In 2007, Heelys Inc. (“Heelys”), a US maker of branded roller shoes, entered the Indian market via an independent local distributor, granted exclusive distribution rights across India. The distributor, an entrepreneur from Chennai, purchased an initial stock of 500 pair of shoes from Heelys and hoped to successfully introduce his distinctive product to the growing Indian market. The reality of retail in India – negotiating with large Indian retailers on one hand; customer price expectations and resistance; and import duties, among other factors, all combined to offset the initial progress made and in 2009, after having sold just 400 pairs of shoes, the Indian operations was shut down.
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