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Skechers USA purchases minority shares of its Indian JV

Skechers USA purchases minority shares of its Indian JV

New Delhi: Skechers U.S.A., one of the leading footwear company, has purchased the minority share of its joint venture in India, transitioning the business to a new wholly-owned subsidiary of Skechers U.S.A., Inc., the company said in a statement. 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.

The Skechers India subsidiary will continue operating under its existing structure and from its existing headquarters location in Mumbai.

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,” said 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 further said.

The network of Skechers retail locations in India currently includes 223 retail stores—61 of which are 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, company-operated.

Skechers in India has achieved great success over the past few years,” said Rahul Vira, CEO, Skechers South Asia. “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 the expansion of our operations and build a stronger network to further gain market share in India,” said Vira.
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According to David Weinberg, chief operating officer of Skechers, few markets match the potential for growth of India, which is why the company entered the market initially, and why it recently decided to purchase the minority stake in the joint venture.

“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 percent 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,” said Weinberg.

In a year earlier interview to ETRetail, Vira had said, “By end of 2020 or early 2021, we should have anywhere between 400-500 stores operational in India. At the moment we have 113 stores operation. Most of the stores will come up in tier II cities,”. In the same interview he also said that by 2022, the Indian subsidiary is aiming to become a billion-dollar brand.