Paragon India’s Sachin Joseph on the company’s repositioning strategies and expansion plans in FY25

While growing there were few brands which were most preferred whether it’s in terms of footwear or apparel and even for that matter accessories for schools. Today, with the influence of fashion and style, people tend to buy a variety of footwear for different occasions and purposes. This shift in consumer behaviour has contributed to the growth of the footwear market. Many of us remember Paragon footwear for its durability, comfort and affordability.

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As time changed, it became essential for some brands to reposition themselves to cater to newer generations. One such brand seems to be Paragon India, which has realised this shift. As a result, the company stated that it is working to expand its reach and increase its broader audience base as it tries to remain true to its core brand philosophy. The brand claims to be focusing on repositioning itself in tier-2 and tier-3 markets. It claimed that this repositioning is part of Paragon’s overall expansion plans. The company’s revenue from operation rose 26.3% to Rs 91.44 lakh in FY23 from Rs 72.57 lakh in FY22, as per the regulatory filings accessed by Tofler. It posted a net profit of Rs 66.32 lakh in FY23 from a net loss of Rs 12.49 lakh in FY22.

In a conversation with BrandWagon Online, Sachin Joseph, executive vice president, Paragon India, talks about the company’s repositioning strategies, licensing deal with the Disney Marvel franchise, and plans for FY25, among others. (Edited Excerpts)

The company’s revenue rose 26% in FY23 compared to FY22. What were the key strategies that led this turnaround?

There are different avenues we have explored. Regarding Paragon assets, we have continuously improved our products, which resulted in significant growth in other markets where our presence had previously been weak. By focusing on these areas, we achieved notable growth. Additionally, we expanded our retail shops, which provided a substantial boost. We also introduced a couple of new brands, and all of these factors contributed to our growth.

What are Paragon India’s growth targets and strategic plans for FY25? What new initiatives are you planning to implement?

In FY25, we have implemented a comprehensive repositioning strategy with a strong focus on marketing. We are investing our efforts in this area. In terms of other initiatives, we are also pushing for retail expansion. Currently, we have over 90 stores and plan to expand these, particularly in the southern markets. Additionally, we aim to extend our reach into the northern and western markets for this financial year.

We have entered into a licensing deal with the Disney Marvel franchise. We launched this product line this year and will continue to offer it through exclusive retail stores, e-commerce marketplaces, and our own B2C website. This is a completely new range of products and we are bullish on this as our customers have not seen this type of product in our portfolio before. We will offer it under the Paragon brand name, as well as under our other two brands. This initiative represents a significant expansion of our product range.

From a marketing perspective, what core strategies will allow you to gain maximum share?

This year, we undertook a repositioning exercise after extensive deliberation and discussions with our new agency Turmeriq. The objective of this strategic approach is to reconnect with our core audience, the hardworking individuals who constitute our mass market. We acknowledged the necessity to refresh our brand and return to our foundational principles. As part of this exercise, we transitioned our focus to deeper emotional engagement rather than relying solely on celebrity endorsements.

Alongside this broader strategy, we are executing tactical initiatives to drive secondary sales and enhance engagement at the retail level. This includes expanding our exclusive retail chain and incorporating more franchises. Moreover, we are targeting new customers through e-commerce platforms, aiming to elevate brand preference and influence for Paragon. Our ultimate aim is to ensure that Paragon emerges as the most preferred brand among our target audience.

How will you differentiate Paragon from its competitors in tier-2 and tier-3 cities?

At the end of the day, we are a product-selling company. We always ensure that our products are comfortable, affordable, and well-designed. We continuously launch multiple designs every month to cater to various user needs, whether it’s for monsoon season, daily wear, or specific requirements like hard footwear for farm work. Our focus is on providing the right product at the right time across all our stores, ensuring our consumers feel confident about investing in our products. We prioritise durability and comfort to guarantee customer satisfaction.

Additionally, in our communication, we differentiate ourselves by taking a more emotional approach, unlike many brands in the open footwear category. We believe in building a strong emotional connection between our brand and customers, as research has shown this to be the most effective way to build a brand. Our emphasis remains on offering high-quality products at affordable prices with functional excellence.

Which marketing channel has shown a significant return-on-investment (RoI) in your marketing efforts, and what is the split between online and offline channels for your business?

We continue to focus on traditional channels such as print, radio, and television because our core target group is predominantly present in these mediums. However, we are also increasing our presence in the digital space and have raised our spending on digital advertising. Traditional media remains our primary channel, but digital marketing is an area of growing focus for us.

Influencer marketing is also part of our strategy. We recognise that digital media is expanding rapidly and is now an integral part of daily life, even in tier-two and tier-three cities. To reach our core target group, we create content that is relevant and accessible, even for those who may not have high-end smartphones. We aim to connect with the latest trends through digital media and communicate effectively using local influencers. We focus on regional and vernacular languages, minimising the use of English to better engage with these markets.

What specific steps have you undertaken to reposition tier-2 and tier-3 cities? How do you plan to tap into cities through communication?

Our challenges in tier 2 and tier 3 cities, primarily revolve around distribution. Although our current distribution is satisfactory, we still face significant challenges. Over the past one or two years, we’ve focused on leveraging widely watched and accepted media properties. For instance, we’ve used cricket as a platform, particularly during events like the IPL and the World Cup that concluded last October. Cricket’s widespread appeal across regions and languages has been particularly beneficial, given that we are a predominantly male-centric brand with a strong focus on men’s footwear.

In addition to cricket, we also utilise other platforms such as news apps, which have seen a surge in popularity due to their accessibility and availability in vernacular languages. Moreover, we have actively engaged with social media platforms like ShareChat and Moj, offering a plethora of regional and local content. These efforts are targeted towards smaller towns, where we emphasise localisation and strive to establish a strong connection with residents. Our goal is to be seen not just as a brand but as a reliable partner in their journey.