Relaxo Footwears Ltd (RFL), incorporated in 1984, manufactures footwear which is a fine blend of comfort, style, and workmanship. The brand is embarking upon appreciable growth plans for the future. The company offers a wide collection of fashionable and comfortable products for women, men, and children. Today, the company has eight manufacturing units spread in northern part of India with a production capacity of six lac pairs of footwear per day, catering to varied needs of consumers worldwide. Since its inception, the company has gone on to become one of the largest producers of footwear in India with an estimated business value of Rs. 17 bn in 2016
Which format, according to you, works well for your brand– EBOs versus shop-in-shop? Why?
Both formats have its pros and cons, so far both are working well for us. We cover all customer touch points. We sync the offerings from Retail to e-tail.
What’s the average store size and investment required to open a store?
The initial investment is 30 lakh required from franchises. This includes store setup cost of 11 lakh, franchisee fee of 2 lakh and initial stock of 17 lakh. And the average store size is 1000 sq. Ft.
Who is your target consumer and what consumer area/sensitivities does your brand stand for?
Youth, Sec A2, B primarily in the age group of 15 – 35 years is our target customers. The person should be a quality conscious person, who doesn’t compromise on brand, and looks for more value for every penny that he/she spends.
There exist many players in this segment, what’s your strategy to beat the existing competition?
We look at every market individually and study them closely to find the gaps; on that basis we set our marketing mix and GTM for respective market.
What’s the technology that is being used to make store operations efficient and who are your tech partners in the same?
We are using Microsoft Navision for back-end and LS Retail for front-end solution. Prudence Technology Private limited is our tech partner.
How do you manage your supply chain and logistics effectively?
We run replenishment on daily basis for fulfilment of stock requirement. As per our current practice, we can supply stock pan India within 48 hours.
What’s your expansion plan?
We have 261 exclusive company owned stores, which is spread across 143 cities in 9 states. We plan to take this number to 280 by the end of this year, with expansion in MP, HP and Maharashtra being the focus markets.
Moving forward, we now have opened the franchise module as well and are targeting to open 10 franchise stores by end of this year. For COCO outlets investment is internal, for franchise outlet, it is external.
What number of franchise stores you plan to open and where?
We have kick started our franchise model and as a part of PILOT, we are targeting 10 franchise based EBOs by the end of FY 16-17 and looking for rapid expansion in FY 17- 18.
What support do you give to the franchisee?
The initial setting up of the franchise business is coordinated and assisted by the professional team of Relaxo. We help them identify locations/store, then monthly marketing support to get traction to stores. And, regular training for store staff to groom their selling skills and personality development
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.
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.
The remarkable success of Subway’s expansion in India can be attributed to multiple key strategies:
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.
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.
Subway is harnessing technology to enhance customer experience, streamline operations, and support its rapid expansion. Key tech initiatives include:
“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.
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:
“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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