Foot Locker eyes India as key market, prepares to open first store this week

NEW DELHI: New York-based specialty sports retailer Foot Locker Inc. considers India a priority market as it prepares to open its first store in the world’s fifth-largest economy this week.

“We see the opportunity, India is the fifth largest consumer market in the world. I would add that the brand partners we work with are also very excited about growing their presence in this important market. So, this is a high priority ; Foot Locker President and CEO Mary N. Dillon (Mary N. Dillon) said in an interview with Mint: “We see definite growth in the future. “

Foot Locker is a multi-brand retailer selling footwear and athleisure apparel from Adidas, Nike, Jordan, Puma, Birkenstock, Crocs, Skechers, Saucony, New Era and more.

“Whenever we think about entering a new market, the question we look at is – can we identify its size and scale, is there a big enough consumer market? Obviously, India is the fifth largest (consumer market) in the world, which It’s a young market, and we know sneaker culture particularly appeals to young people,” said Dillon, the former CEO of U.S. beauty retailer Ulta Beauty.

“Long-term view on markets”

Dillon said during a virtual conference call that Foot Locker has a “long-term” view on the market.

Last year, Foot Locker signed long-term licensing agreements with Mumbai-based multi-brand footwear and fashion retailer Metro Brands Ltd (MBL) and Nykaa Fashion to expand its offline and online business in India.

Under the terms of the agreement, MBL was granted exclusive rights to own and operate Foot Locker stores in India. Nykaa Fashion, as the exclusive e-commerce partner, will operate Foot Locker’s India website and retail licensed merchandise in Foot Locker-branded stores on Nykaa’s existing e-commerce platform.

The retailer will open its first store in Delhi this week.

Consumers are buying sneakers in the wake of the pandemic, with more shoppers swapping their dress shoes for a few pairs of white sneakers. It’s not uncommon to see executives wearing sneakers to work or young people wearing sneakers to music clubs.

Dillon added that globally, the sneaker category will definitely continue to grow, primarily due to casualization. “Once you discover the category and look beyond the more functional attributes for which a lot of people use it, such as sports, you start to realize that sneakers can become a part of your daily life,” she said.

As of February 3, 2024, the company operated 2,523 stores in 26 countries in North America, Europe, Australia, New Zealand and Asia, with authorized stores in the Middle East and Asia.

Foot Locker’s decision to enter India was driven by the rise of sneaker culture, with the arrival and expansion of multiple brands in the country.

In April, Italian sports brand Lotto entered the Indian market through Agilitas Sports. In 2021, Aditya Birla Fashion and Retail Ltd acquired the exclusive rights to distribute and sell Reebok in India and other ASEAN countries. Last year, Bata India announced expansion of its sportswear and athleisure product portfolio.

Metro Brands CEO Nissan Joseph said he expects 15% to 18% of the footwear he sells to be sneakers. However, the market is still in the early stages of development.

“What’s more, we’ve seen growth in the category,” he said.

While well-known brands such as Nike, Adidas and Puma have a presence in the market with their standalone stores, Joseph explained that their retail concepts will offer a different variety of products and avoid directly cannibalizing existing business. “I do want to say that having a Foot Locker or a Metro is not cannibalistic sales in any way, shape or form. There are two different consumers and even the types of products we carry in our sneaker lines are different, ” he said.

Meanwhile, for Nykaa, which also operates fashion and lifestyle platform Nykaa Fashion, footwear, sneakers and athleisure are growing faster than the platform.

“They are one of our fastest-growing categories. The second trend we see very clearly is premiumization, especially online. We do see Indians spending more and the average order value going up. The country is very open to international There is huge demand for brands and anything we come up with that is fresh, new and international will be embraced very quickly,” said Dillon.