Sports apparel giant Nike is strengthening its presence in India by introducing the new Vegam Run running model priced at ₹3,795. The company plans to release this shoe on the Flipkart platform on November 1, aiming to capitalize on the running boom in India and restore growth amid declining sales in key markets, including China.
On Wednesday, Nike unveiled its first running shoe specifically designed for India. This move is part of the giant's efforts in the world's most populous country as the company battles falling sales in other important regions, such as China.
The Vegam Run model was developed over approximately five months. Earlier this month, Nike announced plans to open a new campus in India, where the company aims to gain ground amidst the growing popularity of running.
CEO Elliot Hill is betting on refreshing the product line to stabilize the troubled sports conglomerate. Analysts believe that success will largely depend on developments tailored to local markets.
Nike is aggressively advancing into the Indian market while China, traditionally a source of revenue for the company, continues to show significant challenges. Sales in China, which account for about 15 percent of Nike's annual revenue, have fallen for nine consecutive quarters due to increased competition from international and domestic sports brands.
The company's shares have dropped by more than 40 percent this year. However, Nike's global running business has been a bright positive point, showing double-digit growth for six consecutive quarters.
This month, Hill warned analysts that Nike's performance division is not yet large enough to offset the pressure seen in the Nike sportswear, Jordan brand, and Greater China segments after the company forecasted an unexpectedly sharp drop in annual revenue.