Towards north and beyond: A rebranded Paragon eyes market expansion

Footwear brand Paragon recently announced a brand repositioning aimed at resonating with the brand’s core consumers. The new makeover introduces a new brand identity with the tagline ‘Zid, Chalte Rehne Ki.’ addressing common folks while celebrating their daily lives.

The rebranding was announced through a newspaper ad, which characterises and praises the spirit of a commoner, in dealing with the struggles and routine challenges that come with the lifestyle. 

Sachin Joseph, executive VP - marketing and IT at Paragon Footwear, explains that the rebranding effort is designed to strengthen the connection with the brand’s base consumers and focus more on its core target group. “We’re shifting our focus from a more contemporary crowd to the brand’s core TG, which is NCCS BCD, aged 30 years or above,” Joseph says.

Paragon has a strong presence in the budget-friendly tier of the Indian footwear market, and the new tagline aims to support working-class Indians, spanning from the middle and lower-middle classes to self-employed individuals and countless others.

 “‘Zid, Chalte Rehne Ki.’ is our way of celebrating the common man and his daily life struggles. As a brand, we aim to be with the consumer as their support, while not being heavy on their pockets,” Joseph states.

The brand's manufacturing hubs are primarily located in the southern states of Karnataka, Tamil Nadu, and Kerala, but its business footprint spans the entire country. Paragon’s core markets include Karnataka, Telangana, Maharashtra, Gujarat, and West Bengal. “We are looking to expand strongly in other markets, especially the north,” Joseph points out.

To announce its rebranding, Paragon opted for newspaper advertisements, aligning with the media consumption habits of its core audience. “We’ve employed print and radio for this campaign because these are the two mediums that our core audiences are most exposed to. We’ll also use digital and OOH to amplify this campaign,” Joseph explains.

In the past, Paragon has featured popular celebrities such as Hrithik Roshan and Mahesh Babu as brand ambassadors. However, the current rebranding strategy consciously avoids celebrity endorsements to focus on the brand message. Last year, Paragon advertised during the IPL but has decided to pause this approach. Instead, the brand plans to leverage the festive season for advertising.

The Indian footwear market is highly competitive, with revenue amounting to approximately $26 billion in 2024 and expected to grow annually by 4.85% (CAGR 2024-2028), according to Statista. Paragon’s 50-year legacy and value-for-money proposition have been crucial in navigating this competitive landscape.

“We’ve seen a shift in consumer behaviour in this category, where there is a willingness to spend a few extra bucks as long as the product is trustworthy and durable. Especially at the bottom of the pyramid, where value, comfort, and trust affect the purchase decision,” Joseph notes.

Price sensitivity remains a critical factor for Paragon’s core consumers. “Price points in our category are pivotal. Even a Rs 5 or Rs 10 increase can affect your sales. The core consumers of footwear brands are very particular about value-for-money,” Joseph remarks. Despite rising material costs, Paragon has invested in its manufacturing facilities to maintain consistent prices without passing the burden onto consumers.

Paragon currently works with over 500 distributors who supply products to small multi-brand outlets across the country and operates approximately 95 brick-and-mortar stores, mainly in the south. “Going forward, we wish to expand the number of our exclusive stores. We are looking for partners to set up shops in different states,” Joseph reveals.

Although e-commerce currently constitutes only about 10% of Paragon’s total sales, the brand is seeing growing traction in this segment.

Joseph has also observed some key consumer behaviour trends in the category, which has worked tremendously towards its growth. “Gone are the days when consumers would buy one pair of footwear for all purposes. There is a shift away from having only one pair of footwear for indoors and outdoors, to now having multiple pairs for different occasions and needs. People are now more willing to spend extra as long as their utilities are met.”