ASICS Expands India Manufacturing to 40 Percent Amid Import Hurdles

ASICS is scaling up local manufacturing in India from 30 to 40 percent while expanding retail stores to meet rising demand and navigate tightening import regulations.

Japanese sportswear powerhouse ASICS has announced a significant expansion of its manufacturing footprint in India, aiming to boost local production from 30% to 40% over the next few years. This strategic move comes as India’s tightening regulations on footwear imports force global brands to pause shipments and focus on domestic manufacturing.

Navigating India’s New Footwear Regulations

The Indian government has implemented strict quality certification standards across various footwear segments, mandating that both domestic and foreign manufacturers obtain official certifications before products can be sold in the country. As a result, ASICS, like many other international brands, has halted imports, citing the impracticality of bringing in footwear from any country without government approval.

“To address this critical situation, we are strategically developing local production capabilities,” said Rajat Khurana, Managing Director, ASICS India.

For the financial year 2024-25, ASICS achieved 30% local production, meeting the government-mandated threshold allowing foreign brands to operate single-brand retail stores in India. Building on this compliance, the company is now set to deepen its local manufacturing base to ensure a steady supply chain.

Retail Expansion: New Stores and Growth Plans

ASICS currently operates around 125 stores across India, primarily through franchise partners. The brand is preparing to launch its first company-owned outlet this year, with potential sites being scouted in and around Delhi and Mumbai. Khurana added that the company aims to establish a few more brand-owned stores over the next few years.

The expansion doesn’t stop there. ASICS plans to accelerate its franchise network, targeting the opening of three new franchise stores per month through the end of 2025. This aggressive retail strategy positions ASICS to capitalize on India’s surging demand for premium sportswear and athleisure.

Riding the Fitness Wave: Market Outlook and Revenue Projections

Known globally for its running shoes, ASICS benefits from India’s growing fitness culture and a rising interest in sports like tennis and pickleball among affluent urban consumers. The company is projecting robust revenue growth of 35%-37% in India for 2024-25, following a 26% jump in the previous fiscal year that lifted its revenue to 4.28 billion rupees ($49.7 million)1.

Industry analysts are bullish on the sector’s prospects. According to a 2024 Deloitte report, India’s sporting goods and apparel market is expected to double to $58 billion by 2030, fueled by rising incomes, increased health awareness, and evolving consumer preferences.

Competitive Landscape

ASICS faces stiff competition from global heavyweights such as Nike, Adidas, and Skechers USA in the Indian market. However, its focus on local manufacturing and rapid retail expansion could provide a crucial edge as international brands adapt to India’s evolving regulatory environment.

The Road Ahead

ASICS’ commitment to ramping up local production and expanding its retail presence underscores the brand’s confidence in India’s booming sportswear market. As the company navigates regulatory challenges and capitalizes on shifting consumer trends, its strategy of “strategically developing local production capabilities” is set to play a pivotal role in sustaining growth and ensuring supply continuity in one of the world’s fastest-growing markets.