Foreseeing the buoyant demand in the footwear sector, Pavers England, the UK-based footwear retailer with the help of Reliance Footprint is hoping to make its mark in the retail segment across Tier I cities through exclusive franchisee route and in Tier II towns with the local stores.
The $200-million turnover company, which set out its India presence through its network about two-and-a-half years ago, has invested $10 million thus far in the country, including $3 million for an R&D facility.
RIL owned Reliance Footprint has agreed to have operations in partnership with Pavers England with an aim of bridging gap for footwear that lays emphasis on comfort and styling.
Reliance footprint partnership is a boon for the UK footwear retailer as it has performed well in the Indian markets in spite of the economic slowdown. Reliance Footprint, with 29 stores across the country, achieved the break-even much earlier than the estimated time frame of five years mainly due to cautious steps taken by its management during the slowdown.
As a response to the slowdown, the company had also down-traded by offering its footwear products at lower price points. However, it now plans to reverse its pricing this year, now that the economy is almost stable. The company has plans to reach the Rs 3,000-crores turnover mark in three years, which would give it an all-India market share of eight per cent in the footwear industry and 20 per cent share of the organized sector.
Reliance Footprint is positioned in the mid-market segment, offering 45-50 brands in each of its stores. About 25 per cent of the offering is currently from international brands, which will also up depending on market trends. However, private labels contribute about 30 per cent of the business in terms of value and about 45 per cent in terms of volume. The company will keep a balanced ratio over the coming years.Labels: Mukesh Ambani, Reliance Industries Limited, RIL