The story of how a young boy built a ₹12,000 crore footwear empire without any funding is nothing short of remarkable. Harikrishna Agarwal, the founder of Campus Shoes, has not only established one of India’s largest footwear manufacturers but has also outperformed international brands like Nike. This blog post delves deep into his journey, his challenges, and the strategies he employed to achieve this incredible success.
Harikrishna Agarwal hailed from a local middle-class family in Delhi. Growing up in the 1950s, he witnessed his parents working hard to make ends meet. Agarwal learned early on that success requires perseverance and hard work. Despite financial difficulties, he was determined to pursue his education, although his parents had one condition: he had to work in the market after school to contribute financially.
Working with local shopkeepers gave him fundamental insights into trade and commerce, igniting his entrepreneurial spirit. By the age of 18, Agarwal began dabbling in small businesses, buying products from the market, adding a margin, and selling them. This experience taught him valuable lessons about demand and supply, customer preferences, and the importance of quality.
In the early 1980s, Agarwal noticed a significant gap in the footwear market. There were only two types of products available: high-quality, expensive shoes, and poor-quality, cheap ones. Recognizing this opportunity, he decided to enter the footwear industry. However, he understood that setting up a manufacturing unit would be a daunting task.
In 1983, Agarwal launched the Action Footwear brand in Delhi, despite lacking sufficient funds. He borrowed money from friends and family and pooled his savings to get started. Unfortunately, he soon discovered that small companies in the early 1980s lacked access to advanced technology, forcing him to rely on basic machinery that required manual labor. Finding skilled labor was also a challenge, but he persevered.
Once the production setup was ready, Agarwal faced the daunting task of distributing products in a vast country like India. Utilizing the communication skills he developed in his youth, he negotiated with wholesalers, retailers, and logistics partners to sell his products. Despite the lack of opportunities at the time, Agarwal’s determination led him to find innovative ways to earn money.
Initially, the business struggled. Customers provided negative feedback about Action Shoes, citing their poor quality. Instead of giving up, Agarwal reinvested his earnings back into the business, focusing on improving weaknesses. He upgraded machinery, sourced high-quality raw materials, and hired skilled labor. He also offered attractive commissions to distributors.
To reposition Action Shoes in the market, Agarwal targeted school shoes, which became a household name among parents. His marketing strategy focused on emotional appeal, highlighting the durability and comfort of his products. Collaborating with famous personalities like Sachin Tendulkar further boosted the brand’s visibility and credibility.
As the brand grew, Agarwal diversified the product line to include sandals, sports shoes, casual footwear, and formal shoes. He employed various marketing tactics, including emotional ads, to emphasize the reliability and affordability of Action Shoes. This strategy helped establish Action as a go-to brand for budget-conscious consumers.
In 1991, the Indian government opened the market to global brands, allowing companies like Nike to enter. These international brands employed aggressive strategies, including celebrity endorsements and innovative product offerings, which posed a significant threat to local players like Action Shoes.
However, Agarwal remained observant of market shifts and identified a gap that foreign brands were not addressing: affordable yet high-quality footwear for the average Indian. He modernized manufacturing facilities and entered the sports and fitness footwear segment, offering products at competitive prices.
As the digital age dawned, Agarwal recognized the importance of online presence. In 2017, Campus Shoes launched its e-commerce website and invested in exclusive retail stores. The introduction of online shopping was timely, especially during the COVID-19 pandemic in 2020. Agarwal quickly adapted by offering contactless delivery options and even launched work-from-home shoes, showcasing his dedication to customer needs.
During the pandemic, Campus Shoes managed to capture a 15% market share in 2020 and nearly 17% in 2021, generating ₹15 million in revenue primarily from online sales. This adaptability proved crucial for the brand’s survival and growth during challenging times.
By 2021, Campus Shoes had become India’s largest sports footwear brand, with a valuation of around $1.5 billion. Agarwal’s relentless pursuit of quality and affordability paid off, and he successfully positioned his brand as a prestigious name in the industry. The company also launched an IPO, further solidifying its status in the market.
Today, Harikrishna Agarwal’s net worth exceeds ₹10,000 crore, making him one of the wealthiest entrepreneurs in India. His story is a testament to the power of perseverance, innovation, and the ability to adapt to changing market dynamics.
The journey of Campus Shoes exemplifies how determination and hard work can lead to monumental success. Harikrishna Agarwal’s ability to identify market gaps, coupled with his commitment to quality and affordability, has set a benchmark for aspiring entrepreneurs. His story serves as an inspiration, proving that with the right mindset and strategy, anyone can build a successful business from the ground up, even without funding.
As Campus Shoes expands into international markets, including Southeast Asia, it will be exciting to see how this homegrown brand continues to evolve and compete on a global scale.