Saturday, 31 January 2015

Tata International to set up experience branded outlets for its footwear brands

Tata International, the global trading and distribution company of the Tata group, is planning to set up exclusive branded outlets (EBOs) for four new footwear brands, which will be launched for the domestic market by September 2015. One brand -- Aerosoles -- has alreadty been tested successfully in the western parts of the country and will be expanded in other parts in 2015.

Speaking to Business Standard, N Mohan, business head for footwear global business at TIL said that in the last eight months TIL tested Aerosoles, a women's footwear brand, in the western parts of India and and on an average 100 pairs was sold.

In 2015, TIL is planning to sell the brand through 120 outlets, including multi-brand retail outlets like Metro Shoes, Regal Shoes, Rocia, Inc.5, Westside, Lifestyle and others across the country. TIL is also planning to set up 4-5 Aerosoles experience stores in the country over the next two years.

TIL has Aerosoles licence in Europe and it owns it. Aerosoles is also one of the leading and niche brands in US and available in China, Hong Kong, Philippines, Thailand, Israel and other geographies.

Aerosoles will be the launching pad for TIL in the Indian domestic footwear market, which is estimated to be over Rs 25,000 crore. Aerosoles will be followed by three more brands - Aristos, S.C.T and Arin - and also children's footwear collection. All of these will be launched before September, said Mohan, adding TIL's sweet spot, in men and women category, would be around Rs 1,800-Rs 2,500 a pair, while some of the product cost as high as Rs 5,000.

"Besides launching our own brands, we are also talking to few global brands to bring them to India," said Mohan, adding that eventually these brands will also require EBOs.

TIL has set a target to sell around 500,000 pairs in the domestic market over the next 3 years, of which 60 per cent would be Aerosoles, said Mohan. The company overall set a Rs 100 crore turnover target from the domestic market.

Exports

TIL has been focussing on exports all these years. In 2013-14 it clocked Rs 740 crore and target for 2014-15 is Rs 860 crore from the footwear segment and in the three years target is to increase to Rs 1,500 crore, including Rs 1,400 crore from footwear exports and Rs 100 crore from leather garments exports).

In physical terms, target is to achieve around 10 million pairs from the current 6.6 million pairs.

Of the total export, around 90 per cent are going to Europe, while the balance for US. In the next three years, Mohan said wants it to be 60 per cent to Europe, 30 per cent to US and balance 10 per cent to Africa, Australia and Middle East.

On the backdrop of these targets, TIL is planning to expand its production capacity at Tamil Nadu to eight million pairs from the 5.5 million pairs a year, while at Indore it plans to expand its capacity to 2.5 million pairs from the current one million pairs.
http://www.business-standard.com/article/companies/tata-international-to-set-up-experience-branded-outlets-for-its-footwear-brands-115013100690_1.html

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