Adidas eyes retail operations in RP

Well-known sportswear manufacturer Adidas is reportedly interested in applying for qualification under the country’s Retail Trade Liberalization Law.

According to Board of Investments (BOI) managing head Gregory Domingo, representatives of Adidas have made inquiries from the BOI about entering the country as a direct retailer under Category D of the Retail Trade Liberalization Law.

Under Category D, enterprises specializing in high-end luxury products with a paid-up capital of $250,000 per store of P12.5 million, need not organize a corporation, partnership or association under Philippine laws. However, the applicant must have a network of at least P50 million and must have at least five retail branches or franchises in operation anywhere in the world.

The application must also have a proven retail track record of at least five years.

Category D, Domingo revealed, has not yet been tapped by any other applicant.

All the other retailers which were allowed to operate in the country under the same law were mass retailers such as S&R, Watsons and fastfood giant McDonalds.

Domingo stressed though that if government allows Adidas to become a direct retailer, it must still honor its existing franchise agreements with local retailers.

Adidas is currently the second largest sportswear manufacturer, second to Nike and ahead of Reebok.

Adidas recently acquired Salomon, a French manufacturer of skis and other sporting goods.

Salomon also owns the golf club brand Taylor Made and cycle brand Mavic.