Nike to increase presence in Punjab

As Punjab is set to witness a retail boom in the coming years, Nike India is planning to expand its retail footprint in different formats here.

It believes the market in Punjab is very vibrant and growth will be driven by increased consumer awareness and disposable incomes. It is planning to open exclusive Nike stores not only in the malls that would be coming up in the metros, but also in other class II towns of the state.

Retail experts estimate that the total number of malls is expected to cross 40 by the year 2010. This will take the total mall space in the state to about 3.18 million square feet.

Talking to Business Standard, Jaideep Wahi, Account Manager, Nike India Private Limited, says, " The Nike brand is retailed in over a 1000 stores in India across different formats like monobrands, multibrand among others. The state of Punjab is the most dynamic emerging markets in India. Seeing the retail growth here, we will be expanding here through different formats or through distribution route."

He was in the city for the opening of Nike store in Taj hotel. He, however, did not reveal the exact number of stores that the company is aiming to open this year as a matter of company policy. Punjab's consumption level is significantly higher than the all-India average in almost every retailing category like clothing and footwear. These reasons are helping Punjab in fast becoming a favoured destination for the retail industry, says experts.

Official spokesperson of Nike India informs that the attractiveness of the market in Punjab lies in its huge consumer base that is young and willing to spend, with equally buoyant workforce fits into our brand's strength. Besides, the opportunities for expansion in malls, Punjab's second tier cities and semi-urban towns represent a goldmine of opportunity for retailers like us.

She says that our growth would be supported by new innovative products in footwear, apparel and accessories that the companys launches every season.

"The sports icons are becoming strong influencers for youth. We are trying to seize this opportunity by elevating our marketing strategies and products offerings, besides strenghtening geographic distribution. We have launched specially designed footwear for Indian conditions. We would bring in the best of global trends and mix them local ingredients to appeal to our consumer base. We would also be launching our cricket gear in September."

Wahi says that the company is also looking at the prospects of introducing large format stores. However, the minimum size of the stores would be 700 square feet. The Nike stores are following the global retail identity by offering more convenient way to shopping experience. The stores are placing lot of focus on women products. This reflects the Nike's commitment to this growing segment of women buyers."

He said that the company is putting lot of efforts on the design, merchandise assortment and services.

"In India, Nike works with approximately 10 contract factories which manufacture footwear, appard and equipment for Nike. Our goal is to do business with contract factories that consistently demonstrate compliance with our standards and operate in an ethical and lawful manner," he adds.