Online contributes 27 per cent to FY26 revenue; footwear and leather segment grows 40–50 per cent
Lacoste India is accelerating its expansion into tier-2 cities and airport locations as it looks to sustain high double-digit growth over the next five years, driven by a structural shift in aspirational consumption beyond metro markets.
The company, which entered India in 1993 as the country’s first international premium apparel brand, does not disclose absolute revenue figures. “We are growing at a high double-digit rate every year, and we expect to maintain this momentum for at least the next five years,” said Rajesh Jain, Managing Director and CEO, Lacoste India, in a conversation with BW Retail World on the sidelines of the Mapic conference in New Delhi.
In recent years, the brand has opened stores in cities such as Kanpur, Surat, Ludhiana and Kochi, with Visakhapatnam next on the expansion roadmap.
“We are building more boutiques in tier-2 cities, including a new store in Vizag, where a large mall is coming up. We aim to establish a strong presence there,” Jain said.
The strategy also includes deepening presence in existing markets. “In cities like Ahmedabad and Ludhiana, where we currently operate one store, we are evaluating opportunities for a second or even third outlet,” he added. Store expansion decisions are increasingly guided by online demand data, helping identify cities with strong digital traction but limited physical presence.
“Five years ago, we could not have imagined expanding into tier-2 cities. Today, the response has been very encouraging,” Jain noted.
Airport retail is emerging as another key growth lever. The company has recently opened outlets in Guwahati and Navi Mumbai, treating transit hubs as a distinct retail format.
“The initial response has been very strong. As flight traffic increases, especially with new airport infrastructure, sales are growing steadily,” Jain said, highlighting the brand’s rising footprint in the Northeast.
In FY26, online channels contributed 27 per cent to revenue, while offline retail accounted for the remaining 73 per cent. However, nearly 97 per cent of Lacoste India’s marketing spend is directed towards digital platforms.
“Today’s consumer is not divided into online or offline segments. Both channels are growing and are deeply interconnected,” Jain said.
Younger consumers are playing an increasingly significant role in the brand’s growth. The 18–25 and 25–35 age groups together contribute roughly one-third of total sales.
“We were pleasantly surprised by the contribution from younger consumers. It is growing very fast,” he said, adding that the brand remains focused on maintaining a balanced customer mix across age groups.
“All age groups should feel connected to Lacoste. Our positioning remains centred on relaxed elegance and freedom of movement,” he added.
Footwear Drives Non-Apparel Growth
Apparel continues to dominate, accounting for around 85 per cent of revenue, down slightly from 87–88 per cent in previous years. Footwear and leather goods have emerged as high-growth segments, recording 40–50 per cent growth last year and now contributing approximately 14 per cent of the business. The remaining 1 per cent comes from categories such as perfumes, managed by third-party distributors.
Jain noted that footwear growth came despite a constrained product pipeline due to Bureau of Indian Standards (BIS) certification requirements. The regulation, which mandates ISI certification for footwear imports, created compliance challenges for global brands.
“We had limited new footwear launches due to BIS requirements earlier, but with fresh collections now coming in, we expect this segment to grow much faster,” he said.
On the supply side, the share of locally manufactured apparel has declined from 95 per cent to 90 per cent, as Lacoste increases imports to introduce global collections and intellectual property-led products not feasible for local production.
The business is also navigating cost pressures. Since September 2025, GST on apparel priced above Rs 2,500 has increased from 12 per cent to 18 per cent, impacting pricing dynamics in the premium segment.
India’s premium fashion market continues to expand, with more than 50 per cent of luxury consumption now coming from non-metro markets, according to a recent report by Tata Cliq Luxury. Competitors such as Tommy Hilfiger and Hugo Boss are also scaling up their presence beyond metros.
Jain added that global disruptions, including geopolitical tensions and trade uncertainties, tend to affect consumer sentiment more than cost structures in the short term.
“Every few years, macroeconomic or geopolitical events impact the market. However, recoveries are typically strong and bring renewed growth and optimism,” he said.
