Focus on sustainability
A vertical within the 5800 crore diversified RSPL Group, footwear brand Red Chief from Leayan Global Pvt Ltd is an established name in the leather footwear industry since 1995. Manufacturing 20 lakh pairs annually in genuine leather from its one tannery and two production units in Kanpur, and a host of vendors in Agra, the Chief Operating Officer at Red Chief Shoes, Akhilesh Singh, shares information on the brand.
When was the company established?
Headquartered in Kanpur, with a corporate office based out of Gurugram, Leayan Global Pvt Ltd is an established name in the leather footwear industry since 1995. It is among the fast-growing SBU of RSPL Group (of Ghadi detergent fame, a leading FMCG brand in India). The footwear range from Leayan Global was launched under the brand name Red Chief in 1997 to meet the growing demand for branded high quality leather footwear. The company is a complete leather and footwear manufacturer with its own tannery and two manufacturing units. Recognition received over the years is further inspiring the team to increase production capacity and fulfill the growing needs of consumers.
What was the inspiration that led to the founding of the brand?
Back when we started, the leather industry was booming and demand for good quality leather shoes was rising. We saw this as an opportunity to develop a market base for good quality leather footwear.
What is your market positioning?
Red Chief is positioned as a high quality genuine leather footwear brand and our tagline is "Power of Real Leather".
What is the USP of your products?
Red Chief has carved a niche for itself as a genuine leather brand in India, consistently providing best quality, comfort, and style, which is at the core of our brand philosophy and provides differentiation from our competitors.
What are the categories that the brand is into?
Men's footwear, apparel, undergarments, socks and accessories like wallets, belts, bags and polishes.
Who are your target audience?
Red Chief positions itself as a rugged, tough and confidently stylish brand for males in the age group of 20-50 years, and present in every nook and corner of the country. This brand targets the man who has the attitude to live his dream, dares to initiate and consistently discover the hero within.
What is the retail and web presence of the brand?
Red Chief has a robust distribution network and is available through 3000+ multibrand outlets, 200+ exclusive stores, own e-commerce website and through leading online platforms like Amazon, Flipkart, Myntra and Tata Cliq etc.
What steps do you undertake for brand building?
Actor Vicky Kaushal was roped in as brand ambassador In 2019, and since then we have been consistently using his persona to build our brand through various campaigns, which have been widely promoted across TV, print, outdoor and in a big way digitally too.
Which other product categories do you plan to move into future?
What has been the growth story in the last three years (excluding 2020)?
We have been consistently growing in double digits but yes 2020 has slowed down the momentum.
What has been the impact of Covid in terms of sales, staff cutdown, rentals etc?
There was an overall dip in sales which was huge in the first quarter but as we entered the last quarter - sales stabilised and were gradually on growth path. Also, there was a slight reduction in rentals in the first quarter but now it stands normalised. We were holding excess inventory in first quarter but now we are maintaining it as per our normal standards. We tried retaining most of our staff; in fact fresh hiring has also started.
If you are looking for vendors, what are the qualities you are looking at beyond the givens of quality, lead time, compliances etc?
I think what is most important while searching for a good vendor is to build a relationship based on mutual business understanding and trust. It is the only way to go forward. Apart from quality checks, which serves the highest purpose for any brand, it is required that the vendor understands our brand as a whole, our brand ideology, in order to deliver the best quality material.
How does your supply chain network work?
We have a robust supply chain which includes our vendors, warehouses, transport companies, exclusive stores, e-commerce partners, distributors and retailers within India.
How is the supply chain expected to change with increasing digitisation, AI, VR etc? And how is this going to impact the business of sourcing?
Integration of digital technology into all areas of business has resulted in fundamental changes as to how business is operating and how we deliver value to customers. Digital technology has made employees agile across all departments, work collaboratively and more importantly keep up to date with any development regarding supply chain as well. It enables a clear line of communication within various departments with ease. Digitalisation has not only been a blessing, it certainly is going to be the way forward for the retail industry to expand and grow.
What kind of machinery does your manufacturing facility boast of?
To meet international quality standards, we have state of the art machinery for footwear manufacturing. Desma Injection moulding machines give an edge to our manufacturing set up.
Sustainability and circularity are the buzzwords today. How do you incorporate them into your product lines?
As a brand, we do realise the need for sustainability around footwear too. We are planning a whole lot of things in 2021 that would largely focus on sustainability and circularity.
What are your long-term goals?
Indian consumers are highly price sensitive and want the best quality at nominal price. Many brands make the mistake of compromising on quality for short term gains. Although such an approach by brands induces challenges for us, but being a highly consumer-centric brand, we remain consistently committed to provide the best quality wears. (PC)
