Indiantelevision.com Team

(10 April 2008 3:00 pm)

BANGALORE: Reliance Footprint Ltd. (RFL), Reliance Retail's footwear format, will have around 25-30 outlets in India by the end of this year and 150 by 2010-11.

RFL is targeting revenues of Rs 30 billion by fiscal 2010-11, informed RFL CE Gopalkrishnan Shankar during a press conference in Bangalore today to announce the tie-up with Pavers England Footprint Ltd (PEFL).

The size of the footwear market currently is around Rs 150 billion and is growing at about 15 per cent per annum, according to Shankar.

RFL currently has has three outlets, one each in Bangalore, Hyderabad and New Delhi with a total area of about 30000 square feet. On the immediate launch horizon are outlets in the New Delhi NCR region, Mumbai, Cochin and Mangalore among others.

According to Shankar, RFL outlets are planned with areas ranging from 6000 square feet to 10000 square feet and the company spends around Rs 50-60 million in refurbishing, furnishing and stocks (this does not include the cost of the real estate).

PEFL made its India debut through RFL which is the first store in India to house its brand 'Pavers'. PEFL closed last fiscal with sales of $150 million and is reportedly one of the fastest growing footwear brands in the UK. Also, PFEFL through this association with RFL, has brought in the Italian footwear brand 'Fly Flot', for which PEFL has the exclusive rights for India. RFL will provide a 'shop-in-shop' space for these brands on a revenue sharing model.

PEFL will plan other ties in India later, according to its chairman Stuart Paver. The size of the UK retail market is about $500 billion, and many brands from UK and Europe want to foray into India. Through Pavers Foresight Smart Ventures (PFSVL), a 50:50 joint venture between PEFL and Foresight Smart Ventures, Stuart plans to assist these brands enter India. Stuart is the president and CE of PFVSL.

The Pavers group spends around five to 20 per cent of sales for brand building of the various brands that it has partnered with, according to Stuart while speaking with indiantelevision.com on the sidelines of the press conference. "Our branding and marketing spends are between $7.5 million $10 million," informed Stuart.

RFL also offers other brands from Europe and America such as Geox, Ecco, Josef Seibel, Rockport, Hush Puppies, Florsheim, Lee Cooper, Azaleia, Lee Cooper, Clarks, Levis, Piccadilly, Dr Scholl's, Crocs and Disney. RFL has also invested in its own private labels which are offered across the value-premium continuum namely Mancini, Tosca and Viviana, Tom Sawyer, etc.