Edging towards its golden jubilee, AI and D2C propel Paragon's legacy forward

1500 pairs of footwear; that was what Paragon produced in 1975, the year it kick-started its operations in India before developing a strong foothold in southern India. Today, the company manufactures 4 lakh pairs daily and is bullish about expanding its presence to other parts of the country.

Paragon’s evolution over the past five decades is rooted in its business strategy of developing an extensive supply chain network, which now encompasses 500 distributors across India.

“As Paragon approaches its 50th year next year, it continues to build on its legacy while adapting to the dynamic needs of its diverse customer base,” Sachin Joseph, executive vice president, marketing and IT, Paragon, told Campaign.

While the brand has extended its reach globally by establishing a presence in 19 countries, it has adhered to its USP—selling footwear at economical price points in smaller towns of the country. The company has consistently delivered products that club affordability, comfort and meet the demand for its target audience, especially in tier 2, 3 cities.

Wooing the vernacular

Since its inception, Paragon's brand positioning has been about being part of the journey of India's blue-collared workforce, which form the nation's backbone. It has worked on establishing a deep-rooted connection with this consumer base, communicating in the vernacular language that they are more comfortable with.

“While metro cities are the volume and value drivers of our top-line, our growth comes from tier 2 and 3 towns. An intimate knowledge of local preferences and market trends has allowed Paragon to tailor its products, particularly in these markets, offering comfortable and affordable footwear that resonates with consumers,” Joseph shared.

Recognising the potential in non-metro markets, it is aiming to grab untapped opportunities that will also increase its penetration in these regions. “While our major foothold remains in southern India, we are actively expanding across the country. Our expansion strategy targets the northern region, where we aim to significantly increase our penetration, as well as tier 2 and 3 cities, which offer substantial growth potential,” Joseph said, adding that it also has its eyes set on eastern markets.

Currently, it already has a robust presence in western India, and will continue to strengthen its position in this belt. This geographical expansion will be complemented by its plans to open larger outlets, exceeding 1000 square feet in various cities, which will allow it to deliver a more enhanced in-store experience.

Realigning focus

While Paragon's calling card has been that of a brand that caters to individuals, urging them to rise above their daily struggles, it did shift focus on contemporary audience. However, after reassessing this decision, the company's promoters decided to realign their attention to its original ethos.

“Our brand's new identity and repositioning was a strategic decision aimed at reinforcing our deep emotional connection with our diverse customer base. We recognised that Paragon resonates strongly with the resilient, everyday heroes of India who face numerous challenges with unwavering determination,” Joseph stated.

Thus, it came back with a campaign that reiterated its motto and vision in June this year.

 

 

 

 

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“This repositioning allows us to honour and highlight these individuals—from those battling extreme weather conditions to overcoming significant obstacles in their everyday lives. We realised that our focus had shifted towards a more contemporary audience in recent years. However, given the strong emotional bond the masses have with Paragon, we felt it was the right time to realign our brand with our core audience,” Joseph asserted.

The 360 approach

The implementation of 360-degree media strategies has been a norm at Paragon and it intends to carry this approach forward in its next growth phase. Alongside, its marketing list will be led by traditional and digital campaigns.

“The marketing campaigns are usually led by TV or print, supported by OOH and digital. We try and create an impactful presence through tentpole properties like IPL and ICC World Cup. However, our continual focus is to engage with audiences of regional media,” Joseph informed.

The marketing leader also shared that festival-specific initiatives are not just relevant but also hit the right note with its consumers. It is placing increased emphasis on hyperlocal activations and campaigns, particularly in tier 2 and 3 cities, which are designed to resonate deeply with the local audience and culture. Joseph cited the example of its topical campaigns during festivals like Durga Puja and Diwali, which he claimed were met with enthusiastic responses in these regions. 

“We are becoming aggressive in having a more targeted and innovative approach in our marketing by focusing on understanding and addressing the specific needs of our consumers. A prime example is our relaxation centre initiative during Ganesh Chaturthi, where we install free automatic foot massagers for devotees,” he added.

The tech way

With industry buzzing with direct-to-consumer (D2C) and artificial intelligence (AI) trends, Paragon is the latest player from the footwear category to hop on to the new-age tech bandwagon. Though it hasn’t directly incorporated AI in its day-to-day footwear technology, it has leveraged the new technology in certain business solutions.

It has implemented the Wooqer platform to digitise its compliance processes, audits, workflows, and communications. Joseph said that this tech solution streamlines its operations and ensures greater efficiency and transparency across the organisation.

“We use AI cameras in our retail spaces that perform heat mapping and categorise footwear interactions, providing valuable data on customer behaviour and preferences. This AI-driven insight helps us optimise our store layouts, product placements, and inventory management without saving the data of the consumers,” he added.

The on-going D2C disruption has the brand sit up and notice as well. However, it still places higher value on its retail presence, since this has a crucial role in its overall business strategy. Joseph explained that their approach recognises the complementary nature of digital and brick-and-mortar channels, leveraging the strengths of both to provide a comprehensive customer experience.

“Our D2C strategy focuses on minimising the gap between product development and in-store availability, enabling us to quickly adapt to the latest trends. We as a brand have ensured our presence on all major platforms, including Flipkart, Amazon, Myntra, and others, alongside our own website. We're seeing significant traction in our online channels, with increasing customer engagement and sales through our digital platforms,” he stated.

Innovation ahead

In recent years, Paragon has demonstrated its adaptability to changing consumer preferences by diversifying its product portfolio. In 2019, the launch of athleisure and lifestyle brand ‘Eeken' was its attempt to showcase its responsiveness to market trends while a collaboration with Disney Consumer Products (India) for a new quirky collection has proved its constant effort to innovate and bring a variety to its customer base.

Now, having identified new growth segments, the company is set to solidify its existing product portfolio with new range of sports shoes, sneakers, ladies and kids footwear. “The brand's commitment to providing comfortable, stylish, and affordable footwear has remained constant throughout the committed journey of its evolution,” Joseph said.

“We have continuous focus on product innovation with new launches planned every month throughout 2024 to meet the changing demands of the consumers. Looking ahead to fiscal year 2024-25, we have set ambitious expansion goals,” Joseph summed up.