Innovation is key to customer satisfaction
Liberty Shoes, one of India's biggest footwear brands, produces more than 50,000 pairs of footwear a day covering virtually every age group and income category. Products are marketed across the globe through 150 distributors, 400 exclusive showrooms and over 6000 multi-brand outlets, and sold in thousands every day in more than 25 countries. Anupam Bansal, Director (Retail) shares his views about the footwear sector.
What innovations are you working on in terms of fibres, soles, and linings?
Constant innovation is the key to customer satisfaction and growth. We believe in focusing on constantly improvising and innovating to come up with the best for our customers. We emphasise on comfortable and fashionable walk through technologies like memory insole, genuine leather, sweat absorbing technology and breathable material that makes the shoes worth purchasing.
What is the global market size for footwear? What is India's share in the global footwear business?
The global footwear market is a multi- billion dollar industry. Footwear comprises women's footwear, men's footwear and kids' footwear. The size of the footwear industry was $103,222 million in 2019 and is expected to show an annual growth rate (CAGR 2019-23) of 8.5 per cent, resulting in a market volume of $143,101 million by 2023. After China, India is the second largest global producer of footwear, accounting around 13 per cent of global footwear production of 16 billion pairs. Around 2,065 million pairs of different categories of footwear is produced by India annually.
What factors have shaped the growth of the footwear segment?
The footwear industry comprises shoes, sneakers, luxury footwear and athletic footwear among others. One of the major factors that has shaped the growth of this segment is the rising demand for trendy yet comfortable footwear among all age groups. Products such as leather shoes, stilettos for women, etc that are launched under exclusive designer labels attract consumers widely. The increasing number of fashion weeks, exhibitions and trade fairs boost designers into launching new products or collections in order to meet consumer demand.
What percentage of profits is ploughed back into research and development?
About 15-18 per cent of profits are ploughed back into R&D.
What key consumer trends do you see when it comes to footwear in India?
Consumers want their shoes to tell about their personality and personal habits.
What are your thoughts on GST for the footwear sector?
Indian footwear industry is emerging into one of the most demanded shopping category. This sector holds a great potential for growth but footwear is not a luxury item and therefore the percentage should come down to 12 per cent from 18 per cent which will be beneficial for the consumers and industry as a whole as footwear forms the part of the basic necessity of the economy.
What has the growth story at Liberty been like? What is the retail presence of your brand?
The story of Liberty has been like a rollercoaster ride. The company saw its own set of ups and downs and sailed through all of it. Established in 1954, the company produces 50,000 pairs of footwear a day through its six manufacturing units, sold through 6,000 multi-brand outlets and has a presence in 25 countries, with 50 showrooms outside India. As our brand is known for its trendy and comfortable design, people from all the cities and towns love to wear our footwear. Currently, Liberty has 500 outlets across India, most of which are in the Hindi-speaking belt, primarily in the states of Uttar Pradesh, Bihar and Jharkhand. The target is to reach a turnover of around ₹1,000 crore by 2022. Liberty will be opening about 100 stores for tier-II, III and IV towns every year and strengthening the distribution for a wider reach in multi-brand stores.
What are the main materials that you use for casual / formal / sports shoes?
Mesh technology, knitted technology, PU, PBC, etc are few of the materials that are used for casual / formal and sport shoes.
What percentage of your product line uses fabric for uppers or any other part of the footwear?
The usage has definitely gone up in the last couple of years with a variety of fabrics being used and introduced since the shoe fabric helps as a subcomponent for a long-lasting shoe.
How many collections are available at your stores? Which are the best-selling styles?
Liberty has 522 for women, 890 men, and 154 kids. All products are in trend as they are super comfortable. We have an undisputed platform of comfort, which our brand is known for. Our target audience comprises men, women and kids of all age groups. We are a complete family footwear company.
How is the sale of your products online versus offline?
Our online sales are very encouraging, so are offline. We have been able to cater to a youthful and fashion-conscious customer base. Our marketing team aggressively runs online and offline campaigns that have yielded good results along with the emotional connectivity from customers.
What are the challenges that this industry faces?
Following are the challenges that the footwear industry faces: no stock rotation leading to outdated stock; higher percentage of customer initiated returns (CIR); increased cost of reverse logistics; managing multiple warehouses and stores; easy transition of present taxation policies; managing multichannel and offline; effective utilisation of stock; seamless management of returns and cancellations.
Please share details of the last two fiscal years and expectations for the next two.
For the previous year, the total amount was ₹600 crore and the expectations for the next two will be 10-15 per cent growth every year.
Do you plan to expand your product offering?
Yes, we are planning to expand our horizons and come up with fashion sport shoes very soon.
What are the top qualities that you look for before taking on a new vendor?
While taking on a new vendor the first thing to be kept in mind is the technology used by them, the infrastructure used, the existing clientele they have served, and the commitment to deliver on time and fulfilling that commitment. New vendors play a very vital role as they can recommend materials for the shoes and can also help one make or find new or unique material for their desired products. New vendors are always welcome for the innovative ideas and to create something unique in catering to the needs of customers.
Do you plan to expand your product offering?
Yes, we are planning to expand our horizons and come up with fashion sport shoes very soon.
What are the top qualities that you look for before taking on a new vendor?
While taking on a new vendor the first thing to be kept in mind is the technology used by them, the infrastructure used, the existing clientele they have served, and the commitment to deliver on time and fulfilling that commitment. New vendors play a very vital role as they can recommend materials for the shoes and can also help one make or find new or unique material for their desired products. New vendors are always welcome for the innovative ideas and to create something unique in catering to the needs of customers.
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