Lotto to invest $3.5 million in India this year

Written by Neha Pal | New Delhi | Updated: Apr 8 2010, 04:12am hrs
Italian sportswear maker Lotto Sports Italia, which shares the fifth position among international brands in the Indian sportswear market after Reebok, Adidas, Nike and Puma, has plans to invest $3.5 million, including advertising, in 2010 in the Indian market. Lotto is targeting a 40% jump over its last years turnover of around $10 million.

Luca Tomat, business unit director of Lotto, Asia-Pacific, told FE, Lotto Sports is quite aggressive about retail expansion and will increase the number of its exclusive outlets to 50 from 31 at present by the end of this year.

At present, Lotto products are available in 1,700 outlets in the country, of which, 31 are its exclusive stores.

Tomat said that Lotto would be launching its new range of running shoes that would be based on laceless concept known as Zhero Gravity shoes. We have also come out with our new range, Detroit, worth Rs 3,999, said Tomat.

Lotto operates in India under a master licensee arrangement with Sports Lifestyle, and Tomat said that the pact between the two partners have been extended for another 15 years, with a new contract till 2025.

Footwear contributes 60% to Lottos overall sales in India, while apparels and accessories account for 35% and 5%, respectively. When asked whether the Italian company has any plans to involve a local star for its endorsement, Tomat said, At present, we have plans to get our brands endorsed by international stars but in the next three years we plan to have local stars also.

Lotto which currently shares the fifth position in international brands is focusing on becoming a part of the top four by opening 20-30 outlets every year.

Talking about the Indian market, Tomat said, It is looked upon as a favourable market for foreign brands. However, the organised sportswear market in the country is around Rs 10,000 crore, in which foreign players have only 10-15% share.