India is the second largest footwear producer in the world with a share of 9 percent. The total annual production figures clock at 22 billion. And according to a research at Transparency Market Research, the Indian footwear market will be worth 258.22 billion by 2023. Both homegrown and international brands are responsible for the tremendous growth in the footwear segment. Here, we will specifically address the Indian footwear giant, Metro Shoes.
Metro Shoes is the largest Indian footwear brand catering to various age groups including kids and adults. Established in 1947, Metro Shoes has come a long way since its inception. In the process, it has witnessed success at every stage. The success is owed to robust management, effective implementation of marketing strategies, and adoption of latest technology.
Statistics related to Rising of Metro Shoes
During the financial year 2016-17, Metro Shoes accumulated Rs 13 crores from online sales. These sales were garnered from the online marketplace that included e-commerce stores such as Flipkart, Myntra, Jabong, and others. The contribution from these stores was 85%, and if we talk about their own online store, it contributed 15% to the sales. The online sales are on an exponential rise and hence, the leaders at Metro Shoes are adamant on exploring the online ways to expand their market presence. For example, their online portal is growing at a rate of 200-250% on a yearly basis.
In the financial year 2016-17, Metro Shoes registered sales revenue of Rs 1,030 crores. In the next financial year, they plan to push this figure up to Rs 1,234 crores. With their effective management, and ability to cater to wide range of customers, Metro Shoes can achieve this target with ease. For an instance, Metro Shoes is committed to launching 40 new designs every week. And these designs vary from casual footwear to formal footwear.
Currently, Metro Shoes handles four brands under its hood. These include Metro Shoes, Mochi, Crocs, and Walkaway. The dominance in the footwear segment is largely attributed to the brands operated by Metro Shoes. As it focuses on both indigenous products and international products, the customer can explore both the options. As of now, there are around 360 stores operated by Metro Shoes, and these include all the four aforementioned brands. Metro Shoes has the rights to handling Crocs Exclusive Brand Outlets (EBOs) in India.
Expansion Plans
In 2015, Metro Shoes signed a deal with Crocs to handle its EBOs in India. As per the deal, Metro Shoes planned to open 100 exclusive stores of Crocs by investing Rs 40 crores over a period of three years. As per their speculations, they estimated to garner revenues up to Rs 100 crore from Crocs sales. The first EBO was inaugurated in Saharaganj, Lucknow. The other two were initiated in Elante Mall, Chandigarh and Viviana Mall, Thane. In the first year, Metro Shoes aimed at garnering Rs 18 crores from the sales.
Most consumers in India plan to invest Rs 999 to Rs 4,999 for the footwear. Hence, the brand is trying to cater to this segment. Further, competition from international players is also a threat. To combat this, Metro Shoes vouchfor their excellent customer services both during and after sales. In an effort to expand their presence, they are planning to rope in two international brands in India. As Indian customer is aware of the globalization, bringing international brands will be beneficial.
Metro Shoes plans to open 100 stores in tier II cities like Patna, Jabalpur, and other cities. The investment cost per store would vary between Rs 20 lakhs and Rs 60 lakhs.
