Japanese sportswear brand ASICS aims to become the No. 3 player in the running category in the Indian market by 2026, moving up from its current position of No. 4. The company is looking to focus on promoting running culture in India and sees that as a huge market opportunity.“Our research shows that there are 100 million runners in India, which is equal to the population of Japan, and that makes India a huge market. So, our focus is on the running market, and also tennis and cricket, where we have a strong position in the country,” Yasuhito Hirota, president & CEO, ASICS Corp, told FE.
According to Hirota, ASICS expects India to emerge as the fastest-growing market in Southeast Asia for the company over the next few years. “ASICS is a late entrant into India compared with the other foreign brands, as we opened our first store only in 2015. But I see huge potential and prominence from the market because of the size of the population and also the economic growth. So, I see a big potential possibility in the Indian market,” he said. He added that outside of the four major markets of the US, Europe, Japan and China, India is the first prominent market for the company.
“We would like to invest more in this market to expand our business in India. We expect more than 25% CAGR growth in India in the next four years,” Hirota said.At present, ASICS is doing some local manufacturing of apparel and footwear in India, and in terms of business, 25% of its revenues are coming from products produced in India, with both footwear and apparels combined. “We will be able to touch 30% in the next two years,” said Rajat Khurana, managing director, ASICS India. Currently, the company’s footwear manufacturing facility is located in Dehradun and the apparel are produced in a factory close to Delhi.
ASICS operates with 81 exclusive stores spread pan-India, with majority of them in the north, south and western parts of the country and some presence in the east. It is also present across multi-brand stores with 700 point of sales. The company has a significant digital presence as well, with more than 40% of the business coming digitally this year, as the products are getting sold in tier 2, 3 and 4 towns of India as well. The company is looking to add about 20 more stores this year, Khurana said.Khurana said ASICS has plans to expand apparel production in India and would also look at making it an exports hub for ASICS subsidiaries going forward.
Future investments from the company are geared towards launching a dedicated website of its own in India, once it reaches the 30% mark of local manufacturing from the country. Additionally, the company is also looking at digitalisation of its retail stores to increase consumer engagement. It will also be targeting association investments and has tied up with sports players and Bollywood stars. “We also intend to continue investment in Marathon associations to expand our brand reach. We are currently sponsors for Mumbai marathon, sports sponsor for 10k Bangalore Marathon,” Khurana said.