Explained: Foot Locker's strategic partnership with Metro Brands and Nykaa Fashion

Nykaa Fashion will serve as the exclusive e-commerce partner and operate Foot Locker's India website. Image: Shutterstock

New York-based athletic shoes and apparel retailer Foot Locker, Inc announced a long-term licensing agreement with Metro Brands Limited (MBL) and Nykaa Fashion. Via this strategic partnership, Foot Locker will offer a comprehensive selection of global sportswear and footwear to sneaker fans in India.

According to Statista, the volume of the sneaker segment in India is projected to reach 66 million pairs by 2028. In 2023, the sneaker segment in India is forecasted to generate a revenue of $2.63 billion and interest in the category is only just taking off. Given the kind of potential, this partnership aims to transform the sneaker segment in India, and address the evolving needs of next-gen customers. “The passion for sneakers in this market is tremendous, and we believe that with the combined omni-channel strength of our partners, we are uniquely positioned to appeal to the rapidly growing Indian market,” says Mary Dillon, president and CEO at Foot Locker, Inc.

But how does this deal work?

As per the agreement, MBL has exclusive rights to own and operate Foot Locker stores within India. On the other hand, Nykaa Fashion will serve as the exclusive e-commerce partner and operate Foot Locker's India website and sell its merchandise on Nykaa’s existing ecommerce platforms.

This three-way deal is built on Nykaa's robust digital capabilities and Metro's offline strength. “At Nykaa Fashion, we constantly strive to bring the world's top brands and trends to the Indian consumer. Our long-term collaboration with Foot Locker will enable us to bring a fantastic repertoire of global sports apparel and footwear closer to Indian shoppers,” says Adwaita Nayar, co-founder of Nykaa and CEO, Nykaa Fashion. “This unique three-way partnership will allow Foot Locker to reach the customer most effectively on all relevant channels. We look forward to building meaningful customer engagement and driving strong sales from the category,” Nayar adds.

Also read: Anchit and Adwaita Nayar: Grooming for glory

On the other hand, Metro brands recently launched its 800th store in India. Within the Metro Brands family, an array of brands, including iconic Indian labels like Metro Shoes, Mochi and popular international choices like Crocs, FitFlop, Fila, Sketchers, Clarks and more have prospered. Foot Locker will only add to its diverse portfolio. “This partnership is a big step in that direction. It will also help us pave the way in revolutionising the sneaker market, enhancing the retail experience, and meeting the dynamic needs of our customers,” says Nissan Joseph, CEO, Metro Brands.

The $8,759 million-giant is a global leader and one of the early originators of the sneaker culture. The company, established in 1989, is headquartered in New York. Foot Locker, Inc also operates across North America, Europe, Middle East, Africa, and Asia Pacific.