In the second leg of its journey in India, Clarks Shoes is putting its best foot forward. The UK-based retailer, which re-entered India this year through a 50:50 joint venture with Future Group, launched its first store in April. It has five stores currently and plans to ramp up its footprint to 20 stores by the end of the year. While the focus will be on Mumbai and Delhi, the company is also eyeing Pune, Chandigarh, Bangalore and Hyderabad. In addition to exclusive outlets, the brand will retail through shop-in-shops and Metro shoe stores.
In its first stint, Clarks had entered the country through a distribution tie- up with Lifestyle Asia; but the brand’s performance did not live up to expectations. Anil Rajpal, head, retail & consumer products, global consulting practice, Tata Consultancy Services, says with its new arrangement with the Future Group, Clarks will not only benefit from the latter’s financial backing but can also fall back on the group’s expertise in real estate and its understanding of the Indian consumer.
However, breaking into the Rs 4,000-crore organised footwear market in India is not going to be easy. For one, the footwear market is largely price driven, with the lower- and mid-price segments dominated by brands like Bata, Catwalk, Woodlands and Red Tape. Add to that a host of regional and unorganised players, and you have a real task in your hands. “Among international brands, Hush Puppies (managed by Bata) is the only brand with a strong presence in the premium segment. This leaves a huge untapped opportunity for Clarks,” says Melissa Potter, CEO, Clarks International. Rajpal of TCS believes that with consumers owning different pairs of shoes for different occasions these days, there will be an opportunity for brands across segments to co-exit. “Like fashion retail, footwear retail in India will remain fragmented,” adds Rajpal.
Clarks hopes to break the clutter through interesting offerings. “First, we offer half sizes and multiple width fittings to ensure maximum comfort,” says Prasad. “Technology features like Active Air (air-based cushioning), and Soft Wear which offer comfort in high heeled shoes will be important differentiators,” says Ramprasad Sridharan, CEO, Clarks Future Footwear.
The brand currently has 350 options across casual, smart and work wear. While it focused only on the men’s line earlier, Clarks will now offer an extensive range for women and children. “Initially, we had price points of Rs 3,000 and above only. Now, we have shoes starting Rs 1,100 for women and Rs 1,800 for men,” points outs Sridharan.
India is also an important sourcing hub for the brand. “We currently source 2.5 million pairs from the country and plan to increase that to 5 million in the next four years,” says Sridharan. Following the preferences of Indian consumers has also allowed the brand to introduce a special range of open, colourful sandals that have not only attracted Indian consumers but have also worked well for Clarks in international markets that have a huge Indian diaspora.