Kishore Biyani is not in a hurry to let go of his international joint ventures in the footwear segment, despite shedding stake in a host of other categories.

Having forged equal joint ventures with the UK and the US-based brands such as Clarks and Skechers, the retailer would stay invested in these companies as it has always been difficult to make money in the largely unorganised footwear segment.

“Our investments in the JV with Clarks is going to be for the long term and there will be no change in ownership,’’ stated Kishore Biyani, Group CEO, Future Group.

The previous JV with Indian company Liberty Shoes may not have worked out, but now, Future Group intends holding on to its international footwear JVs.

While FDI is allowed in single brand retail, British shoe retailer C&J Clarks International has been seeking the help of Future Group to grow its business in India. As S Ramprasad, CEO, Clarks Future Footwear, said: “FDI is already available to us but we would rather continue with a local partner to make the brand big in India.’’

However, another UK-based footwear major Pavers England has decided to get 100 per cent FDI and was an initial player to utilise the single brand FDI opportunity over two years ago.

Even US footwear retailer Skechers intends continuing its partnership with the Future Group. “We basically have a partnership with the Future Group and will continue with them,’’ said Rahul Walia, CEO, Skechers.

Unlike Clarks which is a more premium brand, Skechers has been trying to drop prices below ₹3,000 with its ‘Make in India’ range to make the brand more affordable in India.

Footwear has been a difficult category to crack for most retailers due to the unorganised nature of the business, but international brands have better margins and equity compared to local offerings.

Besides, Future Group has been steadily investing behind smaller Indian footwear companies such as Tresmode and Famozi, picking up minority stakes in them with the purpose of exiting at a later date once it has scaled up and created value for these relatively unknown brands just like it has done in the case of apparel brands such as Biba in the past.

According to Asif Merchant, VP, All India Manufacturers of Footwear Retailers Association, “unlike apparel, it is not easy to make money in the footwear category. It is a difficult journey for most retailers, including Future Group where it did try to forge JV with the Liberty Group. Today, it is hanging to its international JVs as it would have an equal share in the business with the established brands.”

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