Indian sock market growing much faster than world average
A sock-preneur is how he likes to call himself and it was sometime in 2017 that Aayush Goenka realised that socks really needed a major makeover or perhaps a revolution of sorts! And it was with this thought that Goenka and Vidushi Kajaria, co-founder, Soxytoes, came up with socks 2.0 offering eye-popping designs and better quality too. Soxytoes goes beyond motifs and colours - though they have that covered too, and added socks for diabetics, compression socks, health socks, no-show socks to quirky socks for the hipster soul. Goenka and Kajaria talk to Paulami Chatterjee about the massive opportunity India has in the global socks market and how the Soxytoes line of 'noticeable' socks is disrupting this hitherto sober and boring category of legwear.
How big is the global market for socks? What percentage can India claim as its share? What is the projected growth for the sock industry for the next two years?
Aayush Goenka [AG]:The global market for socks is 26 billion pairs representing a dollar value of 45 billion. Of this India's share is only 2 per cent which is disproportional to its population size. This creates a massive opportunity and is the reason why the Indian sock market is growing at 11 per cent CAGR - much faster than the world average of 4 per cent. The strong growth in the socks market is due to the acceptance of the sock as a fashion accessory to both casual and business attire. Trending social videos (YouTube and Google+) providing advice on maintaining excellent grooming appearance, is expected to promote spending on good quality socks. Besides, growth in women's segment is expected to be higher due to the growing number of working women.
How many different sock ranges do you have?
AG: We have a diversified product line. Besides casual socks which constitute the largest market due to their high ease of incorporation (they can be used with any apparel), we also sell corporate and athletic socks. Increasing penetration of corporate offices, combined with a focus on smart attire amongst white-collar professionals, is creating demand for our corporate socks. Similarly, the focus on health and fitness amongst millennials and generation z is generating growing demand for our athletic and health socks.
Our innovative products such as Perfomax high performance athletic socks, Com-Feet-able socks designed for comfort, Diabetic Care socks for diabetics, Compression Therapy socks for aching legs and for long journeys and Infused! Socks with the wellness of natural aloe vera and energising mint oils have been appreciated by the market.
Which type/style has had the best pick up? Which price points sell the best in India, and which globally?
AG: Our casual socks are our bestsellers, though some corporate and athletic models also do very well. Price points of under ?250 per pair work in India. Internationally, prices are higher due to the higher cost of customer acquisition in evolved markets.
Which are the grey areas in Indian sock industry which require major makeover?
AG: The unorganised sector still accounts for the lion's share of the Indian sock industry. There are only a handful of manufacturing units in the organised sector and even fewer Indian sock brands. Most of the socks available in the market, including on ecommerce, are poor-quality and unhealthy to wear, often fakes of leading sports brands.
Our experience during the previous two years has shown that the Indian consumer is evolving, and wants to move towards a better quality and better designed product, so product innovation and abstract designs are going to be critical for success in the near future.
What was the idea that went behind establishing the brand? What led you to produce socks infused with mint oils, aloe vera and the likes?
AG: While innovation has in some way or the other tweaked our clothes, our shoes, our watches, this category has remained neglected. This made us realise that socks needed a revolution too. Thus was born the idea of Soxytoes - socks 2.0 - better quality, eye-popping designs injected with a lot of new tricks up our sleeves. That's what we are promising to deliver.
Which are your major markets geographically?
AG: India remains our major market, though we sell to the US, Canada, UK, Europe and Australia. Before covid-19 struck our plans for the next two years was to grow these overseas markets.
A pair of socks last more than 50 washes… with the Soxytoes fragrance/ oil infused range is meant to last for 10- 15 washes, what is the message for the end consumer?
AG: Our Infused! socks collection offers many interesting essential oils and scents such aloe vera, mint, green apple and lime. Although the efficacy of these infusions will diminish after 10-15 washes, due to technology limitations, the underlying pair of socks - a high quality, comfortable and design-forward Soxytoes product - will continue to be a pleasure to wear for the consumer.
What was the initial seed capital you began with? Who are the major investors in your company?
AG: We began two years ago with a seed capital of just ?1.5 lakh and have recently raised an angel round from a Gurgaon based angel network. Our investors include Sorabh Agarwal, angel investor and ex-SMD, Copal Amba (acquired by Moody's Analytics); Hemant Dua, angel investor and ex-CEO Delhi Daredevils, and Vikas Bagaria, angel investor and founder, Pee Safe.
How many people did you initially start with and what is your current team strength?
AG: We started as a team of 3 committed sock-preneurs, and today our core team size has increased to 8 and growing.
Tell us about your marketing strategies:
Vidushi Kajaria (VK): Being a company focused on millennials, our marketing efforts are mostly online with the exception of some retail touch points at places like Select City Walk, Quest malls and the likes. We also participate in fun events like Comicon, Little Flea, pop-ups to connect with our customers in person.
Most of our customers place their orders on our website or on Amazon/ Myntra and other popular ecommerce marketplaces. We also do selective collaborations with like-minded people.
How has social media helped in furthering business?
VK: Most of our customers have discovered our brand via social media. Usually when someone buys our socks they post nice photos of them wearing the socks which spreads awareness and leads to purchases within the sphere of influence of our customers. Our marketing team puts out great content that keeps our customers engaged. We feel it is possible for a small brand to effectively tell their story using social media as traditional channels like print media, TV, etc are too expensive for start-ups.
How big is your design team?
AG: We outsource our design and R&D and only curate in-house. We recognise innovation and product development as being critical to success, both in the short and long term.
What is the sourcing strategy at Soxytoes?
AG: Our suppliers are evaluated using stringent criteria, based on our 20 years industry experience.
How do you curate experiences for each shopper based on their demands? Does technology play a role in it?
AG: Our website is built on the Shopify platform and we use many interesting software plug-ins to personalise and enhance the user experience, focusing on both the pre and post transaction customer journey. We have recently launched our sock subscription plan and are just about to launch our personalised socks module which would allow customers to personalise their purchases with their names/initials monogrammed on to the sock.
What percentage of your sales is through own website store, e-marketplaces and kiosks?
AG: We sell 50 per cent of our production through ecommerce and 50 per cent through brick and mortar channels.
Where do you source the raw materials from? Do you have tie-ups with local farmers/producers?
AG: Our raw materials are of Indian origin - 100 per cent - and are sourced from leading textile mills.
Where is the manufacturing done? Is it done in-house in a factory or given for job work?
AG: Sampling is in-house and bulk manufacturing is largely outsourced. Outsourcing is largely on job work so as to ensure conformity of raw material sources and specifications.
What is your installed capacity? How is the demand and supply worked out?
AG: We have a capacity of one million pairs of socks per annum and are growing in line with our sales plans. We continuously update our forecast demand based on real time sales trends and adjust our production and sourcing plan accordingly. The objective is to remain nimble while supporting a wide product range.
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