Asics India goes it alone

In this article (5)
Japanese sports shoe brand Asics has opened its first company owned store in India.
The 670 sqft outlet has opened in a shopping centre in south Delhi.
It marks the end of a five year partnership with local conglomerate Reliance Retail.
“We had a five-year agreement with Reliance Retail, and we did not want to renew the alliance,” Rajat Khurana, director of Asics India said in an interview.
“The market has matured, and we have a much better understanding about the Indian sports shoes market, which is worth about $1 billion.”
Now the brand will operate as a wholesaler, opening mono brand stores across India through franchise partners. It will manage the franchise business directly rather than partner with a local master franchisee.
“Over the next 18 months, we will open exclusive outlets across the top 10 Indian cities, with one or two outlets in each city. Over the next three years, sales should treble,” said Khurana.
Asics is the fourth largest sports goods manufacturer in the world and is currently sold in more than 150 countries.
Asics branded products will continue to be available through multi-brand stores in India, including reliance Retail’s network.
Questions & Answers
Q.What is Asics' new operating strategy for its Indian market presence?
What is Asics' new operating strategy for its Indian market presence?
Asics will now operate as a wholesaler, opening mono-brand stores across India through franchise partners. The brand will manage this franchise business directly, rather than working with a local master franchisee.
Q.Why did Asics choose not to renew its partnership with Reliance Retail?
Why did Asics choose not to renew its partnership with Reliance Retail?
Rajat Khurana, director of Asics India, stated that the market has matured, and the company now has a much better understanding of the Indian sports shoes market. This led to their decision not to renew the agreement.
Q.Where will Asics' new exclusive outlets be located in India?
Where will Asics' new exclusive outlets be located in India?
Over the next 18 months, Asics plans to open exclusive outlets across the top 10 Indian cities. There will be one or two outlets in each of these cities, managed through franchise partners.
Q.Will Asics products still be available in other retail stores in India?
Will Asics products still be available in other retail stores in India?
Yes, Asics branded products will continue to be sold through multi-brand stores in India. This includes their continued availability within Reliance Retail's existing network of stores.
Reader pulse
Is Asics' direct approach in India a good strategy?
20,865 votes so far