Nike deepens India push with new running shoe, seeking fresh growth engines

NIKE

Thu 24:30

By Danielle Kaye
NEW YORK, Oct 28 (Reuters) - Nike NKE.N unveiled on Wednesday its first-ever running shoe designed specifically for India, marking the sportswear giant's latest bid to reach shoppers in the world's most populous country as it grapples with a sales slump in other key regions including China.
The shoe, dubbed Vegam Run, follows Nike's announcement earlier this month that it plans to open a new campus in India, where it is seeking to make inroads amid a running boom.
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The running shoe is set to be released on India's e-commerce marketplace Flipkart on November 1, priced at ₹3,795 (roughly $40). It was developed in about five months, Nike said. 
CEO Elliott Hill, two years into his tenure, is betting on a revamped product pipeline to turn around the struggling sportswear juggernaut, which analysts say will hinge in large part on locally led designs in key markets.
Nike is trying to push into India at a time when China, historically a profit driver for the company, continues to show particular weakness. Sales in China, which account for about 15% of Nike's annual revenue, have fallen for nine consecutive quarters as international rivals ‌and domestic ⁠sportswear groups gain traction.
Shares have tumbled more than 40% so far this year. But Nike's global running business has emerged as a bright spot, growing by double digits for six consecutive quarters.
"Our Nike performance business is not yet large enough to offset the pressure ​we're seeing in Nike sportswear, Jordan brand, and Greater China," Hill warned analysts this month after the company projected a surprisingly steep drop in full-year revenue.

 (Reporting by Danielle Kaye in New York; Editing by Nia Williams)
 ((danielle.kaye@thomsonreuters.com))