Interview with Rajat Khurana

Rajat Khurana
Director
Asics India

We want to be leader in running shoes segment

Founded in 1949, leading designer and manufacturer of running shoes ASICS Corporation was established by merging three companies - Onitsuka, GTO and Jelenk, and was incorporated in 1977. The word ASICS is an acronym derived from an old Latin phrase Anima Sana In Corpore Sano, which means 'A Sound Mind in a Sound Body'. The brand, founded on these principles, recently announced its plans to "not renew" its distribution contract in India with Reliance Retail. It plans to open its own retail store in the country. Rajat Khurana, Director for Asics India shares expansion plans of the company in the country with Fibre2Fashion.

Asics is a well-known brand globally. What is the reason behind your late entry to India?

We have been doing business in India through a distributor since 2009, and have just established our own sales office( in January 2015). Asics is positioned as a true sport performance brand wherein "running" is our core. As the economy grew in India, running also evolved over the past few years. We offer products with innovative technology, and are premium priced. We understand consumer needs towards running shoes, and what Asics can offer has matched with the same. We believe it (entry into India) is the perfect timing to ride on this portfolio.

You had an exclusive tie-up with Reliance Retail? Is the deal over now?

We have an exclusive distribution agreement with Reliance Retail (Footprint), which will end by March 2015. We will work with our trade partners directly, but Reliance will be our preferred partner for retail operations in India.

Considering that most of your competition is already well established, what is the strategy behind making your presence felt in the Indian market?

Our strong point and our company philosophy are "true performance." In addition, our key category is "running", which is also the fastest growing segment in India. Globally, we sponsor the NY City, Paris and Tokyo marathons, besides the one in Mumbai. We are going to maximise our presence through these marathon events. We also see opportunities in cricket and multi-indoor court sports such as volleyball and tennis. Overseas, we sponsor the Australian national cricket team, and aim to expand our presence in cricket globally.

How do you plan to market your products?

We are positioning ourselves as a true sport performance brand in India, just as we do globally. We will market running shoes and running apparel. We are the strongest in footwear, but we will also market apparel and accessories.

What is your overall marketing strategy? Would you like to elaborate on the business model that you will be adopting in India?

While continuing to be the official sponsor for Mumbai marathon, we will build our brand image as a true sport performance brand among consumers. We will directly reach consumers through services such as running clinics. Moreover, we will increase brand exposure-seeking opportunities in cricket, the nation's favourite sport. With regards to products, our main focus is running shoes for serious runners, such as Gel Kayano, GT2000 and Gel Nimbus. As far as distribution is concerned, we will continue to expand sales channels, and increase multi-brand stores (wholesale) and partnered mono-brand stores.

Who are your primary competitors?

Nike and Adidas.

What is the kind of market share you would like to achieve in the next five years?

Our mission is to be the leader in the running segment in India, and also mark our presence in the overall top three sports segments in the country.

What is your projected growth for the next year?

The first year's sales target is Rs 280 million. We aim to triple this figure in three years.

What is the approximate turnover of your company?

In fiscal 2014 (ended March 31t, 2014), Asics reportedly consolidated net sales of Yen 329.5 billion. This was 26.6 per cent above the prior year's results. This is a global HQ number.

How are your products priced?

Our shoes range from Rs 5,000 to Rs 12,500.

What are your expansion plans?

We will expand sales channels, utilise marketing assets, and focus mostly on the running segment business.

Do you have plans to open flagship stores?

Currently, it is under consideration.

Published on: 27/02/2015

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.