Boston Shoe firm plans foray into Indian mkt

KOLKATA: Boston-based $1.5 billion sports shoe company, New Balance Athletic Shoe Inc has finalised plans to produce a basket of its products in India through its licensed distributor Royal Sporting House (RSH). While the products will be manufactured mainly for the Indian market, New Balance has also shown interest for global sourcing from India.

Accordingly, RSH has tied-up with an Uttaranchal-based contract manufacturer, Moja Footwear, to initiate the production process. Incidentally, Moja Footwear also manufactures shoes for other global brands like Nike and Reebok. New Balance is the fourth largest global sports shoe brand after Nike, Addidas and Reebok.

“The initial production capacity will be about 30,000 pairs a month, which will increase substantially once the global sourcing begins from India sometime in early 2007,” B D Nathani, director (sales & marketing -- New Balance), RSH Distribution India, told newspersons after launching the brand in eastern India.

New Balance shoes are currently manufactured in its company-owned factories in the US and UK, as well as through sub-contracted factories in China and Vietnam. The New Balance products in India are currently imported from China and Vietnam.

New Balance has carved out a niche for itself in the walking and running shoe segment. “New Balance is the global market leader in the walking and running shoe category, which accounts for 40% of the sports footwear market. We have set a target to achieve 10% market share in the Rs 600 crore sports shoe market in India over three years time,” said Mr Nathani.

While the products are currently sold at a retail price range of Rs 1600-5000 in India, Mr Nathani said once the production starts in India the prices will fall substantially. “We will then introduce entry-level products at a price point of Rs 1000. This will facilitate us for further market penetration,” said Mr Nathani.

RSH has tied-up with Shopper’s Stop, Pantaloons and Big Bazaar and is in final stages of discussion with Lifestyle, Regal and Metro Shoes for floating ‘New Balance’ branded shop-in-shop outlets. Plans are also there to float some 50-odd exclusive outlets over the next three years. The brand forayed in India in May and has also launched its apparel and accessories range.