Skechers eyes 500 crore revenue by end of the month
Skechers India has set its sights on becoming a 1,000 crore rupee brand (approximately 150 million US dollars) and on reaching 500 crore revenue (approximately 75 million dollars) by the end of December this year.
Skechers have announced that they aim to become a 1,000 crore rupee brand in India within the next five years which means that they aim for 1,000 crore rupees in yearly revenue. The footwear brand also aims to start operating manufacturing units in the country. As their first step towards this goal, the brand has also set a target of reaching 500 crore rupees revenue by the end of this December. Last calendar year, Skechers India accrued 220 crore rupees (approximately 33 million dollars) in revenue and so they aim to have more than doubled the figure this year. This may seem a high target, but Skechers had already reported 300 crore rupees of revenue (approximately 45 million dollars) during the first half of the year.
One of the ways Skechers aims to drastically increase its revenue in India is by expanding its offline retail presence. "By end of 2020 or early 2021, we should have anywhere between 400- 500 stores operational in India,” said Rahul Vira, the CEO of Skechers South Asia. “At the moment we have 113 stores [in] operation. Most of the stores will come up in Tier II cities," Vira explained.
Another method Skechers will employ to increase their revenue is by expanding its product categories in the country. "Going forward you will see us adding a lot more products to the Skechers portfolio in India. Globally we sell watches, apparels, socks, sunglasses and a lot of other products and over the course of [the] next three years you will see a lot of these products coming to India," said Vira. Skechers recently launched their “Skechers Street” clothing line in India and have other launches planned for the near future.
At present, Skechers India imports its products from China and Vietnam to serve the domestic demand but the aim is to eventually have manufacturing units in India itself. Vira stated that present conditions make it challenging to open a Skechers factory in India but that it is a real possibility for the next three to five years.
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