Nike applies to open its own stores in India
Nike, which already has stores in India through franchisees, can gain more control over its business if its application is approved
Bangalore: Sportswear brand Nike has filed an application with regulators to open company-owned stores in the country, nearly two years after India allowed 100% foreign direct investment (FDI) in single-brand retail.
Nike India Pvt. Ltd filed an application with the department of industrial policy and promotion on 29 August, the department’s website showed.
In September 2012, India allowed 100% FDI in single-brand retail and 51% in multi-brand retail—with riders. Several single-brand retailers including furniture maker Ikea AB, clothing brand Hennes and Mauritz (H&M) and others have since applied to enter India.
Single-brand retail in the country has attracted far more takers than multi-brand retail, which has suffered from difficult riders and a lack of clarity over rules.
Nike, which competes with the likes of Adidas and Puma, already has stores in India through franchisees. If the company’s application is approved, it can open owned stores in the country and gain more control over its business.
Nike reported sales of ₹ 385.48 crore for the ten months ending March 2013, documents filed with the registrar of companies showed. Heavy marketing spending resulted in a loss of ₹ 83.24 crore.
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