German brand Llyod entered India along with Tata International; and unlike other foreign brands, they decided to make the brand available through MBOs and prominent footwear retail chains. Says Sushen Roy, head of marketing, leather global business unit, Lloyd, “We entered India in 2005 and decided to follow a completely different marketing strategy. We did our research and found out that there existed six superbrands in the market. And so we adopted a three-tier strategy, making our brand available through traditional multi-brand outlets like Regal, Metro and Lords, as well as through retail chains like Shoe Tree and Loft. We also opted for a neo-traditional approach whereby Llyod would be sold through luxury fashion outlets like Gabbana. Now we are available across seven Indian cities. Very soon we plan to have our exclusive brand outlets as well.”

Walking ahead
Where a majority of these foreign footwear brands have not expanded their retail reach beyond four stores despite being present in India for over four years, Clarks is perhaps the only brand to have six exclusive outlets within less than two years of launch in India. Launched in October 2005, Clarks was initially available through MBOs and store-in-stores; the brand has since revised its strategy, and except for Loft, a pair of Clarks is now sold only through its exclusive brand outlets. Aldo has also been following a similar strategy.

Says Deliva of ALDO Group, “It is best to have standalone stores in the best locations. It might take a little while to get the right place, but once you have the right location, there is nothing to worry about. Ideally, a high street location or a place within a major mall works very well.” Adds Roy, “ India is a complex market in comparison to other emergent markets; it requires a high level of customisation to suit the Indian market. For international brands, a mix-and-match of mono-label stores and channel strategy is always a good option.”

Commenting on the required gestation period for gaining a stronghold in India, Franchini says, “Considering the encouraging retail environment, we believe that the gestation period should range anywhere between two and four years. We will certainly attain our objective of increasing brand awareness among our target clientele through aggressive marketing and PR campaigns. Of course, this will be coupled with high-quality products and unmatched customer service.” He adds, “Considering the present retailing structure in India, one of the best retail formats is having your own boutique. That way, you have the opportunity to maintain service levels, ensuring that every customer receives the Bally experience.”

Tse Ling, corporate communications manager, Charles & Keith, informs, “Looking at how the retail market in India is growing, it takes a year or two to cover maximum market share. At Charles & Keith, we make sure that we maintain personal rapport with our customers and keep them up-to-date with our latest collections, trends and promotions.”

Commenting on the response received since their launch in India, Vikas Gupta, president and CEO, Lacoste India, says, “We have received a phenomenal response to our launch. We expect to see the footwear line achieving complete results in another three to six months. We will also be launching seasonal collections in line with global fashion trends, and expect this to keep the sales momentum going. We plan to expand our stores and by 2009, may open around five to 10 outlets of over 3,500 square feet each. We will mainly locate the stores within malls, with a few specific high street locations thrown in.”

Been There, Done That: Brand Lessons

Nine West: Initial marketing strategy of tapping existing customer base, before broadening the base with new customers, followed by creating product awareness

Aldo: Market analysis to tap existing voids in product offerings and sub-segment gaps; standalone stores at the right location – such as a high street or a place within a major mall

Carlton: Creating initial brand awareness through presence in MBOs and store-in-stores; followed by the retail strategy of selling only through exclusive brand outlets

Llyod: A high level of customisation to suit the Indian market; a mix-and-match of mono-label stores and channel strategy to market global brands

Bally: Allowing for a normal gestation period of approximately two to four years, coupled with high-quality products, customer service and aggressive marketing to increase brand awareness. One of the best retail formats for this segment is arguably a boutique, which allows for individual customer attention

Charles & Keith: In the present retail scenario, allowing for a year or two to cover maximum market share; always maintaining personal relationships with customers and keeping them abreast of latest collections, trends and promotions.