The luxury footwear segment in India has shown significant growth and potential, especially in the post-COVID era. With customers' willingness to spend more on quality and indulge in their passions, there has been a noticeable uptick in the market. Luxury European shoe brand Bugatti aims to leverage this premiumization trend and strong market traction to achieve significant growth in the Indian market.
The brand launched in India this March. Its decision to enter the Indian retail market was influenced by its strong sourcing presence in the country for the past 20 years.
“We initially targeted India as a market with a revenue potential of $100 million over a five-year period. However, upon observing the market's growth and potential, we have set higher aspirations and expect India to be the top market for us, even surpassing Europe, within the next five years,” said Sandip Kanti Baksi, Chief Operating Officer and Retail Head, AstorMueller, Europe’s leading shoemaking company that retails Bugatti and BAGATT.
Bugatti currently operates three stores in India. Recently, the brand opened its third store in New Delhi at Select CITYWALK Mall. The other two stores are located in Indore and Hyderabad. Over the next 12 to 18 months, the brand aims to establish its presence in the top 10 cities across India, including metros and Tier I cities such as New Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai, among others. “We plan to open 15 to 20 stores across the top 10 cities in India over the next 18 months,” he stated.
On the online front, the company operates its own stores, Bugattishoes.in and Baggat.in. It also has a strong online presence through partnerships with platforms such as Tata CLiQ Luxe (their largest online partner), Myntra, and Ajio Luxe.
“Currently, our market share is slightly skewed towards offline retail stores, accounting for approximately 75 percent of sales, while online channels contribute around 25 percent of the total sales,” noted Baksi.
Bugatti offers a wide range of footwear options, with around 550 variations in a season. In addition to footwear, the brand has expanded into other categories such as bags, belts and wallets, shoe care, and socks. The company recently launched its line of men's bags. Overall, Bugatti offers approximately 800 SKUs across its various product categories. “We are all set to introduce women's bags by mid-July,” he asserted.
The average selling price of the brand’s luxury footwear is currently around Rs 12,000, and both online and offline channels have experienced substantial growth.
Bugatti's stores typically occupy an area of 1000-1200 sq ft, with around 70 percent dedicated to retail space and the remaining 30 percent for storage. The company targets A and A+ category malls for its store locations, such as Select CITYWALK in New Delhi and Palladium in Mumbai.
The brand works with franchisees for its store operations in India due to certain regulatory limitations on multi-brand retailing by foreign companies. The company has three closely aligned franchise partners who have made long-term investments in the brand. These partners will open multiple stores, and Bugatti aims to establish a strong network of franchise-operated stores across India.
The company also takes pride in its end-to-end business model, where it designs, manufactures, and retails its products. This allows Bugatti to be agile and quick in bringing fashion trends to the market. With its own fashion studios in Europe, manufacturing facilities in Agra, Ambur, China, and Vietnam, and direct retailing, Bugatti maintains a competitive edge in terms of speed and efficiency.