Kneetoes founders Shujat Khan and Shahyan Khan shed light on the brand’s journey and the prospects for the brands in the Indian footwear industry.
New Delhi: In 2018, Shujat Khan and Shahyan Khan acquired Kneetoes, then a shoe brand that was in its nascent stage selling through the shop-in-shops mostly through Reliance Retail chains. Six years down the line, Shujat and Shahyan have not only turned over Kneetoes but are also aiming to create a major mark in the footwear market with a substantial expansion in tech resources, e-commerce platforms and more personalised experience for customers. The Bengaluru-based Kneetoes is at present rapidly emerging as a small yet significant player in the $28 billion annual Indian footwear market.
Originally started as a small shop-in-shop operation of the brand in Bengaluru, the brand has expanded to approximately 85 outlets, including seven exclusive stores that are company-owned and company-operated.
The company clocked Rs 3.5 crore in the last fiscal year. This year, it has kept a revenue target of Rs 6 crore. The brand’s expansion plans include launching its first franchise store and the company is also exploring international markets, including a potential store in the US. The company has a presence in marketplaces like Ajio, Flipkart, and Amazon, and its D2C website with products in varied price ranges.
The brand’s strategy includes a robust online presence, leveraging user-generated content and social media partnerships to build trust and drive traffic to its D2C website.
In an exclusive interview with IndiaRetailing, Kneetoes founders Shujat Khan and Shahyan Khan shed light on the brand’s journey and the prospects for the brands in the Indian footwear industry.
How did the name “Kneetoes” come about, and what’s the story behind the brand?
Shahyan: Kneetoes was originally started by a friend in 2010, and in 2018, we took over the entire brand, including operations and ownership. We had already been in the retail business since 2010, working as franchisees for major brands like Aditya Birla, VF Corp, and Arvind, so when the brand came up for sale, we saw it as a great opportunity. When we took over the brand, it was primarily a shop-in-shop model with unexplored potential. However, we saw great potential in the brand and the footwear sector, especially in India. We’ve infused capital, turned things around, and now we’re heavily focused on expanding our exclusive outlets and online presence. For this fiscal year, we’re investing more in our online store and expect continued growth as we solidify our presence in the D2C space.
Shujat: We initially planned to expand Kneetoes in 2020, but the pandemic delayed things for two years. We finally resumed expansion in 2023. When we talk about our journey, it has always been in organised retail, though we initially started with garments. So, it’s been a mix of both garments and footwear from the beginning.
Please share any details about the acquisition regarding numbers or growth.
Shujat: When we initially acquired the brand, mainly operated as a shop-in-shop concept with around 30 outlets, primarily through Reliance Footprint. After taking over, we quickly expanded and grew to about 80-85 outlets. We then began opening exclusive outlets, with our first one in Commercial Street, Hyderabad, followed by Jayanagar. Today, we have around seven exclusive outlets.
Are these stores company-owned or part of a franchise model?
Shujat: All of our current outlets are company-owned and operated. We are getting a lot of inquiries about franchising and we’re close to signing our first franchise soon.
How did your revenue look in 2023-24, and what are your expectations for this year?
Shahyan: Last year, 2023-24, we were just starting our expansion and had only two stores running. Most of the revenue came from a single store, and we closed the year with around Rs 3.5 crores in sales. We began expanding more aggressively in May 2024, and since then, we’ve seen significant growth.
What are your expansion plans for 2024-25?
Shahyan: We’re on track to hit Rs 6 crores this year. In terms of expansion, our main focus is launching our first franchise store this year. We’ve also received inquiries from international markets, including Qatar and Bahrain, which we are exploring. We’re investing heavily in our online store, having revamped the website, and we’re focusing on growing our online presence as well. We’re planning to explore international expansion more seriously in 2025. Specifically, we’re working on launching a flagship store in the US by January next year, focusing on our men’s range.
How does your sales split between online, and offline channels?
Shujat: Before COVID, we were doing well online, but during the pandemic, we pulled back on online promotions. Recently, we revamped our website and brought in experts to help drive traffic. Now, we’re focusing on building our online presence again. As for offline, we’re continuing to expand our exclusive outlets, and as you mentioned, the footwear category in India is very competitive with legacy brands like Metro, but it’s also full of opportunities.
How do you compete with established brands?
Shujat: While brands like Metro and Mochi cater to a mass market, our focus is more on design, quality, and comfort at a good price. We aren’t necessarily a niche brand, but we aim to offer better value. For example, other brands in the market have an average selling price is around Rs 2,500-2,800, while we price our products about 20% lower, with better quality and designs. We also focus on providing a better overall shopping experience for our customers, which sets us apart. Design is our key USP.
How are customers reacting to your focus on design, how do you ensure a good return on investments (ROI) on that?
Shujat: Customers have responded well to our emphasis on design. Both Shayan and I are personally involved in the design process. We develop samples in-house, get feedback from family and friends to test comfort, and only then launch the products. While we do have an in-house team of designers, we take the lead on most design and purchasing decisions to ensure that every product aligns with our quality and comfort standards. This hands-on approach has helped us deliver a strong ROI on our design focus.
Are you focusing on any specific tier-one or tier-two cities for expansion?
Shujat: For tier-one cities, we’re looking at Mumbai, Hyderabad, Pune, and Ahmedabad. Currently, our only tier-two city presence is in Mysore.
How has the growth been over the past few months in terms of sales, particularly for June, July, and August?
Shahyan: Over the past few months, we’ve seen a steady growth. From June to August, our sales have been increasing by about 12-12.5% month on month. We’ve been focusing on organic growth for our offline stores, using this period to address operational challenges and prepare for the franchise model. With these foundations in place, we’re now ready to expand further.
Given your investment in technology, how are you planning to integrate your offline and online presence in an omnichannel approach?
Shujat: We’re heavily investing in technology to ensure smooth integration of our offline and online operations. We’re using advanced enterprise resource planning (ERP) and supply chain software to scale the brand efficiently. Even before expanding our stores, we focused on getting the tech and infrastructure right. This includes a 22,000 sq. ft. state-of-the-art warehouse in Bangalore, set up six months ago to handle our growing online activities and future franchise inquiries. Our strategy is to build a scalable system so that we can easily duplicate our operations as we expand.e
Do you feel that you’ve over-invested at this stage and now it’s just about picking up the pace with technology and e-commerce resources?
Shahyan: There’s always a learning curve, especially with online stores and operating in bustling markets where rentals and operating expenses are high. However, we’ve crossed that learning curve, and now we know exactly what we’re looking for. So, while it might seem like we’ve over-invested, we’re confident in the foundation we’ve built and believe it’s about scaling and fine-tuning the pace moving forward. Plus, everything we’ve done so far has been bootstrapped, so we’ve maintained control throughout the process.
Are you considering any fundraising shortly, maybe in the next couple of years?
Shujat: Yeah, maybe in the future, but not right now. It’s something we could look into in the next couple of years, but for now, we’re focused on building and scaling with what we have.
What is the most sold product from your lineup? Is there any specific product that stands out based on customer feedback?
Shahyan: Most of our stock is selling well, with very little dead stock, which is great. Since we come from a shop-in-shop background, we’ve developed a good expertise in selecting designs that resonate with customers. This helps us avoid taking big risks on new or untested designs, and we take a very detailed approach to ensure what we offer is well-received.
Are any of your stores currently operating in malls?
Shahyan: Yes, we are present in Hilite Mall in Calicut and have signed up with M5 Mall in Electronic City, Bangalore. Additionally, we have a store in Hilite Mall in Thrissur as well. We started with the Hilite Group after signing the letter of intent (LOI), and once we opened, the store performed well, which encouraged us to expand further. The market in Kerala has shown a strong liking for our brand, and we can confidently say that customers there are responding positively.
Are there any specific technology integrations you’re currently focusing on for in-store, e-commerce, and customer experience?
Shujat: We’re exploring AI-driven solutions for auto-replenishment of stock, analyzing what sells and what doesn’t to optimize inventory management. We are already in discussions with two to three companies about these concepts, which are typically used by larger businesses. However, we’re keen to adopt these technologies to scale efficiently.
How do you ensure customer retention in your e-commerce segment? Are you focusing on directing traffic to your D2C website or relying on marketplaces?
Shujat: Our main focus is on driving customers to our D2C website. While marketplaces are important, we prioritize retention through our direct channel. One key advantage we have is the trust factor that comes from having both online and offline stores. Many online-only brands struggle with building trust, but when customers see our brand both online and in physical stores, it strengthens that trust, giving us an edge in retaining customers.
You mentioned focusing on your D2C website, but with most companies seeing success through marketplaces, are you not more inclined towards the marketplace at the moment?
Shujat: While customers may initially purchase from marketplaces, especially after hearing about us through platforms like Instagram, our goal is to bring them to our D2C website for future purchases.
What is your acquisition strategy to bring customers back to your D2C website after they initially purchase from a marketplace?
Shahyan: We focus on engaging customers through a combination of referral programs and discount coupons. For first-time buyers on our website, we offer attractive coupons, and for repeat buyers, we include discount offers with every purchase. This encourages them to return directly to our website for future purchases.
How do you ensure a good customer experience post-purchase, especially when customers shop online?
Shujat: We focus on building trust with our customers by offering a six-month warranty on footwear, a feature uncommon in the online footwear space. While we understand there might be higher return rates initially due to logistics, we believe that in the long run, this warranty will reinforce trust and encourage repeat purchases. Additionally, we aim to back this up with email and SMS communication to keep customers informed and engaged after their purchase.
What is your target audience, and how are you addressing trends like premiumization and Gen Z?
Shujat: Currently, our primary audience for offline stores is people aged 25 and above, with a focus on millennials and older age groups. We design our products with this demographic in mind. However, we recognize the importance of appealing to Gen Z and have incorporated pop colours and modern designs into our merchandise.
How do you see user-generated content (UGC) evolving in your marketing strategy? And what marketing methods are you using for your offline stores?
Shujat: We believe UGC content will play a significant role in our marketing strategy. It helps build trust and authenticity around our brand. For offline stores, our marketing includes meta ads and Google Ads. We also rely on word-of-mouth and building a loyal customer base through excellent service. We engage customers by inviting them to season launches and sending offers like hampers. Our focus is on brand visibility and creating a community around our stores rather than relying solely on flash sales or aggressive promotions.
You mentioned personalization is a key focus for your brand. How are you implementing this in-store and online?
Shahyan: Personalization is central to our strategy. We strive to ensure that every customer feels valued and receives a tailored shopping experience. In-store, we employ experienced managers and staff who are trained to provide exceptional service and address individual customer needs. We also invest more in salary outflows to attract top talent. Online, we aim to offer personalized recommendations and communication to enhance the customer experience. Our goal is to build strong relationships and ensure that customers enjoy a completely satisfying shopping experience even if the immediate transaction isn’t always profitable.
How does your employee training program support your brand’s goals?
Shahyan: Our training program is essential for ensuring that our sales executives understand the value of our products and can effectively communicate this to customers. We provide a detailed 10-day induction, followed by exams and 15 days of on-the-job training to ensure our staff are well-prepared and confident in their roles.
What impact has this training approach had on your customer experience?
Shujat: This rigorous training has significantly improved our customer interactions and satisfaction. Well-trained employees can provide better recommendations and address queries more effectively, leading to stronger customer relationships and increased loyalty.
Are you exploring any unique marketing campaigns or collaborations?
Shujat: Yes, we are exploring niche markets such as traditional weddingwear footwear, which remains underdeveloped in India. This specialization allows us to target a less saturated segment and stand out in the footwear industry.
Isn’t traditional wedding wear more prevalent in North India, while South India has different footwear trends?
Shahyan: While traditional wedding footwear has been more prevalent in North India, trends are catching up in the South as well. Brands like Manyavar have shown that such trends can succeed in the South. We believe that focusing on traditional wedding footwear can be successful across India, including in the South, as tastes evolve and diversify.
Are you leveraging Instagram or social media for your brand?
Shujat: Yes, we are working with agencies to handle social media, including Instagram. We focus on UGC videos and partnerships with celebrities. The return on ad spend is positive, which encourages further investment.
