Skechers is focusing to enter Tier II and Tier III cities while setting up its manufacturing unit in country within next five years.
In a bid to expand its presence in the county, American footwear major Skechers is focusing to enter Tier II and Tier III cities while setting up its manufacturing unit in country within next five years. The brand is looking to double the number of stores in the country to 100 through adding 50 stores by the end of this year. Also apparel and accessories collection is also slated to be launched next year.
The brand plans to have a healthy mix of 50:50 own stores and franchise-owned where 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 the brand doesn’t have its infrastructure.
Skechers stated that typically a 100-150 sq ft store entails an investment of Rs 1.5 crore. The company entered India in 2012 through a JV with Future Group and now has presence across 700 multi-brand outlets in the country. Growing at a fast clip of 70 per cent y-o-year in India, Skechers plans to expand its consumer base especially in smaller cities.
The brand envision to set up its manufacturing unit and that would be their mid to long term plan. So as the market evolves and it starts gaining grounds in the market, it would (take) three to five years to have an identity in the Indian market.
Skechers sells its footwear in the country and is evaluating apparel and accessories which it plans to launch next year.
The company, which received the FIPB approval for single-brand retail in India last month, plans to hawk its products through its website skechers.in that will go live by third or fourth quarter of this year.