Date:19/01/2005 URL: http://www.thehindubusinessline.com/2005/01/19/stories/2005011901660300.htm

Back ECCO makes Indian foray — Sets up 100 per cent arm

Sindhu J. Bhattacharya

New Delhi , Jan. 18

DANISH super-premium shoe brand ECCO has entered the Indian market. The company has incorporated a wholly owned arm, ECCO India Trading Pvt Ltd, after a five-year research of the market potential here. And even though it does not plan to set up a manufacturing base in the country immediately, the company is eyeing break-even within the first three years.

"We have established a 100 per cent arm with Rs 1 crore authorised share capital in India. This country has 20 million affluent people so we see a huge market potential for a super-premium brand like ours. Besides, no other super-premium shoe brand is present in the country right now," Mr Michael Hauge Sorensen, Managing Director, Asia Pacific of ECCO, told Business Line.

While he declined to divulge investments the company is planning in India over the next couple of years, he said eventually this country could become a sub-region for catering to neighbouring and SAARC countries. At present, all the shoes will be imported from ECCO's manufacturing facilities worldwide.

It is eyeing sales of 20,000 pairs of shoes in the first year and plans to advertise in select magazines besides launching high-end promotions to familiarise the brand here. The prices start at Rs 5,000-6,000 per pair of shoes. Abroad, ECCO is popular among celebrities that include Bon Jovi, Sting and Sylvester Stallone.

With an annual turnover of euro 450 million, ECCO produces 11 million pairs of shoes across the world, having distribution in 45 countries. Its Asian subsidiary was set up last year and ECCO is consolidating in existing Asian markets of China, Japan and Hong Kong. Mr Sorensen said the pricing in India would be same as across the world and the company will begin by launching a range each for men and women.