From an insignificant market share now, Reliance Footprint is planning to grab an 8 per cent share of the footwear market which is projected to reach Rs.20,000 crore by 2015, G. Sankar, Chief Executive of Reliance Footprint, said, adding that the aim was to be the largest multi-brand footwear destination in India, offering shoes, handbags accessories and luggage.
Addressing a press meet, he said that starting with the first store in Bangalore in November 2007, the division had 32 stores now and would have 45 stores by March. “We are planning to add 100 stores every year with a floor area varying between 5,000 sq. ft. and 7,000 sq. ft.” This would need an investment of Rs.200 crore annually. The stores stock about eight exclusive private label Reliance Brand as well as other national and international brands. The price ranges from Rs.300 to Rs.7,500.
Mr. Sankar, who was here to inaugurate the region's first store, said that the footwear market was estimated at Rs.15,000 crore now and Reliance had “no significant share of this market,” of which organised retail had a 30 per cent share. “We want to have a market share of 7-8 per cent in another three to four years, when the market is projected to grow to Rs.20,000 crore.”
Options of opening mono-brand stores selling the Asics brand of sports shoes imported from Japan under an exclusive arrangement may also be explored, Mr. Sankar said. Such a mono-brand store is already operational in Kochi.
On the sort of contribution that the footwear segment is expected to contribute to Reliance Retail, he said that it was early to talk of numbers but the format had already broken even, with the stores reaching the break-even point a year ago. All the stores are company-owned now although Reliance was open to exploring the franchisee option.
Keywords: Reliance Footprint