Onitsuka Tiger considering 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. India’s market potential for premium footwear and apparel is growing rapidly, and setting up local manufacturing will add value," Ryoji Shoda, vice-president of Onitsuka Tiger, said in a virtual interview with Mint.

Demand for athleisure footwear and apparel has shot up after the pandemic ended. More footwear brands are drawing a significant share of their business from the category. The Japanese brand reported double-digit growth in India last year, with plans to add more stores in the future. Currently, the band operates 11 stores in the country where it first entered in 2010.

Expansion plans

Onitsuka Tiger sells premium footwear and apparel in India. “We achieved double-digit growth last year, which can be attributed not to the expansion of new stores, but to the strong performance of our existing stores. This growth has been driven by increased sales from our current locations rather than new store openings," he said. 

Also Read: Box-office hits draw shoppers back to malls in December

Additionally, Indian customers visiting Japan are purchasing the brand overseas and continuing to buy in India. “Building on this, we plan to introduce more attractive products to the Indian market next year," he added. It will add two more stores in the coming year.

India is a “crucial" market for Onitsuka Tiger, said Shoda. He attributed this to a large consumer base, growing affluence, fashion-conscious youth, and increasing demand for premium goods.

Booming footwear market

India's footwear market is projected to grow at a CAGR of 4.8% during 2023-2028, with volume crossing 2,225 million pairs by 2028, per industry estimates. Overall, the footwear market in India was estimated to be worth approximately $17 billion dollars in 2023, driven by increased disposable income and style-conscious consumers, per estimates by broking firm Angel One.

"The country's e-commerce sector is set for continued rapid growth, with online shopping—particularly for premium and luxury products—becoming increasingly popular. This trend offers Onitsuka Tiger an opportunity to expand its reach beyond physical retail stores and tap into a broader consumer base. Establishing a manufacturing base in India is a strategic move that can greatly accelerate Onitsuka Tiger’s growth in the region. With the rapidly expanding market for premium footwear and apparel in India, local manufacturing will not only enhance supply chain efficiency but also add significant value," Shoda added.

Also Read: Consumer goods companies go full throttle on rural hiring

Onitsuka Tiger was founded in 1949 by Kihachiro Onitsuka in Kobe, Japan. Onitsuka Tiger shoes were the official footwear for the Japanese delegation at the 1968 Mexico City Olympics. The brand is worn by celebrities such as Hailey Bieber,  Uma Thurman, and Bella Hadid.

The brand competes with Puma, Adidas—styles such as the Puma Palermo and Adidas Samba have become widely popular among sneaker-loving consumers.

Future potential

Globally, Onitsuka Tiger clocked 60.3 billion yen (about $382 million) in net sales in 2023, up 15.3% year-on-year, per annual report of parent Asics Corporation.

In its annual report, the group also highlighted plans to scale business with an OEM  (original equipment manufacturer) partner plant to expand production in India by 2028, apart from considering exports from India for the future. The group has identified India as a “high-growth" region.

India has seen a clutch of investments in footwear manufacturing over the past few years. That’s because India is ranked as the second-largest global footwear producer. Key production hubs include Tamil Nadu, Uttar Pradesh, and Maharashtra.

Also Read: Consumer goods companies brace for an uncertain 2025 but hope to cash in on premium cravings

Earlier this month, Taiwanese footwear major Hong Fu Industrial Group that supplies footwear to Nike, Puma, Adidas, Reebok, HOKA, among others, announced the setting up of a ₹1,500-crore footwear manufacturing facility in Tamil Nadu.