Nike is making a big bet in India.

This retailer has always struggled to revive its business and regain growth under the leadership of its CEO, Elliot Hill ( Elliott Hill ). Now, it hopes that the country with the largest population in the world can help it turn this page in terms of performance.

On October 1st, when announcing the financial results for the first quarter of fiscal year 2026, the company announced that as part of its growth strategy, it would establish a new global campus in Bangalore, India. Hill wrote in a letter to employees that this new facility would be a "long-term investment" that would help Nike prepare for success.

"India has already become an important growth market and manufacturing center for Nike, with strong capabilities and talent resources," Hill writes.

The new campus is expected to be launched in the coming years and will cover all corporate functions of the organization, including the brands with the same names: Nike, Jordan Brand, and Converse. Nike plans to discuss its Indian campus plans in detail at next month's Investor Day.

A Nike spokesperson stated in a declaration to CNBC that entering the Indian market is a "natural" next step for the company as it seeks to expand its global influence.

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

According to the Indian conglomerate Reliance Industries ( Reliance Industries ), by 2030, India is set to become the third-largest retail market in the world. The business advocacy organization IBEF created by the Indian government states that the value of India's e-commerce market was $159.25 billion in 2026 and is expected to reach $332.94 billion by 2031.

Nike has experienced several years of decline and is attempting to turn around its business according to Hill's transformation plan. This month, Nike also announced that it will carry out layoffs across the company as part of what it calls the Pace strategy. This strategy includes adjustments to the supply chain as well as a reorganization of the company's geographical regions. Nike expects this measure to result in savings of about $2.5 billion by the fiscal year 2031.

Nike's decision to further invest in India during its recovery process comes at a time when the sports apparel company is experiencing declining revenue in another key international market—China. Although its North American business reported revenue slightly higher than Wall Street expectations in the first quarter of the 2026 fiscal year, Hill stated that this is not enough to offset the overseas pressures.

Nike's difficulties in the Greater China region are particularly evident, with revenue in that region dropping by 26% in the first fiscal quarter. Experts say this is also part of a broader trend: as this once-profitable market matures, American companies are gradually losing their relevance and appeal in competing with local brands.

Earlier this month, Hill stated in a teleconference with analysts that the company is taking "intentional actions" to strengthen its business in China, but these effects will take time to become apparent. Hill said that the company plans to update its physical retail operations, lead digital reforms, and create a higher-quality experience for consumers.

A Nike spokesperson told CNBC that the company is "firmly committed" to China and regards the region as one of its "most important long-term growth markets," even as Nike is expanding its presence in India.

"China remains a long-term priority for Nike, while India represents another important opportunity to invest in the future of sports and the next generation of athletes," said the spokesperson.

Investment under the long-term vision

Experts believe that Nike's expansion in India may be happening at a time that is both opportune and not so opportune. Investing in a growing international market does not necessarily mean that sales will increase; it also requires convincing Indian consumers to accept the Nike brand, which is precisely the challenge the company faced in China.

"I think Nike is now working region by region to re-establish what the brand represents," Simon Siegel, Senior Managing Director of Guggenheim Securities, told CNBC.

Siegel stated that some of the issues Nike faces are that its various regions and business units are at different stages of transformation. He said that if the Chinese business continues to lag behind, investing in India might pave the way for a more sustainable future for the company, but for Nike to succeed locally, it still needs attractive products, a solid brand narrative, and a broad distribution network.

"I think companies need to look within themselves and figure out what the right way to restore profitability is," he said. "In some cases, that means contracting, saving, and cutting back; in other cases, it means investing and looking towards the future, because the goal here is not to shrink to nothing, but to shrink to stability, and then ultimately to resume growth."

Jessica Ramirez ( Jessica Ramirez ), co-founder and managing partner of the consulting firm The Consumer Collective which focuses on retail and fashion, believes that this global strategy may place too much emphasis on long-term vision while neglecting more urgent remedial measures. She stated that she has previously felt that the visions of Nike and希尔（Hill) are “detached from reality,” and that the Indian campus plan may not necessarily help to improve this impression.

“I don’t think this Indian plan will immediately solve their current problems,” she said, “They do need to make long-term plans, right? But they also need to make short-term plans, and those short-term plans are continuously failing.”

She said that Nike has not yet put forward a detailed enough plan to regain the growth momentum in the Chinese market, and it is necessary to advance simultaneously in both regions.

Lamirez stated that although Nike, under Hill's leadership, has made improvements in wholesale and performance categories, the company still has not truly mastered the business of directly addressing consumers and the sports and leisure categories. It is these capabilities that will help the company achieve prosperity in all markets.

A Nike spokesperson told CNBC that while the company is working to expand its global influence, it is also committed to continuing to invest in these two countries.

"Importantly, this is not a decision to choose between India and China," said the spokesperson. "We always invest in each market based on its long-term opportunities, with the aim of serving athletes and promoting global sports development."

Growing market opportunities

Nevertheless, India still offers quite attractive opportunities for many companies that wish to unleash their growth potential overseas.

Lamirez said that Nike is just one of the latest American companies to join this trend. She noted that although many brands began investing in China years ago, now the trend is shifting towards India, as American companies see increasing consumer pressure in the Chinese market and are also dealing with the geopolitical tensions between the two countries.

"This is to get in there as early as possible and ensure a long-term presence, so as to benefit when positive results can be harvested," she said. "I would say that this discussion has gained more attention over the past two to three years, as companies have begun to invest more in India."

According to an analysis by Accenture ( Accenture ), India is one of the strongest-performing markets in the world, driven mainly by domestic demand, investment, and diversification of the supply chain. This country, with a population of over 1 billion, offers growth opportunities similar to those that China brought in the early 21st century.

"This will be a rapidly growing consumer group. We assume that their income levels will continue to rise, and their purchasing power will also increase significantly. Therefore, perhaps we can enter this market from the perspective of consumers," Chris Tomsovic ( Chris Tomsovic ), who leads Accenture's macro outlook team, told CNBC.

However, one of the issues that Indian consumers are most concerned about is price sensitivity, which presents challenges for American companies attempting to enter the market. He added that even so, many local brands on the market are still relatively young, which means that Western companies may now have more opportunities to capture market share.

Another challenge is that Chinese consumers have historically been more receptive to American brands, while more data is needed to determine how Indian consumers view these brands. He said that for sports apparel retailers, the most popular sports in each region also affect this outcome.

"Can they really localize the product and get the pricing right? Can they adapt to the local social media technology ecosystem? Can they accommodate the local cultural values and norms that consumers desire?" said Tomsovic.

"If you can achieve these things, I think you're on the right track. Whether you're a footwear brand or a sports and leisure brand, I believe there are huge opportunities there, as you're targeting billions of consumers," he said.