Stories
Neeman's Shifts to Omnichannel: Digital-First Footwear Brand Plans 500 Offline Stores
- •Neeman's, a digital-first footwear brand, plans to open 500 physical retail stores over the next 3-4 years while its online business grows over 50% year-on-year.
- •The move reflects a broader trend among digitally native brands to expand offline due to rising digital competition and advertising costs, making physical retail increasingly relevant.
- •Founder Taran Chhabra expects the retail expansion to generate Rs 450-500 crore in revenue, complementing the online business's projected Rs 500-600 crore.
- •Physical stores address the structural challenge of footwear, which requires touch, feel, and fit, with offline buying still accounting for 80% of shoe purchases.
- •Retail is seen as a steady and profitable channel with largely fixed investments, contrasting with the recurring variable costs of digital customer acquisition, and serves as a brand-building exercise.
Key Questions Answered
Neeman's is preparing to build a 500-store retail footprint over the next three to four years, even as its online business continues to grow at over 50% year on year. Founder Taran Chhabra expects this retail expansion to generate approximately Rs 450-500 crore in revenue.
While online remains critical for discovery and customer acquisition, rising digital competition and advertising costs are driving brands offline. Additionally, shoes involve fit, comfort, touch, and feel, making physical store experience a vital part of consumer purchase consideration since offline buying accounts for about 80% of shoe purchases.
Neeman's reports a repeat purchase rate of over 30% across a 12-month cycle. The brand positions itself around everyday comfort and value, aiming at a sweet spot around the Rs 3,000 price point rather than competing directly with global sportswear brands on their territory.
