India’s footwear market was valued at Rs 47,945 crore in 2018 and expected to grow at a CAGR of 13% over the next five years.
British iconic footwear brand Clarks is expanding its retail footprint in a big way in India as the country has overtaken the US in footwear consumption, throwing up enormous market potential for manufacturers.
Clarks, which has a joint venture (JV) with Future Group, has plans to increase its exclusive brand outlets (EBOs) from current 50 to 150 in the next three to four years. The company would also be expanding its end-customer touchpoints from current 600 to 1,500 over the same period.
Speaking on the sidelines of a pre-event meet on Leather Fashion Show 2020, here on Monday, N Mohan, executive director & CEO, Clarks Future Footware, said that the company would also be increasing focus on e-commerce and explore phygital mode for ‘walking’ into the next phase of growth trajectory. Currently, online accounts for 10% to 15% of its sales and phygital is catching up, he said.
According to KSA Technopark analysis, India’s footwear market was valued at Rs 47,945 crore in 2018 and expected to grow at a CAGR of 13% over the next five years, thereby predicting an estimated market size of Rs 87,242 crore in 2023. India is now the second largest consumer of footwear globally surpassing the US by 200 million pairs in 2018. In 2018, China ranked first with 4.1 million pairs, while India was at second place with 2.6 million pairs ahead of the US with 2.4 million pairs, according to World Footwear Year Book 2019.
Clarks is increasing its presence to around 400 large format stores this year from 300 such stores in the previous year, and also, plans to sell its footwear through 200 mom and pop stores while it was not present in this format earlier.
“We had increased our footprint pan-India in the last one year based on the complete rethinking about our strategy. Increasing the foot print, creating market apt product, highlighting our technology and products are the key strategies for us,” said Mohan.
He said that the company had seen growth during 2019, selling nine lakh pairs compared to over 5 lakh pairs of footwear in the previous year. Plans are to increase this to 1.4 million pairs during 2020. The sales by retail value for the company in India is around Rs 350 crore, of which net sale value is Rs 180 crore. The company expects to grow the sales by retail value to close to Rs 500 crore over a period of three years. Mohan said almost 50% to 60% of the products it sells in India are sourced from the country itself. “In that way, we promote the Make in India concept,” he said
According to him, Indians have different types of aspirations when buying their footwear, which is totally different from overseas markets. The company has footwear upwards of Rs 3,000 and its women wear ranges from Rs 6000 to Rs 8,000. Mohan said the company’s products are also getting into army canteens, for which the registration process has already been kickstarted. “We hope to get into 300 odd army canteens, initially,” he said.