Pavers England Ltd (PEL), a joint venture between UK-based Pavers Ltd and the Foresight Smart Ventures, a division of London-based Foresight Group, plans to expand its presence in India’s premium footwear market by adding 25 exclusive franchise outlets by the end of 2011.
PEL Chief Executive Officer and Managing Director Utsav Seth said, “Our focus would be only on metros and Tier-I cities like Pune, Mumbai, Chennai, Bangalore, Hyderabad, Kolkata and Delhi by 250 points of sale by 2012.”
PEL currently operates through 10 exclusive franchise stores and 90 concessions present across multi-brand outlets. Following its investment of Rs 45 crore to create premium brand awareness, PEL has committed another Rs 68 crore to develop its brand presence in India.
It recently launched an e-store to extend reach and boost sales. “We have 10 years of running a successful e-store in Europe, www.shoe-shop.com, which sells more than a million pairs per annum. Inspired with its success, we have recently launched www.paversengland.com that assures delivery of footwear within seven days of purchase. No other brand gives this facility at the moment.”
PEL President and Chairman Stuart Pavers said, “In India, the footwear industry will be the biggest market for the next decade. Hence, we have decided to invest in it and expand our operations in India. Our target is the top five per cent of the Indian population who have high income levels, about Rs 60,000 per month and are aware of the global trends. We have been good performers in most of our retail partners like Lifestyle, Shoppers Stop, Central and Reliance footprints.”
The organised footwear market in India, estimated to be Rs 4,500 crore, is likely to grow 10 times over the next decade. PEL expects to post 145 per cent growth this financial year, making its turnover up to Rs 27 crore against last year’s Rs 11 crore.
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Pavers said, “Till 2013, we will aim to grow 100 per cent and hence forth, our target is to grow 75 per cent annually. We will operate at a premium comfort leather segment and will keep varieties only for men and women. We have not included children shoes because nobody likes to buy expensive shoes for children as they grow out very soon.”
Commenting on competition in India, Pavers said, “The biggest competition to international players is from the unorganised and regional manufacturers in India who very conveniently copy our designs and sell them at cheaper price. Our strategy would be to provide authentic good leather shoes at relatively less cost to assure value for money.”
The company claims to provide high-quality grained leather and comfortable styling, priced at a point 20 per cent lower to any of its immediate competitors like ‘Hush Puppies’ of US-based ‘Wolverine’, Florsheim and Aldo brands.