With running expected to catch on as a trend, the Japan-headquartered sports apparel company expects to grow at 25 percent CAGR
The Covid-19 pandemic has prioritised health and fitness, and more and more people have taken to running, giving businesses for sportswear brands like Asics a big fillip.
The Japan-headquartered company registered a global turnover of $3.6 billion in CY22, up from $3.2 billion the previous year, while its India business saw its net operating revenue go up to Rs251 crore in FY22, up from Rs176.5 crore in FY21, according to business research database Tofler. During this period, profit after tax jumped from Rs9.63 crore to Rs40 crore.
“During Covid-19, many people took to sports, especially running and walking. We took this opportunity to expand business globally. India is Asics’s most prominent market and I see it to grow at a CAGR of 25 percent in the next few years,” says Yasuhito Hirota, president, CEO & COO, representative director, Asics Corp, during his recent visit to India.
The sales break-up in the country vindicates Hirota’s assertions, with over 50 percent business from the brand coming from the performance wear category. Says Rajat Khurana, managing director, Asics India and South Asia, “The target consumer for Asics in India are people who see sports and fitness as part of their lifestyle.” He adds that while in 2004 India had around 30,000 registered runners, it has gone up to 2.5 to 3 million at present. "The trend will only continue."
India’s sports apparel market was valued at $579.47 million in 2021 and is expected to reach $2,283.13 million by 2029 at a CAGR of 16.2 percent, states a report by market research firm Maximize Market Research.