Onitsuka Tiger, the renowned Japanese luxury footwear brand and a subsidiary of Asics Corporation, is exploring the possibility of establishing a manufacturing base in India. The move aligns with the company’s strategy to leverage India’s burgeoning premium footwear and apparel market, which has shown remarkable growth in recent years.
Growth And Expansion Plans In India
Onitsuka Tiger has been witnessing double-digit growth in its Indian operations over the past year. According to Ryoji Shoda, Vice-President of Onitsuka Tiger, this growth stems from the impressive performance of existing stores rather than new openings. Currently operating 11 stores across India, the brand is set to expand with two additional outlets in 2024 to cater to the increasing demand.
Shoda also highlighted the loyalty of Indian consumers, many of whom have experienced the brand while traveling abroad and continue to shop at Onitsuka Tiger stores in India. He emphasized that local manufacturing could further enhance the brand’s value proposition, making its premium products more accessible to Indian consumers and reducing reliance on imports.
India’s Footwear Market: A Crucial Opportunity
India represents a significant growth opportunity for Onitsuka Tiger due to its massive consumer base, increasing disposable incomes, and a younger population that is highly conscious of global fashion trends. Industry reports suggest that the Indian footwear market is expected to grow at a compound annual growth rate (CAGR) of 4.8% between 2023 and 2028, surpassing 2,225 million pairs by the end of the period.
The total value of the Indian footwear market was approximately $17 billion in 2023, driven by a surge in demand for premium and luxury products. This underscores the potential for international brands like Onitsuka Tiger to capture a significant market share.
Despite the brand’s current success, the rising costs of imports and supply chain inefficiencies have created a strong case for setting up a local manufacturing base. Doing so would not only optimize production costs but also allow for quicker delivery of new collections to Indian consumers.
E-Commerce Boom: A Catalyst For Expansion
India’s e-commerce sector, which has been growing at an unprecedented pace, offers Onitsuka Tiger a unique opportunity to expand its reach beyond brick-and-mortar stores. Online shopping, especially for luxury and premium goods, has gained immense popularity, enabling brands to connect with a wider audience.
Shoda views this digital transformation as a vital aspect of Onitsuka Tiger’s growth strategy in India. A robust online presence, coupled with local manufacturing, could help the brand meet demand efficiently while offering competitive pricing. The integration of e-commerce and retail channels would also enable the company to engage more effectively with consumers across urban and semi-urban areas.
Global Performance And India’s Role In The Future
Onitsuka Tiger recorded net sales of 60.3 billion yen (approximately $382 million) in 2023, reflecting a year-on-year growth of 15.3%. This robust global performance highlights the brand’s resilience and its ability to navigate competitive markets.
Looking ahead, Onitsuka Tiger plans to collaborate with an original equipment manufacturer (OEM) partner plant in India by 2028. This partnership aims to support local production while exploring export opportunities to other markets. If successful, this initiative could position India as a key player in Onitsuka Tiger’s global supply chain, further strengthening the brand’s international footprint.
The brand is also exploring ways to integrate sustainability into its manufacturing processes, a factor that resonates strongly with modern consumers. Local production facilities could adopt eco-friendly practices, enhancing Onitsuka Tiger’s appeal to environmentally conscious buyers.
Why India Matters For Onitsuka Tiger
India’s status as one of the world’s fastest-growing economies and its rapidly expanding middle and upper classes make it a priority market for global luxury brands. The country is home to a large base of affluent consumers who are eager to invest in premium products that align with their lifestyle aspirations.
According to the Knight Frank Wealth Report 2024, India is set to witness a 50% increase in the number of ultra-high-net-worth individuals (UHNWIs) by 2028. This growth trajectory underscores the potential for luxury brands like Onitsuka Tiger to thrive in the Indian market.
By establishing a manufacturing base in India, Onitsuka Tiger aims to bridge the gap between demand and supply while reinforcing its commitment to the region. The move is also expected to create jobs and contribute to the local economy, further solidifying the brand’s presence in India.
The Road Ahead For Onitsuka Tiger In India
As Onitsuka Tiger charts its future course, its focus on India reflects the immense opportunities that the market offers. The company’s plans for local manufacturing, e-commerce expansion, and increased retail presence demonstrate its commitment to meeting the evolving needs of Indian consumers.
With a strong foundation already in place and a clear vision for the future, Onitsuka Tiger is poised to become a leading player in India’s premium footwear market. As the brand continues to innovate and adapt, its journey in India will undoubtedly contribute significantly to its global success story.