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Japanese sportswear brand ASICS has decided to resume expansion plans for its retail store footprint, as the country continues to grapples with the Covid-19 pandemic. It has decided to open its 50th store at Connaught Place in New Delhi, which is also the brand’s largest outlet in the country.
Online sales
The expansion of the retail footprint also comes at a time when the brand, which entered the country in 2015, has seen a significant spike in sales through the online channel, as consumers remain cautious about venturing out to shop.
Rajat Khurana, Managing Director, ASICS India and South Asia, said: “We have additional five stores in the pipeline that we expect to open in the October-December period, and we hope to end this calendar year with 55 stores. In 2021, we hope to have a stronger growth momentum, and will look to open one store per month with plans to add 12-15 stores.” The company's stores are run by its franchise partners.
Khurana said after nearly 200days of challenging period for the industry, all the stores of the brand are now operational as economic activity has gradually resumed in the country. “We have seen a substantial jump in sales through the e-commerce channels, which includes our own website. With the pandemic, consumers are increasingly becoming more conscious about health and fitness and, hence, we are witnessing good traction for our sports performance product portfolio,” he added.
The company expects the online channel to contribute over 35 per cent to the overall sales in this year. “While there has been an exponential growth in online sales, which is expected to further accelerate next year, expansion of the retail store footprint will remain a critical part of the brand's growth strategy in the country,” said Khurana. While footfalls at retail stores remain lower than the pre-Covid levels, conversions are stronger, he added.
Make-in-India project
Footwear is among the key sectors identified by the government for make-in-India and self-reliant India initiatives. Khurana said that ASICS has been ramping up local sourcing, especially in the apparel sector, and that the company has also begun exporting products from India. “Entry-level footwear product range is also being made in India. But for high-end technologically-driven footwear products, we still rely on imports from countries such as Vietnam, Indonesia and Cambodia.” he added.
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