Nike deepens India push with new running shoe, seeking fresh growth engines

By Reuters News

By Danielle Kaye

- Nike NKE.N unveiled on Wednesday its first-ever running shoe designed specifically for India, marking the sportswear giant's latest bid to reach shoppers in the world's most populous country as it grapples with a sales slump in other key regions including China.

The shoe, dubbed Vegam Run, follows Nike's announcement earlier this month that it plans to open a new campus in India, where it is seeking to make inroads amid a running boom.

Here are more details:

  • The running shoe is set to be released on India's e-commerce marketplace Flipkart on November 1, priced at ₹3,795 (roughly $40). It was developed in about five months, Nike said.

  • CEO Elliott Hill, two years into his tenure, is betting on a revamped product pipeline to turn around the struggling sportswear juggernaut, which analysts say will hinge in large part on locally led designs in key markets.

  • Nike is trying to push into India at a time when China, historically a profit driver for the company, continues to show particular weakness. Sales in China, which account for about 15% of Nike's annual revenue, have fallen for nine consecutive quarters as international rivals ‌and domestic ⁠sportswear groups gain traction.

  • Shares have tumbled more than 40% so far this year. But Nike's global running business has emerged as a bright spot, growing by double digits for six consecutive quarters.

  • "Our Nike performance business is not yet large enough to offset the pressure ​we're seeing in Nike sportswear, Jordan brand, and Greater China," Hill warned analysts this month after the company projected a surprisingly steep drop in full-year revenue.

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