Nike to open owned stores in India

US-based sports shoes and apparel supplier and manufacturer Nike has made a proposal to the Department of Industrial Policy & Promotion (DIPP) under the commerce and industry ministry to set up fully-owned stores in India. Single-brand retail policy allows 100 per cent foreign direct investment (FDI).

Nike is listed on the New York Stock Exchange, is one of the world’s largest suppliers of athletic shoes and apparel in the world with a market capitalization of $68 billion.

The company has been present in India since 1996 and currently operates through a network of local distributors and retail partners. Nike’s entry into India was through a seven-year licence agreement with Sierra Industrial Enterprises, which was later done away with to become a 100 per cent-owned subsidiary of the US parent company.

“Nike welcomes the government’s decision on foreign direct investment in single-brand retail franchise in India. Nike currently operates its business here through local distributors and retail partners. This model works well for us and we may consider exploring opening Nike-owned stores in the future,” the company said in an email response to Business Standard.

Competing in the sports wear category with the likes of Puma and Reebok, which work through franchise and local supplier arrangement, Nike is first in the space to make a move to open 100 per cent-owned retail outlets.

Swiss watch maker Swatch had recently made an application to DIPP for setting up own stores. Swedish fashion retailer H&M and furniture retailer IKEA are in the process of setting up their flagship stores through 100 per cent FDI route.

Experts say the application by Nike is a sign of greater commitment of the brand to the Indian market. Fully-owned stores offer a lot more control over quality, consumer experience and give freedom to the brand to choose locations for stores. “It’s a sign that a brand is here to stay for long,” said Mohit Bahl, head of retail at KPMG in India.

World’s First Reebok Fit Hub Studio In Mumbai

Strengthening its focus towards becoming the most desirable premium fitness brand in the country,Reebok launched it’s first-ever Reebok Fitness Studio in Mumbai. It is an innovative format situated within the Fit-Hub store. The first Reebok franchise ‘store and studio’ concept launched at Mumbai’s Linking Road has been conceptualised to meet the fitness needs of Indian consumers and will enable them to engage in exciting studio fitness activities such as Dance, Aerobics and Yoga. Reebok has a pan-India presence with 400 exclusive franchise stores and a 1000 member strong instructor alliance.

Commenting on the launch, Erick Haskell, Managing Director, Reebok India said, “It gives us immense pleasure to launch the world’s first-ever Reebok Fitness Studio in Mumbai, and empower our customers to embark on their fitness journey. It is all the more exciting that India is the first Reebok market to have developed and implemented this concept. We hope to receive a great response to this new addition, and aim to have ten such ‘store and studio’ formats spread across all parts of the country by the end of 2015, thereby truly spreading the message of fitness and encouraging people to be ‘Fit for Life’.”

Expressing his thoughts on the launch, Somdeb Basu, Brand Director, Reebok India said, “After the great response we have received for our Fit Hub concept stores across the country, we are extremely happy to announce the launch of our first ‘store and studio’ format in Mumbai. With the addition of the new Fitness Studio, these Fit Hub stores aim to truly serve as a one-stop fitness destination helping our customers, and help them achieve their fitness goals.”

Initiated in 2013 in India, Reebok’s innovative Fit Hub stores have become popular amongst the consumer and have seen tremendous success across important markets including Delhi, Mumbai Bangalore, Hyderabad, Kolkata, and Chennai amongst others, reaching a landmark of 100 stores in 50 cities.