New subsidiary for Indian market
Skechers U.S.A., Inc. (NYSE: SKX), a global leader in the footwear industry, has purchased the minority share of its Indian joint venture, transitioning the business to a new wholly-owned subsidiary for gaining market share in India.
“Few markets match the potential for growth of India, which is why we entered the market initially, and why we recently decided to purchase the minority stake in our joint venture,” said David Weinberg, chief operating officer of Skechers.
“The effort of our team has resulted in significant growth as illustrated in our year-over-year numbers — 2018 saw double digit increases in wholesale and retail sales and an 80% increase in pairs sold, reaching 2.7 million.
“We believe the strength of our diverse product and our marketing insight will help expand our product offering in India. As a subsidiary, we will be able to leverage our capital, product, logistics and business model to better maximize our brand exposure to the 1.3 billion consumers in this country. We expect this change to be accretive to our earnings,” he said.
Already one of the fastest growing and largest international markets for Skechers, the company believes that combining the experienced team and Skechers’ proven sales and marketing capabilities will allow it to grow the brand and its presence in a faster, more efficient manner, ultimately meeting its fullest potential.
“Skechers is still a relatively young brand in this country, having been in India for less than a decade, yet in the last five years, we have seen significant growth through our joint venture,” added Michael Greenberg, president of Skechers.
“The substantial existing retail network of over 200 stores, a strong wholesale business and a recently launched e-commerce site is a solid foundation that we can build upon. These accomplishments, as well as opportunities we see to increase the brand’s exposure and drive sales, give us great optimism and confidence for the growth of Skechers in India,” Greenberg said.
“Skechers in India has achieved great success over the past few years,” said Rahul Vira, CEO, Skechers South Asia Pvt Ltd.
“As we look into the future, we are delighted to be a wholly-owned subsidiary of Skechers. This development will enable us to amplify our growth plans, accelerate expansion of our operations and build a stronger network to further gain market share in India,” Vira elaborated.
The network of Skechers retail locations in India currently includes 223 retail stores—61 of which will be Skechers owned and operated while the remaining are third-party owned.
An additional 80 to 100 stores are planned for 2019 — of which approximately 20 will be company-owned and company-operated. Consumers can also find the brand’s lifestyle and performance footwear and apparel for men, women and kids online as well as in major retailers throughout India.
The Skechers India subsidiary will continue operating under its existing structure and from its existing headquarters location in Mumbai.
Based in Manhattan Beach, California, Skechers designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. fiinews.com