Business

Shoemaker Clarks to focus on Indian market

Firm eyes ₹600 crore in retail sales

Clarks Future Footwear Private Ltd. will focus more aggressively on the Indian market than on China, said a top official.

“During 2019, we sold 9 lakh pairs against 5.5 lakh pairs in the previous comparable period,” said N. Mohan, executive director and CEO, Clarks India.

“We had posted 45% growth even when the economy was facing a slowdown. In retail value, it was ₹350 crore,” he added.

Asserting that the Indian market had posted a 7.6% CAGR (compounded annual growth rate) in the last two years against 3% for China and 2.2% in the U.S., he said India was the fastest-growing market for the company and that it would focus more here, than on China.

Quoting a survey, he said India was now the second largest consumer of footwear globally, surpassing the U.S. by 200 million pairs in 2018.

Exploring ‘phygital’

“Going forward, our increased focus would be on e-commerce and exploring ‘phygital.’ Today, online represents 10-15% of our sales and ‘phygital’ is catching up,” he said.

Over the next four years, Clarks plans to more than double its retail presence and customer touch-points so as to retail 2.5 million pairs in the country with a retail value of ₹600 crore.

Right now, the companyClarks India has 50 exclusive branded outlets in the country that would touch 150 in the next four years. Customer touch points (including large format stores and multi-brand outlets) would reach 1,500 from the present 600.

The premium shoemaker started opening multi-brand outlets in tier 2 and tier 3 cities with a view to have pan-India presence.

According to him, India’s footwear market was valued at ₹47,945 crore in 2018 and it was expected to grow at a CAGR of 13% over the next five years. The estimated market size in 2023 was ₹87,242 crore.

On the sourcing pattern, he said almost 50% of products were sourced locally while design and development took place in the U.K. and Boston in the U.S.

Clarks will be showcasing some of its new designs at the 35th edition of India International Leather Fair to be held here from January 31 to February 3.

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Printable version | Feb 29, 2020 7:41:49 AM | https://www.thehindu.com/business/shoemaker-clarks-to-focus-on-indian-market/article30609462.ece

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