Puma Ties-Up with ShopX to Scale Retail in Tier II Cities
Puma has done well in India but recorded a loss last year. This tie-up should help tap the unexplored tier II market.
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Having brand ambassadors like Virat Kohli has helped Puma in India so far
ShopX, India’s fastest growing digital offline platform that powers retailers in India, today announced its strategic tie-up with Puma, a world renowned sports brand. Puma will leverage ShopX’s unique digital offline model and federated architecture to scale up its footwear business across the tier II market in India. The tie-up will help Puma establish its presence in more than 1500 retail outlets in the tier II markets of the country.
India is one of the highest footwear consumption markets in the world. However, sports footwear usage is still perceived with an aspirational outlook. Ever since its India launch in 2006, Puma has managed to garner enough sales to keep up with market leaders Nike and Adidas. However, in 2016 after 3 years of recording profits, Puma India clocked a loss in excess of rupees 3 crores thanks to demonetization and slowing online sales. In spite of the slowdown, riding on the wave of growing disposable income along with increased fitness and health consciousness, the sportswear market is poised for strong growth.
However, tier II markets largely remain an untapped segment. Puma will use ShopX’s flagship technology and digital offline model to reach target customers in tier II cities. ShopX has built logistics efficiency through its "LMDN" last mile delivery network. This will result in ROI driven retailer outreach for Puma. On the other hand, direct brand partnerships through ShopX’s platform will help retailers get access to the entire range of Puma’s sports footwear category.
Amit Sharma, CEO and cofounder of ShopX said, “Within a short span of time, Puma has established a strong fan base and higher aspirational value in Indian market. With its unique footwear range of international standards, Puma has been one of the most sought after aspirational footwear brand amongst Indian youth.”
ShopX is backed by strategic investor Nandan Nilekani. After launching in 2014, ShopX has empowered 45,000 retail partners across 230 towns in 10 states and served over 3 million customers, all within a year.
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