NEW DELHI: Onitsuka Tiger, the Japanese footwear brand owned by Asics, said it may consider India as a potential manufacturing base to accelerate its growth in the region.
“Establishing a manufacturing base in India is a strategic move that will greatly accelerate Onitsuka Tiger’s growth in the region. This will increase added value,” Onitsuka Tiger Vice President Ryoji Shoda said in a virtual interview with Mint.
After the pandemic ended, demand for athleisure shoes and apparel surged. More and more footwear brands are gaining a significant share of business from this category. The Japanese brand reported double-digit growth in India last year and has plans to add more stores in the future. The band currently operates 11 stores in the country it first entered in 2010.
expansion plan
Onitsuka Tiger sells high-end shoes and apparel in India. “We achieved double-digit growth last year, which can be attributed to strong performance in existing stores rather than new store expansion. “It’s coming,” he said.
Moreover, Indian customers who visit Japan buy brands abroad and continue to buy them in India. “Based on this, we plan to introduce more attractive products in the Indian market next year,” he added. We plan to add two more stores next year.
Shoda said India is an “important” market for Onitsuka Tiger, citing its large consumer base, increasing affluence, fashion-conscious youth and increasing demand for premium products. Ta.
A booming footwear market
According to industry estimates, the Indian footwear market is expected to grow at a CAGR of 4.8% from 2023 to 2028, with sales volume exceeding 2.225 billion pairs by 2028. The overall value of India’s footwear market is estimated to reach around $17 billion by 2023, driven by rising disposable incomes and a growing number of style-conscious consumers, according to estimates by brokerage firm Angel One. .
“The country’s e-commerce sector is expected to continue to grow rapidly, with online shopping, especially luxury and luxury goods, becoming increasingly popular. It gives us the opportunity to expand our business and reach a wider range of consumers.” The establishment of a manufacturing base in India is a strategic move that will significantly accelerate Onitsuka Tiger’s growth in the region, and as the premium footwear and apparel market in India expands rapidly, local manufacturing will only increase the efficiency of the supply chain. However, it brings significant added value. ,” Shoda added.
Onitsuka Tiger was founded in Kobe in 1949 by Kihachiro Onizuka. Onitsuka Tiger Shoes were the official shoes of the Japanese team at the 1968 Mexico City Olympics. This brand is also used by celebrities such as Hailey Bieber, Uma Thurman, and Bella Hadid.
The brand competes with Puma and Adidas, with styles such as Puma Palermo and Adidas Samba becoming widely popular among sneaker-loving consumers.
future potential
Globally, Onitsuka Tiger recorded net sales of 60.3 billion yen (approximately $382 million) in 2023, an increase of 15.3% from the previous year, according to parent company Asics’ annual report.
In its annual report, the group said it will consider exports from India in the future, as well as expand its business with OEM (original equipment manufacturer) partner factories to expand production in India by 2028. He also emphasized his plans to The group identifies India as a “high growth” region.
India has seen a flurry of investment in footwear manufacturing in recent years. This is because India ranks as the second largest footwear producing country in the world. Major manufacturing locations include states such as Tamil Nadu, Uttar Pradesh, and Maharashtra.
Earlier this month, Hongfu Business Group, a Taiwanese footwear giant that supplies footwear to Nike, Puma, Adidas, Reebok, Hoka, etc. INR1,500 crore shoe manufacturing facilities in Tamil Nadu.
