There is a massive gap in the footwear market and we aim to fill it: Rajiv Mehta

After serving with its quality and bringing international fashion flavours in the country, Arvind Limited has now decided to expand its footprint by foraying into the footwear segment. Arvind Sports Lifestyle, a subsidiary of Arvind Limited is all set to launch two international shoes brands Cole Haan and Heatwave in India.

With an intention to cash in on the country’s splurging premium footwear market, Arvind Sports Lifestyle has aggressive plan to tap this booming industry that still needs a streamlined mechanism. Rajiv Mehta, CEO, Arvind Fashion Brands and Arvind Sports Lifestyle, with his dynamic work expertise and more than a decade of experience in retail horizon, will drive forces for the company in the days to come.

In a candid conversation with Retailer Media, Rajiv shared some of his plans in order to cement Arvind Sports Lifestyle as the incumbent market leaders of the premium footwear space. He also spoke about some of industry’s ongoing trends and the growth scenarios of the business.

Please share your background. Your education and whether entrepreneurship was something you always wanted to do?
An engineer by profession, I completed my chemical engineering from ICT in Mumbai and MS at the University of Pennsylvania. Post which, I worked for three years at BOC in New Jersey where I was responsible for driving research, design and development, before the academic bug hit once more and I went on to acquire an MBA from INSEAD University in Singapore. After graduating from INSEAD, I joined PUMA to head their Indian operations. After a 10 year stint in PUMA, I continued my professional journey to join Arvind Brands as the CEO for Arvind Fashion Brands and Arvind Sports Lifestyle.

Talk to us about Arvind Sports Lifestyle and its journey
Arvind Sport Lifestyle Limited is a subsidiary of Arvind Limited which was set-up in early 2015. Our main objective is to introduce a gamut of footwear brands in India through a mix of home grown, acquired, licensed brands and joint ventures. We feel that currently there is a massive gap in the footwear market in India we will look at filling this gap with brands like Cole Haan and Heatwave, which are renowned internationally for their stylish, quality footwear. We are looking to have 8 to 10 brands under the Arvind Sports Lifestyle umbrella which will be a mix of our own brands and licensed brands. Currently, we are looking at signing at least 3 international brands this year.

What is the future outlook of sportswear retailing industry in India?
The sportswear market in India has evolved from a niche segment and the industry has seen rapid growth over the past few years. With increasing income levels and the ability to splurge on premium products, consumers are looking at spending more and more in this segment.

The Indian sportswear market is looking at a sharp growth curve over the next few years with factors like shift in consumers’ attitude towards health and fitness, introduction of organized retail and changes in FDI norms driving this spurt. The sportswear market in India is estimated at about Rs. 6,000 crore and growing at 13 percent year-on-year (IMAGES F&R Research).

Talk to us about the partnership with Cole Haan and Heatwave?
Cole Haan is an iconic American Designer and retailer of premium footwear and accessories while Heatwave is a Singapore based premium women’s footwear brand. As a part of our strategic tie-up we will be launching both brands in India by May 2016. The first Cole Haan store will be launched in Delhi followed by stores in Bengaluru, Mumbai and Pune. Heatwave will open its first few stores in Bengaluru, NCR and Mumbai. The brands will be present only offline currently and we will look at e-commerce in the near future.

Both Cole Haan and Heatwave are brands that are recognised globally for their stylish, high quality footwear. With Cole Haan, we are positioning the brand between luxury and premium in India, with price points between Rs. 7,000 and Rs. 20,000, allowing consumers to choose their price points comfortably. Heatwave will offer women a range of fashionable and comfortable footwear at affordable prices. We are confident that both these brands will be well received in the Indian market with consumers looking to spend on premium lifestyle products.

Who is your target consumer? Could you please share how you have detailed your consumer?
Our target consumers are men and women who are ambitious and driven - from the traditional yet stylish businessman/businesswoman and professionals to the fashion-oriented and the dynamic sports fashion buyer.

What potential do you see in the tier II and III cities of the country?
We will be currently launching both brands in Tier I cities as we feel that the fit for Cole Haan and Heatwave are in these cities.

How do you see growth scenario is this business? What are your future scale-up plans?
Footwear is increasingly becoming a part of one’s lifestyle and emerging as an important fashion accessory. With increasing disposable income, consumers are willing to spend more and more for this segment. Cole Haan and Heatwave are at the forefront of the footwear industry globally, and we are sure the launch of these brands will help in the growth of our footwear business.