How Asics expansion in non-metro India supports local growth and echoes BRICS aspirations

Japanese sportswear brand Asics is making notable progress in expanding into India’s Tier 2 and Tier 3 cities to meet the rising demand for athleisure outside major metro areas. According to Economic Times, by the end of 2024, Asics plans to operate 120 stores across the country, driven by a surge in e-commerce sales from non-metro locations, which now account for about 60% of its online revenue. This expansion aligns with Asics’ strategy to boost local production, aiming to manufacture up to 40% of its products in India, up from the current 30%.

Understanding Tier 2 and 3 Locations
Tier 2 cities like Jaipur and Pune are emerging as fast-growing hubs with expanding consumer bases, while Tier 3 cities like Udaipur show rising purchasing power and demand for premium brands. These cities present retail opportunities with lower operational costs and less competition than metro cities like Delhi or Mumbai, making them ideal targets for Asics’ expansion.

How Asics’ Growth in India Aligns with BRICS Aspirations
While Asics’ leaders may not have explicitly considered BRICS in their expansion plans, the company’s strategy in India aligns well with the broader economic aspirations of the BRICS alliance. BRICS, an economic coalition between Brazil, Russia, India, China, and South Africa, aims to foster regional economic growth, self-sufficiency, and stronger production capabilities among emerging economies. Through initiatives like Make in India, these goals take shape on a national level, with India focusing on enhancing local manufacturing to boost job creation and economic growth.
By increasing its local production and expanding in India, Asics is indirectly supporting these BRICS objectives. Even if driven purely by market opportunities, Asics’ move to bolster local manufacturing resonates with BRICS’ vision for economic resilience and self-sustained growth within its member countries. This indirect alignment underscores how BRICS’ goals can overlap with those of foreign businesses operating in its member nations.

G7 Companies and Their Indirect Role in Supporting BRICS Goals
Asics’ expansion in India also highlights a broader trend: as BRICS economies strengthen, companies from G7 nations may increasingly find themselves contributing to BRICS aspirations, whether consciously or not. The G7 — a group of advanced economies including the United States, Canada, the United Kingdom, Germany, France, Italy, Japan, and the European Union — focuses on promoting global economic stability and cooperation. Yet, as BRICS nations gain economic prominence, G7 companies are likely to pursue opportunities within these emerging markets, particularly to tap into the growing consumer base and favorable production conditions.