TOKYO: Japanese sportswear group Asics is expanding its Onitsuka Tiger brand globally to capitalise on rising demand for retro-style sneakers, though analysts warn the strategy could pressure the label’s high profit margins, according to Reuters.
The brand, known for its yellow-and-black designs popularised in films such as Kill Bill, has already benefited from strong tourist demand in Japan and a weak yen, with sales rising by about one-third in the January–March quarter. The business currently generates profit margins of around 40%, among the highest within Asics.
Onitsuka Tiger is now opening flagship stores across Europe, China, South Korea, and the United States, including a planned return to Los Angeles next year after exiting New York three years ago. The company currently operates nearly 200 stores worldwide.
Asics has announced a corporate restructuring plan to transfer Onitsuka Tiger into a wholly owned subsidiary, OT Group, through a company split. The group said there are no immediate plans for a stock market listing.
Analysts said the move could support long-term brand positioning but may also increase costs due to international retail expansion and capital-intensive store openings.
The expansion comes amid growing global competition in the sneaker market, where established brands such as Nike, Adidas, and Puma continue to dominate, while consumer demand increasingly shifts toward minimalist and retro-inspired footwear.
Industry observers say Onitsuka Tiger has benefited from renewed interest in Japanese fashion and culture, as well as endorsements from celebrities and fashion influencers, contributing to its premium positioning closer to luxury goods than traditional sportswear.
However, analysts also caution that fashion trends remain volatile, and maintaining current margins could become more difficult as the brand scales globally and faces higher operational costs and intensifying competition.
The report is based on information published by Reuters.