Skechers, a global footwear and lifestyle brand, entered India in 2012 through a joint venture with Future Group, and now operates via exclusive outlets and retail partners. For entrepreneurs exploring Skechers’ franchise model, here’s a comprehensive guide.
Formats & Store Models
Skechers offers exclusive brand outlets (EBOs) and multi-brand dealership channels, typically hosted under the “Foot Lounge” format. Franchise size varies:
- Standalone Skechers retail stores (~1,000–1,500 sq ft)
- Multi-brand footwear stores housing Skechers alongside other international brands
Investment Breakdown
✅ Basic Investment Ranges
- Store-level (dealership/EBO): ₹30–50 lakh for 1,000–1,500 sq ft setups.
- City-level or multi-unit franchise: ₹1–2 crore.
Detailed Cost Components
- Franchise Fee: ₹10–40 lakh, depending on format/location.
- Store Setup & Interiors: ₹30–80 lakh, covering flooring, fixtures, branding, lighting, displays.
- Initial Inventory/Stock: ₹40 lakh – ₹1 crore for an adequate product mix.
- Working Capital: ₹10–20 lakh for staff, utilities, replenishing inventory.
- Marketing/Launch Promotions: ₹5–15 lakh for local campaigns.
- Royalty Fees: 5–7% of gross sales.
Estimated Total Investment: ₹1.5–2.5 crore for standalone models; ₹30–50 lakh for smaller dealership setups.
Eligibility & Store Requirements
To qualify as Skechers franchisee:
- Minimum Net Worth: ₹3 crore; required liquidity aligned with investment scale.
- Retail Experience: Preferred in footwear/fashion, though not mandatory.
- Location Requirement: High-traffic areas in malls or high street zones with 1,000–1,500 sq ft.
- Operational Involvement: Franchisee expected to manage daily operations directly.
Franchise terms typically span 5–10 years, renewable, backed by brand-level training and operational support.
Revenue Potential & Profitability
A well-located Skechers outlet can perform as follows:
- Annual Revenue: ₹1–2.5 crore per outlet; multi-brand stores also generate cross-brand traffic.
- Gross Margins: Skechers products provide ~50–60% gross margin.
- Net Profit Margin: Estimated in the range of 15–25% after royalty, staffing, rent, and utilities.
- Break-Even Timeline: Typically 1–3 years based on performance, brand pull, and operational controls.
Franchise India projects potential payback in as little as one year for high-performing units.
Support & Benefits
Skechers offers:
- Training: Comprehensive training for sales staff, merchandising, store operations.
- Marketing: National brand campaigns, IPL advertising, digital promotions; local marketing margins funded via royalty structure.
- Supply Chain: Direct access to international-imported inventory; standardized merchandising.
As part of multi-brand platforms like Foot Lounge, Skechers gains cross-brand customer flow and reduced overhead.
Final Verdict: Should You Invest?
Yes—with the caveat of capital readiness and operational discipline.
- Entry-level investment ranges from ₹30 lakh for small dealership formats to ₹1–2.5 crore for standalone EBOs.
- Solid return potential—with net margins around 15–25% and break-even in 1–3 years if executed well.
- Skechers is growing rapidly in India and internationally, with strong product comfort perception and expanding store footprint.
However, success hinges on prime location selection, disciplined costs, and competitive positioning against established brands.
Whether as a dedicated Skechers outlet or part of a multi-brand sports retail concept, the opportunity can be lucrative for entrepreneurs with sufficient financial bandwidth, retail acumen, and long-term commitment to brand standards.
