Reliance Retail plans high-end footwear foray by next year

After experimenting with value formats, Reliance Retail plans to launch its first high-end premium category...

After experimenting with value formats, Reliance Retail plans to launch its first high-end premium category footwear format next year. These premium footwear stores will target the high-end luxury goods segment and will be located initially at high streets and later at shopping malls too, according to Reliance Retail chief executive (footwear) G Sanker.

“The high end footwear format is currently under conceptualisation where the details are being thrashed out. These stores are most likely to come up in a year’s time,” said Sanker.

Reliance’s retail arm recently forayed into multi-brand footwear format, opening its two stores simultaneously in Bangalore and Hyderabad. This store, Reliance Footprint, will house over 50 national and international brands.

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Reliance will also promote its in-house private labels like Mancini (menswear), Monza (sportswear), Tosca (formalwear) and Viviana through these stores spread over 10,000 square feet. It aims to increase the percentage of private labels in the mix which currently stands at 20. “As and when the private labels gain sufficient strength, it’s possible to hive them off as stand alone branded stores,” said Sankar.

To meet its private label footwear requirements, Reliance is sourcing exclusively from Indian footwear exporters from Agra and Chennai. However, sourcing is also being done from China. The shoes will be priced between Rs 400 – Rs 5000.

The Indian footwear market is pegged at Rs 15,000 crore, growing at 10 -11 per cent annually. By 2010, it is projected to touch Rs 25,000 crore. Of this, only 40 per cent of the market is organised. “We are targeting a 12 per cent share of the organised market by 2010 with an estimated turnover of Rs 3,000 crore,” said Sanker. He informed that Reliance Footprints will open 100 such stores by 2010, covering metros and 20-30 tier II cities.