ASICS Pursues Sustainable Growth Through Digital Innovation and Global Expansion

To begin, could you share with our readers ASICS’s overarching vision and how the company’s founding philosophy continues to shape your identity and approach to innovation?

ASICS traces its roots back to 1949, when it was founded as Onitsuka Co., Ltd. in Kobe, Japan. The company’s founder, Mr. Kihachiro Onitsuka, was deeply shaped by his experience in World War II, during which he lost a close friend. Following the war, he took it upon himself to support his late friend’s parents in Kobe, even though he was not originally from the Onitsuka family. He changed his surname in honor of his friend and began a journey that would evolve into the company we know today.

In post-war Kobe, he witnessed many children living in poverty, lacking direction and opportunities. Believing that sports could give these children a future and a sense of hope, he founded the company on a powerful conviction: that sports can change lives. This belief became the guiding principle of our brand—“A Sound Mind In A Sound Body”—and it remains at the core of everything we do today.

The company’s first 25 years were spent building the foundation from the ground up in Japan, beginning with basketball shoes. ASICS gradually established itself as a domestic sports brand. Our expansion into the U.S. began with a now-famous episode involving Phil Knight, who later co-founded Nike. As a university student, he traveled to Japan seeking high-quality footwear to bring back to the U.S. He met with Mr. Onitsuka and began importing our shoes under his company Blue Ribbon Sports, the predecessor to Nike.

Over the last 25 years, ASICS has evolved into a truly global brand, with Japan, North America, Europe, Oceania, and China as our key markets. We are also seeing exciting growth in emerging markets such as India, Southeast Asia, and Brazil.

Up until 2015, we enjoyed strong performance, but we did face challenges afterward. In 2018, we made significant leadership changes and initiated a comprehensive business restructuring. As a result, the past five years have seen remarkable recovery and growth. Our stock price is at an all-time high, and our operating margin has risen from 1.2% in 2020 to an expected 17% in 2025, placing us among the top in the industry.

That’s a strong turnaround. Can you give us a snapshot of your current product portfolio?

Roughly 50% of our revenue comes from performance running shoes—high-performance footwear designed for runners of all levels. We also offer products for other performance sports such as tennis, volleyball, and basketball. Our lifestyle segment, including a luxury lifestyle brand Onitsuka Tiger, is showing strong momentum as well, blending fashion with sports-derived technology.

One of our key market differentiators is our extensive product lineup, developed based on biomechanical research and insights from elite athletes. Whether customers prioritize cushioning, stability, durability, lightness, or comfort, we offer a wide spectrum of choices to meet diverse needs.

You mentioned expanding in India and other emerging markets. How do you adapt your strategy across such different regions?

While our core product offerings—such as performance running and tennis shoes—are globally standardized, we tailor pricing and marketing approaches to local conditions. In emerging markets, we position ourselves as a premium brand. Customers who are seeking lower-cost footwear may go elsewhere, but those looking for high-performance shoes recognize and choose ASICS.

As GDP growth accelerate in markets like India and Southeast Asia, the running population is expanding rapidly, fueling demand for quality athletic footwear, and that aligns perfectly with our value proposition.

You’ve announced ambitious financial targets, including ¥130 billion in operating profit by 2026 and ¥1 trillion in revenue in the near future. What are the main drivers to achieve this?

We’re confident in these goals. The foundation of our mid- to long-term plan is sustainable global growth. Every region is contributing, but emerging markets—particularly India—are showing the highest growth rates.

Direct-to-consumer (DTC) channels now account for 40% of our sales. A major contributor to this has been e-commerce. In 2018, e-commerce accounted for just 4% of our revenue; now it’s at 20%. This segment also brings our highest gross margins.

We’ve also invested in our OneASICS membership platform. It goes far beyond points and discounts. Members can use our running apps, register for races, and participate in events. This ecosystem strengthens customer loyalty and enables precise digital marketing.

Operational excellence is another key pillar—enhancing inventory visibility, forecasting, and production control to boost efficiency and profitability.

Your digital transformation strategy is clearly central. Could you elaborate on OneASICS and how digital integration is evolving?

On the front end, we’ve built an integrated omnichannel e-commerce platform across more than 120 sites. On the back end, we’ve deployed a global ERP system to ensure operational consistency worldwide.

The OneASICS platform is more than a loyalty program—it’s a connected service model. We’ve acquired race registration and running app companies across France, Australia, Japan, and North America, allowing us to create an integrated customer experience.

Previously, our engagement with marathon runners was limited to event weekends. Now, through race registration, training apps, early access to gear, finish-line experiences, and hospitality, we’ve extended that engagement to six months or more. This generates valuable customer data—gender, race type, shoe preference—and enables targeted digital campaigns.

Running leads the way, but we’re expanding the same model to tennis and lifestyle categories as well.

NIMBUS MIRAI

Let’s talk about sustainability. ASICS has committed to achieving net-zero emissions by 2050 and a 63% reduction in Scope 1,2 & 3 emissions by 2030. How are you integrating sustainability into your full value chain?

Sustainability, alongside digital transformation, is a core business foundation. Climate change is not just a global issue—it directly affects our business. Extreme heat impacts outdoor sports, so CO₂ reduction is a priority.

Our biggest opportunity to cut emissions lies upstream, particularly in production and supply chain. For instance, our GEL-LYTE III CM 1.95 shoe emits just 1.95 kg of CO₂—a major reduction. We achieved this by reducing the number of components by approximately 50%, optimizing materials and construction.

Another breakthrough is a separation technology that enables the sole and upper to be easily detached for recycling. In the NIMBUS MIRAI, the upper is made from a single material and bonded with a special ASICS-developed adhesive, allowing the two parts to be separated after return. This innovation maintains performance while supporting sustainability.

We also label the carbon footprint of our products. In parallel, we’re moving toward digital sampling, reducing the waste from physical prototypes—a practice that’s increasingly accepted across our teams.

Recycled materials can be costly. How do you balance sustainability and price, especially in performance products?

There can be still a cost premium when using recycled or sustainable materials. But under our ASICS Design Philosophy, we are committed to achieving both sustainability and performance. We continuously conduct research and development to minimize environmental impact while enabling athletes to perform at their best. At the same time, we are improving production efficiency and reducing costs through process innovation, so that sustainable products can be offered more accessibly over time. 

GEL-LYTE™ III CM 1.95

On the topic of performance, there’s sometimes a tension between innovation and sustainability. Some brands have developed ultra-light, single-use shoes for elite athletes. How do you view that trade-off?

It’s a nuanced issue. There’s certainly a push for ultimate performance, particularly among elite athletes. But sustainability is increasingly important. Let me give you a tangible example.

We’ve developed extremely lightweight racing shoes with carbon plates. The foam is so light, it’s hard to even feel the shoe. For elite runners, this level of technology can shave significant time off their race. However, these are not everyday shoes—for regular runners, they could potentially increase the risk of injury.

That’s why we offer a range—from high-performance racing shoes to models built for daily training and footwear designed with sustainability in mind, each tailored to specific needs and importance. Innovation is critical, but so is balance. We strive to deliver them.

Are there any upcoming innovations or R&D developments you can share?

Our Institute of Sport Science in Kobe has over 80 researchers working on cutting-edge foam technology and biomechanics. We also collaborate closely with athletes—particularly from Kenya—and hold training camps in Southern France and Africa. Their feedback directly informs our product development. We aim to release new innovations every year.

METASPEED™

How about partnerships? Which strategic collaborations are most important to ASICS today?

We have two key areas of partnerships. On the supply side, we work closely with our manufacturing partners on R&D and sustainability initiatives. On the marketing side, we collaborate with organizations such as World Athletics, national Olympic committees, and major events.

On the retail side, we partner with global channels. For lifestyle brands like Onitsuka Tiger, we also collaborate with designers and creatives, further expanding our brand expression.

Additionally, we’ve started partnering with universities and independent researchers to accelerate innovation on a global scale.

Japan is seeing a boom in inbound tourism. Has this influenced your business, particularly with “Made in Japan” products?

Yes, very much so. For Onitsuka Tiger, about 70% of purchases at our Ginza flagship store are by overseas visitors. The weak yen certainly helps, but more importantly, the “Made in Japan” value resonates strongly. Interestingly, this growth has been organic—we didn’t aggressively push for it, but it’s happening nonetheless.

Thank you again for all your insights. One final question: If we came back in five years and interviewed you again, where would you like ASICS to be by 2030?

By 2030, our ambition is to become the number one brand in specific categories—not necessarily in total revenue, as companies like Nike are massive—but in areas like running and tennis, we believe we can lead in markets such as Europe, the U.S., and Japan.

For instance, we currently have the highest market share in men’s singles at one of the Grand Slam tennis tournaments, with around 25% of athletes wearing our shoes—many of whom are not even sponsored by us. That says a lot about product quality and trust.

We also see potential in workwear (especially in Australia) and lifestyle fashion through Onitsuka Tiger. By combining our strengths in these verticals, we hope to be recognized as number one in selected categories while sustaining profitable growth.

What would you say is the biggest hurdle in achieving that leadership position in Europe, for example?

Competition is fierce. It’s not just Nike and Adidas—there are strong newcomers like On and HOKA. While we’re confident in our product quality and Japanese craftsmanship, we need to improve how we market and engage with consumers—especially through digital and ecosystem-based services. That’s the challenge we must overcome to be number one.

Finally, if you had to describe ASICS in one sentence for our readers, what would it be?

I’d say: “Delivering a sound mind in a sound body to people and communities worldwide.” If people hear that phrase and think of ASICS, then we’ve succeeded.

For more information, please visit their website: https://www.asics.com/us/en-us/

To read more about ASICS Corporation, check out this article about them.