Monday, February 19, 2024
HomeFootwear FranchiseHow can you buy a Nike Franchise? - Cost, alternatives, and Profit

How can you buy a Nike Franchise? – Cost, alternatives, and Profit

One thing is for sure: in the last few years, the demand for premium footwear brands has shown gigantic growth potential. These brands haven’t only allocated their presence in top-tier cities but also inaugurated numerous outlets in Tier 3 and Tier 4 cities in India.

With international brands paving their way in India, this has also significantly garnered the interest of several entrepreneurs planning to get started in the footwear industry.

We have already covered articles on PUMA, Relaxo, and other footwear brands, but this one is specially for Nike lovers. If you are planning to open a footwear franchise in your locality, then you can consider reading this informative piece that is perfectly curated on the Nike franchise in India.

Nike franchise opportunity
  • Brand: Nike
  • Founded: 1964
  • Headquarters: United States
  • Model: Franchise and self-operated
  • No. of locations: 1050+
  • Area operated: Worldwide
  • Space required: Over 700 sq. ft.
  • Total initial investment: ₹50 lakh to ₹1 crore

Overview of Nike Franchise

Nike was founded as “Blue Ribbon Sports” in 1964 and officially obtained the name “Nike” in 1971. Bill Bowerman and Phil Knight are the two founders of the brand, which now boasts a strong presence in the retail footwear industry across the globe.

The company is headquartered in Beaverton, Oregon, US. The franchise majorly manufactures and retails a variety of premium athletic shoes, apparel, and sports equipment.

Nike is certainly a premier footwear brand, and year-on-year, its valuation has significantly jumped. The brand, which was valued at $29.6 billion in 2017, has exceeded the valuation of $51.2 billion in fiscal year 2023.

At present, Nike has a worldwide presence of over 1050 outlets across the US and non-US markets, of which 369 are located in the U.S. market and the remaining 663 outlets are spread throughout non-US territory.

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When did the Nike franchise launch in India?

As per the report available at the Indiaretailing.com, Nike partnered with a local manufacturing partner, SSIPL Retail Ltd, which eventually became their master franchise and helped Nike widen its market reach.

The association with SSIPL Retail Ltd. began in 1996, but it was in 1998 that Nike’s first brick-and-mortar retail outlet was inaugurated for the general public. Currently, Nike has over 125 retail outlets in India, with over 18 retailers in Maharashtra itself.


What’s the footwear market size in India, and where does Nike stand?

Undoubtedly, the footwear industry, which was at the time controlled by unorganized players, has significantly taken a diversion.

The entry of multiple footwear brands like Bata, Relaxo, Khadims, Shreeleathers, Adda, Liberty, Campus, and more has remarkably pushed the growth prospects of the industry.

The IMARC Group, which estimated the Indian footwear market size at $15.1 billion in 2022, now forecasts it to reach $31.2 billion by 2028. That’s an exceptional CAGR growth rate of 12% for the period 2023–2028.

If you have a keen interest in opening one of the footwear franchises, consider reading this article. Interestingly, the list only contains the Indian brand.

However, out of all the available brands, Nike demands a premium price. With more and more entrepreneurs looking for footwear brands and rising demand for these international footwear brands, Nike may stand out and eventually grab a healthy market share.


Key facts about the Nike

Sr No.TypePublic
1Trade NameNike
2IndustryFootwear and Sports equipment
3Founded1964
4Founders Or Parent CompanyBill Bowerman and Phil Knight
5Corporate HeadquartersUnited States
6Number of locationsOver 1050 global
7Area servedWorldwide
8ModelFranchise and company-operated
9Product offeringFootwear, sports equipment, and more
10RevenueUSD 51.2 billion in fiscal 2023
11Websitehttps://www.nike.com/in

Top 5 reasons to buy a Nike franchise in India

  1. Premium footwear brand:
    • Though owning a Nike retail store demands premium pricing, its significant customer base, brand image, and quality of their products can’t be overlooked. Therefore, becoming one of their retail partners may be worth your investment.
  2. Strategic outlet placement:
    • Nike is one such brand that has certainly excelled the outlet’s planning and positioning; all credit goes to their market researchers and master franchise, SSIPL Retail Ltd.
      • As a franchise prospect, the team will provide extended support in procuring the location and opening their outlet.
  3. Exceptional year-on-year growth:
    • As discussed earlier, over the period, Nike’s revenue and its product portfolio have significantly grown to the next level.
      • Every year, Nike brings in its state-of-the-art footwear and fashion range, all without compromising its quality. This will eventually strengthen its image and loyal customer base.
  4. No unnecessary overhead expenses:
    • There are numerous costs and expenses involved in operating any kind of business, and when you start a new business, you sometimes end up mismanaging the necessary capital.
      • Therefore, partnering with an established footwear franchise like Nike may help in tackling these obstacles.
  5. Immense room for growth:
    • The Nike franchise is one of the leading footwear brands with a presence in nearly 125 outlets, showcasing significant growth potential. And its master franchise is all set to broaden its reach to multiple regions of the country.

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How much does Nike franchise cost in India?

Nike Franchise Cost in India

Be it a US or non-US market, the chain operates primarily on three models, mentioned below for your reference:

  1. NIKE Brand factory stores
  2. NIKE Brand in-line stores (including employee-only stores)
  3. Converse stores (including factory stores)

The overall capital may vary depending on the chosen option. However, in India, there are more factory stores and in-line stores, and one may occasionally find Converse stores (acquired by Nike in 2003 for approximately $300 million) in their locality.

The interested candidates can either opt to open their stores in a high-traffic area or in a hypermarket. Make sure your store amasses a larger customer’s footfall.

To open a Nike franchise in your area, your initial capital requirement may vary between ₹50 lakh and ₹1 crore, which can potentially go beyond that as well.

Note: We haven’t considered the real-estate cost. If you own a premise, that would definitely reduce overhead costs.

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How much profit does a Nike franchise make?

Nike's financial report

Nike generates profit from primarily two sources: retail sales and online sales, with the former contributing a major part of it. The revenue from footwear sales is magnificent that grew 14% for fiscal year 2022-23.

The overall business of Nike is fantastic; with a gross margin of over 40–43%, Nike has provided an immense return to its outlet owners and investors.

Before making any assumptions about Nike franchisee profit margin, we want to inform you that these financial figures are of overall Nike’s operation worldwide, not just franchise operators.

Beside some ups and downs that basically every business faces, Nike too experienced a decline in its revenue, and the reasons for that include an overall market condition, a sudden rise in raw materials, and a global economic crisis. If you have time, consider reading the financial report for Nike.

To gain more insight on its profitability, you can contact the master franchise (in India); they may guide you with more details on profit margin.


What are the two alternatives to Nike franchise?

By this time, you may have an idea about the brand and the premium cost it demands to open its outlets. While some of you will be fine with it, others may consider looking for some other alternatives.

PUMA Franchise

PUMA can be one of Nike’s direct competitors, and the customer base for both of these brands may be more or less the same.

With the details presented in several articles on Quora, customers have confirmed that the pricing of both Nike and PUMA is relatively the same, but PUMA is a little bit on the affordable side.

The net investment for opening a PUMA store may also range between ₹50 lakh to ₹1 crore.

Read more: Start a PUMA Franchise in India: Cost, Fee, & Profit


Relaxo franchise

If you are thinking of an Indian footwear brand to get started with, you may consider Relaxo on your list.

Relaxo was founded in 1984, and with its over-decade-long expertise, they have obtained a substantial market share in the Indian footwear industry.

Under their brand, it presents a variety of footwear, including shoes, slippers, sandals, and more, for customers of all ages. Undoubtedly, Relaxo is a prominent brand in the market, and the franchise price of ₹20 lakh to ₹35 lakh seems like a lucrative opportunity.

Read more: How can you get started with Relaxo? Cost, Profit, and more


How to Get Nike Franchise?

Believe me, it is no where covered by any franchise-related website where they provide the exact steps to become their franchise. But, no worries! We have got you covered.

Primarily, there are two steps which can help you become their franchise partner:

  1. Directly visiting their official website and calling the market representative.
  2. Contacting their master franchise and filling out its respective form (available on their website)

Step:1 – Official website

  1. Visit Nike India’s official website -> https://www.nike.com/in/help/a/new-account-gs
  2. Navigate to Nike representative in your area
  3. For India, Contact number (embedded here)

Step:2 – Through master franchise

  1. Contact SSIPL Retail Ltd. (master franchise for Nike) -> https://www.ssiplgroup.com/exclusive-brand-stores/
  2. Navigate to the franchise inquiry page and fill out the application form.
  3. Or, you can contact them at the below addresses:
Contact number+91-11-66999699
Official addressB-1 / F-4, Mohan Co-operative Industrial Area,
Main Mathura Road, New Delhi – 110044
Email Addressfranchisee@ssipl.in

For our internal purpose, you can also fill in this form:


The Editor’s Thought

The footwear industry has certainly evolved in India, and customers have become quite picky about their favorite brands, which may eventually draw notable customer traffic to popular brand’s outlets like Nike.

In addition to this, Nike has also partnered with several international and domestic athletes and sportspeople, further boosting its brand image. The overall business of Nike looks stable, and its financial progress is also impressive.

If you have experience or have a passion to learn more about the footwear industry, then partnering with Nike may prove to be a fruitful investment opportunity. Please make sure you contact the legitimate person and do the necessary market research before collaborating with any brand.

Note: We aren’t approving the authenticity of SSIPL Retail Ltd. The details covered are collected from Indiaretailing.com, and they have mentioned SSIPL Retail Ltd. as Nike’s master franchise. Consider checking the authenticity before making any decision, and FranchiseGoal India will not be responsible for any damage or loss.

In case of any query, feel free to comment them down, we’ll try our best to reply them with in 24-48 hours. Cheers!

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FAQ

  1. Is Nike a franchise?

    Certainly, Yes. Nike offers its franchise, and you can either proceed with applying at their official website or navigating to its master franchise (details provided).

  2. Who is the master franchise of Nike in India

    SSIPL Retail Ltd. is the master franchise is Nike franchise in India. But not only this, they are also the master franchise for brands like PUMA, Adidas, Reebok, Sketchers, UCB, Levi’s. These details are obtained from Indiaretailing.com, a leading platform for businesses.

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FranchiseGoal Indiahttps://in.franchisegoal.com
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