ASICS meets FDI norms to open single brand retail stores in India

To fulfill India’s FDI investment norms sportswear brand ASICS is gradually increasing the share of local products for single brand retail and launching its own stores in the country. It is also looking for better brand governance. ASICS India MD Rajat Khurana says when the brand touches 30 per cent of manufacturing from India, it will open own stores. The company plans to operate a mix of partner and own retail stores in the country.

Khurana points out local apparel production began in 2017. Thereafter, it started making footwear in India. These were entry point products and the company is slowly scaling up. ASICS, founded in 1949, is known for its high-performance sports shoes and is popular among professional and marathon runners. It sells footwear and apparels through the franchise model and plans to open 13-14 new stores in the current year.

At present, ASICS India gets about 75 per cent of its sales from mono brand stores, multi brand retail outlets and distributer driven business channels. According Khurana the company aims to triple its revenue by 2020. Currently, ASICS India which is a step down subsidiary of ASICS Japan, sources about 10-12 per cent of its total products from India. At present it has 27 mono brand stores in India.