Nike forays into eyewear, watches

The US footwear major Nike is diversifying into the eyewear and watch market in India and expects to record breakeven by the end of the current fiscal.

The company is also planning to introduce a host of products in the mid-range sports footwear market and double its retail network to 100 stores by the end of this year, Hemchandra Javeri, chief operating officer of Nike in India told newspersons on Tuesday.

The company is also planning an e-commerce thrust for retailing its products through an e-store set up on the rediff.com site.

''India is on the top of the priority list for Nike. We have aggressive plans for the country and are looking at recording breakeven here by the end of this fiscal,'' Javeri said.

Claiming to have achieved a leadership position in the premium footwear market in India, Nike is now eyeing a greater presence in the apparel and accessory market here. ''We are bringing the entire range of Nike accessories to India, beginning from bags to socks and caps, and the latest to join them are watches and eyewear.''

In addition, the company is also exporting 'Made-in-India' apparel under the Nike brand from its Bangalore-based apparel arm. ''The Bangalore unit is emerging as a supplier base for world class apparels for Nike's engine worldwide. The products are being sourced from three or four local manufacturers and branded as Nike in the foreign markets,'' he added.

Sources pointed out that the company would be exporting apparels worth $70 million per annum from India.

Nike is operating in India through a licensee -- Sierra Industrial Enterprises Private Limited. The US company is investing in developing brand, products and distribution in the country and has no plans to pick up stake in the licensee.

Detailing the company's future plans for India, Javeri said that the company has no plans to address the mass market in the sub-Rs 1,000 market in the country. ''But we will be introducing 20 stock-keeping units (new products) every month in the current fiscal. We do not want to introduce a product in India unless there is a compelling advantage.''

The company also has no plans to move into the smaller towns and cities in India. ''We are looking at a network of 100 stores by the year-end and the cities which are not covered under this network will be targetted through our Web site. Currently, 50 per cent of our purchases from the Net come from towns where we do not have a retail presence.''

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