In October 2024, billionaire Mukesh Ambani’s daughter and Director of Reliance Retail Ventures Limited (RRVL), Isha Ambani, struck a major deal with footwear brand Timberland. The move is significant as it marks the reentry of Footwear footwear brand Timberland into the Indian market after a gap of 9 years after its initial failure. The US multinational company is about to make its significant comeback, this time through Reliance’s online platform, Ajio. Experts are of the opinion that the reentry can prove to be a game changer in the Indian footwear market scenario.
Get ready for an ocean of possibilities.
Made with city heat in mind, The Solar Wave ST collection keeps you outside all day-long with lightweight breathability & #GreenStride™️ natural comfort soles.
Summer's coming, Chase The Light. https://t.co/NzKlh8M235#NatureNeedsHeroes pic.twitter.com/44n8gYsnfF
— Timberland (@Timberland) May 3, 2022What changed over the years for Timberland?
Things have changed in almost a decade for footwear brand Timberland as it aims to up its game in India and wants to start over, leaving aside its bitter past of failure and rejection by the Indian market. If successful, then Timberland can earn a fortune from the ever-growing economy of the most populous nation.
Changing demand
Timberland’s return to India in 2024 is marked by certain changes in the company’s approach as well as the position of its collaborator. The change is notable in the demography and the market as well. Over the years, India has emerged as one of the top-performing economies in terms of GDP growth and accordingly, consumer-driven demand for luxury products has grown significantly. A portion of Indian citizens have witnessed an unprecedented rise in disposable income, which has accelerated the demand for luxury goods and services.
Collaboration and Reliance Retail’s Growing Reputation
Similarly, Reliance’s extensive retail network provides Timberland with a much broader reach and access to a wider customer base. In fact, over the years, Reliance Retail has earned an untainted reputation, and collaboration with Ajio, one of India’s largest E-commerce fashion shopping websites, has the potential to make Timberland largely successful. Ajio’s launch in 2016 and now its diversification into Ajio, Ajiogram and Ajio Luxe shows the rising popularity of the platform and its success as one of the largest fashion retail chains across India. Therefore, collaboration with Ajio will enable Timberland to effectively utilise Reliance’s efficient supply chain and logistics capabilities and thereby ensure the accessibility of Timberland’s products.
Adaptability
In addition to that, Timberland has adapted its product offerings to include more casual and fashion-forward styles, catering to the evolving preferences of diverse consumers. The diversification of its product range and improved quality that prioritises comfort has the potential to appeal to the Indian market.
Digital Presence
The strong digital presence of Timberland Ajio is bound to make its products accessible to a wider audience. The locational barrier that hinders accessibility will no longer be there to bother Timberland’s market share. In this context, digital marketing can also play an accelerating role in contributing to Timberland’s success.
Price Sensitivity
Competitive Pricing is another strategic change that Timberland has embraced to make its products more affordable to a larger segment of the Indian market. Considering the growing demand and a section of Indians’ love for high-quality products, Timberland’s strategy can prove to be beneficial in the long run.
Brand Awareness
Timberland has undergone rebranding efforts to refresh its image and appeal to a new generation of Indian consumers, considering the changing demographics. In order to cater to the needs of the youngsters, the changes that it has undergone remain significant. It can be, therefore, said that Timberland’s return to India demonstrates a strategic shift in its approach and its desire to adapt to the evolving market dynamics and consumer preferences.
By adapting its product offerings, leveraging digital channels, and collaborating with Ajio, the brand has aimed to establish a stronger foothold and capitalize on the growing demand for premium footwear and apparel in India, which can pose a significant threat to the current business of the existing footwear brands in India.
Timberland’s Indian Venture in the Past
Timberland is an American manufacturer and retailer of outdoor footwear and apparel. The brand was purchased by VF Corporation in 2011 for $2.2 billion. The company also trades in accessories, including watches, eyewear, and leather goods. Headquartered in Stratham, New Hampshire, Timberland set foot in India in 2009 when it entered into a distribution and licensing arrangement with Reliance Retail. However, within six years, it had to close down its business in India as it faced stiff competition from and also a legal dispute with Woodland a brand that has assumed significant popularity since its launch in 1992 in India.
History of Woodland
Woodland traces its origin to its parent company, Aero Group, which has built a reputation in the outdoor shoe industry since the 1950s. Based in Quebec, Canada, the company was known for exporting its leather shoes to Russia. However, with the splitting up of the USSR into a number of states, the company looked for diversification in its distribution chain and moved part of its operations to India, which was a milestone event and led to the birth of Woodland, a legacy brand that grew close to Indian hearts.
The brand offers an extensive line of footwear, performance apparel, outdoor gear, light-wear jackets and parkas. With its growing brand reputation, quality and diversity of products offered, it gave stiff competition to Timberland and finally compelled it to exit the Indian market by March 2015 over an intellectual property dispute centering similarity in logos and product designs.
FAQ
Why did Timberland exit the Indian market in the past?
Timberland faced stiff competition from brand like Woodland. The two brands were also involved in a legal dispute over intellectual property over similarities in logos and product designs.
What has changed for Timberland since its previous exit?
Timberland has adapted its product offerings to include more casual and fashion-forward styles. The company has also embraced a more competitive pricing strategy. Timberland has partnered with Ajio, which provides a much broader reach and access to a wider customer base.
How is Reliance Retail’s growing reputation beneficial for Timberland?
Reliance Retail’s extensive retail network and strong digital presence can help Timberland reach a wider audience.
Reliance Retail’s reputation for quality and customer service can enhance Timberland’s brand image.
What are the potential challenges for Timberland’s reentry into India?
Timberland may still face competition from established brands like Woodland.
The company may need to adapt to the specific preferences of Indian consumers.
Economic factors, such as inflation or a slowdown in the economy, could impact consumer spending.
How can Timberland differentiate itself from other footwear brands in India?
Timberland can focus on its heritage and commitment to quality craftsmanship.
The company can emphasize its sustainability initiatives and eco-friendly materials.
Timberland can leverage its brand recognition and global presence to attract customers.
What is the potential impact of Timberland’s reentry on the Indian footwear market?
Timberland’s reentry could increase competition and drive innovation in the market.
It could also lead to a rise in consumer demand for premium footwear.
However, the ultimate impact will depend on factors such as Timberland’s ability to adapt to the Indian market and consumer preferences.
