ASICS steps up In­dia ex­pan­sion, eyes over 20 stores by 2018

Shoes & Accessories - - The Month That Was Updates | India -

Ja­panese per­for­mance sports­wear firm ASICS is stepping up ex­pan­sion in In­dia with plans to add over 20 mono-brand stores by next year. It is also in­ten­si­fy­ing pres­ence on e-com­merce plat­forms while grow­ing busi­ness through re­gional dis­tri­bu­tion chan­nels to cater to grow­ing de­mand in tier II cities.

The com­pany, which sells its footwear and ap­parel prod­ucts through fran­chise model, is also keep­ing op­tions open to have its own stores once it meets 30 per cent lo­cal sourc­ing re­quire­ments un­der the cur­rent FDI pol­icy in re­tail.” as of now we have 22 mono- brand stores, out of which seven were opened in the first half of the year. An­other seven will be opened in the sec­ond half. For next year also we are look­ing at a sim­i­lar num­ber of new such stores,” ASICS In­dia Man­ag­ing Di­rec­tor Ra­jatkhu­rana told. Em­pha­sis­ing on the need for open­ing more ex­clu­sive stores, he said: “In a coun­try like In­dia 50-60 per cent of sales hap­pen in mono-brand stores for all the brands and we are no ex­cep­tion. So we con­tinue to fo­cus on open­ing mono- brand stores, growth and other chan­nels.” cur­rently, around 40 per cent of the com­pany’s to­tal sales comes from mono-brand stores. Khu­rana, how­ever, said the com­pany’s growth strat­egy in In­dia will not only be through the stand­alone out­lets but also by in­ten­si­fy­ing pres­ence on e-com­merce plat­forms and in­creas­ing dis­tri­bu­tion chan­nels to cater to re­gional mar­kets.” we are present on the big four e-com­merce plat­forms in In­dia. Our sales from e-com­merce ac­count for nearly 20 per cent of busi­ness. So we are look­ing to grow this channel as well,” he said. be­sides, AS ICS In­dia will in­crease busi­ness through dis­tri­bu­tion chan­nels and multibrand out­lets like Re­liance Foot­print to cater to smaller cities be­yond metro, Khu­rana­said. when asked if AS ICS planned to open com­pany-owned stores in In­dia, he said: “The FDI pol­icy does not al­low us to open our own stores un­less we con­form to the 30 per cent lo­cal sourc­ing norm. Yes, we want a com­bi­na­tion of both - our own stores and fran­chises.” how­ever, un­less we think we are able to meet the 30 per cent sourc­ing norm, we can’t open our own. When­ever we reach that level or if the norm gets re­laxed, we’ll have both,” he said.the com­pany be­gan lo­cal sourc­ing in In­dia three sea­sons back for ap­par­els start­ing from spring-sum­mer 2016 col­lec­tion and it has also started some footwear re­cently, he added.” it would take at least 3-4 years to reach that 30 per cent, con­sid­er­ing the cur­rent dy­nam­ics of lo­cal sourc­ing,” he said. On prod­ucts, Khu­rana said the com­pany is in­creas­ing “width and depth” of its of­fer­ing by adding new cat­e­gories like cricket, badminton, ten­nis and wrestling shoes to add to its main run­ning footwear cat­e­gory. Re­port : Eco­nomic Times

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