Puma, the German sportswear brand known for its shoes and athletic apparel, entered the Indian market in 2005. Since then, it has established itself as one of the major players in India’s growing sportswear industry. In this article, we will look at Puma’s India entry strategy, its marketing efforts, product portfolio, and growth over the years.
Puma’s Background
Puma SE, commonly known as Puma, is a German multinational company that designs and manufactures athletic and casual footwear, apparel and accessories. It was founded in 1948 by Rudolf Dassler. Puma is the third largest sportswear manufacturer in the world.
Some key facts about Puma:
- Headquarters: Herzogenaurach, Germany
- Founded: 1948
- Founder: Rudolf Dassler
- CEO: Bjørn Gulden
- Products: Footwear, sportswear, accessories
- Revenue (2021): €5.77 billion
- Number of employees (2021): 14,374
Prior to entering India, Puma already had a strong global presence across regions like Europe, Americas and Asia Pacific. However, the early 2000s presented an opportunity for Puma to tap into India’s growing apparel and footwear market.
India Entry Strategy
Here are some key aspects of Puma’s strategic approach to enter and establish itself in the Indian market:
Franchise Model
Puma adopted a franchise model to enter India. It partnered with local companies by licensing its brand name and products to these franchisees who invested in setting up Puma stores. This allowed Puma to expand rapidly without major direct investments.
Metro Cities First
Puma began its India operations by first establishing a presence in major metro cities like Delhi, Mumbai, Bengaluru, Chennai and Kolkata. The larger urban population with higher disposable incomes presented the initial target market.
Joint Ventures
Puma formed a joint venture named Vulcan Sports Pvt Ltd with Indian business conglomerate J C Bhupathi group. This JV held the exclusive rights to distribute and market Puma products in India. In 2012, Puma bought out the JV by increasing its stake to 100%.
Local Production
To align with the ‘Make in India’ initiative and to keep costs low, Puma began local production of shoes and apparel in India through contract manufacturers.
Product Mix
Instead of concentrating only on performance shoes and gear targeted at serious athletes, Puma adopted a lifestyle approach with focus on fashion and casual wear for men, women and kids.
Marketing Strategy
Some highlights of Puma’s marketing and promotion campaigns in India:
Celebrity Endorsements
Puma signed endorsement deals with leading sports personalities across cricket, football and motorsports like Virat Kohli, Sunil Chhetri, Piyush Chawla and Narain Karthikeyan.
Influencer Marketing
The brand actively engaged popular influencers on social media platforms like Instagram and YouTube to promote its products among younger audience.
Omnichannel Presence
Along with exclusive brand outlets in malls, Puma expanded availability across e-commerce platforms like Myntra, Flipkart, Amazon and on its own website.
Digital Marketing
Puma invested heavily in online promotions through social media, online video platforms and targeted mobile ads. It created localized campaigns for Indian festivals and events.
Sporting Events
The brand remained active in sponsoring major sports tournaments in India across football, motorsports and cricket.
Product Portfolio
Here are some of the main product lines and sub-brands Puma offers in the Indian market:
| Category | Sub-brands / Products |
|---|---|
| Footwear | Shoes for running, training, motorsports, soccer, golf, yoga etc. |
| Sub-brands like Puma Speed, Puma Drift Cat, Puma Future | |
| Apparel | Sportswear – T-shirts, shorts, track pants, jackets, swimwear |
| Casuals – T-shirts, shirts, jeans, hoodies, dresses, skirts | |
| Accessories | Bags, backpacks, belts, wallets, caps, socks, watches |
Growth and Expansion
Here is an overview of Puma’s growth trajectory since it entered India in 2005:
Store Count
Puma began with just 1 store in Delhi in 2005. As of 2022, it has over 350 exclusive brand outlets across 80+ cities in India.
Revenue Growth
Puma reported revenues of ₹16 billion in India in 2021. This is a nearly 10X growth from around ₹1.5 billion revenues in 2010.
Market Share
Thanks to its youth-focused image and effective marketing, Puma has captured nearly 15% share in India’s branded sportswear market which is valued at around ₹100 billion.
Workforce
Puma India’s workforce has expanded from around 100 employees in 2010 to over 1500 direct and indirect employees in 2022.
Manufacturing
While Puma began with imports, it now has contract manufacturing agreements with over 15 vendors across India producing shoes, apparel and accessories.
E-commerce Focus
Puma has sharpened focus on e-commerce partnerships and D2C online sales. Its website www.puma.com generates nearly 15% of its India revenues.
Conclusion
Puma’s entry and growth in India demonstrates how a global brand can adapt to local market conditions. Its franchise model, metro-first approach, sports marketing and youth-focused product mix have helped Puma establish itself among the top sportswear brands in India within a decade. With continued economic growth and rising consumerism, Puma is well placed to expand its presence across smaller cities and towns in the coming years.