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Interview with Manoj Gyanchandani

Manoj Gyanchandani
Manoj Gyanchandani
Founder | Managing Director
Leayan Global Pvt Ltd
Leayan Global Pvt Ltd

India accounts for 13% of global footwear production
The footwear range of Leayan Global Private Limited was launched under the brand name Red Chief in 1997 to meet the growing demand for high quality leather footwear. Manoj Gyanchandani, Founder, Leayan Global Pvt Ltd, speaks to Fibre2Fashion about what defines Red Chief as a brand and the innovations it is bringing in fibre, soles, and linings in terms of technology and production.

What is the size of the footwear industry in India? How is the domestic market for footwear versus the export market?

India is one of the largest footwear markets in the world. According to industry data, the current size of this industry is around ₹50,000 crores, including ₹32,000 crores for domestic market and ₹18,000 crores for exports. India is the second largest exporter after China, accounting for 13 per cent of global footwear production. India produces 2 billion pairs of different categories of footwear constituting almost equal percentage of leather and non leather footwear. India is the third largest footwear consuming country after China and US with consumption of nearly 1.66 pairs while average global consumption is 3.0 pairs.
 

Which product categories are faring better - casualwear, formalwear, industrial footwear?

Casual shoes are the one which have taken a major leap in recent years as it can be worn not only with casual attire but with formal attire as well and adds to one's style quotient. Casualwear is followed by formal wear and industrial wear.

On what factors is the footwear sector dependent on? What is the projected growth of it for the next two years?

Indian footwear sector depends on 2 key aspects - first is domestic demand and second is exports. India is on the verge of a retail boom fueled by fast evolving lifestyles and behavioural changes towards shopping. With changing retail landscape and advancing styles, Indian footwear industry is set for a phenomenal growth in future. The shoe industry is poised to grow minimum 10-15 per cent year on year.

Which are your major markets?

Red Chief has pan India footprints, but strongest regions are North and West, followed by East and South.

We originated Red Chief brand from Kanpur, wherein we have our state-of-the-art manufacturing units too, so initial focus remained in North thus strengthening our presence here, followed by rest of the regions.

What is the retail presence of your footwear range? How many EBOs, MBOs, and franchisee stores will the range be available in? What is the target for the next two years?

We have a robust distribution network and are available to our customers through 3000 plus MBOs across 25 states, 170 plus exclusive stores across 14 states and are present on all leading e-commerce platforms too. We will be expanding our MBOs in existing states and planning to add another 100 EBOs in next 2 years.

Going forward the plan is to take Red Chief brand to the next level of growth by enhanced penetration across all states with better focus among youth.

What is the USP of Indian footwear manufacturers? What techniques and technologies are native to India?

The major USP of Indian manufacturers is availability of best quality raw material - leather to be specific along with low cost skilled workforce, which is why India is 2nd largest footwear exporter after China. India has witnessed new technologies and techniques in the industry for quite a while now. Computer aided design (CAD) systems and 3D shoe design packages churning out designs in sync with the seasonal global trends have been gaining importance.
What is the USP of Indian footwear manufacturers? What techniques and technologies are native to India?

What are the key footwear market trends in terms of footwear technologies, consumer demands, materials & accessories used?

Because of increasing competition among national and international players, technology innovation is the key to survival and all players keep exploring ranges which were never imagined before. Also, due to increasing urbanisation and high disposable income even in tier II and tier III markets, peoples' aspirations and quest for brands is on the rise. Thanks to internet connectivity, fashion reaches all nooks and corners at lightning speed unlike past.

What is the retail distribution strategy for tier II and tier III towns in India?

Traditionally we have been quite strong in tier II and tier III towns and further wish to penetrate across all retail formats, while increasing our presence in metros / tier I cities.

How many collections are available at the store? Which are the best-selling products/styles? Which are the best-selling price points?

  • Footwear - 1500 - 2500 / store
  • Apparels - 1000 -2000 / store
  • Accessories - 700 -1000 / store
  • The highest selling range for Red Chief is our casual shoes whose price range varies from ₹2000-4000.

Are Indian manufacturers exploring the realms of smart shoes? If yes, can you share a few details?

Customers have access to smart shoes already through international players, but this comes at an exorbitant cost. Such innovations are revolutionising the future of footwear and Indian manufacturers have started focusing on the same by engineering traditional shoes with integrated technology to boost comfort, convenience and good health.

What are the challenges that this industry faces?

Indian consumers are highly price sensitive and want best of quality at nominal price. Many brands make mistake by compromising on quality front for short term gains. We are highly consumer centric brand and quality remains our prime focus.

Who are your target audience?

Red Chief's positioning is rugged, tough and confidently stylish, so anybody or everybody from 20-50 years (male), who has the attitude to live their dream, dare to initiate and consistently want to discover the hero lying within, is our target audience who are present at every nook and corner of our country.
Who are your target audience?

What innovations are you doing in fibre, soles, and linings in terms of technology and production?

In 2018, we launched Springer shoes with 'Hybrid Suspension System' and advanced cushioning with low density PU sole to provide a bounce effect, which keeps the user springing all day long. Since we got good response, this range is further being developed.

In 2019, we launched RC-30013 to provide our customers with ultimate comfort and style. RC-30013 shoes are made of 100 per cent genuine leather using the latest innovations to provide breathability and durability. They have light weight rubberised PU sole for better grip and PU insole for extreme comfort. This shoe is being promoted on all platforms through ongoing Vicky Kaushal 'Khel Gaye Chief' campaign.

Please tell us more about your venture in the apparel and accessory sector.

We have a huge apparel and accessory collection for men which include denims, trousers, shirts, t-shirts, jackets, sweaters and sweatshirts as well as accessories like socks, belts, wallets, shoe polish, deo and brush etc.
Please tell us more about your venture in the apparel and accessory sector.

What is your expansion plan online and offline? Do you plan to expand your product range offine? Any major announcements to be made in 2020?

Keeping our focus on youth - our target is to penetrate deeper and touch maximum base in our target markets while maintaining a steady growth across online and offline platforms. We will also be launching women footwear range and premium formal range soon. (PC)

What are the top materials that you use for casual/formal?

Genuine leather, which is core of Red Chief product philosophy.
Published on: 06/02/2020

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.