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Metro Shoes, Crocs Inc Tie Up To Generate Rs 100 Crore Within 3 Years
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Crocs Inc, the iconic footwear brand will expand its retail presence in India via Metro Shoes which will open 100 exclusive stores, reports Ashish Sinha
Mumbai-based Metro Shoes, the Rs 1,000- crore (2015-16) Indian footwear brand which recently signed a retail partnership agreement with US-based iconic footwear firm Crocs Inc, is aiming to generate over Rs 100 crore in sales from exclusive Crocs outlet within next 36 months.
As part of the tie-up, Metro Shoes will open 100 Exclusive Brand Outlets (EBOs) of Crocs and invest Rs 40 crore over next three years in opening and stocking the stores.
Speaking to BW Businessworld about the deal, Rafique Malik, Chairman, Metro Shoes said: “Crocs will bring in their colourful product range and their expertise in merchandising whereas Metro Shoes will bring in their expertise in opening and operating stores across India, knowledge of regional preferences and excellent customer service. We opened our first EBOs at the Saharaganj Mall in Lucknow, Elante Mall Chandigarh and Viviana Mall Thane in the month of August. We have plans of opening approximately 100 EBOs of Crocs in the next 3 years, all over the nation.”
According to Malik, Metro Shoes is confident of reaching Rs 18 crore in profitable sales in the first year of operations of Crocs-Metro tie-up.
Independently, Metro Shoes also plans to expand its store presence in India. “Metro is planning to open 50 shops in FY 2015-16 and will continue to grow on a parallel track,” Malik said.
When asked about any fund raising exercise for expanding the retail network of either Metro Shoes or the tie-up with Crocs Inc, Malik said that Metro is a “debt free” company. “There is no requirement to raise funds for the expansion of Crocs as well as our own brand,” he said.
Speaking about the retail strategy for Crocs, Malik said Metro Shoes will use the data of Crocs sales through its own in-store sales to prioritize new locations. “Initially we will be targeting metros but stores will open based on real estate opportunities,” Malik said.
According to industry estimates, the size of the footwear industry in India is pegged at around Rs 32,000 crore of which share of organized sector is 30 per cent. As per Malik, the footwear industry is growing at 9-10 per cent annually, whereas the organized sector is growing at 15 per cent.
The top 5 players would be Bata, Relaxo, Woodland, Mirza International and Metro.
|Metro Shoes Expects To Cross Rs 1000-cr Turnover This Year|
Interview with Rafique Malik, Chairman, Metro Shoes.
Please expand on the deal with Crocs Inc.
Crocs has signed a retail partnership agreement with Metro Shoes for expansion in Indian market. Metro Shoes will be opening Exclusive Brand Outlets of Crocs footwear across India.
What about pushing Crocs, Metro shoes through e-commerce?
Metro is growing its e-commerce business aggressively. Currently it retails on its own website as well as via Myntra, Flipkart, Amazon, Jabong and Snapdeal. Soon we will also be active on Paytm & Tata portal. Online sales are currently growing at 100 per cent over the same period last year. Engagement on Facebook & other social media portals has also grown significantly. Crocs are currently handling their ecommerce independently although they are available on our website.
How has been your financial performance? What are your targets for next three years?
Metro is targeting annual growth of 20 per cent in the next 3 years, overall Rs 1,500 crore sales. Although we continue our efforts to top the order, our focus will be more on profitability. The company has been growing at a CAGR of 24 per cent during the last 5 years and expects to cross a turnover of Rs 1000 crore during the current year while maintaining profitability.