The fact that India is consistently growing and climbing the global economic rankings is well known. According to Capital Economics, by 2030 or within a decade, India may well become the world’s third-largest economy by overtaking Germany and Japan1.
With a bright future ahead of us, this is undoubtedly the best time for businesses, especially in the footwear industry to expand their reach, chase their revenue goals and offer something unique and innovative to customers. It is the only way you can make your business thrive and compete with other industry bigwigs instead of merely existing, which will happen if you continue to run your business the way you have been doing for the last decade.
INDIA’S FAST-GROWING MANUFACTURING INDUSTRY: A POWER BOOST
The manufacturing industry in India has been growing by leaps and bounds, so much so that by 2030, India is expected to become a global manufacturing hub and export goods worth USD 1 trillion2. Such a positive trend brings good news to manufacturers looking to grow their businesses.
Many factors make India a desirable destination for expanding the manufacturing industry –
- The labour cost in India is quite low and labour is available in large numbers, whether skilled or unskilled.
- Over the years, the Indian Government has introduced many policies, subsidies and bank relaxations to support manufacturing and give it a significant boost.
- India’s domestic consumer market is showing excellent growth. According to the World Economic Forum, consumer spending is expected to reach USD 6 trillion by 2030.
ARE YOU READY TO CHANGE THE EQUATION?
These are times of massive cut-throat competition. Consumer tastes are evolving quickly and in such a scenario, if you wish to grow your business and outdo your competitors, something needs to change to bring the desired results – be it changes in your products, their delivery, the market you are targeting or the marketing strategies you currently use.
To understand this better, let’s look at the journey of CROCS and how they evolved from where they were some years back to where they are today –
Crocs started its journey in 2002 at the Fort Lauderdale International Boat Show and grew into a top brand, collaborating with celebrities like Priyanka Chopra and Justin Bieber. Over the years, the company has not shied away from transforming itself moving from being a boat shoe to a clogs manufacturer to a popular footwear brand today.
HOW CROCS MANAGED ITS EVOLUTION JOURNEY3?
In 2008 during the financial crisis, Crocs changed its market by expanding internationally and in the US but also altered its delivery model. During the 2014 profitability slump, Crocs reworked not only its product strategy but also its marketing voice and costs to enhance its profit margins.
The brand stayed consistent in tweaking its equation on multiple counts to ensure that they were relevant, competitive and in tune with its short and long term business and growth goals.
Crocs CEO Andrew Rees said to FN4, “We were known by lots of people, but a lot of people didn’t think it was for them. So it was all about creating brand relevance.”
Staying current with industry trends, CROCS wants to become a digital-first company, making 50% of its revenue from digital channels while also focusing on the wholesale channel and its outlet stores thus changing the delivery.
Rees also specified the consumer sentiments by saying, “The consumer wants to be more and more comfortable, particularly relative to footwear but also relative to everything else that they do in their life. They want the value to be able to buy that comfort at a reasonable price. And they want style, the right colors , the right patterns and an attractive packaging as that’s the first impression of the product. If you can appeal to all those things, you have a lot of growth runway in front of you.”
Closing Thoughts
As is evident from Crocs’ example, if you want to bring the desired change in your business and reach the pinnacle of success you dream of, you need to bring a significant change in your equation of how you do things. Only then can you become a market leader in your field. Start by understanding your business goals, stay updated with market trends and tweak your product, delivery, market and marketing equations to get your worth.
[1] https://www.moneycontrol.com/news/business/economy/india-on-course-to-becoming-third-largest-economy-by-2030-says-capital-economics-9142241.html
[2] https://www.cxotoday.com/cxo-bytes/opportunities-in-the-indian-manufacturing-sector/
[3] https://footwearnews-com.cdn.ampproject.org/c/s/footwearnews.com/2022/business/power-players/crocs-ceo-andrew-rees-interview-1203355527/amp/
[4] https://footwearnews-com.cdn.ampproject.org/c/s/footwearnews.com/2022/business/power-players/crocs-ceo-andrew-rees-interview-1203355527/amp/
