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Nike shuts maximum business in India

To do away with the recurring losses, the world's largest sportswear maker, has shut around 35% of its stores in India. It is left with around 200 stores in the country.

The loss fractions have only grown over the years for the brand, making it difficult to sustain in the country. In 2014-15, Nike's accumulated losses were around Rs 541 crore, according to data filed with the Registrar of Companies (RoC). Even companies like Adidas' accumulated losses of around Rs 68 crore and Reebok accumulated Rs 2,198 crore losses for the same period. While German sportswear maker Puma, accumulated profits of around Rs 47 crore for the year-ended December 2015.

Nike's largest partner in the country is SSIPL (formerly Moja Shoes), which runs 80% of its stores, followed by Ravi Jaipuria's RJ Corp. Many Nike stores that have been closed recently have been converted into multi-brand stores by its partners and are showing encouraging results.

Apart from Nike rethinking its strategy of sponsoring bats of top Indian cricketers. Nika is also planning to reduce its number of partners in the country and will be working with just three or four to run its operations here. The brand's investment plans, retail plans etc have not worked to well over the years, and precisely that has led to the problems of the brand and have therefore given way to the shutting of a bigger fraction of business in India.



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