Nike has unveiled its first running shoe designed specifically for India as the sportswear company seeks to expand its presence in the world’s most populous country amid declining sales in key markets, including China.
The shoe, named Vegam Run, is scheduled to launch on Indian e-commerce marketplace Flipkart on November 1 at a price of 3,795 rupees, approximately $40. Nike said the product was developed in about five months.
The launch follows the company’s announcement earlier this month that it plans to open a new campus in India, where it is seeking to capitalise on a growing interest in running.
Nike Chief Executive Officer Elliott Hill, who is two years into his tenure, is relying on a revamped product pipeline to revive the company’s performance. Analysts say locally developed designs in key markets will play an important role in its recovery efforts.
The expansion into India comes as Nike continues to face challenges in China, historically one of its key profit-generating markets. Sales in China, which accounts for about 15 per cent of Nike’s annual revenue, have declined for nine consecutive quarters as international competitors and domestic sportswear brands gain ground.
Nike’s shares have fallen more than 40 per cent so far this year. However, its global running business has remained a bright spot, recording double-digit growth for six consecutive quarters.
Speaking to analysts this month, Hill said the company’s running business was not yet strong enough to offset weakness in other segments.
“Our Nike performance business is not yet large enough to offset the pressure we’re seeing in Nike sportswear, Jordan brand, and Greater China,” he said.
His comments followed Nike’s forecast of a sharper-than-expected decline in full-year revenue, highlighting the challenges facing the company as it seeks to restore growth through product innovation and expansion into new markets.
Boluwatife Enome
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