Onitsuka Tiger considers India as manufacturing hub for regional growth

“Establishing a manufacturing base in India is a strategic move that can significantly accelerate Onitsuka Tiger’s growth in the region. The market potential for premium footwear and apparel in India is growing rapidly and establishing a local manufacturing facility will add value.” Vice President, Onitsuka Tiger Ryoji Shoda said in a virtual interview with Mint.

Post-pandemic, demand for athleisure shoes and apparel has soared. An increasing number of footwear brands are capturing a sizeable share of business from this category. The Japanese brand achieved double-digit growth in India last year and plans to add more stores in the future. Currently, the band operates 11 stores in the countries it first entered in 2010.

expansion plan

Onitsuka Tiger sells quality footwear and apparel in India. “We achieved double-digit growth last year, which cannot be attributed to new store expansion, but rather to the strong performance of our existing stores. This growth was driven by increased sales at our current locations rather than new store openings, ” he said.

Additionally, Indian customers who visit Japan purchase the brand overseas and continue to purchase in India. “Building on this, we plan to introduce more attractive products to the Indian market next year,” he added. Two more stores will be added next year.

Shoda said India is an “important” market for Onitsuka Tiger. He attributes this to a large consumer base, growing affluence, fashion-conscious youth and growing demand for quality goods.

Booming footwear market

According to industry estimates, the Indian footwear market is expected to grow at a compound annual growth rate of 4.8% from 2023 to 2028, and sales will exceed 2.225 billion pairs by 2028. Overall, the Indian footwear market is expected to be worth around $17 billion by 2023, driven by rising disposable income and fashion-conscious consumers, according to estimates by brokerage Angel One.

“The country’s e-commerce industry will continue to grow rapidly, with online shopping, especially high-end and luxury goods, becoming increasingly popular. This trend provides Onitsuka Tiger with an opportunity to expand its reach into physical retail stores and reach a wider range of consumers. Establishing a manufacturing base in India is a strategic move that can significantly accelerate Onitsuka Tiger’s growth in the region. With the rapid expansion of the high-end footwear and apparel market in India, local manufacturing Improving supply chain efficiency can also significantly add value,” Masada added.

Onitsuka Tiger was founded in 1949 by Kihachiro Onitsuka in Kobe, Japan. Onitsuka Tiger shoes were the official shoes of the Japanese delegation at the 1968 Mexico City Olympic Games. Celebrities such as Hailey Bieber, Uma Thurman and Bella Hadid have worn the brand.

The brand competes with Puma and Adidas, and styles such as the Puma Palermo and Adidas Samba have become popular among sneakerheads.

future potential

According to the annual report of parent company Asics Corporation, globally, Onitsuka Tiger’s net sales in 2023 were 60.3 billion yen (approximately US$382 million), a year-on-year increase of 15.3%.

The group also emphasized in its annual report that in addition to considering future exports from India, it also plans to expand its business scale with OEM (original equipment manufacturer) partner factories and expand production in India by 2028. The organization views India as a “high-growth” region.

India has seen significant investments in footwear manufacturing over the past few years. This is because India is ranked as the second largest producer of footwear in the world. Major production centers include Tamil Nadu, Uttar Pradesh and Maharashtra.

Earlier this month, Taiwan footwear giant Hongfu Industrial Group, which supplies footwear to Nike, Puma, Adidas, Reebok, HOKA, etc., announced the establishment of $Rs 1,500-crore footwear manufacturing facility in Tamil Nadu.