Relaxo changes its 40-year old logo; aims to open 10 franchise stores this year
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New Delhi: Relaxo Footwears Ltd, one of the largest footwear manufacturers, revamped its 40-year old logo to stay relevant amid the changing consumer preferences. The New Delhi-headquartered company unveiled its new identity in a print campaign.
“We have decided to undergo the revamp for the trendsetting young India. While we continue to walk on the same principles of quality, we have to live up to the expectations of our dynamic set of customers refreshing our portfolios on a regular basis. The change in identity has been done by keeping bigger picture in mind and have long term implications as well as vision,” said Gaurav Dua, director, Relaxo Footwears Ltd.
Created by an independent design outfit, Elephant Designs, the new logo is an extension of the old one in terms of colour scheme. The company’s name, which has now moved out of the oval enclosure sans its old tagline ‘Quality Par Excellence’, now appears in a slanted letters in deep blue colour with a yellow swoosh on the letter A.
“Relaxo’s equity, especially in the hinterland, is unparalleled. Therefore, we decided to continue with the same colour scheme—blue and yellow. Both the colours are deeper in tone which allows better visibility on digital platforms (both website and mobile) as the company is looking at increasing its digital presence,” said Ashwini Deshpande, founder-director, Elephant Designs.
From manufacturing blue and white slippers (Hawaii chappals) in 1976 to casual and semi-formal footwear brands, Relaxo currently has a production capacity of more than 6 00,000 pairs a day, across its eight factories. Positioned as a family footwear brand, it targets value conscious consumers between 15 and 45 years. The company currently sells footwear under its key brands including Hawaii (slippers), Flite (women footwear), Sparx (sports shoes and sandals), Bahamas (trendy slippers) and Schoolmate (school shoes).
Relaxo sells its products through more than 250 exclusive brand stores across 143 cities in nine states apart from large format retail stores and e-commerce. However, majority of company’s business comes from general trade, driven by more than 800 distributors across country, with more than 90,000 outlets.
“We plan to take our exclusive brand store number to 280 by the end of this year with expansion in states like Madhya Pradesh, Himachal Pradesh and Maharashtra being the focus markets. Moving forward, we have opened the franchise module as well and are targeting to open 10 franchise stores by end of this year,” informed Dua.
According to industry estimates, Relaxo’s advertising budget is close to Rs60 crores. The company has been leveraging celebrities to promote its brands. Wrestler turned actor Dara Singh, Neil Nitin Mukesh and Katrina Kaif have been associated with Relaxo in the past. Currently, Bahamas is endorsed by Salman Khan, while Akshay Kumar promotes Sparx.
Apart from being present across e-commerce platforms, Relaxo has its own dedicated online shopping portal, shopatrelaxo.com.
“In order to increase its revenue over the past one year, Relaxo has been working towards premiumisation. It has also invested in expanding its distribution to reach out to more consumers,” noted Shreyansh Kocheri, research analyst at market research firm, Euromonitor International.
He further added that the company’s brands have strong visibility among consumers as they are promoted by Bollywood celebrities.
“As consumers (urban and from tier two and three cities) are increasingly looking out for affordable footwear products online, Relaxo Footwear Ltd can expect increasing competition from the online channels against its own online portal shopatrelaxo.com,” he said.
According to Technopak estimates, footwear market in India is growing at 12% per annum and is expected to touch $11.5 billion by 2020 from $6 billion in 2014.