{"id":3793,"date":"2014-09-04T08:37:23","date_gmt":"2014-09-04T08:37:23","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=3793"},"modified":"2014-09-04T08:46:13","modified_gmt":"2014-09-04T08:46:13","slug":"nike-open-owned-stores-india","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/nike-open-owned-stores-india\/","title":{"rendered":"Nike to open owned stores in India"},"content":{"rendered":"
\"Nike<\/a>

Nike Store<\/p><\/div>\n

Franchise News India<\/a><\/strong>,US-based sports shoes and apparel supplier and manufacturer Nike<\/strong> 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).
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\nNike<\/strong> is listed on the New York Stock Exchange, is one of the world’s largest suppliers of athletic shoes and apparel<\/a><\/strong> in the world with a market capitalization of $68 billion.<\/p>\n

The company has been present in India<\/a><\/strong> 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.<\/p>\n

“Nike welcomes the government’s decision on foreign direct investment in single-brand retail franchise in India<\/a><\/strong>. 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.<\/p>\n

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

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.<\/p>\n

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.
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\nRelated Post:<\/strong><\/p>\n

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3. World largest hamburger Company Wendys set to enter India<\/a><\/p>\n

4. Mumbai based VITS Hotels expand in Gujarat<\/a><\/p>\n

5. Mahindra Plans on e-commerce retail expansion in india <\/a>
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