Nike is the world’s largest manufacturer of sportswear and especially footwear. The brand is loved worldwide and has a tremendously loyal customer base, which keeps the sales amplified and leveraging all the time. The brand stands by its words and offers innovative and inspiring products around various categories. Innovative technology around the brand’s products has always been the town’s talk and the reason for tremendous growth and success.
The business opportunities with the brand are also enormous, with products hardly remaining on the shelves upon launches and the signature collaborations with sports personalities and others remaining classic all the time. And, thinking of the business, a Nike franchise opportunity strikes everyone’s mind immediately.
If you are looking for opportunities to become a Nike retailer, set up a lavish store in your city and do a tremendous business. Then this article is all you need to know to acquire one. Also, you can obtain a distributorship of the products to supply in your city. So, Let’s discuss everything in detail and get you going with a full-proof business plan.
The multinational company and a worldwide brand Nike was founded in 1964 by athlete and coach duo Phil Knight and Bill Bowerman as Blue Ribbon Sports (BRS). The company initially distributed shoes from Japanese shoemaker Onitsuka Tiger eventually ending distributorship and launching their line in 1971. Upon launch, they rebranded the company, and Nike was born with its trademark, the swoosh logo.
The initial distributorship under BRS name was a successful venture with a considerable revenue volume, laying an ideal path for the company to grow. The company made success in multiple folds and acquired a 50% market share of sports shoes in the US by the next decade.
Nike launched various athletic lines of its shoes, starting initially from track running shoes to multiple sports equipment including shoes, cleats, and jerseys for most of the sports. The most famous lines include Jordans for basketball and Air, which was introduced long back in 1992. These lines are still active by the brand offering new launches named as generations.
The scientific innovation incorporated with the brand’s athletic line makes it stand out with visible performance upgrades. For example, a lightweight composition for running shoes, carbon-fiber plate for the bounciness, fit-frame technology, and many others were the revolutionary technology added to the products.
The brand is also quite popular among fashion consumers with a high brand following among street fashion. The brand following is massive among sports lovers through the brand’s sports association, resulting in the hoarding of products associated with their loved sports. The brand is a staple in urban and hip-hop fashion from the late ’90s, with its sports and fashion line worn religiously altogether with fashion items.
The brand offers apparel, accessories, and collectibles apart from its sports range of footwear and is keener on developing sustainable sportswear and fashion.
Nike’s business opportunities are extensive due to its brand image, significant presence worldwide, superior quality, and revolutionary products. The brand also partners with online stores to sell its products and offer franchises and dealerships. The franchise model and distribution of the brand are profitable with a guarantee of investment return very early on.
The frenzy around the new lines, classics of the brand, and new innovative products with sustainability keep sales ongoing in every part of the world, which ensures a profitable venture with franchise and dealership.
However, more significant business opportunities come with greater requirements, and the list of the prerequisite from the brand are specific and unwavering. The requisites are mentioned below.
Cost, fees, and other requisites to acquire a Nike franchise
The cost to acquire a Nike franchise ranges between INR 50 lacs to 1 crore, including franchise cost and cost to load initial inventory. The cost may rise with the inventory and interior of the store. The other requisite is the brick-and-mortar store, which needs to have ample space with a specific requirement of a big to a massive window for front display. The store must be in a prime location of a commercial area like an uptown market, commercial squares, malls, and more.
Another business opportunity with the brand is its distributorship. If you already own a store and are willing to make a substantial investment and not mainly a franchise store, you can opt for a dealership. With investment in inventory, you can become a distributor of stock and products like shoes, apparel, and more to distribute in your city or region.
Nike’s brand value is undoubtedly high and comes with higher maintenance and cost to acquire a franchise and higher inventory cost. However, higher profit is guaranteed against the higher cost and is expected to be returned and amplified in no time. The brand’s franchise also comes with an agreement, allowing Nike to shut franchise stores incurring losses or not performing as expected.
How to start a Nike franchise?
To start a Nike franchise or become a retailer, you can present your proposal by writing to the company on their website or their official mail. Nike India Pvt Ltd’s office is located in Bangalore, and business and franchise aspirants can contact the office too for the same. Another option is to get in touch with a local and regional distributor to approach the company for franchise or even distributorship eventually.
An application must be submitted along with details of your business place and your proposal for the franchise with an assurance of fulfillment of prerequisites that is ideal store space and more. Applicants for distributorship must mention the business license they already have, their business model, and all other business details, including address, capital, and more.
After the submission of the application, the applicant may hear from the company in a few weeks. The response time may delay due to the volume of applications the company receives and reverts on a first-come, first basis.
Can I open an online-only Nike retail store?
Nike typically prefers its authorized retailers to have physical storefronts. However, they may consider partnerships with e-commerce businesses that can provide a seamless online shopping experience and meet their brand standards.
What we’d recommend you do is have an open discussion with the customer service provider to get a better understanding of Nike’s franchise model and the kind of dos and don’ts that they have with the process. It becomes a lot easier to navigate through the process in that way. Also, the franchise requirements might vary from country to country, so being updated about the latest progress is ideal.
Frequently Asked Questions (FAQs) regarding the Nike franchise and dealership
1. How can I get Nike franchise?
To acquire a Nike franchise, you must be ready to make an investment of INR 50 lacs to 1 crore and have a large store in the commercial center of your city with a huge display window. You can write to the company with the fulfillment of these requirements to acquire a franchise.
2. Is Nike a corporation or franchise?
Nike is a corporation that offers franchise business agreements around the world. Nike also provides distributorship and partners with online stores to sell its products.
3. How much does a Nike franchise cost?
Nike franchise costs between INR 50 lacs to 1 crore, which includes franchise fees and cost to get initial inventory.
4. Is the Nike franchise profitable?
Yes, the franchise is highly profitable with heavy demand, a broad customer base, and a loyal brand following, where consumers are ready to pay high and upwards for collections.
We hope that all your queries regarding the Nike franchise are solved, and you are ready to take on the business opportunity the model offers. A franchise opportunity of such a huge brand is a lucrative opportunity and not one to miss. With very few stores in India, it is an opportunity one must take at the earliest, and with your homework here with the article, you are undoubtedly ready. And, here we wish you luck with your venture.
Contents In This Article
- 1 About Nike
- 2 Opportunity
- 3 Cost, fees, and other requisites to acquire a Nike franchise
- 4 How to start a Nike franchise?
- 5 Can I open an online-only Nike retail store?
- 6 Frequently Asked Questions (FAQs) regarding the Nike franchise and dealership
- 7 Conclusion:-