Client: India’s second largest shoe retailer, with three retail brands, 240 company-owned shops in 73 cities, and sales of $200 million, growing at 25% per year.
CEO’s Dream: to grow at least five times larger – to become the dominant player in Indian footwear, within the next decade.
Opportunities Recommended by OppGuru:
Overcome Fear of Franchising: OppGuru recommended that the client expand rapidly by franchising its major middle market brand, which had tremendous franchisor appeal. OppGuru recommended that the client open shops in 1000 towns in a phased manner, through the franchising route. The client has already built nationwide brand awareness, but is not monetizing it, because of its presence in only 73 cities. To overcome his fear of franchising, OppGuru recommended that the client start a “Footwear University” to train franchisors and ensure consistency and quality.
In the Value Segment, Create a Product Brand, Not a Store Brand: The client created a successful model for a nationwide store brand in the value segment, but lacked the bandwidth to scale it. OppGuru recommended that the client transform this into a product brand, which it can distribute through thousands of points of sale nationwide. By converting a store brand into a product brand, OppGuru helped the client to recover a huge opportunity.
Create E-Commerce Infrastructure: Shoes comprise a whopping 30% of e-tail sales, but nobody makes money. OppGuru recommended that instead of selling shoes online, the client should provide comprehensive services to other shoe e-tailers for sourcing, fulfillment, and more. By providing the marketplace infrastructure for shoe e-tailers, the client benefits from the growth of this market, while developing needed skills in inventory and logistics management.
Actions Taken: the client accepted and implemented the OppGuru recommendations.
The OppGuru Advantage
Industry: the retail footwear industry was projected to grow at a CAGR of 12 to 16% over the next five years.
Client: the client is on track to grow at over 35% CAGR for the same period following the execution of OppGuru recommendations.