Clarks plans to increase sourcing from India

UK’s largest shoemaker Clarks has decided to double the number of footwear sourced from India from 8 million to 15 million pairs. The company sources shoes worth 700 million dollars (Rs 4,364 crores), which would now be increased to Rs 10,000 crores over the next three years. For now, the company sources its requirement from factories in Tamil Nadu.

Other than Clarks, leading sports-lifestyle majors like Adidas, Reebok, Nike and Puma, source their requirements from India - both for domestic as well as international markets. Clarks works closely with suppliers from India to make premium shoes worth Rs 3,742 a pair. Last year, it sold 65 million pair of shoes, out of which one-eighth part was sourced from India.

Through a 50:50 joint venture with Kishore Biyani’s Future Group, Clarks has 56 stores in the country and also sells through other multi-brand retailers such as Metro and Shoe Tree. While the plan was to open 100 stores in two years, the company is finding it difficult to locate right real estate for new stores. High rentals coupled with low footfalls is another issue that has become a major concern. The company now aims to expand retail through franchises and out of the 25 new stores Clarks plans to open in the next one year, 15 will be franchisees.