Fila extends local licence for 30 years; to double stores by ‘15
Fila has been present here for the past three years and operates under a licence agreement.
The originally Italian and currently Korean brand Fila has 5 per cent market share in the Rs 2,000-crore sportswear market and is eyeing to double its market share to 9-10 per cent by 2015, the company said.
“We are growing at 25-30 per cent annually, and we plan to add 60 more stores by 2014 to take the own-store tally to 100. And with this we will be focusing on more apparel sales here,” Fila global Chairman and Chief Executive Officer Gene Yoon told PTI here.
On extending the licence agreement with the city-based Cravatex for such a long time, Yoon said, “I thought it is time to give more space to invest in the business more aggressively by giving a long-term licence agreement to our franchise partner here. We have renewed it for 30 years so that they can comfortably invest more in the business“.
On store expansion, Cravatex Chairman Rajesh Batra said the focus will be on the own-store format.
“So far we have been present largely in wholesale and shop-in-shop formats and retail stores, so the next step is open stores and push apparel sales through exclusive stores.
Initially, we were focusing on footwear. Today we are 60-65 per cent a footwear company. We want to make that equal as we go along,” Batra said.
Fila had clocked retail revenue of Rs 120 crore in 2011-12 in the country while its global sales stood at $1.2 billion (around Rs 6,500 crore at the current exchange rate), but Yoon said the market provides them a huge opportunity.
“There is big potential here. The two big potential countries in Asia are China and India,” Yoon said, adding the company has individual agreements with partners to spend 4-5 per cent of their revenues on marketing activities.