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It is kind of hard to imagine a world without giving any sort of protection to our feet. In modern times, if we think of shoes and all other footwear, there are myriad options to choose from depending upon the occasion we are attending.
It is a bit tough to determine the exact period when shoes were invented. Some historians suggest that shoes were invented some 40,000 thousand years ago. Since then, numerous styles and designs have evolved in shoes, making them one of the largest industries worldwide. The structure of shoes have been more or less remained the same, but it is the features, materials, and methods have changed over time.
Metro, the brand is that a synonym with footwear brand in India is one of the biggest multi-brand footwear chains in the country. The brand was founded by Malik Tejani in 1977, with its main office located in Mumbai.
Metro brands have showrooms that are present all over India. It is located in almost 147 cities in 30 states and Union Territories. Presently, it serves India only. Metro brands were previously known as Metro Shoes.
Here in this article, we have piled up all the relevant information related to the company Metro. You can discover about Metro's startup story, its founders and team, what is their business strategy, the revenue growth of Metro, and the challenges faced by them.
Metro - Company Highlights
- Headquarters-Mumbai, India
- Sector-Retail, Fashion
- Founder-Malik Tejani
- Revenue-Rs 507.95 crores
- Total Funding Raised-Rs 410 crores
Metro - About
Metro Brands, the company's present reputation, was once called Metro Shoes. The brand, which was incorporated in 1977 by Malik Tejani, today has become one of the largest and most loved Indian footwear and accessories brands in the country.
Metro brands their specialties in different shoes, footwear accessories, shoe care, foot care, bags, and other related products. The company takes pride as it operates in 147 cities across 30 Indian states and Union Territories. As of 2021, Metro has around 644 stores in the country.
It was during 1955, that the brand was said to have opened its first-ever store in Mumbai, and since then, the brand never looked back and decided to be a one-stop shop for the footwear requirements like socks, sandals, shoe polishing liquid, and many other accessories in the footwear category. It offers shoewear for men, women, unisex, kids, and every walk of life for every type of occasion, including casual, formal, or festive events.
Metro Brands has one subsidiary named - Metmill Footwear Private Limited. The company has a joint venture - M.V. Shoe Care Private Limited.
Metro - Industry
As per statistics, the footwear industry constitutes a significant part of the leather industry. Having said that, India comes second after China as the largest global producer of footwear. It accounts for 13% of the global footwear market. It is predicted that the footwear market is going to witness a CAGR of 3.62% during 2022-2027.
Metro - Founders and Team
The founder of Metro Shoes is Malik Tejani, who laid the foundation stone for Metro shoes in 1955. Presently, Rafique Malik is the Chairman of Metro Brands Ltd.
Malik Tejani is the man behind the brand we know, Metro. He used to sell shoes in a store in Mumbai when India was under British governance. Due to the partition crisis after India got independence, Malik had to leave the store where he used to work, but decided to take over that store by taking a loan from a well-wisher, and that's how he started the brand.
Rafique Malik is the Chairman of Metro Brands Ltd. After Malik Tejani, he took over the company by pushing his father's idea across the country, hoping to carve a niche in India's aspirational but inexpensive fashion footwear market. He is a Harvard graduate, under his leadership, the brand was expanded from a single store to set up in multiple locations across the entire country. He made the brand one of the leading providers of stylish footwear collections in the country today. Rafique Malik is considered the maestro of Indian footwear retail, with over 45 years of retail experience. His net worth is $2 billion as per Forbes.
Rafique Malik quotes, "A brand for a company is like a reputation for a person. You earn a reputation by trying to do hard things well."
Farah Malik Bhanji
The granddaughter of Malik Tejani runs Metro Brands Ltd. as the Managing Director. She holds 20 years of professional experience which gives her the ability to operate the brand as per today's expectations. Before, playing a pivotal role in Metro Brands Ltd. Farah started her career in marketing, and since then, she has been developing personal relationships with other popular foreign brands like Crocs, Skechers, and Clarks.####
Metro - Startup Story
Metro, was started by Malik Tejani by taking over a store in Grant Road in Mumbai, after which the company was officially incorporated in 1977. Ever since its inception, Metro shoes have been popular among many Indians.
In 2000, Metro launched its first branded outlet called, 'Mochi'. It is a one-stop store, where the brand sells trendy footwear needs, including shoes, purses, belts, socks, mobile cases, foot care, and shoe care items. Mochi shops are present in over 150 outlets in 50+ cities.
After nine years, Metro Brands launched the 'Walkway' collection, which was previously known as 'More Shoes For Less'. This brand by Metro is a value-for-money price shoe collection. It offers affordable shoes for men, women, and kids for everyday use.
The following year, Metro launched its e-commerce platform, www.metroshoes.com. The company also made progress in targeting 100 stores. In 2015, Metro tied up with an American shoe brand called 'Crocs.
The company reached a watershed moment when it announced plans to open over 550 outlets across India by 2020.
Metro collaborated with another brand named 'Fitflop' last year, with great success. The firm became a public company in 2022.
Metro - Mission and Vision
Metro's vision speaks out loud as, "To be India’s largest specialty footwear and accessories retailer"
The brand has five values, these are:
- Strong Customer Relationship and Service
- Passion for Perfection
- Respect and Empowerment of Individuals
- Differentiation through Constant Innovation
Metro- Name, Logo, and Tagline
Malik Tejani took inspiration from a cinema hall in Mumbai, whose name was Metro Cinema.
Recently, Metro has rolled out a new tagline, and that is "Good Vibes Only". The other tagline of Metro, which is quite common is, "Wear What You Are"
Metro - Business Model
Metro is said to have an asset-light model that teams with third-party manufacturers. The brand operates its business through vendor engagements and long-term lease arrangements.
Its retail operations are carried out through offline mode, that is through different stores and outlets and other distributors along with online marketing channels. Its marketing policy follows the rules of the company-owned and company-operated (COCO) model through its Multi-Brand Outlets (MBOs) and other Exclusive Brand Outlets (EBOs).
Metro's subsidiary company, MetMill also distributes third-party brand products and retail merchandise through franchisees.
In addition to Metro's physical spots, it targets customers by offering an omnichannel experience via its websites, multiple marketplaces, and social media channels. Most of Metro's brands are listed and sold on B2C and B2B marketplaces.
The following is the list of brands under Metro Brands Ltd.:
Established as a contemporary Indian footwear brand that caters to every Indian's taste as per regional preferences. The brand has over 219 MBO format shoes all over the countr
Mochi is Metro's first brand under the MBO format, which was established in 2000. The brand's main target audience is young people while also targetting their entire families. Mochi offers a wide range of footwear for the casual, formal, party, festive events, and even weddings. Metro has opened around 145 Mochi stores across India.
Walkway was launched with the motive to offer value-for-money shoes. The shoes are affordable and cater to the entire family including men, women, and kids. Given this brand's economical customer base, Metro also sells products in Shop-in-Shop (SIS) at large department shops.
The globally-recognized American brand Crocs Inc. engages in selling its clog-styled shoes. The brand offers flips, sandals, wedges, sliders, and other types that meet the comfort need of an entire family. Croslite is a material that is patented, molded footwear technology that delivers each pair of shoes soft, lightweight, and odor-resistant in the great majority of Crocs shoes.
Metro has a tenure with Crocs of 18 years under its EBOs format. In the agreement, after the initial three-year term, there is automatic renewal for five subsequent three-year terms. The Crocs Agreement allows Metro to use the trademarks and other intellectual property associated with the Crocs brand for the sole purpose of retailing Crocs items in India.
Fitflop was introduced for all-day wearing and designed in a manner to offer both look and comfort. Metro now sells Fitflop goods under its MBOs format. It holds the exclusive rights to sell Fitflop goods in offline mode as well as online channels.
Davinchi is designed to offer a unique and distinctive style for the youth of today.
Cheemo is the handicraft brand by Metro. Cheemo offers various ethnic handbags and matching footwear, which are made by Indian artisans. The brand is launched with the purpose to bring out the best of Indian artisans that depicts exclusivity and elegant style statements
Metro- Revenue Model
Metro Brands has reported generating a revenue of Rs 507.95 crores in 2022. In addition to this, there are reports that Metro had a 54.63% increase in consolidated net profit to Rs 100.85 crore for the third quarter that ended in December 2021.
Some reports show that Metro derives about 59% of its sales from Metro stores, followed by 33% from Mochi showrooms, 5% from Walkway, and the rest 3% from Crocs stores.
Controversy faced by Metro
Disputes are part of any business since day one. Metro brands have also faced some controversies. In 1996, Rafique Malik, Chairman of Metro Brands got caught in a controversy. He was among several businesspeople and politicians arrested by Mumbai Police on charges of theft of concessionary funds provided to cobblers.
As of now, the case is still under trial and no decision has been concluded yet.
Metro - Funding, and Investors
Newly, reports have come in that Metro Brands has issued 82.05 lakh equity shares at Rs 500 each to anchor investors, bringing the entire transaction value to Rs 410.25 crore. This means that Metro has raised a total of Rs 410.25 crore funds from anchor investors in IPO.
Some of the anchor investors include Societe Generale, Goldman Sachs, Abu Dhabi Investment Authority, HDFC Life Insurance Company, SBI Life Insurance Co Ltd, Tata AIA Life Insurance Co Ltd, HDFC Mutual Fund (MF), Aditya Birla Sun Life MF, Sundaram MF, and ICICI Prudential Mutual Fund.
The brand is also backed by ace investor Rakesh Jhunjhunwala, an Indian billionaire business tycoon, stock dealer, and investor.
Metro- Mergers and Acquisitions
Metro brands have acquired Thaely Private Limited for a 5.03% stake. Thaely Private Limited is engaged in the business of marketing and selling sustainable sneaker shoes. The acquisition by Metro is done to carry forward its vision to sell sustainable footwear in the market.
Metro - Advertisements
Metro launched a campaign recently targetting millennials with the #GoodVibesOnly campaign right after their campaign #LetThereBeBright, which was launched right during the pandemic. The recent campaign delivers the new and fresh collections offered by Metro Shoes. The idea of this campaign came in to announce their latest Spring-summer collection and to reach out to a maximum audience, which is mostly the youth.
Alisha Malik, who is the President of Ecommerce & Marketing, Metro Brands Ltd. said, "#GoodVibesOnly felt like a natural next step to our #LetThereBeBright campaign, as the world looks forward to a post-pandemic era filled with hope and color. We wanted the customer to feel the vibes as soon as they see our new collection. Additionally, the groovy song and steps were our version of having fun with a great pair of shoes. We hope this positive energy resonates with every individual looking to spread Good Vibes. This is the spirit we celebrate!”
Metro - Awards and Achievements
Metro had won 'The Best Footwear Brand with Outstanding E - retail Performance Award' (2014).
Metro - Competitors
Metro competes with the following competitors:
- Bata India
- Relaxo Footwear
- Campus Active
- Liberty shoes
- Khadim India
- Mirza International Ltd.
Metro - Future Plans
With a strong retail marketing strategy, Metro now plans to strengthen its online presence to further boost its sales. The company generates about 3% from online sales and wants to grow the ratio in the coming three years.
Is Metro an Indian Brand?
Yes, Metro is an Indian brand.
Who is the MD of Metro?
Farah Malik Bhanji is the current MD of the company
Does Metro own Mochi?
Yes, Mochi is one of the in-house brands of Metro.
Where is the head office of Metro?
The Head office of Metro is in Mumbai.