Nike may be one of the world’s most sought after sporting brands but it has shut down its business in India by 35 percent. The US sportswear brand has closed 35 percent of its showrooms in India to cut down losses.
According to the data filed by the Registrar of Companies (RoC), NikeIndia’s accumulated losses were around Rs 541 crore in 2014-15, reports The Times of India. In order to combat the losses, it is also planning to reduce the number of its partners.
Nike India has been the official sponsor of Indian Cricket team since 2005. The contract includes jerseys as well as cricket bats of players. As it spends a huge amount of money on sponsoring the cricket bats of star players, the company is thinking to do away with this practice.
Nike India has however not given out an official statement regarding the matter.
Here are some of the Twitter reactions to it:
@Nike gets #India strategy wrong ? With rising losses, to cut costs by closing 35% of stores #retail #footwear https://t.co/s9Fa4odXBS
— arvindmahajan (@arvindmahajan) September 20, 2016
. @TwitterIndia closes its engineering arm while @Nike shuts 35% of its stores in india… Something happening…
— shwetabh mathur (@shwetabh2) September 20, 2016
Nike shuts 35% stores, Twitter shuts engineering ops. Udta India.
— Anupam Gupta (@b50) September 20, 2016
Looks like Nike just didn’t do it here in India.
— Ramki (@ramkid) September 20, 2016
(Feature image source: Reuters)
