No it’s not Adidas! Global sportswear giant Nike is set to raise retail prices across a selection of its products in the US starting Sunday, June 1, as it grapples with rising import costs and geopolitical trade headwinds. The company has also announced its return to Amazon after a six-year hiatus, signalling a strategic shift amid softening consumer sentiment.The pricing revision will affect adult apparel and equipment, which will go up by $2 to $10 (approx. ₹167 to ₹835). Footwear priced between $100 and $150 (₹8,350 to ₹12,525) will see a $5 (₹417) hike, while shoes exceeding $150 (₹12,525) could rise by up to $10 (₹835).
However, not all products will see a price bump. Nike’s iconic Air Force 1 sneakers (currently priced at $155 or ₹12,942), kids’ collections, and Jordan-branded merchandise will remain unaffected. Items below $100 (₹8,350) will also retain their current pricing.
Why is Nike raising prices?
Though Nike hasn’t explicitly cited US tariffs as the reason for the hike, the timing is telling. Most of its goods are manufactured in Asia, particularly China and Vietnam, regions now facing a 10% import levy in the US, with more steep tariffs postponed until July.“Price adjustments are a regular part of our seasonal planning,” Nike said in a statement, while its CFO Matt Friend earlier hinted at navigating “external uncertainties” such as tariffs and declining consumer confidence.While companies often absorb tariffs initially, they tend to pass on the cost to consumers eventually. Competitors like Adidas and Puma have already issued similar warnings, with Adidas suggesting popular models like the Gazelle and Samba could get costlier in the U.S.
What does this mean for Indian consumers?
Though the price hikes are currently limited to the US, Indian consumers could eventually feel the ripple effects:Imported pricing pressure: Premium Nike products sold in India, particularly limited-edition sneakers and high-end apparel, are often imported from global warehouses, which means global pricing strategy shifts can impact Indian retail tags over time.Currency impact: A strengthening US dollar against the Indian rupee (currently hovering around ₹83.5 to $1) could further amplify retail prices of international brands in India, especially those that don’t manufacture locally.Luxury and streetwear crossover: As India’s luxury fashion and sneaker culture grows, international pricing adjustments like this can reshape local resale markets, especially for cult favourites like Jordans and Air Force 1s.Amazon re-entry strategy: Nike’s return to Amazon US might rekindle interest in strengthening its e-commerce partnerships globally. Indian buyers could potentially see greater online availability of select Nike products, although whether that translates to better pricing remains uncertain.
Retailer’s tightrope
By excluding kids’ products and budget-friendly items, Nike seems to be cushioning the blow for price-sensitive segments. At the same time, its return to Amazon – a move away from its prior direct-to-consumer only stance, shows a more flexible, consumer-focused approach.
Globally, companies like JD Sports and Puma have voiced concern that higher prices could dampen demand, especially in price-sensitive markets. For Indian retailers and consumers, these developments underscore a volatile pricing environment, where global trade, politics, and inflation intersect with your favourite pair of sneakers.
