Adidas the German Sportswear Company is planning to launch sport shoes in the rural market of India for one US Dollar a pair.
This news was shown on the one of the local TV channel few months back. According to the company they would be marketing these shoes through the net work of distributors in rural India.
This should be good move and rural Indians should be benefited as there is no shoe available at such a low cost! Even the local made shoes would cost minimum of $ 2-3. According to the Company they are having the plans
of mass production of these shoes in India and they want to produce this product without incurring any losses, which they have incurred in Bangladesh during their initial trial sales only.
In Bangladesh they incurred a production cost of $3.00 and added taxes of $ 3.5 by the Government of Bangladesh per pair has made 6.5 dollars as the production cost per pair. And they had to sell these shoes at one dollar which made them to suffer heavy losses there!
It is really surprising and worth watching how this Company is thinking to withstand such losses in India! It would be really interesting to wait and watch to see what would be the business ‘Mantra’ behind the much anticipated success of marketing this product by this Company in Indian Market!
Your comments please!