American footwear major Skechers is looking to double the number of stores in the country to 100.
According to a PTI report: Skechers is also planning to launch its apparel and accessories collection next year. The company is growing at a fast clip of 70 per cent year on year in India and plans to expand its consumer base.
“This year we plan to add 50 stores, taking our count to 100,” said CEO, Skechers India, Rahul Vira.
“We plan to have a healthy mix of 50:50 own stores and franchise-owned and going forward, the franchise business would be slightly on the higher side because in a country like India it makes more sense to go through the franchise route because that really drives the business in the markets where we don’t have our infrastructure,” he added.
He added that typically a 100-150 sq.ft. store entails an investment of Rs 1.5 crore.
“We still are not present in a lot of markets. So our focus would be to enter those markets and build our consumer base. There is a huge potential for us to grow in the Indian market. In tier I and mini metros, we still are not present in the manner that we should be. Also, we will look at tier II and tier III cities but getting the right real estate is important for us,” he added.
It plans to set up its manufacturing unit in the country in the next three to five years.
“We would be looking at setting up our manufacturing and that would be our mid to long term plan. So as the market evolves and we start gaining grounds in the market, it would (take) three to five years,” he said.
The company, which received the FIPB approval for single-brand retail in India last month, plans to hawk its products through its website skechers.inlive by third or fourth quarter of this calendar year.
The company entered India in 2012 through a JV with Kishore Biyani-led Future Group and now has presence across 700 multi-brand outlets in the country.
The Inception and Expansion
Headquartered in Manhattan Beach, Skechers was founded in 1992 by Robert Greenberg and his son Michael. Today a global leader, Skechers USA, Inc. is a three billion dollar company dealing in high performance and lifestyle footwear industry. It designs, develops and markets more than 3,000 styles for men, women and children.
Beyond the United States, Skechers product is available in more than 160 countries and territories through an international network of subsidiaries in Canada, Brazil, Chile, Japan, and 27 countries in Western and Central Eastern Europe, as well as through joint ventures in Asia and distributors around the world.
Skechers has two distinct footwear categories: a lifestyle division and performance footwear. Through licensing agreements, the company also offers branded apparel, bags, eyewear, toys, and more. Skechers sells its footwear in department, specialty and independent stores, as well as through more than 1340 company owned retail stores and online at skechers.com.
The India Story
Skechers, entered India in 2012, and were importing their products in the country. Since 2015, the company was planning to start a local manufacturing unit to serve both domestic and export markets. After nine months of tussle with the Government, they have got a permission to open single brand outlet in India.