Indian footwear market is rising expeditiously as footwear is becoming a fashion accessory: Farah Malik
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Indian footwear market is rising expeditiously as footwear is becoming a fashion accessory: Farah Malik

The footwear industry in India is thriving and the growing awareness about the latest trends and consciousness among consumers is only set to give it the much needed push. According to Businesswire, India is the second largest footwear producer in the world. Also, the increasing number of brands in the segment is only making the industry better and future ready. We talk to Farah Malik, Managing Director and CEO, Metro Shoes Ltd., about this evolving market.

How would you describe the current status of footwear industry in India?
India is the second largest footwear producer in the world with footwear production accounting for approximately 9 percent of the global annual production – 22 billion pairs as compared to China, which produces over 60 percent of the global production. The major footwear players in the Indian market are facing increasing competition from the internet retailing channel which offers a large number of affordable brands. In addition, although the major footwear brand manufacturers have also made their products available through online retailers, their profit margins have taken a hit due to the heavy discounts offered by online retailers. Furthermore, the demand for footwear is expected to remain strong over the forecast period. The category is anticipated to register a retail value CAGR of 7 percent at constant prices, with sales reaching Rs.778 billion in 2021. The key drivers of growth will be aspirational consumers from tier-III and tier-IV cities as more branded footwear becomes accessible to them, thanks to store-based expansion and internet retailing.

Tell us about the evolving shopping behaviour when it comes to footwear.
The way consumers are spending their money on various items has changed in recent years. With the ever-increasing penetration of internet and social media, the purchasing behaviour of Indian consumers has changed dramatically. Urbanization is taking place in India at a dramatic pace and is influencing the lifestyle and buying behaviour of the consumers. The meaning of shopping has changed; it is not just a mere necessity, as it was earlier, but much more than that. The factors that affect buying behaviour and draw customers to the shopping centers include space, ambiance and convenience and moreover an array of choices under one roof. The growth of integrated shopping malls, retail chains and multi-brand outlets is evidence of consumer behaviour being favourable to the growing organized segment of the business in the metros. Also, global fashion and lifestyle brands have suddenly started betting big on small cities of India. Moreover, it’s not just this conventional buying behaviour that acts as a motivator for luxury brands when it comes to small towns, other aspects of consumer behaviour also act as sweet carrots for these brands. For instance, lifestyle and luxury brands have been browbeaten by fake products and most of the time, such malpractices occur in small cities. Therefore, in order to overcome such challenges from hampering their brand image and business potential, these brands are now opening their own stores in these cities.

How is unorganized sector affecting this market? What do you think are the other big challenges faced by this industry?
The unorganised retail market is the most dominant and popular mode of retailing and purchase destination for the majority of India’s 1.3 billion population. Like food habits, footwear fashion changes every 100 kilometers. For example, the shortest heel preference in Chandigarh is the longest preferred in Kolkata. Hence, fashion footwear has always been dominated as well as successfully managed by local retailers. The unorganized footwear industry also enjoys the advantage of the passion and zeal of its business owners that is difficult to replicate across employees and store personnel.

What do you think are the opportunities in this industry? Also talk about the potential of tier-II and tier-III cities.
The Indian footwear market is rising expeditiously as footwear is increasingly becoming a fashion accessory. Not only this, the increasing demands for trendy, yet comfortable footwear among all age groups is a key factor driving the Indian footwear market. The availability of footwear through various retail channels and the gaining prominence of online retailers are triggering the impulse buying behaviour of consumers, thereby benefitting the footwear market.

Mobile technology is revolutionizing the tier-II and -III markets. Cheaper smartphone technology and the growing range of connectivity in Indian towns seem to be the root cause of these figures, and an online retailer must not ignore them. Women are the driving force in tier-II and -III online retail markets. In fact, they spend more than twice as much money online as men from the same geographical markets do. This is an important piece of information for online retailers to consider while building a sales and marketing strategy.

Are consumers willing to pay higher for quality footwear products?
Customers remain loyal if the brand delivers on quality and a good customer service experience and are willing to pay extra for superior customer service. If you look at the millennials, they are the first generation now who is willing consciously to spend more for better quality, for sustainability, for traceability. I think there is a change. Moreover, delivering excellent customer service experience along with consistent quality is imperative for any brand to retain customers.

Tell us about the latest trends in footwear today.
In the past, comfort was the most important factor during the selection of footwear. However, with the advent of media and increased global travel, Indians have become style conscious. Fashion footwear with comfort is now the trend in the market. Consumers are also realising that footwear is not just an accessory but an important finishing touch to the ensemble. Hence, consumers have started shopping for shoes that compliment and accentuate their clothes.

What does the future behold for footwear market in India?
I believe the footwear industry has been recognised by the Government of India as a focus sector in the ‘Make in India’ initiative whether we do it for India or we do it for the world. With global integration of Indian industry, rapid change in lifestyle, income growth at bottom of the wealth pyramid, footwear industry is expected to grow by leaps and bounds. For the Indian footwear market to explode and deliver, favourable government policies, infrastructure, removal of high doses of taxation, infrastructural support in capacity building, skill education and technology upgradation, brand building exercise, etc. should be initiated expeditiously no later than now.

 

 
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
 

Subway, the global leader in freshly made, customizable sandwiches, has achieved a significant milestone in India by opening 100 new stores in 2024. This expansion underscores the brand’s rapid growth trajectory in one of its fastest-growing international markets. With a renewed focus on modernization, localization, and customer-centric innovations, the brand is strengthening its position in India’s highly competitive Quick Service Restaurant (QSR) industry.

A Landmark Achievement in India's Growth Journey

India’s dynamic and evolving food industry has presented a lucrative opportunity for Subway to expand its footprint. With the opening of its 100th store in Lokhandwala, Mumbai, Subway now boasts a formidable presence of over 900 stores in more than 160 cities across India.

“Reaching this milestone of 100 new stores in a year is a testament to our customers’ trust in the Subway brand. This marks a significant chapter in Subway India’s growth journey, reflecting our unwavering commitment to delivering fresh, high-quality, and made-to-order sandwiches to our discerning customers,” said Tarun Bhasin, CEO of Culinary Brands, the exclusive master franchisee for Subway in India, Bangladesh, Sri Lanka, and other countries.

The brand’s aggressive expansion in 2024 is driven by the increasing consumer demand for freshly made, healthy, and convenient food options. As lifestyles change and urbanization accelerates, Subway is strategically positioning itself as a preferred choice among India’s young and working population.

Strategies Driving Rapid Expansion

The remarkable success of Subway’s expansion in India can be attributed to multiple key strategies:

  1. Leveraging Market Trends: Consumers today are more health-conscious and seek fresh, nutritious, and made-to-order food. Subway’s offering of fresh ingredients and customization aligns perfectly with this trend.
  2. Penetrating Tier II and III Cities: Recognizing the potential of India’s smaller cities, Subway has expanded beyond metropolitan areas. “Our innovation team closely follows local and international trends to offer an exciting menu to consumers. Our current menu already features multiple localized options, such as Paneer Tikka and Tandoori Chicken, which are very popular as they offer familiar tastes while maintaining Subway’s global sandwich-making approach,” Bhasin stated.
  3. Modernized Store Design: To enhance customer experience, Subway has introduced a refreshed store design that is more inviting, convenient, and modern. The response from customers has been overwhelmingly positive. “The new look aligns with what today’s new-age consumers seek – a smart and inviting ambiance that reinforces the freshness associated with Subway,” added Bhasin.

Subway’s Focus on Tier II and III Markets

While Tier I cities remain key markets, Subway is aggressively expanding into smaller cities to tap into their growing disposable income and rising demand for global QSR brands. Establishing outlets in high-footfall locations such as malls, airports, and highways ensures greater brand visibility and accessibility.

“At Subway, we recognize that every market has unique preferences and challenges. That’s why our menu innovation team continuously researches and adapts offerings to suit regional tastes while maintaining our global standards,” Bhasin explained.

Menu Innovations Catering to Evolving Preferences

The brand has also introduced new product lines to cater to India’s evolving taste preferences. Recent additions include the Hot & Cheesy Signature Subs and Breakfast Specials.

“Consumers love our Hot and Cheesy Signature Subs. They are the perfect indulgence during winters, offering 1.5x filling, extra cheese, and served piping hot. Options include Cheesy Paneer Tikka, Mexican, American Barbecue, Chicken Tikka, and Lamb Pepperoni,” said Bhasin.

Subway’s Breakfast Specials are another hit, offering fresh, made-to-order sandwiches that cater to professionals and early risers. “It’s a perfect fit for morning meals, and customers can walk in or order online in metros and mini-metros to relish these sandwiches, best paired with hot coffee,” he added.

Technology-Driven Growth and Customer Engagement

Subway is harnessing technology to enhance customer experience, streamline operations, and support its rapid expansion. Key tech initiatives include:

  • Customer Engagement: Tools like Net Promoter Score (NPS), Online Reputation Management (ORM), and Customer Relationship Management (CRM) are used to interact with customers and gather insights.
  • Retail Expansion Support: Specialized technology tools aid in identifying potential store locations, ensuring efficient supply chain management, and optimizing operations.
  • Digital Transformation: Enhanced online ordering, loyalty programs, and AI-driven recommendations are being integrated to provide seamless customer experiences.

“Technology has been an anchor for multiple departments at Subway. Various specialized tech tools are leveraged to support retail expansion and drive decision-making in the supply chain, quality, and operations,” Bhasin noted.

The Road Ahead: Making Subway India’s Largest QSR Chain

Looking forward, Subway has set an ambitious goal of becoming India’s largest QSR chain over the next decade. This vision is built on key pillars:

  1. Fresh, Customizable Offerings: Subway remains committed to delivering high-quality, made-to-order food that aligns with consumer health trends.
  2. Localized Menu Innovation: Expanding its menu to include more regional flavors and healthier options will be central to sustaining growth.
  3. Wider Retail Presence: Strengthening its footprint in metros and Tier II and III cities will ensure greater accessibility.
  4. Digital and Technological Integration: Embracing digital platforms for seamless ordering, loyalty programs, and data-driven decision-making will be critical to scaling operations.
  5. Overcoming Challenges: While competition, supply chain complexities, and shifting consumer preferences pose challenges, Subway’s strategic focus and adaptability will be key to its continued success.

“We recognize that achieving our goal requires strategic planning and agility. However, our unwavering commitment to fresh, high-quality food and a robust expansion plan will drive Subway’s growth and success in India,” Bhasin concluded.

 

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