Japanese premium footwear brand Onitsuka Tiger a subsidiary of Asics Corporation is considering India as a potential manufacturing hub to strengthen its presence and accelerate regional growth. This strategic move aligns with the company’s ambition to tap into India’s burgeoning market for premium footwear and apparel.
Strategic Importance of Local Manufacturing
In an exclusive interview Ryoji Shoda, Vice President of Onitsuka Tiger emphasized the significance of establishing a local manufacturing base. “India’s market potential for premium footwear and apparel is expanding rapidly. Setting up local manufacturing will enhance supply chain efficiency and add significant value to our operations,” Shoda stated.
The demand for athleisure footwear and apparel has surged post-pandemic with numerous footwear brands reporting substantial growth in this category. Onitsuka Tiger’s own performance in India has been noteworthy achieving double-digit growth in 2023. The brand currently operates 11 stores in the country, with plans to expand further.
Expansion Plans in India
Onitsuka Tiger’s growth in India has been driven primarily by the strong performance of its existing stores rather than new openings. Shoda highlighted that Indian customers have shown increasing loyalty with many purchasing the brand overseas and continuing their patronage locally. “We plan to introduce more attractive products to the Indian market and expand our store count by adding two more outlets next year,” he said.
India’s growing affluence a fashion-conscious youth demographic and rising demand for premium goods make it a crucial market for the brand.
India’s Booming Footwear Market
The Indian footwear market is on a strong growth trajectory. According to industry estimates it is projected to grow at a compound annual growth rate (CAGR) of 4.8% from 2023 to 2028 with volumes expected to exceed 2,225 million pairs by 2028. In 2023 the market was valued at approximately $17 billion driven by increasing disposable incomes and style-conscious consumers.
The rapid growth of India’s e-commerce sector is another pivotal factor. Online shopping for premium and luxury products is gaining popularity offering brands like Onitsuka Tiger an opportunity to extend their reach beyond physical stores.
Global Growth and Future Potential
Globally Onitsuka Tiger recorded net sales of 60.3 billion yen (approximately $382 million) in 2023, marking a 15.3% year-on-year increase according to Asics Corporation’s annual report. The company has outlined plans to scale its business with an original equipment manufacturer (OEM) partner plant in India by 2028. This initiative includes exploring export opportunities from India reinforcing the country’s position as a high-growth region.
India’s Position in Global Footwear Production
India ranks as the world’s second-largest footwear producer with key manufacturing hubs in Tamil Nadu Uttar Pradesh and Maharashtra. Over the years the country has attracted significant investments in footwear manufacturing. For instance earlier this month Taiwanese footwear giant Hong Fu Industrial Group announced a ₹1,500-crore investment to establish a facility in Tamil Nadu.
A Rich Legacy and Competitive Edge
Founded in 1949 by Kihachiro Onitsuka in Kobe Japan, Onitsuka Tiger boasts a rich legacy. Its shoes were the official footwear for the Japanese delegation at the 1968 Mexico City Olympics. Today, the brand is favored by global celebrities such as Hailey Bieber, Uma Thurman, and Bella Hadid.
In India, Onitsuka Tiger competes with major players like Puma and Adidas whose styles such as the Puma Palermo and Adidas Samba have gained immense popularity among sneaker enthusiasts.
Conclusion
Onitsuka Tiger’s focus on India as a manufacturing hub underscores the country’s growing importance in the global footwear industry. With its expanding consumer base rising disposable incomes and robust market potential India offers an ideal environment for the brand to scale its operations and drive regional growth. As the company continues to innovate and expand, it is well-positioned to capitalize on India’s booming demand for premium footwear and apparel.
