Luxury footwear brand Santoni, the renowned Italian bespoke shoe company, gears up to expand its footprint in India. With plans to establish two additional luxury boutiques, one each in Mumbai and Hyderabad, by 2026, Santoni is set to offer its exquisite craftsmanship to customers in these bustling metropolitan cities.
Backing this ambitious expansion strategy is Luxerati Retail Pvt. Ltd., Santoni’s esteemed partner in India. Co-founder Sanjay Kataria revealed that the company has allocated a substantial sum of ₹15 crore/US$ 1.8 Million to realize this vision, underlining its commitment to bringing the epitome of luxury footwear to Indian shores. This investment echoes the successful launch of Santoni’s flagship store in Delhi’s Emporio mall back in 2018, a venture that mirrored the brand’s ethos of elegance and sophistication.
In addition to bolstering its physical presence, Santoni is also exploring the digital realm to cater to the evolving preferences of Indian consumers. Kataria hinted at the possibility of a dedicated online storefront exclusively catering to the Indian market, drawing inspiration from the pioneering initiatives of luxury brands like Louis Vuitton. This digital foray, slated for implementation by 2026, underscores Santoni’s adaptability and foresight in navigating the dynamic retail landscape.
Luxerati Retail’s commendable growth trajectory further underscores the burgeoning demand for luxury footwear in India. With a year-on-year growth rate ranging between 15% to 20%, the company achieved profitability in 2021 and is set to culminate the current fiscal year FY24 with sales amounting to ₹8 crore/US$ 1 Million.
Santoni’s illustrious legacy traces back to its inception in 1975, nestled in Corridonia, Italy, within the revered shoemaking district of the Marche region. Founder Andrea Santoni pioneered an innovative blend of artisanal craftsmanship and industrial precision, crafting bespoke footwear from premium materials such as ostrich and alligator leather. Today, the brand’s legacy is upheld by Andrea’s son, Giuseppe Santoni, ensuring a seamless continuum of excellence and heritage.
The expansion endeavors of Santoni and Luxerati Retail are timely, given the meteoric rise of India’s luxury market. Projections by Euromonitor International indicate a staggering growth trajectory, with the market set to rise to $8.5 billion by 2023, reflecting a substantial increment of $2.5 billion from 2021. Such robust growth is emblematic of India’s rapid economic ascent, with a 7.6% GDP growth recorded in the third quarter of 2023, outpacing major economies worldwide.
However, amidst this promising landscape, luxury footwear brands encounter unforeseen challenges stemming from stringent government regulations. A notable instance is the implementation of quality control order (QCO) regulations in July 2023, mandating compliance with Bureau of Indian Standards (BIS) norms and the display of the ISI mark on all imported footwear, including luxury brands. While aimed at ensuring product quality, this mandate poses a conundrum for luxury brands, as it contradicts the aura of exclusivity they meticulously cultivate.
The embossing of the ISI mark, synonymous with mass-produced items, risks diluting the allure of luxury footwear, undermining its perceived value proposition. Despite endeavors to navigate this regulatory landscape, companies grapple with the implications, compounded by substantial import duties and GST levies imposed on luxury footwear in India.
In conclusion, Santoni’s expansion endeavors in collaboration with Luxerati Retail herald a new chapter in India’s luxury retail narrative, offering discerning consumers unparalleled access to artisanal excellence and sartorial elegance. As the luxury market continues to evolve amidst regulatory nuances, the resilience and ingenuity of brands like Santoni serve as a beacon of inspiration, navigating challenges while staying true to their ethos of craftsmanship and sophistication.
