'Aiming To Close FY22 At Rs 1,900 Cr Revenue'
Excerpts:
How has Walkaroo’s sales growth been last year and this year? Give us an overview of the branded footwear market in India. Despite a GST hike, why is there an overall growth?
Like most footwear manufacturers, the last two years have been tough on business due to Covid and the subsequent lockdowns. Still we managed to post a 2 per cent growth with revenues of Rs 1,570 crore in FY21 and we will be aiming to close FY22 with around Rs 1,900 crore revenue.
Despite the rising raw material prices and supply crunch over the past two years, we are seeing positive sentiments from the demand side with the opening up of markets and economic activities. Brands with organised supply chain and strong distribution network have been able to tide over the difficult times. However, the new GST hike on mass footwear from 5 per cent to 12 per cent is having a visible impact on the industry and can slow down this growth.
In terms of geography, which region offers maximum growth for Walkaroo? What do you make of the overall size of the market, the sub-categories, and the growth within them?
The Indian footwear market is estimated to be worth around Rs 70,000 crore, with an annual consumption of 3 billion pairs. Out of the overall footwear market, the mass segment (priced less than Rs 500 per pair) accounts for about Rs 50,000 crore, with PU footwear accounting for Rs 20,000 crore, Hawai providing Rs 15,000 crore, and the rest being PVC and EVA footwear. The penetration of organised brands in Indian footwear is as low as 20 per cent, but it’s growing rapidly especially in rural areas, Tier-2 and Tier-3 cities. The majority of business for Walkaroo comes from south India, which accounts for two-thirds of the total revenue and we have grown at nearly 10 per cent year on year in these markets. Outside south India, Walkaroo is growing at more than 20 per cent year on year.
What is the break-up of your revenue in the south, north, east and west?
The south accounts for 70 per cent of Walkaroo's business, where we are growing at around 10 per cent while the east, west, and north each contribute 10 per cent. In the north, we are growing at more than 20 per cent year on year.
How much has Walkaroo invested in marketing activities?
Walkaroo has been consistently investing in marketing and brand building activities. During the festive season, we released a series of five TVCs featuring Aamir Khan in five different avatars which garnered good reviews and feedback from the market. We also conducted integrated marketing campaigns in social media and ATL during IPL 2021. Walkaroo has invested 6 per cent of revenue on marketing and trade promotions every year. We will continue to invest in the brand and look to have a strong presence in the digital and social media space.
How many stores does Walkaroo operate in India? How many stores do you plan to add this year?
While Walkaroo works closely with 750-plus dealers and more than 1,50,000 retailers spread across the country, we have started our retail business in a small way to get direct feedback from customers and give them an opportunity to experience our brand in our exclusive stores. We currently have eight exclusive stores with three new stores have been launched in Pune, Maharashtra in February 2022. We are planning to open around 22 new stores in the next financial year with 12 own stores and 10 franchisee stores.
Are you looking at roping in region-centric brand ambassadors for promotion?
Walkaroo is one of the leading brands in the mass category, which is a price sensitive segment and the costs have to be kept under check to remain competitive in the market. Hence, we do not have regional-centric brand ambassadors. But we have Bollywood superstar Aamir Khan as our brand ambassador since 2018. Our ladies’ collections are endorsed by Indian actress Keerthy Suresh.
Are you looking at roping in region-centric brand ambassadors for promotion?
Walkaroo is one of the leading brands in the mass category, which is a price sensitive segment and the costs have to be kept under check to remain competitive in the market. Hence, we do not have regional-centric brand ambassadors. But we have Bollywood superstar Aamir Khan as our brand ambassador since 2018. Our ladies’ collections are endorsed by Indian actress Keerthy Suresh.
