A cheeky outdoor campaign on Linking Road, Mumbai, announced a new brand’s entry into the footwear market through an exclusive store. The brand is Tashi and it comes from Tata International, the Tata group’s global trading arm. Tashi is derived from Tata and ashi (Japanese for footsteps). “Tashi also means good luck and prosperity,” says Tata International Vice-president (retail) Deepak Deshpande.
Tashi offers shoes for men, women and children. The styles range from high fashion and formal to casual and ethnic. In addition to shoes, leather accessories like bags, belts, wallets and jackets also sell under the brand. A small section in the store is reserved for sports shoes like Nike and Puma. “This is to compensate for the absence of sports shoes in the current portfolio,” explains Deshpande. The launch into retail is not surprising given the Tata Group’s robust retail experience —Tanishq, Tata Motors, and retail chains like Westside, Croma, Landmark and Star Bazaar. In fact, the database for the circulation of direct mailers at the time of Tashi’s launch came from Westside.
Experts see it as a natural extension for Tata International. “Since the company has been in the leather business for 40 years, supplying shoes to quality-conscious brands, this will be an opportunity for it to add value,” says Technopak Chairman Arvind Singhal. Tata International, for the record, supplies shoes to brands such as Hush Puppies, Zara and Marks & Spencer. “The brand can definitely leverage Tata International’s well-developed supply chain, manufacturing, quality-control and design capabilities for Tashi,” adds Chlorophyll Managing Director Kiran Khalap.
According to industry estimates, the organised footwear market is currently valued at Rs4,000 crore and is growing at 12 to 15 per cent every year. However, it won’t be a cakewalk for Tashi in the crowded market place. The retail footwear segment in India is price sensitive and the unorganised sector has a huge presence. The lower and mid ends are dominated by Bata, Liberty, Woodland, Red Tape and other homegrown brands.
Deshpande has his gameplan ready. “Our customer base includes mid to premium consumers who look for comfort and style in their footwear.” Currently, the shoes are priced between Rs2,500 and Rs4000, though some high-end products retail for Rs7,000. Tashi proposes to establish itself as an ‘accessible premium’ brand. Singhal of Technopak thinks the premium tag might work. “In the premium segment, none of the existing brands has put the market on fire. So there is an opportunity for Tashi to do well.” Thus, by the end of November, the company plans to open six to eight exclusive stores in high streets across Mumbai, Delhi and Chandigarh. The company will also look at malls to expand.
Tashi will not retail through Westside or other department stores. “We are a specialist store where the consumer profile and price points are different. The kind of clientele who will visit our store is different from those who shop at department stores.” says Deshpande. Singhal of Technopak agrees that the stand-alone strategy will work. “Visibility in a stand-alone store is higher; and for a premium brand like Tashi, this route is justifiable. In exclusive stores, the company can also deliver a higher level of customer service.”
Deshpande is upbeat on the initial response. “The Mumbai store has seen 300 to 500 footfalls a day, and the conversion is between 25 and 30 per cent. At the store level, we hope to break even in 18 months.”
