StartupTalky

Tag: footwear industry

  • Businesses Must Build the Right Mix of Online and Offline Sales Points- Mr. Harshwardhan Patwardhan, Founder of Chappers

    StartupTalky presents Recap’22. This is a series of interviews in which we conduct in-depth discussions with founders & industry leaders to understand their growth in 2022 and their predictions for the future.

    The footwear industry has grown significantly in recent years, driven by a number of factors like an increase in consumer demand, advancements in technology, and the growth of e-commerce.

    People are becoming more conscious of fashion and are willing to spend more money on high-quality footwear. Additionally, consumers are also becoming more health-conscious and are looking for footwear that provide comfort and support.

    Advances in technology have also played a role in the growth of the footwear industry. New materials and manufacturing techniques have allowed for the creation of new, innovative footwear products.

    Another trend that is driving growth in the footwear industry is the increase in customization and personalization of shoes. With the rise of 3D printing and other technologies, it is becoming easier for consumers to create their own unique shoe designs.

    The Indian footwear market is valued at approximately $13 billion in 2020 and is projected to grow at a CAGR of around 12% during the forecast period from 2021 to 2028. The production of footwear in India reached around 2.8 billion pairs in the year 2020.

    For this Interview, we invited Harshwardhan Patwardhan, Founder of Chappers, and we talked about the growth, challenges, insights, and future opportunities in the footwear industry.

    StartupTalky: Harshwardhan, What’s Chappers all about? What was the motivation/ vision with which you started?

    Harshwardhan Patwardhan: Chappers is a footwear brand that offers customization to anyone who loves to have their style using AR technology. We offer various styles right, from Kolhapuri Chappals to Belgian loafers, mojdis, Peshawari sandals, and more, for both men and women.

    I have been fond of Kolhapuri chappals since college, and when I went to study in the UK, I took my favorite footwear along. It received much appreciation from my friends and other people around me, but the only challenge around wearing Kolhapuris was the need for more color and design. This gave me the idea to build a world-class footwear brand that could offer unmatched design and color innovations and give Kolhapuris a contemporary avatar. This is the vision with which I started my journey with Chappers.

    StartupTalky: What other products/features have been added in the past year? What is/are the USP/s of your products?

    Harshwardhan Patwardhan: Chappers is a brand unlike any other in the Indian footwear market. We have created a unique fusion of Indian and western footwear to create stylish, high-quality, durable, and comfortable footwear. Alongside expanding the range of Chappers customized footwear, Chappers, which started as a men’s footwear brand, recently introduced some SKUs for female customers with the festive and wedding footwear demand in mind. The uniqueness of Chappers lies in the usage of cutting-edge design and AR technology in order placement. We encourage our customers to create designs with colors, materials, and even personal symbols or accessories for footwear.

    Thus, our customers can make their style statement through footwear. This kind of designer footwear is offered to them at far more affordable prices than other international brands providing such services.

    StartupTalky: How has the footwear industry changed in recent years and how has your company adapted to these changes?

    Harshwardhan Patwardhan: The footwear industry has been steadily growing in size over the years. However, there has yet to be growth when it comes to innovation. All major brands keep producing thousands of pairs of almost identical-looking footwear. Chappers has identified the unaddressed demand for personalization and introduced a cutting-edge software-driven approach that ensures limitless creativity and options for personalizing footwear. Along with high quality and the right price, our footwear has been gaining rapid market acceptance and is now available for delivery all over India from our e-commerce portal. Customers can also order the footwear through our offline stores in Pune, and we are working towards expanding our retail network to different parts of the country.

    Harshwardhan Patwardhan: I attend most of the industry events and exhibitions. It is inspiring to see how Indian entrepreneurs are coming up with newer technology and innovative manufacturing techniques. I also research many foreign brands that have made a mark on the footwear world, like Christian Louboutin, Versace, Salvatore Ferragamo, and Giuseppe Zannotti.

    StartupTalky: What key metrics do you track to check the company’s growth and performance?

    Harshwardhan Patwardhan: We track Month on Month sales growth and the number of customer touchpoints added. We want all Indians to experience the power of customization. We believe our model will change the footwear industry forever.

    StartupTalky: What were the most significant challenges your company faced in the past year and how did you overcome them?

    Harshwardhan Patwardhan: In the early stages of Chappers’ evolution, we faced challenges related to the procurement of raw materials. Still, we overcame those through extensive research and visits to leather makers across Maharashtra, especially the Mumbai region. In recent times, we have had challenges with the pandemic. Still, we have built a full-fledged eCommerce website to ensure that customers can order Chappers footwear from their homes across India now and get them delivered in three to four days from order placement.

    StartupTalky: Repeat purchase is one of the most important parameters on which most eCommerce brands are betting. How do you keep your customer engaged to stop churn?

    Harshwardhan Patwardhan: Chappers is a one-of-its-kind footwear brand in India. We offer customers freedom of choice to get their footwear made the way they want. We have built a patented AR software that lets them choose materials and colors and add personalized elements such as accessories or signs. They can visualize the look and feel of the product through AR tools, and if they are satisfied with the design, they can finalize it and place an order. This is the only brand currently offering right-priced footwear options in this country. This has been a critical driver for Chappers retaining its customers and getting many repeat orders. Even the comfort and quality of the products are very high, making the customers choose Chappers over other brands.

    StartupTalky: What are the different strategies you use for marketing? Tell us about any growth hack which you pulled off.

    Harshwardhan Patwardhan: We have been using different content marketing approaches and increasing online brand visibility through media coverage and footwear style guides. Further, Chappers also participates in a lot of exhibitions and fairs. We also run social media and search engine marketing to optimize our customer reach.

    StartupTalky: What are the important tools and software you use to run your business smoothly?

    Harshwardhan Patwardhan: Chappers is a technology-driven brand, and we have built our proprietary AR software to enable customers to design and visualize the footwear even before it takes shape. For sales, we use the latest e-commerce technologies and keep improving the tech stack to streamline operations further.

    StartupTalky: What opportunities do you see for future growth in your industry in India and the world?

    Harshwardhan Patwardhan: As a country of nearly 1.4 billion people, a strong audience is keen to buy stylish, high-quality, personalized footwear. We have revamped the iconic Maharashtrian Kolhapuri footwear and made it apt for consumers worldwide. Chappers has already received several orders from foreign countries. In the long run, my vision is to make Chappers available in every shopping mall across India and through eCommerce channels in every part of the world.

    StartupTalky: What lessons did your team learn in the past year and how will these inform your future plans and strategies?

    Harshwardhan Patwardhan: Covid was a challenging phase for all of us. We must stick through the bad phases in life to see a brighter future. Testing times are always short-lived, and there’s always a ray of light at the end of the tunnel. Never give up! The past year has seen a tremendous rise in sales of high-ticket-value items, which was surprising for us.

    StartupTalky: How do you plan to expand the Customers, SKUS, and team base in the future?

    Harshwardhan Patwardhan: We keep track of the most popular Chappers designs and frequently upgrade our database with new SKUs based on these designs. Chappers recently unveiled a range of footwear for women, and we will expand it in the year ahead. Further, there are plans to introduce kids’ footwear and include products based on various other ethnic footwear from different states of India, such as more from Rajasthan.

    For market coverage, we are leveraging a kiosk franchise model under which we offer franchises to people to set up kiosks in shopping malls. Four such outlets are already operational in Pune, and in the long term, the vision is to have one kiosk in every shopping mall across India. We will expand our team of craftsmen and other professionals in sync with the brand’s growth.

    StartupTalky: With so much hype around d2c brands spending on ads, what will be your growth strategy organic or inorganic? How to plan to work around SEO and content marketing?

    Harshwardhan Patwardhan: Digital marketing is the key to success for any D2C brand today. Chappers generate many organic leads as customers who use our products recommend the brand to others. We currently use SEO, content marketing, social media marketing, and even search engine marketing to engage the audience. In the future, we will leverage influencer marketing and other D2C-centric marketing channels for faster growth.

    StartupTalky: So finally Harshwardhan, one tip that you would like to share with another d2c founder?

    Harshwardhan Patwardhan: I personally believe that d2c is a misunderstood term. People relate d2c just to online businesses. That is not true. Direct to Consumer businesses can run offline sales channels too. Online business is highly overrated. It is good for marketing and customer acquisition. But businesses must build the right mix of online and offline sales points to gain traction. Do not restrict yourself to any particular point of sale. Eventually, sales growth is essential; whether it comes online or offline does not matter.

    We thank Harshwardhan Patwardhan for spending his valuable time and sharing his learnings with all of us.

    You can read other Recap’22 Interviews here.

  • The Success Story of Bata: The 128 years old Swiss Footwear Company leading the Indian Footwear Market

    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 Bata.

    Fashion is the way of life that many people love showing off. It is not just limited to clothes but fashion also includes footwear and other accessories that add a style statement to one’s overall personality appearance. It also reflects their attitude by giving us a glimpse of the person’s approach toward life.

    Fashion in the context of footwear and apparel is considered to be a big business. We can say that fashion is one of the most attractive and fascinating industries of today. The industry is a wide platform that offers vast access to different styles and trends. Not alone apparel fashion industries but industries offering footwear have become quite successful in what they do.

    Bata, the brand we have seen right from our early days, is one of the leading footwear and fashion accessory industries in the world today. The Bata Corporation was founded over 125 years ago by Antonín Baťa, Tomáš Baťa, and Anna Baťová. The company makes footwear, apparel, and other fashion accessories.

    In this article, we have gathered all the relevant information about Bata’s success journey. Know all about Bata’s foundation story, its founder’s story, growth, key products, business and revenue model, and the challenges faced.

    Bata – Company Highlights

    Headquarters Lausanne, Switzerland
    Sector Retail, Footwear, leather, and apparel manufacturing
    Type Private
    Area served Worldwide
    Founder Antonín Baťa, Tomáš Baťa, Anna Baťová
    Founded 1894
    Revenue Rs 17 billion (2021) – Bata India Ltd.
    Parent Organisation Bata Family
    Website www.bata.in / thebatacompany.com

    About Bata
    Bata – Industry
    Bata – Founders and Team
    The success story of Bata/ Startup Story –
    Bata – Mission and Vision
    Bata – Business and Revenue Model
    Bata – Funding, and Investors
    Bata – Mergers, and Acquisitions
    Bata – Advertisements and Social Media Campaigns
    Bata – Competitors
    Bata – Awards and Achievements
    FAQs

    About Bata

    The Bata Corporation, often known as Bata and Baa in the Czech Republic and Slovakia, is a multinational producer and retailer of footwear, clothing, and fashion accessories with its headquarters in Lausanne, Switzerland. The company is of Moravian (Czech) descent. The company was founded on 24 August 1894 by three  Antonín Baťa, Tomáš Baťa, and Anna Baťová.

    Being a family-run company, the Bata Group has been able to offer clients all over the world the greatest shoes at the best rates, supported by unmatched service, for more than 120 years. Today, the company is one of the world’s leading manufacturers and retailers of quality footwear.

    Bata has a presence with more than 32,000 employees, 21 production facilities, and over 5,300 stores in more than 70 countries across the globe. The company likes to enhance the quality of life in each community where it operates. In addition to offering chances for both personal and professional growth, Bata likes to provide support to its customers, colleagues, and the community at large.

    The company’s business is divided into three branches:

    • Bata
    • Bata Industrials (safety shoes)
    • AW Lab (sports style)

    More than 20 brands and labels, including Bata, North Star, Bata 3D, Power, Bubblegummers, Weinbrenner, Sandak, Hushpuppies, Bata Comfit, CAT, Marie Claire, and Toughees, are part of Bata’s portfolio firm.

    With an annual sales volume of 150 million pairs of shoes, the company is one of the largest shoe manufacturers in the world.

    Bata – Industry

    Bata belongs to the shoemaking and retail industry for manufacturing various shoes and other fashion-related products. According to projections, the worldwide retail analytics market would increase at a CAGR of 17.7% from $5.84 billion in 2021 to $18.33 billion in 2028.

    Bata – Founders and Team

    The Bata Group is founded by three siblings-  Antonín Baťa, Tomáš Baťa, and Anna Baťová in 1894.

    Tomáš Baťa

    Tomáš Baťa is the man behind the foundation of the Bata shoe company. He was a Czech entrepreneur, who was born on 3rd April 1876. It was on August 24, 1894, Tomá Baa founded the organization in Zlin with 800 Austrian guldens (about $320 today), money he inherited from his mother. The T. & A. Bata Shoe Company was founded by his sister Anna and brother Antonn Baa. Even though this business was only recently founded, the family has been creating shoes for eight generations and more than three hundred years. His new business’s rapid rise in popularity was aided by this legacy. In 1908, Tomá Baa acquired sole ownership of the business following the death of his brother Antonn Baa from sickness. Two of Tom’s younger brothers, Jan Bata and Bohus, joined the company. Due to terrible weather, he perished in a flying crash, ending his illustrious career.

    Jan Antonín Baťa

    Jan Antonin Bata born on March 7, 1898, was a Czecho-Brazilian shoe manufacturer from Uherské Hradit (southeastern Moravia). He was also known as Jan Antonin Bata or Jan Bata and was dubbed “The King of Shoes.” After the death of his half-brother Tomáš Baťa, Jan took over the Bata company. Even at the height of the Great Depression, he put fresh expansion strategies in place for the Bata firms. His activities included diversification into new industries such as tire manufacturing, textiles, chemicals, mines, canals, a railroad, film studios, bicycle and airplane manufacturing, the creation of department shops for the general public, and import/export. His Czech portion of the firm more than doubled in size during his tenure, reaching 38,000 employees, 2,200 stores, and 70 enterprises. In Slovakia, the Slovak economy similarly experienced exponential growth, going from 250 persons to 12,340 and 8 businesses.

    Anna Baťová

    Anna Baťová helped her brother Tomas with the organization. She evolved as the third and most essential companion. She not only looked after their home but also kept the books, and her ability to get along with people frequently assisted in resolving difficult issues, particularly when they were gradually accruing debt.

    Anna was the first of her siblings to become independent when her relatives arranged for her to work with the family in Vienna because she was highly intelligent and did well in school. She considerably assisted her brother Tomá in Vienna, and he eventually decided to follow her.

    Gunjan Shah

    Gunjan Shah is presently the Chief Executive Officer of Bata India Ltd.

    He is a graduate of the Indian Institute of Management, Calcutta with a PGDM degree in general management. Prior to joining Bata as the CEO, Gunjan worked at Britannia Industries Limited for almost 15 years.

    The success story of Bata/ Startup Story –

    The Foundation Story

    The company started with the name T. & A. Baťa Shoe Company in 1894 by Tomá Bata, his brother Antonn, and his sister Anna, whose family had been cobblers for generations, founded business in the Moravian town of Zlin, Austria-Hungary (now in the Czech Republic).

    It was found later thatTomá was having financial issues in the summer of 1895. He decided to make canvas shoes instead of leather to get around these obstacles. The company hired 50 people as a result of the success of this sort of shoe. Bata erected its first steam-driven equipment four years later, ushering in a period of quick modernization. Tomas saw a newspaper story on certain American-made machinery in 1904. In order to research and comprehend the American method of mass production, he took three employees and traveled to Lynn, a shoemaking community outside of Boston. The “Baovky,” its first mass-produced item, was a working-class leather and textile shoe that stood out for its functionality, good looks, low weight, and reasonable price. Its success fueled the company’s expansion. Tomá welcomed two of his younger brothers, Jan and Bohu, into the company after Antonn’s passing in 1908. In 1909, export sales and the first sales agency were established in Germany. The Balkans and the Middle East thereafter followed.

    Bata footwear was regarded as being of outstanding quality and was supplied in a greater variety of styles than ever before. The company had more than 600 full-time employees by 1912, in addition to another several hundred who worked from their homes in nearby settlements.

    Growth of Bata shoes during World War I

    Due to military orders, the industry had a tremendous development in 1914, the year that World War I broke out. The number of Bata’s employees increased 10 times between 1914 and 1918. In addition to other cities, the corporation opened its own stores in Zlin, Prague, Liberec, Vienna, and Plzen.

    The post-war expansion of Bata Shoe Company

    Consumer reaction to the price reduction was very strong. Between 1923 and 1925, a demand crisis led the majority of competitors to go out of business, but Bata was growing as the demand for its low-cost shoes soared. The Bata Shoe Company boosted output and added staff. Zlin transformed into a true factory town that spans several hectares, called “Bataville” town.

    Bata integrated social welfare with the factory’s automated efficiency, and his early experiments with collectivism and profit-sharing helped to pave the way for the modernization of industrial administration. Bata Shoes also provided leisure facilities, including a theatre, library, department store, dance halls, espresso bars, a swimming pool, and an airfield, in addition to building employee housing, schools, stores, and a hospital.

    The diversification of Bata

    Slowly Bata also started to establish towns and factories outside of Czechoslovakia (Poland, Latvia, Romania, Switzerland, France) and with many diversifications into different industries, including tanning (1915), the energy industry (1917), agriculture (1917), forestry (1918), newspaper publishing (1918), brick manufacturing (1918), wood processing (1919), the rubber industry (1923), the construction industry (1924), railway and air transport (1924), book publishing (1926), the film industry (1927), food processing (1927), chemical production (1928), tire manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930), sea transport (1932), and coal mining (1932), airplane manufacturing (1934), synthetic fiber production (1935), and river transport (1938).

    The international expansion of Bata

    The Bata company had 1,645 shops, 25 enterprises, and 16,560 employees at the time of Tomá’s passing. Following Tom Bata’s pre-death plans, Jan Antonin Bata grew the business more than six times its initial size throughout Czechoslovakia and the rest of the world.

    In the following decade, Bata had its factories set up in the United Kingdom, the Netherlands, Yugoslavia, Brazil, Kenya, Canada, and the United States. In India, the plant was established in Calcutta during the 1930s.

    Incorporation of Bata India Limited

    Incorporated as Bata Shoe Company Pvt. Ltd. in 1931, Bata India later changed its name to Bata India Ltd. in 1973. In 1993, the Batanagar factory became the first shoe manufacturing facility in India to acquire ISO 9001 accreditation.

    Bata India is the largest footwear retailer and producer in India. Bata India’s retail network covers 1375 outlets in India. All metros, mini-metros, and towns have stores, which are located in good areas. Through its urban wholesale segment, the company also manages a sizable non-retail distribution network and serves millions of customers through more than 30,000 dealers in India.

    Bata’s expansion in other countries

    In 1934, the company held 300 stores in North America (many of which were renamed with the “Barrett Shoes” trademark after World War II), 1,000 in Asia, and more than 4,000 in Europe. The Group had assets in the tanning, agricultural, newspaper publishing, railway, and air transport, textile manufacture, coal mining, and aviation industries in 1938 and employed slightly over 65,000 people globally, including 36% outside of Czechoslovakia.

    Post World War II – Bata’s re-growth

    After Bata’s factory was bombed during World War II, Thomas J. Bata, son of Tomas Bata went to Canada and served as the Vice-President of the Bata Import and Export Company of Canada, founded in 1939. Bohemian and Moravian plants were transferred to another family member, while foreign businesses were split off from the parent corporation. After the Government in Czechoslovakia confiscated Bata’s factories in Eastern Europe, it was decided in 1945 that the Bata Shoe Organization’s service headquarters would be located at Bata Development Limited in Great Britain. Thomas J. Bata, who was situated in the West, started the company’s reconstruction alongside several Czech and Slovak ex-pats. The company slowly rebuilt itself from its new base and entered new markets in Asia, the Middle East, Australia, Africa, and Latin America. Bata formed a confederation of independent entities that might be more responsive to new markets in developing countries, as opposed to structuring these new operations in a more centralized manner.

    Bata in the Present Times

    The corporation shut down a number of its plants in developed nations during the global economic shifts of the 1990s and concentrated on growing its retail operation. Bata left Canada gradually over time.

    Today, with more than 32,000 employees, more than 5,300 shops, 21 production facilities, and a retail presence in more than 70 countries on five continents, Bata believes that it serves more than 1 million customers every day. Among the nations where Bata is well-established in India, where it has operated since 1931. There are four factories that makeup Bata India. The largest shoe manufacturer in Asia is located in Kolkata’s Batanagar Industrial Township (1930).

    Bata Group is split up into five geographical areas: Africa (with a regional office in Limuru, Kenya), Asia-Pacific (with a regional office in Singapore), Latin America (with a regional office in Santiago, Chile), India (with a regional office in New Delhi), and Europe (with a regional office based in Padua, Italy).

    Bata – Mission and Vision

    Bata Group follows five values in which they truly believe in, these are:

    • Count on Me
    • Improving Life
    • Exceed Customer Expectations
    • Be Bold
    • Serve With Passion

    Bata’s mission defines its passion, which reads, “We love making stand-out footwear our customers can wear to look good and feel good all day long, and always with price tags that impress them too.”

    Bata – Business and Revenue Model

    The Bata company’s business mostly manufactures shoes and other fashion-related accessories.

    The company’s business is divided into three branches: Bata, Bata Industrials (safety shoes), and AW Lab (sports style) as mentioned earlier.

    The company follows an adaptation strategy by targeting its local audience as per their taste. You can find that the company has a dedicated website for each of its regional audiences, this is because Bata likes to do business by attracting its local customers.

    Talk about Bata India Ltd, the brand is a hit in the country. By offering affordable shoes in India, today, Bata has become the number one favorite shoe brand for many Indians. The brand is so popular in India, that many Indians think of it as the local brand. That’s how the company is powerful with its adaptation strategy.

    Bata operates its business with many factories situated all over the world with a strong presence in Asia, Europe, the Middle East, and Outside Europe.

    Some of the major brands under the Bata label are:

    • Bata/Baťa
    • Ambassador – classic men’s shoes
    • Bata 3D – urban sneakers
    • Bata Comfit – comfort shoes
    • Bata Flexible – comfort shoes
    • Bata Red Label – trendy shoes
    • Bata Industrials – work & safety
    • Marie Claire – women’s shoes
    • North Star – urban shoes
    • Verlon – school shoes
    • Teener – school shoes
    • Footin – school shoes
    • B-First – school shoes
    • Weinbrenner – outdoor shoes
    • Bubblegummers – children’s shoes
    • Power – athletic shoes
    • Bata Industrials – work & safety
    • Toughees – school shoes
    • Patapata – flip flops
    • Tomy Takkies – urban shoes

    Bata Group commands around 35% of the market share in India. Its revenue from operations (India) was at Rs 2,387.71 crore in 2021-22, 39.75% higher than Rs 1,708.48 crore in the year-ago period.

    Bata – Funding, and Investors

    Bata is funded by Ventures Platform with an undisclosed amount.

    Bata – Mergers, and Acquisitions

    In 2014, Bata India merged its wholly-owned subsidiaries – Bata Properties Ltd and Coastal Commercial & Exim Ltd.

    Bata – Advertisements and Social Media Campaigns

    When it comes to advertising and attracting customers, Bata does it like a boss. The marketing strategy of Bata focuses mainly on geographics, demographics, and psychographics.

    Bata India has roped in various celebrities to target its Indian audience.

    In 2021, Bata launched the ‘Relaxed Workwear’ Collection for Indian Customers by featuring Kartik Aryan.

    The brand had also roped in Kriti Sanon for its campaign called ‘Kick out 2020′ to mark Bata’s new collection of everyday footwear. Its Ready Again’ collections have various shoes and sandals for casual wear, festive wear, fitness, etc.

    Bata – Competitors

    Bata group competes with the following competitors:

    Bata – Awards and Achievements

    Bata India Ltd. has won many awards:

    • Bata won the Most Admired Omni-channel retailer award
    • Recognized in India’s Top 100 Franchise Opportunities
    • Bata won Championship Award for Quality
    • Bata won Best Contactless Service Experience
    • Most admired fashion brand of the year (footwear) – 2019
    • Bata won Most Influential Brand of the Year – in 2019
    • Bata has won Most Trusted Brand – 2018

    FAQs

    What is Bata known for?

    Bata is known to be the largest player in the Indian footwear industry.

    Who is the CEO of Bata?

    Sandeep Kataria is the CEO of Bata.

    Who is the brand ambassador of Bata?

    Disha Patani is the brand ambassador of Bata.

    Who owns Bata?

    Bata is owned by Bata family.

  • 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.

  • 6 Made in India Footwear Brands leading the Footwear Market

    Comfortable and stylish is the easiest way to describe the tremendous popularity of sneakers.

    Sneakers took the internet by storm when top models and other Hollywood celebrities began wearing them. Puma, Adidas, and Nike were cult favorites. Airport looks were graced with eye-catching white sneakers which took the internet by storm.

    In India also the footwear market was hugely dominated by these international brands only. Celebrities and models wore them all the time. But, as far as the common public is concerned, they seemed like a luxury they can’t afford.

    But now made in India footwear brands are attracting more and more customers. Also, since these are locally made, they are easier on the pockets.

    If you are looking for some cool Made in India Footwear brands, here we have a complete list for the same.

    HRX
    Woodland
    RedChief
    Lakhani
    Paragon
    Sko
    FAQ

    HRX

    CEO & Founder: Afsar Zaidi
    Co-Owner: Hritik Roshan

    Turnover: 200 crores

    If you want to look super dashing like Hrithik Roshan, you might want to check out HRX. CEO and co-founder Afzar Zaidi along with brand ambassador and co-founder Hrithik Roshan have won hearts with their brand.

    HRX deals in everything related to fitness and sports. Their great quality shoes are stylish and attractive. Whether it’s your causal OOTD or an outing scenario, adding these cool sneakers instantly elevates the look..

    What’s striking about the brand is its price range. Their sneakers start from as low as 800 and can go up to 4000 so you can decide what you want.

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    Woodland

    CEO & Founder: Avatar Singh
    Turnover: 1250 crores

    Known for their strength, Woodland shoes have been here forever. This one of those old and charming sneaker brands made in India that you can trust.

    Woodland motto is making tough shoes that last long.

    Correct marketing strategies, as well as excellent craftsmanship, have taken the brand to amazing heights. If you need shoes that fit just right and support your feet on stones and difficult roads, this is what you should choose.

    Woodland
    Woodland

    RedChief

    Founder: Manoj Gyanchandani
    Turnover: 324 crores

    Red Chief is another sneaker brand made in India that’s been in the market for a long time. With Vicky Kaushal as the brand ambassador, Red Chief has upped its advertising game. Founded by Manoj Gyanchandi, Red Chief has grown to become a trusted brand among men.

    Initially, they made formal shoes but now they’ve expanded their range to casual sneakers which are being loved by Indians.

    Lakhani

    Founder: K.C. Lakhani
    Turnover: 100-500 crores

    Lakhani suffered a major setback due to the domination of international brands. But under Mayank Lakhani’s supervision, the brand got back onto its feet.

    Lakhani makes shoes for everyone. You can find anything from traditional ‘chappals’ to sports shoes and formal shoes.

    They’ve captured the Indian market by providing them what they really want, stylish, low-cost footwear that lasts long.

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    Paragon

    Founder: Govindan Panchkail
    Turnover: 971 crores

    Paragon is the sneaker brand made in India that we used to associate with sliders and flip-flops only but they’ve grown immensely with time.

    Yes, they make cool sneakers now. These sneakers can up your styling game on many levels. Colorful prints or formal black, they’ve got it all.

    Sko

    Founder: Nishant Kanodia

    SKO is another sneaker brand that delivers top-class quality. This brand is more on the costlier side with sneakers ranging between 4000-6000. But they do not compromise on quality.

    They choose trendy but neutral colors to make shoes blend in with the outfit. These are one of those shoes that are set right with whatever you wear them with.

    FAQ

    Is Adidas shoes made in India?

    Major brand like Adidas, Reebok, Nike, Puma and Fila already manufacture their shoes in India.

    Is Red Chief Indian brand?

    Yes, Red chief is an Indian footwear brand that markets leather footwear.

    Who is the owner of Red Chief?

    Manoj Gyanchandani is the owner of Red Chief.

    Conclusion

    If you are someone who’s very particular about shoes, this is one of the sneaker brands made in India that you should try.

    These were the top sneaker brands made in India that you can try. All of them trendy and worth your money. Also, it’s time you go ‘Vocal for Local’.