Tag: Footwear Brand

  • Vans Marketing Strategy: Target Market, Audience, Advertising & Distribution Explained

    A rebellious spirit emerged from the sunny shores of Costa Mesa, California, in a society where conformity ruled the streets. In 1966, Paul Van Doren, Gordon Lee, and James Van Doren came together to spark a cultural revolution through the creation of Vans. They had no idea that their bold move would help them establish themselves as one of the most recognizable footwear and clothing companies of all time.

    Vans quickly expanded from its modest beginnings in a small storefront, winning the hearts and souls of skaters, musicians, artists, and fans of the counterculture. As the years passed, Vans solidified its legacy with numerous victories and significant turning points.

    Driven by unwavering passion and innovation, Vans forged a path of unrivaled success. In 2024 alone, the brand reached an astonishing peak revenue of $2.79 billion, a testament to its enduring appeal and market dominance. With an illustrious history spanning over half a century, Vans has cemented its position as a trendsetter, boasting a significant market share in the footwear and apparel industries.

    But Vans’ triumph extends beyond financial figures. The brand’s achievements are etched in the annals of popular culture, as it revolutionized skateboarding footwear, created iconic silhouettes such as the Authentic and the Old Skool, and fostered a vibrant community of enthusiasts.

    The key to Vans’ triumph is its clever marketing strategy. By embracing alternative sports and music subcultures, Vans effectively tapped into the pulse of youth culture. Its collaborations with influential artists, sponsorship of extreme sports events, and strategic partnerships catapulted the brand into the limelight, fueling its meteoric rise.

    Vans stands as an unstoppable force, combining heritage, authenticity, and creativity to capture the hearts and feet of millions worldwide. Vans continues to push the boundaries of fashion and cultural influence, leaving a lasting impression on future generations with its daring designs, uncompromising quality, and unwavering dedication to the spirit of individual expression.

    Vans Target Market
    Vans Marketing Mix
    Vans Marketing Campaigns
    Vans Marketing Strategies

    Vans Target Market

    Vans has captivated a diverse audience with its rebellious spirit and authentic ethos. Its target market includes people of all ages, with a strong emphasis on young people, who account for 75% of its clientele. However, Vans’ appeal extends beyond age, attracting individuals of all backgrounds who share a passion for self-expression and individuality.

    With more than 1400 retail locations across 97 nations, Vans has a significant presence internationally. It has a magnetic pull that transcends borders, drawing people from both urban and suburban areas to it.

    The shared interests of Vans’ target market include alternative music, sports, and art. The company’s recognizable footwear and clothing are popular with skaters, surfers, musicians, artists, and streetwear enthusiasts. Through collaborations, sponsorships, and partnerships, Vans has built a vibrant community around these subcultures, fostering strong loyalty among its customers. Vans brand positioning focuses on youth culture, creativity, and self-expression, making it a symbol of individuality and lifestyle.

    With its universal appeal and cultural impact, Vans has successfully brought together a diverse global audience under the banner of self-expression and individuality.


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    Vans Marketing Mix

    Vans has become a trailblazer thanks to both its clever marketing techniques and its rebellious spirit. Vans has successfully used the marketing mix to solidify its status as a global force by taking a risky and creative approach. Let’s dive into the components of Vans’ marketing mix and explore how they have contributed to its unrivaled success.

    Vans Marketing Mix
    Vans Marketing Mix

    Vans Product Strategy

    Vans’ extensive line of footwear, clothing, and accessories exemplifies the brand’s gritty aesthetic and skateboarding heritage. Vans consistently pushes the limits of fashion and innovation with its timeless silhouettes, like the Authentic and Old Skool, and its collaborative collections with renowned artists and designers. Vans makes sure that its product portfolio is varied and appealing by catering to the constantly changing tastes of its target market.

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    Footwear contributes around 60% of Vans’ total revenue, showing its strong dominance in the category.

    Vans Price Strategy

    Vans adopts a strategic pricing approach that strikes a balance between accessibility and perceived value. The brand offers products at various price points, catering to both budget-conscious consumers and those seeking premium offerings. Vans’ ability to maintain competitive pricing while retaining a sense of exclusivity has been instrumental in attracting a wide range of customers.

    Vans Promotion Strategy

    Vans has built its brand on the foundation of strategic and captivating promotion. The brand embraces alternative sports, music, and art, aligning itself with influential subcultures. By sponsoring major sporting events, collaborating with artists, and engaging in grassroots marketing initiatives, Vans connects directly with its target audience. Moreover, Vans leverages the power of social media and digital marketing, engaging with millions of followers and fostering a sense of community and brand loyalty.

    Vans Distribution and Place Strategy

    Vans’ distribution strategy encompasses a combination of retail stores, e-commerce, and strategic partnerships. With over 2,000 retail locations worldwide, Vans ensures widespread accessibility for its customers. Additionally, its robust e-commerce platform enables seamless online shopping experiences. By strategically selecting locations for its retail outlets and forging partnerships with select retailers, Vans maximizes its reach and enhances brand visibility.

    Vans’ marketing mix is an excellent example of how to successfully combine high-quality products, clever pricing, alluring advertising, and ease of delivery. Vans’ marketing mix is still a powerful factor in determining the brand’s direction and sustaining its cultural relevance as it continues to develop and innovate.


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    Vans Marketing Campaigns

    Vans’ marketing campaigns have made a lasting impact on fashion and youth culture.

    The Off the Wall campaign in the late 1970s solidified Vans’ connection with skateboarding culture, showcasing their durable footwear.

    The Story of Vans | Vans Marketing Strategy

    The Checkerboard campaign in the 1980s established the brand’s visual identity and made the Checkerboard pattern iconic.

    More recently, Vans pioneered immersive experiential marketing with House of Vans, creating vibrant spaces for skateboarding, music, art, and street culture. Collaborations with artists and brands like Takashi Murakami and Supreme have expanded Vans’ reach and resulted in highly sought-after products.

    Vans and Takashi Murakami
    Vans and Takashi Murakami | Vans Marketing Strategy

    These campaigns demonstrate Vans’ ability to tap into subcultures, foster creativity, and create authentic connections with its audience. By staying true to its roots while innovating and engaging with diverse communities, Vans remains a leader in youth culture and continues to redefine marketing boundaries.

    Vans Marketing Strategy

    Vans has made a name for itself in the footwear and clothing industries thanks to clever marketing tactics that have connected with consumers around the world. Vans has carved out a distinctive niche in the market by embracing alternative subcultures, encouraging creativity, and adhering to its genuine roots. Let’s delve into Vans’ top marketing strategies:

    Embracing Alternative Subcultures

    By supporting alternative sports, music, and art, Vans has expertly caught the pulse of teenage culture. Vans has developed a devoted following among lovers of various subcultures by embracing streetwear, skateboarding, and surfing. For instance, the business was able to reach out to its target demographic by sponsoring the Vans Warped Tour, a music event known for its punk and rock-oriented artists.

    Collaborations

    Vans has had success working with well-known designers, artists, and companies to produce limited-edition collections that spark interest and buzz. Collaborations with artists like Vincent Van Gogh and influential streetwear brand Supreme have resulted in highly coveted products and propelled Vans into the mainstream while maintaining its street credibility.

    Vans x Van Gogh Museum – launch | Vans Marketing Strategy

    Grassroots Marketing

    Vans has a rich history of grassroots marketing, organizing local skateboarding competitions and events that engage with communities directly. By supporting and sponsoring local talent, Vans establishes a genuine connection with its audience while nurturing emerging stars.

    Vans Marketing Strategy
    Vans Marketing Strategy

    Social Media Engagement

    Vans has tapped into the potential of social media to interact with its audience, sharing user-generated material on platforms like Instagram and TikTok, showcasing new product launches, and inspiring community involvement. For instance, Vans’ Custom Culture campaign sparked a creative wave and promoted brand loyalty by encouraging fans to create their own Vans shoes and post them on social media.

    Authentic Brand Storytelling

    Vans has effectively communicated its brand story through compelling storytelling. By highlighting the brand’s heritage, connection to skateboarding, and support for individuality and self-expression, Vans creates a powerful narrative that resonates with its audience. The This Is Off The Wall campaign, featuring real stories of individuals defying norms and pursuing their passions, showcases Vans’ commitment to authenticity and inspires its audience to embrace their unique identities.

    This is Off the Wall | Vans Marketing Strategy

    Sponsorships and Events

    Vans strategically sponsors major sporting events, music festivals, and art exhibitions that align with its brand values. For example, the Vans US Open of Surfing attracts top surfers from around the world and provides Vans with a prominent presence in the surfing community.

    Vans US Open of Surfing | Vans Marketing Strategy
    Vans US Open of Surfing | Vans Marketing Strategy

    Retail Store Experience

    Vans’ retail stores offer immersive experiences that go beyond mere shopping. The stores often feature interactive elements, skate parks, and in-store events, creating a vibrant and engaging environment that reflects the brand’s lifestyle. The House of Vans, a series of event spaces worldwide, further enhances the retail experience by providing platforms for live music, art exhibitions, and skateboarding workshops.


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    CSR Initiatives

    Vans also gives back to the community through different social responsibility programs. One example is the Vans Custom Culture Art Competition, started in 2010, which inspires high school students to be creative. Over the years, it has contributed more than $1 million to support art education in the U.S.

    Another initiative is Vans Checkerboard Day, which focuses on mental health and well-being. Along with spreading awareness, Vans donated $1 million to 10 charities around the world that use creativity to help people with mental health challenges.

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    Through initiatives like Custom Culture and Checkerboard Day, Vans has invested over $2 million in social causes.

    Influencer Marketing

    Vans collaborates with influencers who embody the brand’s values and aesthetics, allowing them to authentically showcase Vans products to their dedicated followers. This strategy expands Vans’ reach and taps into niche communities, such as skateboarding influencers who showcase their skills while wearing Vans.

    Vans and Breana Geering | Vans Marketing Strategy
    Vans and Breana Geering, Canadian Professional Skateboarder | Vans Marketing Strategy

    Conclusion

    Vans is a prime example of successful marketing in a world overrun with companies vying for consumers’ attention. Their bold and innovative strategies, from embracing alternative subcultures to fostering creativity through collaborations, have propelled the brand to global success. From Vans’ strategy, marketers and startups can learn important lessons about the value of authenticity, the significance of connecting with niche communities, and the significance of immersive experiences. By adopting these strategies and infusing your unique twist, you can carve your path to success and create a lasting connection with your target audience. Embrace the rebellious spirit of Vans and dare to disrupt the marketing landscape. Embrace the rebellious spirit of Vans and dare to disrupt the marketing landscape.


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    FAQs

    What is Vans target audience?

    Vans’ target market includes people of all ages, with a strong emphasis on young people, who account for 75% of its clientele. However, its appeal extends beyond age, attracting individuals of all backgrounds who share a passion for self-expression and individuality.

    What are the top marketing strategies employed by Vans?

    Below are the top marketing strategies employed by Vans –

    • Embracing Alternative Subcultures
    • Collaborations
    • Grassroots Marketing
    • Social Media Engagement
    • Authentic Brand Storytelling
    • Sponsorships and Events
    • Retail Store Experience
    • Influencer Marketing

    How does Vans promote their products?

    Vans promotes its products through events, artist collaborations, social media, sponsorships, and ties with youth culture in sports, music, and art.

  • Metro Footwear: The story of a multi-brand footwear chain

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Metro Footwear.

    It is kind of hard to imagine a world without giving any sort of protection to our feet. In modern times, if we think of shoes and all other footwear, there are myriad options to choose from depending upon the occasion we are attending.

    It is a bit tough to determine the exact period when shoes were invented. Some historians suggest that shoes were invented some 40,000 thousand years ago. Since then, numerous styles and designs have evolved in shoes, making them one of the largest industries worldwide. The structure of shoes have been more or less remained the same, but it is the features, materials, and methods have changed over time.

    Metro, the brand is that a synonym with footwear brand in India is one of the biggest multi-brand footwear chains in the country. The brand was founded by Malik Tejani in 1977, with its main office located in Mumbai.

    Metro brands have showrooms that are present all over India. It is located in almost 147 cities in 30 states and Union Territories. Presently, it serves India only. Metro brands were previously known as Metro Shoes.

    Here in this article, we have piled up all the relevant information related to the company Metro. You can discover about Metro’s startup story, its founders and team, what is their business strategy, the revenue growth of Metro, and the challenges faced by them.

    Metro – Company Highlights

    Headquarters Mumbai, India
    Sector Retail, Fashion
    Founder Malik Tejani
    Founded 1977
    Type Public
    Revenue Rs 507.95 crores
    Total Funding Raised Rs 410 crores
    Website metrobrands.com

    Metro – About
    Metro – Industry
    Metro – Founders and Team
    Metro – Startup Story
    Metro – Mission and Vision
    Metro- Name, Logo, and Tagline
    Metro – Business Model
    Metro- Revenue Model
    Controversy faced by Metro
    Metro – Funding, and Investors
    Metro- Mergers and Acquisitions
    Metro – Advertisements
    Metro – Awards and Achievements
    Metro – Competitors
    Metro – Future Plans
    FAQs

    Metro – About

    Metro Brands, the company’s present reputation, was once called Metro Shoes. The brand, which was incorporated in 1977 by Malik Tejani, today has become one of the largest and most loved Indian footwear and accessories brands in the country.

    Metro brands their specialties in different shoes, footwear accessories, shoe care, foot care, bags, and other related products. The company takes pride as it operates in 147 cities across 30 Indian states and Union Territories. As of 2021, Metro has around 644 stores in the country.

    It was during 1955, that the brand was said to have opened its first-ever store in Mumbai, and since then, the brand never looked back and decided to be a one-stop shop for the footwear requirements like socks, sandals, shoe polishing liquid, and many other accessories in the footwear category. It offers shoewear for men, women, unisex, kids, and every walk of life for every type of occasion, including casual, formal, or festive events.

    Metro Brands has one subsidiary named – Metmill Footwear Private Limited. The company has a joint venture  – M.V. Shoe Care Private Limited.

    Metro – Industry

    As per statistics, the footwear industry constitutes a significant part of the leather industry. Having said that, India comes second after China as the largest global producer of footwear. It accounts for 13% of the global footwear market. It is predicted that the footwear market is going to witness a CAGR of 3.62% during 2022-2027.

    Metro – Founders and Team

    The founder of Metro Shoes is Malik Tejani, who laid the foundation stone for Metro shoes in 1955. Presently, Rafique Malik is the Chairman of Metro Brands Ltd.

    Malik Tejani

    Malik Tejani is the man behind the brand we know, Metro. He used to sell shoes in a store in Mumbai when India was under British governance. Due to the partition crisis after India got independence, Malik had to leave the store where he used to work, but decided to take over that store by taking a loan from a well-wisher, and that’s how he started the brand.

    Rafique Malik

    Rafique Malik is the Chairman of Metro Brands Ltd. After Malik Tejani, he took over the company by pushing his father’s idea across the country, hoping to carve a niche in India’s aspirational but inexpensive fashion footwear market. He is a Harvard graduate, under his leadership, the brand was expanded from a single store to set up in multiple locations across the entire country. He made the brand one of the leading providers of stylish footwear collections in the country today. Rafique Malik is considered the maestro of Indian footwear retail, with over 45 years of retail experience. His net worth is $2 billion as per Forbes.

    Rafique Malik quotes, “A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well.”

    Farah Malik Bhanji

    The granddaughter of Malik Tejani runs Metro Brands Ltd. as the Managing Director. She holds 20 years of professional experience which gives her the ability to operate the brand as per today’s expectations. Before, playing a pivotal role in Metro Brands Ltd. Farah started her career in marketing, and since then, she has been developing personal relationships with other popular foreign brands like Crocs, Skechers, and Clarks.####

    Metro – Startup Story

    Metro, was started by Malik Tejani by taking over a store in Grant Road in Mumbai, after which the company was officially incorporated in 1977. Ever since its inception, Metro shoes have been popular among many Indians.

    In 2000, Metro launched its first branded outlet called, ‘Mochi’. It is a one-stop store, where the brand sells trendy footwear needs, including shoes, purses, belts, socks, mobile cases, foot care, and shoe care items. Mochi shops are present in over 150 outlets in 50+ cities.

    After nine years, Metro Brands launched the ‘Walkway’ collection, which was previously known as ‘More Shoes For Less’. This brand by Metro is a value-for-money price shoe collection. It offers affordable shoes for men, women, and kids for everyday use.

    The following year, Metro launched its e-commerce platform, www.metroshoes.com. The company also made progress in targeting 100 stores. In 2015, Metro tied up with an American shoe brand called ‘Crocs.

    The company reached a watershed moment when it announced plans to open over 550 outlets across India by 2020.

    Metro collaborated with another brand named ‘Fitflop’ last year, with great success. The firm became a public company in 2022.

    Metro – Mission and Vision

    Metro’s vision speaks out loud as, “To be India’s largest specialty footwear and accessories retailer”

    The brand has five values, these are:

    • Strong Customer Relationship and Service
    • Passion for Perfection
    • Respect and Empowerment of Individuals
    • Differentiation through Constant Innovation
    • Integrity

    Metro- Name, Logo, and Tagline

    Malik Tejani took inspiration from a cinema hall in Mumbai, whose name was Metro Cinema.

    Recently, Metro has rolled out a new tagline, and that is “Good Vibes Only”.  The other tagline of Metro, which is quite common is, “Wear What You Are”

    Metro – Business Model

    Metro is said to have an asset-light model that teams with third-party manufacturers. The brand operates its business through vendor engagements and long-term lease arrangements.

    Its retail operations are carried out through offline mode, that is through different stores and outlets and other distributors along with online marketing channels. Its marketing policy follows the rules of the company-owned and company-operated (COCO) model through its Multi-Brand Outlets (MBOs) and other Exclusive Brand Outlets (EBOs).

    Metro’s subsidiary company, MetMill also distributes third-party brand products and retail merchandise through franchisees.

    In addition to Metro’s physical spots, it targets customers by offering an omnichannel experience via its websites, multiple marketplaces, and social media channels. Most of Metro’s brands are listed and sold on B2C and B2B marketplaces.

    The following is the list of brands under Metro Brands Ltd.:

    Metro

    Established as a contemporary Indian footwear brand that caters to every Indian’s taste as per regional preferences. The brand has over 219 MBO format shoes all over the country

    Mochi

    Mochi Showroom

    Mochi is Metro’s first brand under the MBO format, which was established in 2000. The brand’s main target audience is young people while also targetting their entire families. Mochi offers a wide range of footwear for the casual, formal, party, festive events, and even weddings. Metro has opened around 145 Mochi stores across India.

    Walkway

    Walkway was launched with the motive to offer value-for-money shoes. The shoes are affordable and cater to the entire family including men, women, and kids. Given this brand’s economical customer base, Metro also sells products in Shop-in-Shop (SIS) at large department shops.

    Crocs

    The globally-recognized American brand Crocs Inc. engages in selling its clog-styled shoes. The brand offers flips, sandals, wedges, sliders, and other types that meet the comfort need of an entire family. Croslite is a material that is patented, molded footwear technology that delivers each pair of shoes soft, lightweight, and odor-resistant in the great majority of Crocs shoes.

    Metro has a tenure with Crocs of 18 years under its EBOs format. In the agreement, after the initial three-year term, there is automatic renewal for five subsequent three-year terms. The Crocs Agreement allows Metro to use the trademarks and other intellectual property associated with the Crocs brand for the sole purpose of retailing Crocs items in India.

    FitFlop

    Fitflop was introduced for all-day wearing and designed in a manner to offer both look and comfort. Metro now sells Fitflop goods under its MBOs format. It holds the exclusive rights to sell Fitflop goods in offline mode as well as online channels.

    daVinchi

    Davinchi is designed to offer a unique and distinctive style for the youth of today.

    Cheemo

    Cheemo is the handicraft brand by Metro. Cheemo offers various ethnic handbags and matching footwear, which are made by Indian artisans. The brand is launched with the purpose to bring out the best of Indian artisans that depicts exclusivity and elegant style statements.

    Metro- Revenue Model

    Metro Brands has reported generating a revenue of Rs 507.95 crores in 2022. In addition to this, there are reports that Metro had a 54.63% increase in consolidated net profit to Rs 100.85 crore for the third quarter that ended in December 2021.

    Some reports show that Metro derives about 59% of its sales from Metro stores, followed by 33% from Mochi showrooms, 5% from Walkway, and the rest 3% from Crocs stores.

    Controversy faced by Metro

    Disputes are part of any business since day one. Metro brands have also faced some controversies. In 1996, Rafique Malik, Chairman of Metro Brands got caught in a controversy. He was among several businesspeople and politicians arrested by Mumbai Police on charges of theft of concessionary funds provided to cobblers.

    As of now, the case is still under trial and no decision has been concluded yet.

    Metro – Funding, and Investors

    Newly, reports have come in that Metro Brands has issued 82.05 lakh equity shares at Rs 500 each to anchor investors, bringing the entire transaction value to Rs 410.25 crore. This means that Metro has raised a total of Rs 410.25 crore funds from anchor investors in IPO.

    Some of the anchor investors include Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF, and ICICI Prudential Mutual Fund.

    The brand is also backed by ace investor Rakesh Jhunjhunwala, an Indian billionaire business tycoon, stock dealer, and investor.

    Metro- Mergers and Acquisitions

    Metro brands have acquired Thaely Private Limited for a 5.03% stake. Thaely Private Limited is engaged in the business of marketing and selling sustainable sneaker shoes. The acquisition by Metro is done to carry forward its vision to sell sustainable footwear in the market.

    Metro – Advertisements

    Metro launched a campaign recently targetting millennials with the #GoodVibesOnly campaign right after their campaign #LetThereBeBright, which was launched right during the pandemic. The recent campaign delivers the new and fresh collections offered by Metro Shoes. The idea of this campaign came in to announce their latest Spring-summer collection and to reach out to a maximum audience, which is mostly the youth.

    Alisha Malik, who is the President of Ecommerce & Marketing, Metro Brands Ltd. said, “#GoodVibesOnly felt like a natural next step to our #LetThereBeBright campaign, as the world looks forward to a post-pandemic era filled with hope and color. We wanted the customer to feel the vibes as soon as they see our new collection. Additionally, the groovy song and steps were our version of having fun with a great pair of shoes. We hope this positive energy resonates with every individual looking to spread Good Vibes. This is the spirit we celebrate!”

    Metro – Awards and Achievements

    Metro had won ‘The Best Footwear Brand with Outstanding E – retail Performance Award’ (2014).

    Metro – Competitors

    Metro competes with the following competitors:

    • Bata India
    • Relaxo Footwear
    • Campus Active
    • Liberty shoes
    • Khadim India
    • Mirza International Ltd.

    Metro – Future Plans

    With a strong retail marketing strategy, Metro now plans to strengthen its online presence to further boost its sales. The company generates about 3% from online sales and wants to grow the ratio in the coming three years.

    FAQs

    Is Metro an Indian Brand?

    Yes, Metro is an Indian brand.

    Who is the MD of Metro?

    Farah Malik Bhanji is the current MD of the company

    Does Metro own Mochi?

    Yes, Mochi is one of the in-house brands of Metro.

    Where is the head office of Metro?

    The Head office of Metro is in Mumbai.

  • Chappers: Traditional Footwear Brand Through Innovative Indian Craftsmanship

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Chappers.

    Maharashtra has a rich and varied arts heritage. Kolhapuri chappals are one of the most popular hand-made crafts from locally sourced leathers. It has its origin in the Kolhapur town of Maharashtra. Kolhapuri chappals are made from leather using only natural ingredients. They are the best example of ethnic and traditional fashion footwear that are eco-friendly and handcrafted. Startups are taking initiatives with their innovative approach to preserving the ancient craft traditions of India and supporting Indian craftsmanship. Chappers is one of the brands that is reviving craftsmanship in India. They started with Kolhapuri chappal and now bringing a revolution in footwear fashion, especially for men.

    Read the success story of Chappers, its founder, business model, growth, and the challenges it faced in the journey.

    Chappers – Company Highlights

    Startup Name Chappers
    Headquarters Pune
    Industry Footwear
    Founder Harshwardhan Patwardhan
    Founded 2014
    Website chappers.in

    Chappers – About
    Chappers – Founder and Team
    Chappers – The Idea and Startup Story
    Chappers – Name and Logo
    Chappers – Products
    Chappers – Business Model
    Chappers – Revenue Model
    Chappers – Customer Acquisition
    Chappers – Challenges Faced
    Chappers – Growth
    Chappers – Hiring Culture
    Chappers – Funding
    Chappers – Competitors
    Chappers – Future Plans
    Chappers – Tools Used in the Company
    Chappers – Advice from Founder

    About Chappers Footwear Making

    Chappers – About

    Chappers is a men-focused brand. They make footwear for women too but there are bigger issues to solve when it comes to men’s footwear. Chappers aims to solve the following problems in the Indian footwear industry:

    1. Men are taught not to wear good colours. The industry hence makes only black, brown, and grey for them. Those who want to wear colours do not have options.
    2. Custom footwear is often very expensive and unreliable. they want to change that. They give men brilliant quality custom footwear at the right price.
    3. Mass customization would be the norm in a few years. They want to be the brand that revolutionizes the footwear industry.
    4. Footwear and technology usually never go hand in hand. The Indian footwear industry is very unorganized and needs disruption. They have built India’s first virtual customization software where the customer will be able to customize the footwear on large touch screens first, check if it suits their taste, and then place an order for it. They aim to home deliver a custom pair of footwear within 72 hours.
    5. This industry is heavily reliant on inventory. Retailers have to stock up huge number of styles only to know that only a few of them work. Later they have to offer heavy discounts on styles that don’t work. With our model, our franchises will keep only bestsellers in stock and the rest will be custom-made. Since the lead time will be just 72 hours, the customer won’t mind waiting. Plus, the price of the in-stock designs and the custom product will be the same, adding to the value.

    Chappers – Founder and Team

    Harshwardhan Patwardhan - Chappers Founder
    Harshwardhan Patwardhan – Chappers Founder

    Harshwardhan Patwardhan is the founder of Chapppers. He has completed his MSC in management from the University of Nottingham.

    Currently, they are a team of 25 people including a sales team, operations team, accounts team, and a team of expert craftsmen. Each of them has the vision to make Chappers the best footwear brand India has ever seen.

    Chappers – The Idea and Startup Story

    Chappers initially started with a vision to take the Kolhapuri chappal global. Harshwardhan first came across Kolhapuri chappals on his first traditional day in college. His brother gave him ancient-looking chappals to wear under his kurta and he fell in love with them. Since then, there hasn’t been a day that he has not worn a Kolhapuri. But it had certain negatives. It was hard, slippery, and available only in the traditional brown colour. He started wondering if he could change these things. Would people in Europe/Latin America wear this chappal if he worked on the negatives? He started researching and working with different materials and that’s when Chappers was incepted.

    Chappers Logo
    Chappers Logo

    Before the founder even started finding a name for the brand, people had started placing orders, as they found his work interesting and wanted cool-looking-new-age Kolhapuris. He had booked a stall at a flea market in Phoenix Market City, Pune and they asked by what name should they reserve the stall. That night, he chalked out close to 200 names but only 1 stuck. He took “Chapp” from “Chappals” and since I was making them comfortable and in a way westernizing the chappal, he added “ers” to it like Slipp”ers” or Loaf”ers”. He joined them together and it made a very short and sweet brand name “Chappers”. Since the name was coined by Harshwardhan, I had no issues in trademarking and copyrighting it too!

    He asked one of his friends to develop a logo for the startup, based on the concept of taking Kolhapuris global. So, he actually drew a Kolhapuri and fit the font such that “C” was the heel and “S” was the thumb! And he loved it!

    Chappers – Products

    Chappers have now expanded into many different products. After a point the founder realized that his interest lies not only in taking the Kolhapuri global, but also the Indian craftsmanship. They want to start with revolutionizing the Indian footwear industry completely. They design great products and enable the customers to customize it in their own colors. They let them add accessories, their initials on the shoes and try to do all of this in a very reliable way and at the right price. Now, they don’t restrict themselves in terms of the nationality of the products origin or the century it was first made in. They want to build great, innovative products and want people to wear them in their own favorite colors. Imagine if a brand starts giving custom footwear at the right price and in a lead time as low as 2 days, why does the footwear industry need crores and crores of inventory?

    Chappers – Business Model

    Chappers’ business model is very simple. It is a very complicated model to understand for an outsider. But for the customer, it is very simple.

    The customer walks into the store/Kiosk and checks their shoe size by trying on their sizing samples. He then sees two sections – RTW (ready to wear) and customization. If he wants to pick up a pair right away, they have a selection of 25-30 bestsellers in stock at all their stores. But, if he has 2-3 days at hand, he can take a look at our customization section. There, he will see numerous designs in unimaginable colours and material variety. He can touch and feel the product, select the design he likes and then move on to a big touch screen. On the touch screen, through their virtual customization platform, he will be able to change, colours, and materials, add accessories to the design that he selected, and then see how the product looks on his feet with the help of an iPad. He can then place an order. If not, he can just enter his mobile number and the shoe that he designed will be sent on WhatsApp to him for future reference. If he does place the order, the full customized product will reach his home in the next 2-3 working days.

    Now that he knows his size and fit, he can even customize any design on Chappers’ website and place the order from the comfort of his home.


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    Chappers – Revenue Model

    Their policy is to never undercharge or overcharge the customer. Whenever they develop a product, their aim is to provide the maximum value to the customer. They never are cheap nor expensive, they just aim to sell their products at the “right price”.

    For example, if a customer looks at a product and feels that it’s worth Rs.5000, then that product should be priced at Rs.4999. They pay their craftsmen very well. They want to ensure both sides of the supply chain are equally happy with them. The team of craftsmen and employees should be equally happy, hence they do not believe in discount marketing. They make good quality products and expect the right price for them.

    Chappers – Customer Acquisition

    This bit came easy for them. They made the first 100 samples and booked a flea market stall. They sold 90 out of the 100 pairs on the first day!!

    After the first flea market experience, their confidence soared. They started believing in the product even more. But, where they can go to sell every day? They couldn’t get a stall. So, they built a basic website and social media pages. First, the orders started coming in through friends and family and then through their friends and family and the circle grew. Since Pune is a small community-like city. Word of mouth spread fast. Slowly they started getting online orders too. But people always asked one question – where can they come and try the footwear? So, they opened their first store on Karve road, Pune. Their stores are very uniquely designed. Big wooden chair, embroidered carpets, and footwear handled with gloves. Not every footwear store does that. Hence, they immediately got a good response for the store too.

    Chappers – Hiring Culture

    In Chappers, your degree does not count. Whenever they are interviewing, they keep the CV aside and talk to the candidate. They want all their team members to be problem solvers. Good manners and extremely high morals are definitely needed if you want to be a part of the team. Patriotism is also a must if you are to qualify as a team member. People who love India and want to do something for the country have a different outlook towards life, Chappers team wants to work with such people.

    Chappers – Challenges Faced

    When Harshwardhan Patwardhan decided to explore the opportunity, he had no background in footwear or business in the leather industry or retail industry. He is from a transport background as his family is into people and goods transport. He had to learn from scratch.

    Second, the footwear and leather industry in India is very unorganized. There are still many vendors who are not on Google. Additionally, nobody wants to work with a person who is just starting out, has no industry experience, and has no money. From vendors to employees, the founder had rejection all around.

    Duplication has also been one of the major challenges. As they started becoming successful, small factories started copying their products and selling them cheaper. They had to develop a lot of IP surrounding their logo to safeguard themselves from this duplication mafia.

    The INR 2000 and above market is dominated by foreign brands. Unfortunately, we think that foreign brands deserve higher MRPs and our own Indian brands don’t. People have said things like “Indian brand hai na to 1000 tak price thik hai”. Our people take pride in wearing foreign brands and undervaluing Indian brands. Building a footwear brand that does not have a single product priced under Rs.2000 is definitely a tough path under current circumstances. But they believe in India, they believe in their products and they believe in the future. This keeps them going.

    Chappers – Growth

    Right now, they have four stores in Pune and they deliver across India when ordered online. They have even delivered orders to 27 foreign countries. Chappers’ revenue is around 2.5 crores and they have approximately 27,000 customers to date. Their returning customer rate is 40% which is pretty high for a footwear brand.

    Chappers – Funding

    Fortunately, till now they have always been profitable and self-sufficient. Even during the pandemic, they had to modify a lot of systems and cost structures but they strived and remained profitable. They will start looking for funding this year as they think now their business model is well evolved and they are aware of what has worked for them and what has not. The new model can truly revolutionize the entire footwear industry and they will come out on top. If they stick to the plan and keep capturing their goals, they think they can be the Zomato of footwear.

    Chappers – Competitors

    Their perspective and attitude are a lot different from other local brands. They do not believe in the fact that they can sell whatever they make. They think that the customer is always aware of the latest trends and just needs some help in imagining stuff. Its job as a brand is to help its customers imagine newer things and they do so by giving them a platform to play around on. They can play around and find out what colours they like the most, and which designs suit them the most. Usually, retailers dictate what you should wear. They tell customers why they can’t wear a yellow chappal or a red shoe. They do so because they don’t have a yellow chappal or a red shoe to sell. But they can make a yellow chappal, a red shoe, and a gold sandal!! So, for the initial few years, competitors never took Chappers seriously, only when they realized that people actually want to wear these colours, did they start thinking about developing such products. They want to make competition irrelevant with their new model. Can established footwear brands give each customer a custom pair? The answer is they cannot. Because they have huge factories to feed. They love making 1 lakh black shoes. Chappers don’t.


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    Chappers – Future Plans

    They are currently trying out a kiosk franchise model. They have Kiosks at Pune’s Pavilion mall and at Seasons mall Magarpatta. A kiosk franchise would give a better return on investment to the franchise owner as the expenses are much lower. Plus, since the majority of the orders are custom-made, its inventory requirement automatically comes down. If there’s a Chappers Kiosk in all malls of India, they will get thousands of custom orders every day. Imagine what that will do to brands that say no to customization. They think they are in a world where people buy ready products just because there’s no choice. If they have a choice at the right price, very few people will buy ready products. They want to create an environment in which other brands want to join. This will be true change.

    Chappers – Tools Used in the Company

    Technology is their backbone. They prefer to use easily readily available software around difficult business systems. That somehow makes the job easy. Of course, they have developed their proprietary Virtual Customization software ourselves. That they would always keep with them as it’s one of the key features of their new business model. They are continuously working on it and want to ensure they constantly keep adding new colors, materials, and products for their customers.

    Chappers – Advice from Founder

    Harshwardhan Patwardhan, Founder of Chappers:

    I think starting early is essential. The amount of learning I got from starting Chappers, no university or degree can give me. Instead, I would encourage the next generation to go explore the world, take a one-way ticket and go on a solo trip to advanced countries. Once we get that exposure, we always get a different perspective. We always try to improve our country that way and I think that’s the most important job any human can do. I would skip the college degrees and I would take up internships in global companies. I would be able to absorb their culture and their know-how. That would take me a million steps ahead of the game.

    I would also start reading earlier. I hated reading my entire childhood, partly because I was never good at studies, but partly also because I never tried enough. I think reading takes you in minds of the people you cannot physically reach. One of the first books I completed was “Screw it lets do it” by Sir Richard Branson. Sir Richard has been my idol since then and I have truly tried living his principles. I have failed at many of them, but while trying them out, I became a better person. Books are priceless.

    FAQs

    When was Chappers founded?

    Chappers was founded in 2014 in Pune.

    Who is the owner of Chappers?

    Harshwardhan Patwardhan is the founder of Chappers.

    What is Chappers famous for?

    Chappers is a Men-focussed Indian footwear brand popular for Kolhapuri Chappals.

  • Why is Adidas selling Reebok for $2.5 billon to Authentic Brand Group and What will its future be?

    After 15 years of ownership, the German footwear giant Adidas sold Reebok to Authentic Brand Group in August 2021. Authentic Brand Group reportedly paid Adidas over $2.5 billion to acquire the company. The rumours of Adidas separating from Reebok were going around from past the mid of 2020, the company later confirmed its plans to sell the Reebok brand on February 16th, 2021.

    The German conglomerate first acquired the company in 2006 for $3.8 billion, as it wanted to compete with its rival Nike. Over the years Reebok tried to position itself among the top athletic footwear and apparel companies with high profile partnerships in UFC and Crossfit.

    But after the current losses and the stores shutting down due to Covid 19 pandemic in 2020 and after many failed efforts to grow the company, Adidas finally decided to let go of Reebok. Adidas will now focus on its own brand and try to improve it in order to compete with Nike in the North American markets.

    A Brief History of the Reebok and Adidas
    Reason Why Adidas is selling Reebok
    What is the future for the two brands?
    FAQ

    A Brief History of the Reebok and Adidas

    Before getting into losses Reebok was well known for its footwear and clothing designed especially for Fitness and running. The company initially became a part of the J.W Foster and Sons company in 1958. It was founded first in 1895 in Bolton, Lancashire, Great Britain as a sporting goods company.

    The company has its headquarters based in Boston Massachusetts and is the official sponsor of Crossfit and Spartan Race for footwear and apparel. Reebok is currently the subsidiary of Authentic Brands Group in August 2021 but before that, the company was a subsidiary of Adidas from the year 2005 to 2021.

    Adidas first acquired the company in 2005 after its intellectual property lawsuit and in an effort to take on Nike. Adidas reportedly spent over $3.8 billion to acquire Reebok. It then made Reebok the official uniform supplier for the NBA in 2006 which came alongside an 11-year deal, which made Reebok popular during those times.


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    Reason Why Adidas is selling Reebok

    Reebok has reportedly gone through tough times and financial struggles, for over a decade Adidas made numerous attempts to revive the brand and improve its performance but failed.

    Besides that, Reebok was also facing problems with trends for sports clothing and athleisure because of the stiff competition. The Covid 19 Pandemic had also brought down the sales of Reebok, as in November 2020 Reebok sales fell over 20% in the durations of nine months.

    Net sales of the Reebok brand worldwide
    Net sales of the Reebok brand worldwide

    During the lockdown, Reebok had to shut down numerous stores as it went under huge losses. In Britain, Footwear companies like Dr Marten and Birkenstock have seen an increase in sales as they promoting comfortable footwear products during the times where everyone is working from home.

    During the first few years of the Adidas and Reebok partnership, Reebok constituted over a quarter of Adidas’s total revenue, but in 2020 Reebok only generated over 6.9% of its overall revenue.

    During the press conference, Kasper Rorsted, the Chief Executive of Adidas said that, “After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other. We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.”

    The German sportswear giant announced its plans to sell the Reebok brand on February 16th, 2021. After that Adidas shortlisted a number of potential buyers for the brand. The shortlisted companies include Wolverine World Wide, Authentic Brands Group, Advent International, CVC, Cerberus Capital and Sycamore Partners. The Authentic Brand Group came out on top and acquired Reebok by paying Adidas a sum of $2.5 billion.


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    What is the Future for the Two brands?

    For Adidas, selling Reebok will allow the company to reduce its distractions and focus more on its namesake brand as it needs to accelerate its momentum to match up to Nike.

    Adidas is popular in some European countries but is weaker compared to Nike in other North American footwear and athleisure markets. Nike is known to be over three times bigger than Adidas in the North American market, this is why Adidas had to let go of Reebok.

    Reebok is now the subsidiary of Authentic Brand Group which is a well-known conglomerate with over 30 brands in its portfolio. Brands like Juicy Couture, Forever 21, Barneys New York, JC Penney and Brooks brother are part of the multinational company. This is why many experts say that the Reeboks addition could be a major asset for the company.

    ABG can help Reebok evolve in many categories of the brand and potentially make the company profitable again with unique methods. The consumers can now expect to see more retro style from Reebok being reintroduced in the near future as that is what the brand was known for. ABG will also help the company maintain its original DNA instead of building it from scratch and will continue investing in its marketing, products and people.

    FAQ

    When did Adidas acquire Reebok?

    The German conglomerate first acquired the company in 2006 for $3.8 billion, as it wanted to compete with its rival Nike.

    Who is the parent company of Reebok now?

    The parent company of Reebok from August 2021 is Authentic Brand Group.

    Why did Adidas sell Reebok?

    After the current losses and the stores shutting down due to Covid 19 pandemic in 2020 and after many failed efforts to grow the company, Adidas finally decided to let go of Reebok.

    What is Reebok?

    Reebok is one of the top footwear companies and as it is well known for its footwear and clothing designed especially for Fitness and running.