Footwear major Liberty Shoes has set its eyes on fashion. As a part of its strategy to cater to the fashion community, the company has scrapped the forecast model and moved to a replenishment model. This means that company will monitor and replenish its stocks based on day-to-day sales reports.
“We want to gear up for an immediate market turnaround. If a certain product is selling fast, we can have it replenished. Unlike the forecast model where there was a possibility of an inventory pile-up, this ensures quick sales and helps us capture trends,” Anupam Bansal, Managing Director, Liberty Shoes, said.
The company said it adopted the model as fashion lines were getting shorter. “We had hired a consulting group which suggested that we do shorter lines to optimise our operations and cater to the fashion community,” he added.
Liberty has 400 stores across India which are a mix of company-owned-company-operated and franchised stores.
“We will be adding 100 stores by next March at an estimated investment of Rs 25-50 lakh a store,” Bansal added.
Stating that Indians own more than one pair, he said per capita consumption is set to rise. “Globally, individuals own about five pairs. In India, our belief is that they own 1.1 pairs. Given the increasing purchasing power, India will soon meet the global pattern in buying,” Bansal said.
Liberty, at present, manufactures over 60,000 pairs a day at six manufacturing facilities.
Bansal said the company was also looking at expanding its warehouses regionally. Liberty plans to have four regional warehouses that will help push its products in the retail markets quicker. “We are focusing on the Southern market with differentiated products keeping in mind the tastes and preferences.”
The brand, established in 1954, caters to style-conscious customers across the globe. Recently, it roped in Bollywood actor Hrithik Roshan as its brand ambassador. Liberty footwear are priced between Rs 300 and Rs 5,000.