Japanese luxury footwear brand Onitsuka Tiger eyes manufacturing in India
Japanese luxury footwear brand Onitsuka Tiger, a subsidiary of Asics Corporation, is considering setting up a manufacturing base in India. The strategic move comes as part of the company's efforts to accelerate growth in the region. Speaking during an interview with Mint, Onitsuka Tiger Vice-President Ryoji Shoda noted India's rapidly expanding premium footwear and apparel market. He believes local production could enhance the brand's value proposition.
Growth and expansion plans in India
Onitsuka Tiger has seen double-digit growth in India in the last one year, a trend that Shoda credits to the performance of existing stores, not new ones. The company currently has 11 stores in the country and plans to open two more next year. Shoda also added that Indian customers who have bought their products overseas continue to visit the brand in India.
India's footwear market
Shoda called India a "crucial" market for Onitsuka Tiger considering its huge consumer base, growing affluence, a fashion-conscious youth, and rising demand for premium goods. According to industry estimates, India's footwear market will grow at a CAGR of 4.8% between 2023 and 2028, crossing 2,225 million pairs by 2028. The Indian footwear market's overall value stood at around $17 billion in 2023, fueled by rising disposable income and style-conscious consumers.
E-commerce boom: An opportunity for Onitsuka Tiger
Shoda views India's e-commerce sector's rapid growth as an opportunity for Onitsuka Tiger to expand its reach beyond physical retail stores. E-shopping, particularly for premium and luxury products, is gaining traction in India. This trend could enable the brand to tap into a wider consumer base. Local manufacturing could not just improve supply chain efficiency but also add a lot of value, he said.
Global performance and future plans
Onitsuka Tiger recorded net sales of 60.3 billion yen (approximately $382 million) in 2023, a year-on-year increase of 15.3%, according to the annual report of its parent company Asics Corporation. The group also announced plans to partner with an original equipment manufacturer (OEM) partner plant to increase production in India by 2028, and is exploring future exports from India.
