VKC Razak, Managing Director of VKC Group, shares insights into the brand’s evolution, its sales strategies, plans for offline expansion, sustainability initiatives, and more
Bengaluru: Kerala is renowned not only for its stunning natural landscapes but also as the largest producer of natural rubber in India. According to the Rubber Board of India (RBI), the state accounts for 88% of the total area under rubber cultivation, contributing 90% of the country’s rubber production.
Among the homegrown brands that have capitalised on this advantage is VKC, a footwear company that has achieved national recognition and even made its mark internationally. The brand has become a household name in India, appealing to people of all ages, genders, and financial backgrounds.
Although VKC was officially established in 1984 by Indian politician VKC Mammed Koya under The VKC Group, the company’s origins trace back to the late 1960s when it began as a timber business in Kerala.
Koya ventured into the footwear industry in response to the rising demand for ‘Hawaii’ chappals among Indian consumers. The company set up its first manufacturing unit in Kozhikode district, producing 600 pairs of chappals daily.
Today, the Calicut-based group boasts a production capacity of around half a million pairs of footwear per day, amounting to over 182 million pairs annually.
In an exclusive interview with IndiaRetailing, VKC Razak, son of the founder and the current Managing Director of VKC Group, shares insights into the brand’s evolution, its sales strategies, plans for offline expansion, sustainability initiatives, and more.
Edited excerpts
What is the story of VKC?
My father, along with his two brothers, founded this business. Before starting it, he was running a company focused on producing wood-based products, specifically, the outer and inner covers and matchsticks. However, he eventually had to shut down that business due to the scarcity of raw materials, as the required softwood became difficult to source. Around the same time, he became involved in social work, which required his attention, leaving him unable to continue the venture.
When he decided to restart his entrepreneurial journey, he carefully deliberated and chose to enter the footwear market by manufacturing Hawaii sheets, the raw material for making Hawaii slippers.
Why did he choose to sell Hawaii slippers?
Hawaii slippers were a staple in Kerala, worn for everyday activities, including functions, weddings, and school. Unlike today, they were not regarded as casual or bathroom footwear.
However, those came with three major pain points. Firstly, most of them were made of two layers: a white top layer and a blue bottom layer. After a couple of months of use, the top layer would wear out, leaving visible foot marks. This embarrassed users, especially when leaving slippers outside places like temples, churches or mosques, prompting them to hide their footwear.
Secondly, the straps on these slippers often popped out when someone accidentally stepped on them, a common occurrence while walking in a group. Fixing them required makeshift tools like a spoon or stick. Finally, the strap necks often tore after a month or two of usage, rendering the slippers unusable. These issues significantly impacted the user experience.
From 1984 to 1986, while working on Hawai sheets, my father conducted research and experiments with rubber boards and technical teams. He eventually developed a product that addressed all pain points. He introduced single-layer Hawai slippers, with durable soles ensuring they lasted until completely worn out. The straps were designed with a rubber formulation that prevented them from popping out or breaking.
This innovation particularly resonated with the working-class segment, such as laborers in masonry, agriculture, and construction, who required durable footwear for heavy-duty tasks. The slippers quickly gained popularity through word-of-mouth recommendations.
What were the sales channels then?
Instead of partnering with major city distributors, my father targeted the second layer of distributors—those not directly supplied by factories and willing to focus exclusively on our product. This ensured that the dealers were committed and could give special attention to the brand.
Can you elaborate on the sub-brands of VKC?
Initially, VKC catered to labor-intensive professions, but now, as footwear evolved from a necessity to a fashion statement, we adapted to meet the changing preferences of consumers.
VKC Pride, the flagship brand, caters to the hardworking segment with a blend of durability and style. Debon focuses purely on fashion. Eezy, offers soft PU footwear for home and office use, introducing India’s first super-soft PU footwear. GoodSpot targets the premium segment, while Debongoo serves as a sporty fashion brand primarily aimed at youth. Lastly, Ja.May.Ka, reimagines the classic VKC flip-flop as a fun and stylish option for outings and picnics.
Across these brands we have more than 1,000 designs with over 60,000 stock keeping units (SKUs).
Among these sub brands, which one is attracting the most traction?
In terms of volume, VKC Pride remains at the top, while our fashion-oriented and sporty footwear brands are gaining more traction, particularly among the youth.
What are the sales channels of VKC now?
Our primary focus has been on the distribution network, which drives most of our business. We maintain a distribution network comprising approximately 700 distributors and a retail presence of 2 lakh general trade outlets throughout India.
However, we are now shifting towards direct-to-consumer (D2C) approaches by expanding our exclusive brand outlets (EBOs). Our EBOs are integrated into a single software, allowing us to track product movements and get real-time feedback.
Additionally, we are exploring business-to-business (B2B) development, where some products will be directly shipped to customers, bypassing the EBOs.
While we are not yet strong in e-commerce, we are planning to increase our presence on e-commerce marketplaces and even quick-commerce platforms.
When did you foray offline?
We started our EBO journey just nine months ago and have already opened 12 outlets. By January end, we plan to add five more, with three in Tamil Nadu, one in Karnataka, and one in Andhra Pradesh.
What is your offline expansion plan for the coming years?
We have ambitious plans to become the number one brand in the country in terms of the number of retail exclusive outlets. Currently, we aim to have over 2,000 stores by the end of fiscal year (FY) 2028, with all of them being franchise-owned.
Our primary focus is on South India for now, followed by Maharashtra, and we are in discussions to expand into other states as well.
Any plans to add new categories?
Along with our regular products, we plan to introduce products like socks, wallets, belts, polishes, T-shirts, and walking pants, which complement our existing product range, especially in the leisure and sports categories. However, we are not planning to manufacture these products ourselves but are considering sourcing them under our own brand.
Apart from this, we are about to introduce a separate line for e-commerce, which will not disrupt the existing offline channels. Within the next two years, we expect online sales to grow.
What products will the new line feature?
The focus will be on catering to customers who prioritise recyclability and eco-friendliness, which is why we plan to introduce such products on e-commerce platforms. These customers are willing to pay a bit more for sustainable options with maximum recyclable components.
However, making these products accessible to the mass market might not be feasible due to the higher cost of raw materials and the associated production costs. The company believes there is a specific customer segment that can afford these higher-priced sustainable products. Once launched, the hope is that the product will perform well, as even a small volume could generate higher revenue due to the premium pricing.
The groundwork for this initiative is nearly complete, and we plan to launch the first products within three months.
Is the company operating in any global markets?
Yes, we are currently exporting to around 18 countries, primarily in the Middle East, along with Singapore, Malaysia, Burma, and other Southeast Asian nations, as well as Africa.
We are now working on expanding into Latin America and the United States, with discussions at an advanced stage. While shipments have not yet gone out, sampling has already started, and we expect to enter these markets by the first quarter of this year.
