Skechers transitions Indian JV to wholly-owned subsidiary
Skechers U.S.A., Inc. announced on Tuesday that it has purchased the minority share of its Indian joint venture, making the business a wholly-owned subsidiary of the global footwear company as it looks to boost its presence in the country.
India is already one of Skechers’ largest and fastest growing international markets and the hope is that by transitioning the joint venture to a subsidiary, the brand’s progress in the South Asian nation can be further accelerated by leveraging the global group’s capital, logistics capabilities, and marketing and sales experience.
Skechers India’s retail network currently includes 223 stores, 61 of which will now be owned and operated by Skechers, the remainder being owned by third parties. Indian consumers also have access to a country-specific e-commerce platform.
Skechers plans to open a further 80 to 100 locations in the country this year, 20 of which will be company owned and operated.
In a release, Skechers president Michael Greenberg said he had “great optimism and confidence for the growth of [the brand] in India,” explaining “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.”
“Skechers in India has achieved great success over the past few years,” added Skechers South Asia Pvt. Ltd. CEO Rahul Vira. “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.”
The Skechers India subsidiary will continue to be based at its existing HQ in Mumbai, where it will be operated under its current structure.
Skechers reported record sales of $4.64 billion in 2018, progress driven by a formidable 18.8% rise in international wholesale revenues and a 12% increase in global company-owned retail sales.
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