Carving Success: Bugatti’s ambitious Growth Plans for India

 Tell us a bit about your professional journey.
While I started my career in 2003 in the fabric business with Raymond Ltd, my journey into footwear
began with Adidas in 2005, and I have not looked back since. I have over two decades of
omnichannel experience in building robust brands and inspiring teams in the Retail & Sports Industry
with organizations such as Raymond, Adidas, Reebok, Aldo, Florsheim, and Reliance Retail. I joined
AstorMueller in August 2022 to build and manage its retail subsidiary in the Indian subcontinent.

 When did AstorMueller enter India and how has been the experience so far?
We were among the first few European shoemakers to recognize India’s capability in shoemaking
and consequently established a strong manufacturing base here since early 2000s with a ‘Make in
India, Sell in Europe’ model. Currently, India is where majority of our products are made accounting
for over fifty percent of our global sourcing and growing.
Our experience of about two decades in India spurred us on to start the Retail subsidiary in Fall-
Winter 2022, which resulted in opening of our first couple of ‘Bugatti | TT. BAGATT’s stores in Spring
Summer - 23 at Select CityWalk, Delhi and Phoenix Citadel, Indore.

 What all brands does AstorMueller house?
AstorMueller Group is a multi-brand retailer with brands like Bugatti, TT.BAGATT, nu:beat, and
Salamander which combined sell nearly seven million pairs of shoes annually in over 40 countries.
Bugatti and TT.BAGATT have already been introduced in India last year and are currently available
offline across the top 20 cities in the country through Brand stores and prominent Multi Brand
Retailers and are available online too across all luxury brand destinations along with our web stores.
In SS-24, we have also launched our first lifestyle brand ‘nu:beat’, with Sneakers designed by
musicians for musicians. This is an India–First launch, which underscores the importance of this
market for the group.

 What are AstorMueller’s expansion plans for FY25?
We are planning to reach the Top 20 cities across India, with a multi-channel effort, through both
online & offline channels. At this time, we are estimating the doubling of Bugatti brand stores in this
fiscal, reaching out to over 70+ doors through Shop-in-Shops and growing our online sales by over
50%.We have already introduced three brands from our global portfolio and have plans of
introducing Salamander in the near future.
We also plan to leverage our strong manufacturing presence and a growing retail network in India by
catering to markets in and around India with exports from India. As part of this, we have already
begun operations in Bangladesh and are exploring new geographies like GCC, Sri Lanka, Nepal, etc.

 What are the challenges that AstorMueller is facing right now and how do you plan to
overcome them?
The biggest challenge the entire industry faces today is the implementation of the BIS norms. Several
categories like sneakers whose production was largely based in China has to be shifted to India from
this year.
But we are better poised to overcome them than our competitors as we are among the first few
European shoemakers to recognize India’s capability in shoemaking and establish a strong
manufacturing base here. Consequently, a large portion of our products are already made here,
accounting for more than half of our global sourcing and growing.

 How has the footwear and accessories market evolved over the years and how to do think it
will shape up in the future?
Footwear used to be viewed as something functional and consequently an average Indian owns only
1.5-2 pairs of footwear. Whereas someone in a developed country owns 20-30. But this is fast
changing. Shoes are a fashion statement now. Younger Indians want multiple pairs, each for a
different occasion.
The other major factor that is shaping the industry’s future is the strong governmental push for
‘Make in India’. This will improve the quality perceptions of the products Made in India and
significantly advance the footwear exports.

 How has franchising brought about a change in the business scenario?
By bringing onboard different partners with extensive market knowledge, franchising helps the
brand grow faster with lower capital requirements. It also results in increased management
involvement and flexibility.

 How does AstorMueller support its franchise partners?

AstorMueller works very closely with all our franchisee partners to ensure smooth and efficient
functioning of the retail outlets. We provide support right from identifying the store locations
tostandardised store designs, centrally managed hub for fixtures, staff training and marketing.
Our extensive marketing campaigns across both traditional and digital mediums help increase the
brand visibility and top of the mind recall. We also regularly organise customer events at the
storeslike season launch at our Hyderabad store and appearances from celebrities like Vidyut
Jammwal at our Delhi store.

 What does AstorMueller look for, while selecting its franchise partners?
We are looking for hands-on retailers in the top 20 cities in India, ones who understand the needs of
the premium Indian customer and are able to meet the exceptional service standards of the brand.

 According to you, what are the three key elements necessary in a franchise biz model from a
long-term perspective?
 Excellent Location.
 High quality Products that meet the market requirements.
 Superior Customer Experience delivered consistently.

 Quick facts:
Total countries where AstorMueller is present: Globally our products are retailed in nearly 40
countries, such as Germany, Italy, Switzerland, France, UK, Romania, etc.
Total number of outlets in India: 6 Brand Stores in India, 15,000+ points of sale globally.
Investment Required: Rs 2 Crore per store
Break even period: 3 Years