatively and quantitatively.

However, the DIPP has turned down the proposal citing the foreign direct investment (FDI) policy on single-brand retail doesn’t allow online sales.

The policy says single-brand product retail trading in any form, by means of e-commerce, would not be permissible for companies with FDI engaged in the activity of single brand retail trading.

Decathlon runs 11 single brand stores across India with the 12th store opening in June. It also offers products online through partnerships with online resellers.

Other foreign e-commerce players like Amazon operate a marketplace model in India, which allows third party merchants to sell their products to consumers.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.