Nike announced plans to build a new global campus in Bengaluru, India, as CEO Elliott Hill pursues a turnaround strategy for the struggling sportswear company. The facility will open within the next few years and house corporate roles across Nike's brands, including Jordan Brand and Converse, according to a letter Hill sent to employees after the company reported fiscal first-quarter earnings on Oct. 1.
India represents Nike's bet on a high-growth market. The country will rank as the world's third-largest retail market by 2030, according to Reliance Industries. India's e-commerce sector was valued at $159.25 billion in 2026 and is projected to reach $332.94 billion by 2031, per IBEF, a government-created business advocacy organization. A Nike spokesperson told CNBC that expanding to India is a "natural next step" as sports participation grows across running, basketball, football and fitness in the region.
The India investment comes as Nike confronts severe headwinds abroad. Revenue from Greater China fell 26% in the fiscal first quarter, part of a broader trend of American companies losing market share to domestic competitors. North America revenue only slightly beat Wall Street expectations, which Hill said was insufficient to offset international pressures.
Hill announced the company would lay off workers across the organization this month as part of what Nike calls its Pace strategy. The effort involves supply chain changes and geographic reorganization. Nike expects the move to deliver approximately $2.5 billion in savings through fiscal 2031.
Some retail analysts express skepticism about the timing and breadth of Nike's India play. Jessica Ramirez, co-founder of advisory firm The Consumer Collective, told CNBC that the India campus "didn't necessarily help" Nike's case and that the company must address short-term problems while planning long term. She noted Nike has not shared concrete plans to regain momentum in China and that the company still lags in direct-to-consumer and sportswear segments across all markets.
Simeon Siegel, senior managing director at Guggenheim Securities, said Nike needs compelling products, strong brand storytelling and extensive distribution in India to succeed. He cautioned that investing in a growing market does not guarantee sales growth and that Nike must restore profitability in each region.
Nike stated that its India and China investments are not mutually exclusive. A Nike spokesperson said the company remains "deeply committed" to China while viewing India as another critical long-term opportunity to invest in sport and athletes.