Japanese sportswear giant ASICS is significantly stepping up its local manufacturing operations in India, aiming to produce 40% of its products domestically in the coming years. The move reflects a strategic pivot amid rising regulatory restrictions on imports and a fast-expanding consumer appetite for fitness and athletic wear across urban and semi-urban India.

Currently, ASICS sources 30% of its products locally, a threshold that meets India’s mandatory local sourcing requirement for foreign single-brand retailers. This baseline, however, is only a launchpad. Company executives say the brand now views India as not just a consumer market but a vital production hub as well — a shift that’s reshaping how the global brand positions itself in Asia’s fastest-growing economy.

Regulatory Shifts Catalyze Localisation

India’s tightening regulatory landscape on footwear imports has acted as a catalyst for this change. The government has implemented new quality control orders (QCOs), requiring both domestic and international brands to comply with specific standards and obtain certification for different types of footwear.

These regulations, intended to ensure consumer safety and quality assurance, have also made importing foreign-manufactured footwear more cumbersome and cost-intensive. For companies like ASICS, this has created logistical challenges and disrupted traditional supply chains.

Unable to freely import without certifications — which can be time-consuming and complex — ASICS has opted to accelerate its India-based production, working with domestic partners to meet demand without regulatory friction. It’s a pragmatic strategy that not only ensures compliance but also builds resilience into its supply chain in one of the company’s most promising emerging markets.

India’s Growing Appeal as a Manufacturing Base

ASICS’ decision reflects a broader industry trend. India is increasingly being viewed as a viable alternative to China and Southeast Asia for global apparel and footwear manufacturing. Factors such as a large labor force, expanding industrial infrastructure, and government incentives for manufacturing are drawing in major brands.

The Production-Linked Incentive (PLI) schemes introduced by the Indian government offer added advantages for foreign companies setting up manufacturing bases. While the sportswear segment isn’t the main target of the PLI framework, broader manufacturing reforms and infrastructure upgrades make India attractive for companies looking to derisk supply chains.

For ASICS, shifting more production to India also aligns with long-term cost efficiencies. Domestic manufacturing reduces exposure to volatile shipping rates and import duties, while shortening lead times for delivery and response to market trends.

Retail Strategy Shift: From Franchise to Flagship

With India’s policy allowing 100% foreign direct investment (FDI) in single-brand retail, provided a 30% local sourcing rule is met, ASICS now finds itself in a favorable position to expand its physical footprint under its own name.

The company currently operates around 125 stores in India through franchise partners. However, with the local sourcing threshold achieved, ASICS is preparing to open its first company-owned store in India, likely in one of the major metros — either Delhi or Mumbai. The plan includes launching several more flagship locations in key cities in the years ahead.

In parallel, ASICS is not abandoning its successful franchise model. It plans to open three new franchise stores every month for the rest of the year. This dual-track approach — expanding both company-owned and franchised outlets — indicates that the brand is positioning itself for a larger and more diversified retail presence in the country.

The timing of ASICS’ intensified India strategy is opportune. India’s urban centers are witnessing a surge in fitness awareness, particularly among millennials and Gen Z consumers. From marathon running and tennis to the rising popularity of pickleball, sports are increasingly seen as lifestyle choices — a shift that’s propelling demand for performance footwear and apparel.

India’s sporting goods and sportswear market is on a steep upward trajectory. According to industry analysts, the market size is projected to double by 2030 to nearly $58 billion, up from $30 billion in 2023. The growth is being driven by urbanization, higher disposable incomes, expanding online retail, and the influence of social media fitness trends.

For ASICS, whose global reputation is rooted in high-performance running shoes and athletic gear, the current market dynamics offer a near-perfect fit. Consumers in top-tier and even second-tier cities are showing increasing preference for global brands that offer quality, durability, and performance over low-cost local alternatives.

Revenue Momentum and Long-Term Growth Outlook

ASICS has already seen the early results of its India-focused push. In the fiscal year 2023–24, the brand posted a 26% increase in India revenue, reaching ₹4.28 billion (approximately $49.7 million). For the ongoing fiscal year, it has projected a robust 35%–37% growth — an aggressive but achievable target given the scale of expansion and brand momentum.

This sustained growth outlook comes even as competition intensifies. ASICS is going head-to-head with global giants such as Nike, Adidas, and Skechers, all of which are ramping up their India operations. However, ASICS’ differentiated product focus on running and specialty footwear gives it a competitive edge among serious fitness enthusiasts and niche sports markets.

The brand is also capitalizing on the emergence of fitness-focused influencers and community events — from city marathons to triathlons — which act as organic brand-building platforms. Its sponsorships, event partnerships, and grassroots sports development initiatives are helping the brand create deeper engagement with its target audience.

Localization Beyond Compliance

While regulatory changes have nudged ASICS toward local manufacturing, the brand’s shift is not merely reactive. There’s a long-term strategy at play — to embed itself more deeply in India’s economic and consumer ecosystem.

Local manufacturing also allows ASICS to experiment with India-specific product lines. Footwear preferences in India often differ from Western markets due to climatic conditions, foot structure, and daily use patterns. Producing locally enables the brand to be more responsive to these nuances and tailor designs accordingly.

Moreover, local production can also contribute to sustainability goals. Shorter supply chains reduce carbon footprints, and working with Indian partners enables better oversight of labor and environmental practices — an increasingly important factor for ethically-conscious global consumers.

While ASICS’ current strategy focuses on meeting domestic demand, there’s potential for India to evolve into an export base for the company in the medium term. With global trade dynamics shifting and brands diversifying sourcing, India could serve as a regional hub for ASICS’ operations across South Asia, the Middle East, and Africa.

For now, the company’s immediate focus remains on building resilience, capturing market share, and deepening consumer engagement in India. But if the success of its localization strategy continues, the broader vision could expand — from “Make in India” to “Export from India.”

ASICS’ aggressive bet on India is both a response to regulatory compulsion and a recognition of opportunity. As global brands navigate new market realities, ASICS appears determined to turn disruption into advantage, placing India at the center of its growth map for the years ahead.

(Adapted from ApparelResources.com)