Kenya’s footwear market is transforming, shaped by a tremendous change in customer tastes and purchasing habits.
The upswing in e-commerce to tap into the growing middle class has made other international luxury brands rush to capture this important market segment, piling pressure on traditional stationary retail shoe stores.
But for Sheriffi Parvin Hassanali, having been in the shoe retail business since 1991, this is a welcome challenge as it keeps him awake to strategise his company’s next move.
“I didn’t know I would be an entrepreneur even though I had an interest in trading but when I landed in Kenya in 1991, friends encouraged me to explore business opportunities here and that marked the beginning of City Walk Limited,” says Hassanali, founder and managing director at City Walk Kenya Limited, a shoe retailer.
Despite Nairobi lagging in terms of modernisation compared to other developed cities he had been to around the world, Hassanali opted to settle and launch his shoe retail shop in East Africa’s commercial and financial hub.
“While growing up, I saw a shoe shop at a metro in Mumbai, India though it didn’t stick in my subconscious mind and when I came to Kenya, I noticed a gap in the shoe market and thought of replicating the metro style shoe shop in Kenya, recalls Hassanali.
He admits that at the time, he did not have knowledge or expertise in the shoe retail business, adding that his friends connected him to shoe manufacturers in India, which led him to open his first branch at The Mall in Westlands, Nairobi in 1991.
“I was the cleaner, salesperson and owner all in one,” recalls Hassanali with a smile.
Buoyed by huge customer turnout, Hassanali opened the shoe retailer’s second branch at Village Market and later at Sarova Stanley.
Hassanali admits that opening the retail chain’s first branch was very difficult as he couldn’t communicate fluently in most locally used languages, didn’t know anyone, and couldn’t master the roads, rules, regulations and laws.
The other barrier he had to deal with was clearing imported consignments at the ports of entry, which he says was slow and frustrating.
“The other headache was theft by staff and I faced this for more than 20 years. It was blocking and holding me back and I had to devise a new people management approach—change from boss to employee relations to that of trust,” he says.
Doing it differently
Compared to other businesses in Kenya, Hassanali says over the years, so many shoe retail shops have come up and closed. However, City Walk is the only Kenyan brand that has stayed open for more than 30 years and that gives him the push to keep going.
“I have seen many shoe retail shops open and close, including international brands. The shoe retail business is sensitive and challenging because as a shoe retailer, you have to stock more than 24 sizes from kids to adults,” he explains.
From one branch in 1991 to the current 32 branches with 185 staff and still growing, Hassanali attributes that growth to passion and focus.
“You cannot jump from one enterprise to another just because of challenges. You have to be consistent and have passion,’ advises Hassanali.
He adds that entrepreneurship is not only about revenues but also how much you give to your staff, customers and investment in the firm.
“When the company is growing, you have to continue feeding it for it to grow and not just depleting it,” says Hassanali.
Target market
The Indian-born entrepreneur says City Walk’s target market is the middle to higher-level middle class, which has been their strategy from the onset.
“In the retail business, three things are important – location, location, location,” says Hassanali, adding that as a business in retail space, you may have good products, but if your location is not strategic, you will not reach your target clients or market,” he says.
He says the biggest risk to his retail enterprise is the fluctuating forex because he can only adjust pricing within a profit margin, and beyond that, you start bleeding. Being a tenant, landlords don’t consider that, considering the long-term lease agreements.
“The other big challenge right now is traders importing products without paying duty, and we don’t know when it will stop,” decries Hassanali.
The importation of counterfeit products and the emergence of online shops challenge established businesses. However, Hassanali says City Walk is upbeat about the future.
Firms like City Walk might find it convenient to sign distributorship agreements and leverage leading luxury brands, but Hassanali says he is not keen on doing that.
“Honestly, I’m not keen on promoting other brands directly because City Walk is a Kenyan brand. We do not just resell other brands as they are but rather customise the shoes. In this way, customers get value for their money,” says Hassanali.
He cites US footwear and apparel giant Nike, which has changed distributors for the past 15 years in the local market. The company came knocking on City Walk’s door for partnership after failing to achieve success and growth with other firms.
“It is easy to take a brand, put your name and sell, but what happens once they take back their brand? You are left with nothing,” he says.
“Ours is a proudly Kenyan brand – born here, brought up here and growing here.”
He says shoe companies make shoes under the City Walk brand, and the latter strives to build a good relationship with manufacturers.
“For the last two years, we have also collaborated with a local shoe manufacturing company to make school shoes with soles designed by City Walk. This has given City Walk excellent customer feedback.
Hassanali says one has to look for the right manufacturers that give quality products at an affordable price and fix a margin that can meet operational expenditures and remain profitable.
Addressing cash flow problems
From day one, Hassanali says he set out not to spread ‘his legs outside the bedsheet’ and work within his means and not borrow too much, which would give him sleepless nights.
“Work within your means and utilise liquid money wisely while ensuring you invest in the right product and with proper turnaround, you will minimise cash flow challenges,’’ advises Hassanali, adding that as an entrepreneur, don’t take too much credit from banks or anyone.
“I don’t believe in taking loans. If you don’t have money, then don’t do it. On the other hand, if you have the money, see how strong you can be liquid-wise. The stronger you are, the more stable the business becomes.”
He also cautions against diverting money from one business into another because you risk depleting your resources and losing track.
Setbacks and learnings
Hassanali says that over the years, he has learnt from his mistakes, which has made him a better leader and manager of his enterprise.
“In this journey, you learn from your mistakes, and at one time, I stocked loads of old stock, which I had to sell at reduced prices.”
Hassanali says that at that point, he thought his business was hitting the ground and closing down, but luckily, they survived.
On Covid-19, Hassanali says, the pandemic was a blessing in disguise for City Walk, which opened two new branches with zero staff redundancy.
“While other establishments were declaring staff redundancy, we were hiring. We learnt that in business, challenges will always come, but you have to be strong enough to face them,” he says.
Hassanali says connecting with the people helped him at the beginning.
“In business, you have to connect with people and with that, you can concentrate on the business and profits, but without it, you set up yourself for failure.”
Growth and vision
To enhance its geographical footprint across the region and globally, Hassanali says City Walk has registered itself in neighbouring countries and also in the US, Dubai and Mauritius even as it eyes on onboard investors to enable the firm to execute that expansion plan.
“I want City Walk to grow beyond me and the next generations, which can only be possible if everything is institutionalised,” he affirms.
He adds that means bringing in someone who shares the same passion and vision as himself, which goes beyond just bringing in money.
Hassanali says despite having been in business for the past 33 years, he’s yet to constitute a board to guide him in running the expanding business.
Family businesses succession
Hassanali says that for a family business to grow beyond one generation, one needs to involve the children from the onset and pass that passion to them and if it aligns with their vision, then they will pick it up.
Hassanali concludes by giving a punchline: “Delegate responsibilities because if you don’t delegate, you won’t elevate and if you want to elevate then delegate.”
“If you want to fly, leave the branch but don’t expect to hold the branch and still fly. Believe in your wings, leave that branch and fly.”
By ELLY AKOKO