Nike is turning toward India to reset its growth story. In a letter to employees tied to its fiscal first quarter results on Oct. 1, CEO Elliott Hill said the company will establish a global campus in Bengaluru as a "long-term investment" to set Nike up for success. Hill wrote that "India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent."
The campus, slated to open within the next few years, will cover corporate roles across the Nike brand, Jordan Brand and Converse. Nike said it will share a fuller plan at its investor day next month. A company spokesperson told CNBC that expanding in India is a "natural" next step as Nike scales globally, adding, "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 move comes as Nike tries to pull out of a multiyear slump under Hill's turnaround plan. Earlier this month, the company announced plans to cut staff throughout the organization under its Pace strategy, which also calls for supply chain adjustments and an overhaul of how its regions are structured. According to Nike, the program aims to generate approximately 2.5 billion dollars in savings through fiscal 2031.
Regional results are split. North America revenue in fiscal Q1 was just above Wall Street expectations, but Hill said that was not enough to offset pressure abroad. Greater China was the weak spot, with revenue down 26 percent, a slide that lines up with what experts describe as U.S. brands losing ground to local players as the market matures. Hill told analysts Nike is taking "deliberate actions" to strengthen China, including refreshing physical retail, a digital cleanup, and creating higher quality experiences for consumers. A spokesperson told CNBC the company is "deeply committed" to China and views it as one of its "most important long-term growth markets," even as it expands in India.
Analysts see both opportunity and risk in the India push. Guggenheim's Simeon Siegel said Nike is tackling each region in sequence to clarify the brand's identity, with every business segment at a different stage of the turnaround. He added that India investment could support a more durable future if China stays soft, but that it will take compelling product, strong storytelling and broad distribution.
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Jessica Ramirez of The Consumer Collective called the strategy heavy on long term vision while near term fixes remain unclear. She questioned whether the India campus is an immediate solution, said plans to regain momentum in China are not concrete enough, and noted Nike still has work to do in direct to consumer and sportswear, even as wholesale and performance have improved.
The market backdrop is getting bigger. Reliance Industries projects India will be the world's third largest retail market by 2030. IBEF, a government backed business group, valued India's e commerce market at 159.25 billion dollars in 2026 and sees it reaching 332.94 billion dollars by 2031.
Accenture's analysis calls India one of the strongest performers globally, powered by domestic demand, investment and supply chain diversification. With a population over 1 billion, the setup echoes China in the early 2000s. Still, Accenture's Chris Tomsovic cautioned that Indian consumers are highly price sensitive and that success will hinge on localizing product and price points, fitting the local tech and social platforms, and aligning with cultural norms.
Nike is planning a new global campus in Bengaluru as a long term investment, with roles spanning Nike, Jordan Brand and Converse over the next few years. That step lands alongside layoffs and reorganization under Pace, which targets approximately 2.5 billion dollars in savings by fiscal 2031, and follows a 26 percent revenue decline in Greater China. Expect more detail at next month's investor day, as Nike reiterates a long term commitment to China while pursuing growth in India.
For investors, the geographic mix is shifting. Watch how quickly execution in India converts to demand, whether price sensitive shoppers buy into the brand, and how soon Hill's actions in China start to register in the numbers.
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