Onitsuka Tiger Pivots From Asics Stripes to Tap Luxury Market

Onitsuka Tiger is looking at life beyond its famous stripes as the footwear brand prepares to transform into a luxury lifestyle label distinct from Asics Corp.

The 77-year-old sneaker maker is set to be spun off from parent Asics on Jan 1 to capitalise on a resurgence in interest for retro aesthetics and Japanese style. The move is also aimed at distinguishing the brands, which currently share the iconic stripe motif: Asics will specialize in sports, and Onitsuka Tiger will concentrate on fashion and lifestyle.

"For the past decade or so, we've believed that we needed to become a brand that could sell, even without the stripes," said Ryoji Shoda, Chief Executive Officer of OT GROUP Corp., the wholly owned subsidiary that will absorb the Onitsuka Tiger business. "Otherwise, it starts to feel like we are selling because of our affinity with Asics."

Onitsuka Tiger got its start in 1949 with a focus on sports shoes but rose to wider prominence in the early 2000s as its relaunch coincided with the appearance of a pair of yellow and black sneakers in Quentin Tarantino's Kill Bill films. The more recent revival in demand for vintage-look sneakers, coupled with a surge in tourism to Japan and a weaker yen, is sparking a sales jump and reinforcing the case for handing more control to the brand.

The company is a major moneymaker for Asics. It reported an almost 60% surge in profit last year, trails only Asics' performance running segment in profit, and reported margins of about 38%.

Onitsuka Tiger's popularity is also reigniting US ambitions after the company closed its physical stores in 2023 due to differences in strategy between the brand and Asics. It's set to open a store in Los Angeles in February 2027 that will serve as a litmus test of demand, with the shoemaker then deciding on any further expansion.

"For the first year, we plan to operate solely with the Los Angeles store," Shoda said. "In America, the business of opening many stores and taking sales through store expansion is becoming somewhat out of trend. Rather than that, I think it is more important to have one very large store that clearly communicates the brand's direction."

The approach underscores a key hurdle for Onitsuka Tiger as it tries to rebuild its physical presence from scratch while maintaining a premium footwear image and, ultimately, transitioning into a full-blown luxury lifestyle brand.

"The challenge will be to strike a balance between scaling up, expanding overseas but keeping the 'rare Japan exclusive' wow factor," said Marguerite LeRolland, senior global insight manager at EuroMonitor International.

Shoda said that his luxury plans won't necessarily come with a price hike. Onitsuka Tiger's sneakers are already positioned at a higher price point in the US, with a pair of Mexico 66s selling for $190. That compares with about $100 for Adidas Sambas and Puma Speedcats and $115 for Nike Inc.'s Air Force 1.

Onitsuka Tiger has previously forecast that annual sales could eventually reach ¥200 billion ($1.2 billion), up from ¥136.5 billion in 2025. Shoda said it currently has no plans for an initial public offering and declined to give targets on its expansion plans following the spin-off.

"Doing something merely in order to hit a target is not really the Onitsuka spirit," he said. "We've worked this way for years, and as a result, sales have increased."

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)