Clarks is planning to increase its exclusive brand outlets (EBOs) from the current 50 to 150 in the next three to four years. The British iconic footwear brand is also looking at expanding its end-customer touchpoints from current 600 to 1,500 over the same period.
The company’s expansion plans come after noting that India has overtaken the US in footwear consumption, throwing up the enormous market potential for manufacturers.
The brand is increasing its footprint to around 400 large format stores this year from 300 such stores in the previous year. It further aims to sell its footwear through 200 mom and pop stores.
N Mohan, Executive Director & CEO, Clarks Future Footwear, said, “The company would also be an increasing focus on e-commerce and explore phygital mode for ‘walking’ into the next phase of growth trajectory. Currently, online accounts for 10% to 15% of its sales and phygital is catching up.”
“We had increased our footprint pan-India in the last year based on the complete rethinking about our strategy. Increasing the footprint, creating the market apt product, highlighting our technology and products are the key strategies for us,” Mohan added.
The company’s products are also getting into army canteens, for which the registration process has already been kickstarted. Initially, Clarks is eyeing to get into 300 odd army canteens.
During 2019, Clarks had seen growth, selling nine lakh pairs compared to more than 5 lakh pairs of footwear in the previous year. The company is planning to increase this to 1.4 million pairs during 2020.
In India, the sales by retail value for the company is around Rs 350 crore, of which net sale value is Rs 180 crore. It will likely grow the sales by retail value to close to Rs 500 crore over a period of three years.
Mohan stated, “Almost 50% to 60% of the products it sells in India are sourced from the country itself. In that way, we promote the Make in India concept.”
Indian footwear market
As per KSA Technopark analysis, the footwear market in India was valued at Rs 47,945 crore in 2018. It is expected to grow at a CAGR of 13% over the next five years, thereby predicting an estimated market size of Rs 87,242 crore in 2023.
Currently, India is the second largest consumer of footwear globally, surpassing the US by 200 million pairs in 2018. According to World Footwear Year Book 2019, China ranked first with 4.1 million pairs in 2018, while India was at second place with 2.6 million pairs ahead of the US with 2.4 million pairs.