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Eager to tap the growing adventure gear segment, footwear and apparel maker Woodland plans to open a chain of large format stores to sell camping and trekking gear.
The company will spend about Rs 500 crore in three years to open eight large-format stores across the country to sell rigs, ropes, poles, tents and sleeping bags, among other products.
The new vertical is gaining foothold as a separate retail segment, says Managing Director Harkirat Singh. The shops will be designed by Huber GmbH, a German interiors company, Woodland’s retail partner for over three years. The shops will provide customers a feel of the wild and allow them to try its goods.
Shoes which come with anti-fungal action, winter jackets for trekkers, backpacks, and even mountain bikes, will be put on display at these stores.
Five outlets measuring 10,000-15,000 sq ft will come up this year, with the first store in New Delhi. The company will subsequently set up stores in Mumbai and Bangalore.
It is also increasing production capacity from four million pairs a year to six million pairs, to cater to the demand from retail expansion, and build four new factories in Himachal Pradesh and Uttarakhand, and increasing capacity at its plant near Chennai.
Adventure gear will be retailed only through company-owned outlets. Woodland has always been cautious when it comes to setting up stores, and does not believe in franchising. An attempt to take the franchising route in the past turned cold. It runs 380 exclusive stores and has five franchises across the country, but the company has stopped promoting them.
“Since adventure gear is a new concept, we’re doubtful if a non-Woodland entity can pitch it as we can. Our focus is outdoor wear, which requires a lot of after-sales service.”
Of the 50 stores the company opens every year, one or two stores might need relocation or closure, but Singh says company-owned stores is the way forward. When it comes to multi-brand outlets, it is present in “upmarket retailers” such as Shopper’s Stop and Lifestyle, and Metro shoes.
The company is banking on the durability of its products to stave off competition, and will not look at paring prices. With rising material and labour costs and a diverse sourcing channel – the company imports from Vietnam, China and Germany while leather are made in India – Woodland cannot cut down on pricing, but it is keeping rates from an upward spiral.
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