MUMBAI: Japanese performance sportswear firm ASICS plans to add 18 stores to its sales network in 2022 expanding its footprints in India further along with a value-based growth of up to 25% by that time, a top company official has said.
ASICS on Thursday also announced its commitment to nurturing young wrestling talent in India.
The Japanese sports major will work towards strengthening its focus in the sport of wrestling by providing access to cutting edge apparel and footwear for young athletes.
Tokyo Olympics Bronze medalist Bajrang Punia was present at the occasion.
The company, which has already started domestic production of some of its products here, expects to meet 30% of local sourcing requirements under the current FDI policy in retail, PTI reports.
Besides, ASICS is also expanding its products portfolio and expects around 40% of sales to be contributed from e-commerce, a channel in which it has witnessed fast growth after the pandemic.
As per its strategy, it would intensify its presence on e-commerce platforms while also expanding its business through its network of retail stores, PTI quotes ASICS India managing director Rajat Khurana as having said.
“In terms of expansion, we plan to open 15-18 retail stores in 2022,” Khurana told the newswire, adding that most of the stores would come in non-metro tier-II and -III cities.
Currently, ASICS operates a network of 55 stores in the country, on a franchise model.
Recently, the company has expanded the width of its apparels business, and its contribution to the total business is going up.
“We expect the business to grow business 20-25 per cent in 2022 by value,” he added.
Besides, the company is also expanding its width on e-commerce platforms, which has registered fast growth led by a change in consumer behaviour after the pandemic, Khurana said.
“E-commerce has been a growth engine for us in the past two years,” he said, adding that in 2021, 40% of ASIC’s sales would come from e-commerce.
In 2019, online sales contributed around 20% sales of ASIC, he noted.
“Both the channels (retail and online) have to grow side by side. A retail expansion plan would go along with e-commerce. The target audience of both the channels are different,” he further told PTI.
ASICS is presently getting its entry price footwear, school shoes and apparel manufactured locally.
When asked when it would reach the mandatory 30% local sourcing threshold, Khurana said, “We have the right infrastructure here and if all goes smooth, we would do this in the next 2-3 years.”
After that, ASICS’ sales network would have a mix of company-owned, company-operated and franchise stores, Khurana said.
Founded in 1949, ASICS is a leading designer and manufacturer of running shoes, as well as athletic and sport style footwear, apparel, and accessories.
