Nike to open Bengaluru campus as it bets on India amid China slump

Nike will create a new global campus in Bengaluru, India, the sportswear company announced alongside its fiscal first-quarter earnings on Oct. 1, as it looks to a fast-growing market to help revive a business that has struggled for years.

CEO Elliott Hill told employees in a letter that the facility would be a "long-term investment" to help position Nike for success. "India is already an important growth market and manufacturing hub for Nike, with strong capabilities and access to talent," he wrote.

The campus is expected to open in the next few years and will span corporate roles across the organization, including the Nike brand, Jordan Brand and Converse. Nike said it plans to discuss the India campus in detail at its investor day next month.

A Nike spokesperson told CNBC that expanding into India is a "natural" next step as the company seeks a larger global presence, pointing to growing participation in running, basketball, football and fitness across the country.

A large and growing retail market

India is expected to be the world's third-largest retail market by 2030, according to Indian conglomerate Reliance Industries. 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, a business advocacy organization created by the Indian government.

China remains a drag

Nike's push into India comes as it loses revenue in another key international market. Greater China revenue dropped 26% in the fiscal first quarter. North America revenue came in just above Wall Street expectations, but Hill said that performance was not enough to offset pressures abroad.

On a call with analysts, Hill said the company was taking "deliberate actions" to strengthen its China business, including refreshing physical retail, a digital cleanup and better consumer experiences, though he said the effects would take time. A Nike spokesperson said the company is "deeply committed" to China and called it one of its most important long-term growth markets, adding that the India move is "not an either/or decision."

Nike also announced layoffs across the company this month under its Pace strategy, which includes supply chain changes and a reorganization of its geographic segments. The company expects the effort to deliver about $2.5 billion in savings through fiscal 2031.

Experts see risks and opportunity

Simeon Siegel, a senior managing director at Guggenheim Securities, told CNBC that Nike is going "region by region and working to reestablish what the brand stands for." He said investing in India could set up a more sustainable future if China continues to lag, but that Nike needs compelling products, strong storytelling and wide distribution to succeed there.

Jessica Ramirez, co-founder of advisory firm The Consumer Collective, said the India plan is not an immediate fix. "They have to plan long term, right? But they also need to plan short term, which is continuously falling apart," she said, adding that Nike has not shared concrete enough plans to regain momentum in China.

Chris Tomsovic, who leads Accenture's macro foresight team, said India offers a growth opportunity similar to China's in the early 2000s, but warned that price sensitivity among Indian consumers will be a challenge for Western brands.

Source: CNBC.