How To Start A Nike Franchise Outlet In 2023 For A Profitable Business?
How to start a Nike Franchise in India?
Nike is a legendary brand that has been around since 1964, Bill Bowerman and Phil Knight founded it under the name "Blue Ribbon Sports." Today, it is one of the largest producers of athletic footwear, and apparel and its name has become famous for its quality and style.
The reason Nike's products are so popular is because of their exceptional quality. From the materials they use to the attention to detail in the design, Nike has never compromised on quality.
Every piece of apparel and every shoe is crafted with detailing and care to ensure that it meets the high standards that Nike has established for itself.
One of Nike's most popular footwear is the Air Jordan series, which has taken the world by storm and is highly sought after by sneaker enthusiasts or so-called “sneakerheads”. Even though they come with a huge price tag, people are willing to pay top dollars for these iconic shoes
Nike has a massive global presence, with over 1,034 retail stores and 700 offices in 45+ countries across the Americas, Asia Pacific, the Middle East, and Africa.
Overall, Nike is not just a brand; it is a legacy. It has established itself as a leader in the world of sportswear and continues to push the boundaries of innovation and design. Whether you're a professional athlete or just someone not related to sports still Nike has something for everyone.
Nike and why consider a Nike franchise?
Nike is a well-known and highly valued global brand, with a reputation for being one of the largest suppliers of athletic shoes worldwide. The company's revenue-earning model is segmented across various categories.
- Footwear: Normally generates revenue of over $29 billion yearly.
- Apparel: It gives out a revenue of over $13.5 billion yearly.
- Equipment: Gives a revenue of $2.35 billion yearly.
- Converse Brand: Over $ 1.6 billion yearly.
The most popular among the footwear is the Jordan Brand which generated $5.2 billion in revenue in just a financial year of 2022.
Franchise
Nike has well established itself in the market of India as well. Let alone in India Nike has more than 100 franchise outlets spread across all the states. Nike is a highly profitable brand and it will yield profit if you become a part of it through franchise.
Nike gives out franchise opportunities for just an investment of Rs. 50 to 1 crore. Whatever the outlet design you prescribe, the investment plan varies the same.
The main benefit that the franchisee gets while consider opening a franchise in Nike is
Brand Value: The brand of Nike is globally recognized for its reputation for quality and innovation. Nike, although is globally recognized, innovation it brings on the table never gets out of style. The brand recognition favors the franchise as being a very profitable model. The franchisee is sure to make a huge profit if it chooses Nike.
Customer Loyalty: The so-called fans or the sneakerhead group are very loyal towards the brand. The customer loyalty is generous so the profitability of a Nike franchise is exceptionally high.
Helps in marketing, IT, selling skills and more: Nike franchise provides franchisee with marketing and selling techniques to meet the sales of products. It provides details on IT and more.
Standard Quality: Nike has certain guidelines that have to be followed by the franchisee. Franchisees have to follow the guidelines that lead to standard in operations of the franchise.
Nike's exceptional profitability is due to its innovative products, quality, and loyal fan base, making it an excellent franchise option.
Benefits of starting a Nike franchise in India
Nike structured its operations in 2021 in India. The franchise has split between two different franchise operators while as well maintaining 100 franchise outlets in India.
In India if we discuss the benefits then:
- Nike provides marketing support and brings in branding materials and marketing support to franchises in order to excel their franchise growth.
- The brand also provides training for new franchise owners, as the franchisee may not be well aware of the market, Nike provides exceptional training to the franchisee.
- The Indian market has a huge fanbase for Nike, although the cost is highly significant but the return is exceptionally lucrative.
To make huge profit and to excel as a franchise for NIke the main factor to be considered is a good location. A location which should have loyal customers and a royal market.
Eligibility criteria for a Nike franchise in India
Nike is very selective while choosing its distributorship. Normally Nike only appoints a small number of franchisees for its operations. To be eligible for a franchisee in Nike, the ceratin conditions are:
- A business license issued by the local government
- A retail shop
- Passion for sports
- A physical store
Although all the criterias are matched, Nike still have a selective procedure in choosing the franchise.
Investment Required
The investment required to establish a franchise in Nike ranges from Rs 50 lakhs to a whopping Rs 1 crore. The entire franchise fees, store setup costs, inventory, and working capital all gets included on the investment amount.
Although Nike charges no fees for becoming an authorized Nike Marketplace Partner, to achieve the branding and the advertising from Nike itself you have to become an authorized reseller.
To become an authorized reseller you have to pay the investment prices.
Steps to Start a Nike Franchise in India
Market Research
Nike is a well-known brand that has captured a significant portion of the market with a whopping share of more than 38.23%. It's no surprise that a large percentage of this share - 30%, to be precise - belongs to the athletic footwear category.
However, before anyone thinks of starting a Nike franchise in the Indian market, they need to consider a few crucial factors. One of the most important factors to consider is the location of the franchise.
Nike is known for selling high-priced goods, and it's essential to operate in an area where customers have high spending power. A franchise in a location where customers are not willing to spend much may result in minimal profitability or even losses.
Therefore, it's necessary to find a location where the spending power of customers is high. A royal location with high-end customers would be ideal for a Nike franchise to flourish.
Application and Funding for a Nike Franchise
Once the market research is completed, the second step in selecting the appropriate franchise model follows. The model varies based on the investment plan, which can range from Rs. 50 lakhs to as much as Rs. 2 crores. The cost is a crucial factor in establishing the franchise.
After the investment amount is satisfied then the process of application begins. The steps involved in the process of application can be done through:
- Submitting an initial inquiry to Nike’s Franchise team
- It can be easily done through the Nike Website.
- Contact the regional head office
Retail Verification
After application you must search for a retail store and buy the store whether on a lease agreement or any other system of payment.
Nike's guidelines on Renovation and Area Requirement
Nike has planned on increasing the size of its store from 1000 sq ft- 1500 sq ft to 3000-5000 sq ft. Nike has no specification on the guidelines regarding the renovation of its stores but yes the area requirement has to be met by the franchise
Inventory and stock
The investment paid at the start before establishing the franchise covers up the cost of inventory and stocks to start up the operation of the franchise
Hire and train staff
The franchise of Nike provides training and basic marketing and selling techniques to the franchisee. This helps the franchise in establishing itself in the market. This also enables the franchise to deal with customers.
The franchisee must obtain the necessary business licenses and permits
After all the steps are completed then you can go on with the launch of your Nike franchise store and start marketing your business.
Success Tips for a Nike Franchise
There are various steps in establishing a successful franchise of Nike.
- Choose a high-traffic location with good visibility, a good location will yield more success.
- A wide range of Nike products should be made available to cater to a variety of customers
- Customer service is mandatory and the service must be excellent
- The store must keep on innovating and introduce discounts and offers more and more often
- Get involved in the local community and sponsor sporting events
- Maintain a strong online presence
Conclusion
Investing in a Nike franchise can be an excellent opportunity for those seeking high profits. Although Nike products may be expensive, the experience and profitability that come with an investment of Rs. 50 lakhs to Rs. 1 crore are unparalleled.
To ensure success, it is crucial to carefully follow the guidelines and best practices recommended by the company. By implementing these measures consistently, you can establish a business that attracts customers and generates significant profits.
With a strong brand reputation and a wide range of high-quality products, Nike is a trusted and respected name in the world of sports and fashion. By becoming a part of the Nike family, you can tap into this reputation and leverage it to build a successful retail business.
Additional Resources
Nike India website: https://www.nike.com/in/
Nike franchise application form: https://www.nike.com/in/help/a/new-account-gs
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