11th September 2021, Mumbai:
According to a top corporate executive, ASICS intends to add 18 outlets to its sales network in 2022, expanding its footprints in India even further and achieving value-based growth of up to 25% by that time.
Under the present FDI policy in retail, the business, which has already begun domestic manufacture of several of its items, expects to satisfy 30% of local sourcing criteria. Aside from that, ASICS is increasing its product selection and anticipates e-commerce to contribute about 40% of sales, a market that has seen rapid development since the epidemic.
ASICS India Managing Director Rajat Khurana stated that the company's aim is to "intensify its presence on e-commerce platforms while also increasing its business through its network of retail outlets." "We intend to establish 15-18 retail locations in 2022," Khurana told PTI, adding that the majority of the stores will be in non-metro tier-II and tier-III areas. ASICS now maintains a franchise network of 55 shops across the country.
The company's apparels business has recently increased in scope, and its contribution to the overall business is increasing. "By value, we expect the business to expand 20-25 percent in 2022," he added.
In addition, the firm is increasing its reach on e-commerce platforms, which have seen rapid development as a result of a shift in customer behavior during the epidemic, according to Khurana. "In the last two years, e-commerce has been a growth engine for us," he added, adding that by 2021, e-commerce would account for 40% of ASIC's revenues. He noted that internet sales accounted for about 20% of ASIC sales in 2019.
"Both channels (retail and internet) must expand at the same time. E-commerce would be accompanied by a retail growth strategy. Both networks have a distinct target audience "Added he. ASICS is now having its entry-level footwear, school shoes, and clothing made in the United States.
"We want to hit this in the next 2-3 years," Khurana said when asked when it will meet the mandated 30% local sourcing barrier. "We have the appropriate infrastructure here, and if everything goes well, we'll be able to execute it in the next couple of years," he continued. ASICS' sales network would thereafter be made up of a combination of company-owned, company-operated, and franchise outlets, according to Khurana.
On Thursday, ASICS also revealed their commitment to developing future wrestling talent in India. The Japanese sports giant will seek to bolster its focus on the sport of wrestling by providing young athletes with cutting-edge gear and footwear. Bajrang Punia, a bronze medallist in the Tokyo Olympics, spoke about his experience with the company.
ASICS, a prominent designer and producer of running shoes, athletic and sport-style footwear, clothing, and accessories, was founded in 1949.