Starting her career in the banking sector, Vidushi Rana has held the position of Director of Marketing and Branding at Kiran Shoes Manufacturers for over a decade. Rana and her team are credited with successfully rebranding GoldStar and introducing a diverse range of products that appeal to various generations and fit different price segments. This pioneering footwear company, initially launched in the mid-1970s, was the first core business of the Universal Group, operating under Modern Slipper Industries Pvt. Ltd. and later Kiran Shoes Manufacturers. Since its inception, this group has grown to become the largest footwear producer in Nepal.
In 1990, Kiran Shoes Manufacturers introduced GoldStar, a mid-priced, value-for-money brand aimed at catering to more cost-conscious markets. GoldStar offers a robust range of footwear, crafted with genuine materials and Italian technology. Today, the brand is available across Nepal and India, and it’s gaining popularity in western countries, including Europe and the United States. With over 300 shoe variants and daily production exceeding 75,000 pairs, GoldStar continues to strengthen its presence in both domestic and international markets. The industry currently employs more than 3,000 individuals, of whom 80% are women.
HRM Nepal recently connected with Rana to discuss the journey of Nepal’s pioneering footwear industry, upcoming plans, challenges, opportunities, and potential threats. Here are some excerpts from the interview:
Q: As a self-made entrepreneur, how would you like to reflect on your journey in this sector?
A: My journey has been defined by perseverance, learning, and a commitment to constant evolution. Nepal’s footwear industry has always had immense potential, yet it previously lacked a cohesive approach to modern branding and scalable growth. Scaling is critical to competing in each market where we have a presence and discovering new opportunities. I take pride in the hurdles we’ve overcome – whether it was building customer trust, understanding evolving consumer needs, or competing with global brands. Watching GoldStar grow from a local favourite to a brand recognised nationally and abroad has been incredibly rewarding.
Q: You’ve encountered critical milestones while building Nepal’s state-of-the-art footwear industry. How do you reflect on this transformation?
A: Revolutionising Nepal’s footwear sector required bold steps – incorporating modern manufacturing technologies, diversifying our product lines, and building a brand people could trust. Each challenge we faced, from navigating competitive markets to managing complex supply chains, became a stepping stone toward progress. I believe our success is rooted not only in producing quality products but also in our dedication to consistent innovation, allowing GoldStar to remain a relevant and respected brand.
Q: What are your upcoming plans for expanding manufacturing units?
A: Recently, we have expanded our production line, adding various new product options and significantly investing in research, innovation, and design. This, along with a robust branding strategy, has kept us competitive. However, considering the current market scenario, we don’t have immediate plans to open additional manufacturing units. Our focus remains on maximising the capacity of existing facilities to meet market demand. Expanding production in Nepal poses significant challenges, and the business environment needs considerable improvement to support such growth.
Q: Innovation, branding, and marketing are synonymous with GoldStar shoes. Could you share some of your experiences with these aspects?
A: Innovation is central to our operation, from the design of our shoes to the marketing strategies we employ. Our branding journey has always aimed to connect our products with both function and fashion, making sure they are comfortable, affordable, and stylish. Our marketing approach emphasises listening to our customers, gathering feedback, and creating campaigns that represent GoldStar’s identity and core values.
Q: How does GoldStar position its brand in both the Nepali and international markets?
A: In Nepal, we’ve positioned GoldStar as a household name – an affordable yet durable choice for all age groups. Internationally, we emphasise the unique craftsmanship and sustainable production practices that define Nepal. By focusing on the values of affordability and quality, we are establishing our presence abroad, particularly through digital channels that increase our brand’s visibility.
Q: What makes GoldStar shoes stand out to consumers?
A: GoldStar shoes offer the perfect blend of comfort, durability, and affordability. Customers trust our products to meet the demands of Nepal’s diverse terrains and lifestyle. Our diverse range caters to all ages, creating a brand that people can resonate with at every stage of life by blending traditional designs with modern aesthetics.
Q: How do you ensure GoldStar’s product designs align with customer preferences as the brand’s popularity grows?
A: We place significant importance on understanding our customers’ needs, gathering feedback, and studying market trends. Our in-house design team collaborates with retailers and customers to tailor our products to meet evolving preferences, ensuring that each product – from casual wear to specialised sports shoes – reflects our customers’ desires.
Q: What are your branding and marketing strategies, and what is the unique selling proposition (USP) of GoldStar?
A: Our branding approach combines traditional methods with digital marketing techniques, focusing on community engagement, storytelling, and partnerships to build emotional connections. GoldStar’s USP lies in its ability to offer high-quality footwear at accessible prices, without sacrificing style or comfort. This commitment to affordability and quality has resonated with our customers over the years.
Q: How has digital innovation influenced GoldStar’s branding and marketing efforts?
A: Digital platforms have revolutionised the way we connect with our customers. Through social media, we launch products, gather feedback, and run campaigns that engage with our audience. E-commerce has allowed us to reach both urban and rural areas, and data analytics help us fine-tune our strategies and understand consumer behaviour more effectively.
Q: How would you compare traditional media campaigns with digital marketing?
A: Traditional media provides a broad offline reach, especially effective in building trust with older audiences through print and television advertisements. In contrast, digital marketing offers the benefits of precision targeting and real-time engagement, especially among younger audiences. With the advent of e-commerce and social media, we can receive immediate feedback and adjust campaigns as needed – something that traditional media didn’t allow us to do as dynamically.
Q: What challenges have you encountered running a business in Nepal, considering the country’s challenging investment climate?
A: Running an industry here has its fair share of hurdles. Issues like shoe smuggling due to the open border with India result in revenue loss and market distortion. Delays in importing raw materials disrupt production schedules, while export incentives from the government are challenging to secure. Financial planning becomes difficult when factors like export incentives are delayed, as has been the case for over three years. Poor infrastructure and inconsistent policies further add to the unpredictability, making it challenging to operate and grow efficiently.
Q: Currently, GoldStar faces export restrictions in India. What are your views on resolving this issue?
A: Obtaining the Bureau of Indian Standards (BIS) certification for export to India has been challenging. We source over 70% of our raw materials from India, adding substantial value in Nepal before exporting under the Nepal-India Trade Treaty. Addressing this issue requires sustained dialogue between the governments to reduce non-tariff barriers. Compliance with reciprocal trade provisions and advocacy for smoother regulatory processes would be instrumental. Expanding to other markets while working with trade bodies could also help mitigate these restrictions.
Q: GoldStar has also exported to the United States. What are the current challenges in that market?
A: The U.S. market is competitive, and we’ve been seeking duty-free access under the Generalised System of Preferences (GSP) within the Nepal Trade Preference Programme. However, this benefit currently excludes shoes and slippers. We are urging the government to advocate for this, as Nepali products face difficulty competing without duty exemptions. We anticipate that the upcoming TIFA (Trade and Investment Framework Agreement) Council meeting between Nepal and the U.S. might bring positive developments in this area.
Q: As the Honorary Consul of Iceland in Nepal, how are you promoting economic diplomacy?
A: In this role, I focus on creating connections between Nepal and Iceland, particularly in tourism, sustainable development, and trade. We actively encourage exchanges in hydropower, climate solutions, and education, showcasing Nepal’s potential internationally while bringing Iceland’s expertise in these fields to Nepal. Through events, delegations, and collaborations, I aim to promote mutual growth between the two countries.
