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Adidas to introduce $1 shoe in India

Monday, 21 November 2011

To attract a large customer base in India, German sportswear and equipment maker Adidas is planning to introduce a shoe pair costing only $1. This would be especially sold in Indian villages through a retail distribution network. It had earlier launched $1 shoe in Bangladesh, where it did not garner much support. However, instead of giving up on the initiative, it is planning to launch the same in Indian villages. It sold around 5 000 pairs during the test phase without making any profit since the making cost of a pair is $3, plus the company had to shell out another $3.50 as import duty. But the Adidas feels that unlike in Bangladesh, mass production of shoes would be possible to supply the emerging and demanding Indian market.

Earlier this month Adidas said it was raising its full-year earnings targets after a stronger-than-expected third quarter and first nine months. It is now eying sales growth of close to 12 per cent instead of 10 per cent expected previously, while earnings per share are projected to rise by nearly 16 per cent.

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