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Nike bets on India with new Bengaluru campus as China revenue slides

Global facility forms part of CEO Elliott Hill's turnaround plan for the sportswear giant

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Nike has announced plans to build a new global campus in Bengaluru, India, describing it as a long-term investment in one of its key growth markets while the company works to revive its business under CEO Elliott Hill. The announcement came alongside its fiscal first-quarter earnings on Oct. 1, as Nike also moves to cut costs and cope with falling revenue in China.

The new campus is expected to open within the next few years and will house corporate roles across the Nike brand, Jordan Brand and Converse, according to a letter Hill wrote to employees.

"India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," Hill wrote.

A Nike spokesperson said expanding into India was a "natural" next step for the company as it looks to grow its global presence.

"As participation in running, basketball, football, fitness and other sports continues to grow across India, we see an opportunity to better serve athletes through stronger local capabilities, consumer insights, and innovation," the spokesperson said.

Nike plans to discuss the India campus in detail at its investor day next month.

Supporters of the move point to India's trajectory as a consumer market. India is expected to become the world's third-largest retail market by 2030, according to Indian conglomerate Reliance Industries, while its e-commerce market was valued at $159.25 billion in 2026 and is projected to reach $332.94 billion by 2031, according to IBEF, an advocacy organisation created by the Indian government.

The India push comes as Nike cuts costs elsewhere. This month the company announced layoffs across the organisation as part of its "Pace strategy," which includes supply chain changes and a reorganisation of geographic segments. Nike expects the effort to deliver approximately $2.5 billion in savings through fiscal 2031.

It also comes as revenue falls in another critical market. Nike's Greater China revenue dropped 26% in the fiscal first quarter, part of what experts describe as a broader trend of American brands losing relevance and traction to domestic competitors in China. North America revenue came in just above Wall Street expectations, but Hill said that performance was not enough to offset pressures abroad. He said the company was taking "deliberate actions" to strengthen its China business.

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Analysis

Why This Matters

  • The Bengaluru campus signals where Nike sees its future growth as its once-lucrative China business declines sharply.
  • The investment pairs expansion in India with company-wide layoffs and cost cutting, giving investors a clear picture of Nike's priorities under its turnaround plan.
  • A stronger local presence in India could help Nike compete for a fast-growing consumer base, but it will take years before the campus opens and the bet pays off.

Background

Nike has been in a yearslong sales slump and is attempting to right its business under CEO Elliott Hill, who is executing a turnaround plan. The India announcement was made alongside that effort, which also includes the Pace strategy: supply chain changes, a reorganisation of geographic segments, and layoffs across the company. The move reflects a broader shift for Western brands, which are losing ground to domestic players in China as that market matures, even as India's retail and e-commerce markets expand rapidly.

Key Perspectives

Nike: Executives see India as an important growth market and manufacturing hub with strong access to talent. The company argues that rising sports participation across India creates an opportunity to serve athletes through stronger local capabilities, consumer insights and innovation, and frames the campus as a natural next step.

Indian market proponents: Forecasts from groups including Reliance Industries and IBEF point to India becoming one of the world's largest retail markets within the decade, with an e-commerce sector expected to more than double in value by 2031. That makes India an attractive destination for global brands seeking a hedge against slowing growth elsewhere.

Critics and skeptics: Nike is simultaneously cutting jobs and pursuing $2.5 billion in savings, and revenue is falling sharply in Greater China. Analysts and investors may question whether the India investment arrives in time to offset pressures abroad, and whether the long wait for the campus to open will delay any benefit to the company's turnaround.

What to Watch

  • Nike's investor day next month, where executives are expected to provide details on the Bengaluru campus and its role in the growth strategy.
  • Whether Greater China revenue stabilises after a 26% drop in the fiscal first quarter.
  • Progress of the Pace strategy, including layoffs and segment reorganisation, and whether the promised $2.5 billion in savings through fiscal 2031 is delivered on schedule.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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