Baba Ramdev-led Patanjali Ayurved on Monday forayed into the fast growing branded apparel segment through its brand ‘Paridhan’ and expects a sale of around Rs 1,000 crore next fiscal.
According to a PTI report: The Haridwar-based firm plans to open around 100 outlets of Paridhan by the end of this fiscal and have a network of around 500 stores by March 2020, mostly on franchise model.
It has introduced three brands — Livfit, Aastha and Sanskar– targeting customers across all age groups.
“This year, we would have a network of 100 stores ranging between 500-2,500 sq feet. We are aiming a turnover of around Rs 1,000 crore in the next fiscal,” Baba Ramdev was quoted by PTI as saying.
He further told PTI:”It would also be available online by next year. We are working on it.”
While Sanskar would be a range of menswear, Aastha is a women’s brand and Livfit would have a range of sportswear and Yoga dresses.
“Our target is to compete with multinational companies in this field such as adidas, Puma,” he told PTI adding the Paridhan range would be around 30-40 per cent cheaper and would target ordinary people.
The company may plan to have standalone store of its three brands, depending on the catchment area and availability of space, said K M Singh, who is heading the apparel business of Patanjali.
According to Ramdev, in textile industry, 90 percent sales is through unorganised segment and the branded segment accounts only 10 percent, in which there is hardly any Indian brand.
“We want ordinary people to feel proud of wearing domestic brand,” he further told PTI.
Besides, Paridhan would have a range of artificial jewellery and wedding clothes which would be at least 40 per cent cheaper than rivals, he claimed.
Range of Patanjali jeans would start from Rs 500, shirt (Rs 500-1,700). Paridhan would have around 1,100 options along with 3,500 SKUs of menswear, womenswear, kidswear, denim and accessories.
The company is sourcing from 90 vendors across India and would encourage small and medium enterprises, Singh added.
This is the ninth venture of Patanjali after entering into herbal ayurved, natural pure products, cosmetics, personal care, cattle feed and biofertilisers, dairy products and frozen vegetables and packaged water.
Patanjali, which had recorded multi-fold growth in recent years, witnessed a marginal growth only last fiscal hit by the implementation of GST, finishing at around Rs 12,000 crore.
In 2016-17, Patanjali clocked a turnover of Rs 10,561 crore, registering 111 percent growth.
DN Regalia Mall is slated to become one of the most promising retail destinations in Patrapada, Bhubaneshwar. Spread across 2,50,000 sq. ft. with two levels of dedicated fashion, lifestyle shops, restaurants and cafés along with a reputed hypermarket, the mall will be a complete shopping experience for both locals as well as tourists.
DN Regalia Mall promises a mix of national, international and regional brands for customers who seek the finer things in life. It aims to off er a unique shopping experience where the focus is on brand mix, exclusivity, space and aesthetics.
DN Regalia has INOX as their multiplex partner, Big Bazaar as hypermarket while Splash, Max, Zudio and Easy Buy are fashion anchors/mini anchors. These brands will soon commence their fit-outs in the coming months and to ensure a smooth and timely process. Beyond Square feet will be doing fit-out management for the mall.
All roads led to the rooftop of the Trident Mumbai on Sunday 28th Oct. for the launch of cricketer turner entrepreneur Shikhar Dhawan & his wife Aesha Dhawan’s home décor brand DaONE Home. Named after what his peers fondly call him, DaONE Home is a blend of elegance and practicality, reflecting everything that the loving couple holds dear in their lives.
A décor brand
aiming to make your personal space look more beautiful than ever, DaONE Home
puts the uncompromising discipline and work ethic from the cricketing career of
its co-founder into implementation. With exceptional textures, evocative
prints, beautiful tones, and luxurious materials, DaONE Home’s wide range of
products are crafted with utmost passion, helping you transform your home to
reflect who you are on a holistic and endearing level.
the decision to launch the brand, Shikhar Dhawan, Co-founder
– DaONE Home, said, “Our homes are a natural extension of our own
personalities, a reflection of our preferences and tastes. When Aesha and I
were setting up our home, we realized the challenge that most Indians face when
it comes to getting their living spaces to reflect their identities. While
there were plenty of options available to choose from, no one place could give
us the kind of comprehensive, end-to-end satisfaction that we were looking for.
DaONE Home is our endeavor to address this major market gap.”
DaONE Home, added, “When we tied our nuptial knot and vowed to remain
alongside each other all our lives, Shikhar and I promised to not let go of our
strong individual identities. We envision our home as a place where that
promise is reflected, where our entire family can flourish. This feeling of
togetherness, family, and identity is at the core of what we aim to do with
DaONE Home. With our home décor brand, we intend to make homes across India
look exceptional, individualistic, thoughtful, and aesthetically pleasing.”
beautiful collections such as White Marvel, Moonstruck, Honey Grey, Heirloom
Natural, Boho Blue, Boaster Flicker and Feminine Neutral, DaONE has lovely
upholsters and soft furnishings such as bed linen, cushions and table linen
available presently. The collections can be surfed through and purchased online
Shikhar also serenaded us all with an impromptu performance on the flute
Reliance Retail’s target is to open more than 6,000 outlets pan-India with a top-line potential of roughly $20 billion by FY20-end.
In the quarter gone by, Reliance Industries reported a mixed performance at the consolidated level. While the refining and upstream oil & gas segments bore the brunt of rising crude prices, petrochemicals registered healthy top-line growth and margin improvement. However, what stole the show was the momentum observed in the retail (Reliance Retail) and telecommunication (Reliance Jio) divisions.
Mukesh Ambani, in his address to Reliance Industries’ shareholders in the FY18 annual report, set his vision to ensure that the revenue contribution of these consumer-centric segments is on par with the non-consumer ones (refining, upstream oil and gas, petrochemicals) over the next decade. Consequently, a major shift in the conglomerate’s long-term strategy, which is aimed at tapping markets and consumers across the country, is worth taking note of.
Since B2C segments are steady in nature and also happen to be less volatile to economic/global/commodity uncertainties in comparison to the B2B segments, prospects of revenue and earnings visibility are likely to be better.
Furthermore, it is pertinent to understand the synergies that Reliance Industries could derive by integrating the customer base of Reliance Retail and Reliance Jio. For instance, a Jio user can get good deals on purchasing products from the online platforms or brick-and-mortar stores of Reliance Retail, whereas Reliance Retail can leverage its deep pan-India presence to increase the number of Jio subscriptions through various offers.
While Jio’s entry in 2016 changed the landscape and dynamics of India’s telecom industry dramatically and structurally, Reliance Retail could possibly do the same on the retailing front. So, what’s in store for the retail mammoth in times to come?
About Reliance Retail
Reliance Retail is India’s biggest multi-category product retailer in terms of store network and sales.
As on 30th September 2018, Reliance Retail operated 9,146 stores with an area of over 19.50 million square feet and 512 petro outlets.
Q2 FY19 review
Accelerated store additions and healthy demand across all consumption brackets caused revenues to more than double year-on-year (YoY). Reliance Retail clocked sales of Rs 32,436 crore in Q2 as against Rs 14,646 crore in the same quarter of FY18. 138 new stores and 535 Jio Points were added during the quarter.
Margins for the quarter stood at 3.8 percent, up 155 basis points YoY, on account of operating leverage.
The path ahead
For Reliance Retail, most of the incremental revenue growth in the coming fiscals will be driven by aggressive store additions across all segments (lifestyle, grocery, white goods, fuel, connectivity). Extensive use of omnichannel (i.e. a blend of online and brick-and-mortar retail) will be important in widening the market reach. Therefore, top-line traction is expected to be intact.
In the case of apparel and consumables, the share of private labels to annual turnover is likely to increase gradually too. Besides enhancing brand and product visibility, the move should aid margin accretion owing to economies of scale and lower procurement costs.
With more than 50 million customers already covered under loyalty programmes, a lot would depend on how Reliance Retail capitalises on its strengths to achieve higher conversion-to-footfall ratios. Should it succeed in this regard, the improved asset turns will have a positive rub-off on the financials.
In the case of fuel retailing, top-line growth will be volume-driven. Commissioning of new outlets, coupled with re-commissioning of existing ones, would be the factors to watch out for.
How big can Reliance Retail be?
Amid economic uncertainties at the domestic and international level, consumption theme, being the most secular in nature, has been the Street’s favourite. Unsurprisingly, valuations of most retail stocks, even after witnessing sharp corrections of late, continue to trade at elevated multiples.
In the context of Reliance Retail, this fact assumes even more importance considering its huge revenue base, large store count, growing contribution to Reliance Industries’ consolidated sales in the recent past and an ambitious plan going forward.
Its target is to open more than 6,000 outlets across the nation with a top-line potential of approximately $20 billion by FY20-end. If this goal is achieved, Reliance Retail could capture roughly 5 percent of India’s fast-growing retail market.
Given Reliance Retail’s growth pace in the past, this objective seems achievable. In the last 5 years, it has been consistently expanding at the rate of more than one new store each day and footfalls at outlets have nearly doubled every 2 years. It also enjoys the first-mover advantage in many cities.
If the recent quarterly results of Reliance Retail are anything to go by, its margins could, at the very least, be in the range of 4.5 to 5 percent by the end of FY20.
Reliance Retail has been valued using the market cap to sales methodology to understand its significance to the parent company (i.e. Reliance Industries). We considered the median market cap to sales multiple of India’s leading retail names for our analysis.
Using a market cap to sales multiple of 3, we derive the value of Reliance Retail at Rs 3,73,668 crore, which is close to 56 percent of Reliance Industries’ current market capitalization.
If we exclude the retail portion, Reliance Industries’ market cap stands at approximately Rs 4,13,826 crore. Reliance Retail’s valuation, in this case, would be almost similar to all the other segments of Reliance Industries put together.
So, if Reliance Retail is able to earn better margins, its market cap to sales multiple will witness a re-rating. This could be a major game changer for Reliance Industries and drive its valuation upward.
What also sets Reliance Industries apart from the rest is its increasing focus on futuristic businesses. The company, through its wholly-owned subsidiary, acquired 12.7 percent stake in SkyTran, a high-speed public transportation (through magnetic levitation) company.
In due course, we see a lot of steam in Reliance Industries on the back of initiatives undertaken by it in synergistic domains (stake acquisitions in Den Networks and Hathway), consumer-oriented consistent growth verticals (Reliance Retail, Reliance Jio) and differentiated technologies (SkyTran). Investors should, therefore, keep a close eye on how developments pan out on the organic and inorganic fronts.
If you have a Software as a Service (SaaS) idea that you passionately want to see the light of day, you might want to seek out The Lean Apps, a company that calls themselves a ‘startup for startups’. Taking an idea to MVP to the stage of investment and beyond, they have worked with over 20 startups in retail, music, insurance, health and telecom sector, worldwide.
The Tech Panda spoke to Gaurav Soni, the co-founder of Lean Apps, which is currently focussing on its retail product Infinia Retail. Soni speaks about the challenges in the Indian retail market and the need for building customer relations.
While online stores offer better pricing, he says, the actual attraction for a customer is still the experience. While blockchain and AI are celebrated for transparency, in the end, a customer returns for a good experience. Infinia’s focus in the coming five-ten years will be to build products that help retailers in enhancing the experience.
“The physical retailer today is not connected to the customer. They don’t focus on returning customers, their likes and preferences, or offer them personalised pricing. The customer is nowhere in the picture in the overall transaction journey,” he says.
Challenges in the market
While the retail segment in India presents stiff competition, particularly in terms of profitability and margin received from Original Equipment Manufacturers (OEMs), the biggest challenge, Soni says, is the customer mind set.
“Retailers are still not ready to invest much on technology. Enterprise Resource Planning (ERP) and accounting system products, like Tally and Busy, are already being used for years, but when it comes to mobile apps, AI, or AR, India is taking a long time in deciding whether they want to go towards technology or are focusing on enhancing in-store customer experiences. They tend to believe that if a customer is coming, he/she will anyhow buy. We want to bring the market to the level where they start focusing on building a relationship with customers and focusing on the experience,” he says.
Another challenge the retail market faces is the adaptation of technologies. Rising real-estate costs in retail and high inventory-holding cost are leading to shrinking stores. Still, retailers are not analysing predictability of sales based on customer demands. Inventory availability across stores often becomes a big challenge for retailers. Infinia plans to connect the systems that are already there.
How it started
Soni started The Lean Apps three and a half years back with two of his co-founders. They started by helping startups, providing them business consulting and services for building their products, which include many mobile app developments. Working with enterprises and startups, they built a team of around 50 people in India. After they started generating a good amount of revenue in terms of business in services, they took the direction they always wanted to take, towards products, and that’s where Infinia Retail started.
They started building products to enhance customer experience in offline stores with both a technology and a business perspective. “In Infinia, the focus is the retail industry. The retail industry is an ecosystem with an online as well as an offline world, which are converging. The customer is looking for a seamless experience whether its buying online or offline. However, there is a huge gap in the way production happens online versus offline. So we started focusing on enhancing the experience of the customer in offline stores,” he explains.
Currently focusing on Infinia, Soni is helping it grow in India and Europe with his partner. They have also started trying to get into other geographies like Middle East, Europe, and the Asia Pacific region. “Presently in the validation state, we are building products based on customer problems and validating it with our customers. Once we know what the exact problem is, we can scale up on it,” he says.
How it works
Infinia is a SaaS offering for retailers to help them enhance the customer experience in their store, leading to increase in sales. A customer’s journey starts when he/she walks into a store and inquires about a product. Typically, with products like furniture, TV, or clothes, they want to see it and feel it, so they go to the store and inquire about the product.
The challenge is that the associate in the store talking to customers doesn’t know their intent to buy, which often leads to lost sales. Contrary to that, in online shopping, like Amazon, customer behaviour on the website, which includes time spent on the product page, reading reviews, adding to cart, helps know the intent to buy. In an offline store, the associate is the touch point for the customers. However, when customers walk out of the store, this associate doesn’t have the opportunity to take details like contact number, e-mail address, to connect with them online or offline.
Infinia helps the associate capture a quick lead on the customer, associating him/her with the product he/she was looking for. This product information goes into Infinia’s AI amd ML based cloud, forming a customer database.
As Soni explains, “It’s akin to adding a product to the cart. An online store can pursue you via e-mails, giving you offers and recommendations. Using Infinia, an offline store can do the same. So you have an e-commerce platform, through which, the store can send a link to customers, which they can click and collect. The product can be delivered and the store can collect the money at doorstep.”
Their core forte being retail, the company plans to expand in the products they are focusing on. They are also moving on to voice-based products and AR, because they are also targeting the European and the US market.
“The intent is to make voice-based products, because 60-70% of searches in the next three years will be on voice. We’ll start using the AI, AR, and voice technologies to work on enhancing customer products,” Soni says.
They are also looking at building B2C products to help customers interact with the brand, allowing them to better review the brand. “We want to build something similar to Zomato in retail. Whether you want to buy shoes, jewellery, or a TV, you can look at the nearest store locations, the store’s review, compare the price with online prices, on the same app. Then, you can decide if you want to buy online or offline. So you initiate the buying decision, and it becomes a referral program. So for us, everything becomes uniform. The customer can see everything in one place and then decide,” he says.
The men’s occasion wear market is witnessing a great progression. The way men approach fashion and personal style is evolving from what it used to be. Today, men are far more aware of their choices. Previously, they lacked options and had no choice but to opt for simplicity when it came to occasion wear. This trend has changed drastically and come festive and wedding seasons, the men’s formal wear market will be brimming with exhaustive fashion and accessories collections.
With growing awareness of global fashion trends, a growing middle class and rising disposable income, the men’s occasion wear market in India is witnessing aggressive growth. Domestic and international brands are taking advantage of this growth, with domestic brands becoming stronger and international brands raising the bar with better pricing and product offerings.
The men’s occasion wear market is transforming into a very detail-oriented, fashion conscious segment. The segment that can be classified into ethnic and western wear. These include sherwanis, Jodhpuris, bandhgalas in ethnic and suits, mandarins, tuxedos, shirt coordinates and formal party shirts dominating the western formal men’s wear segment.
Surya Suri, Founder, Steele Collection says their collections are always in line with current market trends and are developed after a thorough understanding of customer needs.
“The men’s formal wear brand that was launched last year is an experiment with new trends and prints in our suiting range, which are appreciated a lot by younger customers,” he says.
One trend which is quickly catching on this season are multitude transformer suits which have convertible features and menswear brands are highly banking on its success.
“Multitude transformer suits is the statement Blackberrys is making this Fall. These are multi-occasion suits with detachable lapels as their main selling point. The focal idea of the suits is to enable men to make a swift transition from the business look to the party look. The detachable satin lapels ensure the one outfit meets both requirements,” says Suvarna Kale, Head of Design, Blackberrys.
Narinder Kaaur, Head of Design, Turtle, concurs saying that their brand’s style statement for this season is ‘detachables’ as well.
“A jacket or a suit with detachable waistcoat, lapel and scarves gives a multi-utility factor to an attire, and that’s our focus this season,” she says.
Key Growth Drivers
According to a study by Technopak, the Indian economy, one of the fastest growing economies of the world, is witnessing major shifts in consumer preferences. Increasing disposable income, brand awareness and increasing tech-savvy millennial population are the driving factors of corporatized retail within the country. Overall, Indian retail scenario has shown sustainable long-term growth compared to other developing economies.
The study states that the Indian retail market was worth Rs 41,66,500 crore (US $641 billion) in 2016 and is expected to reach Rs 1,02,50,500 crore (US $1,576 billion) by 2026, growing at a Compound Annual Growth Rate (CAGR) of 10 percent. It is envisaged that the current fashion retail market worth Rs 2,97,091 crore (US $46 billion) will grow at a promising CAGR of 9.7 percent to reach Rs 7,48,398 crore (US $115 billion) by 2026.
One reason that the occasion wear market stands out amid these impressive numbers is the growing awareness of global fashion trends has been fueled by deep Internet penetration and the fashion and lifestyle media in India. As a result, the middle class and the young population of the country are extremely trend conscious.
Rising disposable income among in India among the middle class has led to a change in their preferences. Indian consumers are now no longer limited to shopping based on needs.
Also, need-based shopping has graduated to occasion-specific shopping. Today, a consumer’s wardrobe has different attire according to specific occasions. The consumer is concerned about his image and is willing to dress up according to the occasion. This has resulted in increased spending on occasion wear.
Various brands and retailers have also made sure that there are plenty of choices available for the consumer across various categories, which was not the case traditionally. Most brands have extended the product offerings to capture a higher share of wallet making it easier for the consumer to find the product suitable for a specific occasion..
Today’s men have started shopping for occasion wear more regularly than hitting stores only during festivals or weddings, once a year. Since Indians celebrate more than just festivals, clothes play an integral role in every occasion and there are brands upon brands to choose from for men, a change in their shopping behavior has been observed over the last five years.
Higher disposable incomes, nuclear family set ups and being fashion conscious have also brought about a great change in the spending pattern of modern men.
Ravi Gupta, Co-Founder, Gargee Designer’s states that five years ago, the consumption pattern in metros and mini-metros was poles apart. “Thanks to the mall culture, pop-up shops and online shopping platforms, the difference has reduced to a large extent. Now the people of smaller cities are equally exposed to fashionable outfits and moreover, they are ready to invest in such clothes. Smaller cities are growing markets for brands like ours. Meanwhile, metro cities are at a saturation point, they are areas where we already know our target customers and cater to them every season.”
Blackberrys’ Kale adds, “Metros cover all our ranges – from formal to occasion wear. In non-metro cities, occasion wear suits lead sales. 40 percent of the consumption happens in metros and the remaining 60 percent consumption occurs in non-metro cities.”
Steele Collection also receives an overwhelming response from metro cities, while Success observes more consumption in metros than in mini-metro cities.
“The Indian consumer is growing conscious of premium and super premium apparel products and is more willing to pay for the same. Upwardly mobile and wealthy Indians for whom money is often secondary to looking their best are eager to dress in a signature style. We provide such customers with signature styles,” says Suri.
According to Sumit Dhingra, CEO, Arrow, the occasion wear market is still dominated by the non-branded sector and made-to-measure stores, but brands are also picking up fast on the opportunity.
“We have seen Arrow suits and blazers sales showing healthy numbers especially during wedding and ceremonial periods,” he says.
The Indian men’s wear market is approximately Rs. 1,51,551 crore today. This includes apparel such as shirts, trousers, suits, winter wear, t-shirts, denims and others including innerwear, according to Steele Collection’s Suri. Of this, approximately Rs. 1.51 lakh crore is the size of the formal wear segment which is 10 percent or a little over Rs. 15,000 crore.
“Over the next eight years we expect the size of the men’s formal wear market to expand by 15 percent while the size of the entire men’s wear apparel market is expected to grow at a healthy rate of 10 percent. So, by 2026 the annual revenues generated by the men’s wear market in India will be Rs. 2.96 lakh crore and the revenues generated by suits, jackets and tuxedos will be approximately Rs. 44,000 crore,” he adds.
“Currently the majority of men’s apparel sold in India is sold in the unorganized sector. But gradually as consumer demand for high quality apparel increases we expect the demand for branded apparel to increase. The unorganized sector today is 60 percent of the entire men’s wear segment while the remaining space is occupied by organized and branded players. Today, the organized sector’s revenue from sales of formal men’s wear apparel including suits, jackets and tuxedos is 10 percent of the entire organized or branded menswear apparel segment,” he further states.
He adds that Delhi-NCR has tremendous potential for a high-end apparel label like his. Apart from the Indian capital, Steele Collection has seen great potential in cities such as Mumbai, Bengaluru, Chennai and Pune. Chandigarh is another destination, where Suri believes Steel Collection can serve fashionably astute clients.
Competition & Opportunities
“The size of the men’s formal wear market is ever growing. In the present context the credit goes to Bollywood and more recently TV shows, which have always played a significant role in determining ethnic fashion trends. Better access to entertainment in addition to the explosion of e-commerce sales means that people in cities of any size now have both trends and purchasing ability. And that’s the reason the future of formal wear is bright and blooming,” says Ravi Gupta of Gargee Designer’s.
“As far as the organized and unorganized market is concerned, the former is a long term player which understands the value of branding and works with a set of skilled professionals, while the latter are seasonal players who don’t last long in the market because of their unplanned work and limited scope of design sense,” he explains.
Rajnish Sethia, Director, Success adds that there is a huge growth potential in this segment. Both the organized and unorganized market for occasion wear is doing well, both the markets run parallel and they have their own set off customers.
Meanwhile, Kaaur says that there has been a shift in the past few years from the un-organized and tailored occasion wear market to the organized ready-made occasion wear, where people are happy to come and chose from the variety that retailers have to offer. Moreover, with international brands coming in, the men’s festive and occasion wear segment has gotten more competitive though domestic brands have not been greatly affected.
“This is because international brands do not specifically cater to the occasion wear segment, as this segment’s needs are very specific in terms of colours, cuts and textures,” she explains.
Domestic brands have the upper hand where the ceremonial occasion wear segment is concerned, opines Kale, since international brands have higher price points. Sethia agrees with this saying that international brands are more into business wear and casual wear segments, than occasion wear.
“International brands have actually helped customers in exploring ready-to-wear offering in the suits and blazers category. Due to this competition, the ready-to-wear brands have improved their merchandise over a period of time,” explains Dhingra, adding,” Although international brands come with offerings at edgy price points and latest trends, but their retail presence is limited against local competition.”
Product Offerings: Customization & Innovations
Arrow has a 167-year long heritage of shirts and the brand has been known as an expert shirt maker since 1851. It has been pioneering product innovation and known for its consistency of delivering future products to its consumers, be it auto press shirts, stitch-less shirts, iconic white shirts, auto flex trousers and even 4-in-1 shirts.
“We work on the concept of the shelf calendar which is very detailed from the beginning of the season. We are not into bespoke tailoring as of now, but we give personalized customization offerings,” says Dhingra.
Sethia on the other hands say that the USP of his brand Success is innovation. “With an in-house production unit, factories equipped with state-of-art machineries and skilled labour, our product innovations are so fast-paced that the time taken for a design from visualization to rack is very short compared to other brands,” he expounds.
Meanwhile, a brand like Gargee Designer’s uses its tailoring process to combine traditional methods with the modern approach in a bid to offer their clients a grand collection of high-end suiting and fine shirting. Every outfit the brand produces is customised with utmost attention to provide the wearer with flawlessly crafted clothing.
“We have quite a strong online presence as well, with approximately 12,000 and 2,50,000 followers on Facebook and Instagram respectively. Our out-of-box approach with a touch of traditionalism, progressive vision and technical strength has got us to a different benchmark of custom tailoring,” shares Gupta.
For Blackberrys’, the fit what differentiates the brand from others. The brand’s F3 range is one of its key innovations and its luxe suits are crafted from European fabrics with premium linings and fusing. “Our slim fit and Phoenix fit are perfectly crafted for Indian males,” says Kale.
According to Suri, Steele Collections is all about sustainability and ethical manufacturing techniques.
“We try and utilise the most cost effective production techniques that are environment friendly. We also employ ecofriendly trims like corozo buttons. We also offer made-to-measure and made-to-order services for our premium customers and have plans to coming up with MTM Events with the finest international designers and pattern masters,” says Suri.
No wonder then that the men’s apparel segment is estimated to post an annual growth rate of 8 percent by 2020, growing to US$19 billion as per Euromonitor International.
Pepperfry, the online furniture company, is giving a big push in its latest 360-degree campaign ‘Diwali Toh Sab Ke Liye Hai’ for which it has allocated Rs 20 crore
After a decent response to ‘Why Wait for Diwali’ Pepperfry is back with their Diwali campaign known as ‘Diwali Toh Sab Ke Liye’ where it showcases that it has something for everyone. Through this it looks to assert itself as the market leader in the category, as spelt out by its CMO Kashyap Vadapalli.
He explained, “We have product for every kind of use case, demographic, design and price point. The point we are trying to make is that we are specialists in the field. That’s a claim not everyone can make. Our understanding of the category has evolved on the basis of lots of data we have acquired in the last six years. Also, it has a strong festive touch from creator perspective.”
The 360-degree campaign which happens to be substantially bigger than the previous one ‘Why wait for Diwali,’ will run till November 10. Pepperfry has allocated Rs 20 crore for the same.
With big investment the target is also bigger this year. Vadapalli informs, “In the last couple of years Diwali month brings around a jump of 60-80 per cent over the previous quarter. With this push we should be able to get 100 per cent jump. As a business we are growing 75 per cent y-o-y.”
The media plan is specific to each market. Vadapalli shares, “We are doing radio and cinema in top six cities, outdoor in Mumbai, Pune and Hyderabad. TV is national (English Entertainment, Movies, English Infotainment, and select regional HD/SD channels/properties). It’s a big push from our side. If we generate additional interest in the brand and bring it top of mind during festive season then opportunity for growth is huge. This is not only online through our app but also from stores.”
On ground Pepperfry has planned events like stand-up shows and musical nights at their Pepperfry Studios (stores) in Delhi and Bangalore across three weekends before Diwali. “The traffic and conversions from these cities are fantastic for us. It’s about getting people to understand in greater detail of our offering.”
The creatives on YouTube, TV and cinemas will be refreshed around October 22-23, Vadapalli informed. “Radio and outdoor will remain same. We looked at every market and decided media activity accordingly,” he said.
The television commercial has been conceptualised by Law and Kenneth Saatchi and Saatchi. It captures how people from different age groups, varied walks of life and diverse communal beliefs celebrate the joyous occasion of Diwali in different ways. Whether it is a family celebrating over dinner, group of friends bonding over a game of cards, a woman getting dressed for a party, or the varied reactions children have to firecrackers, it portrays countless aspects of the festivity and depicts how the concept of home goes beyond mere spaces to spark a feeling called home for everyone.
“The story is about the people in the ad not the furniture, here the objective is to not give attention to the category (since it’s already there) but we have just the right product for you,” Vadapalli signs off.
KOLKATA: Kolkata-based value fashion retail chain, CityLife Retail plans to open 40-50 stores every year to become a sizeable player in smaller towns and raise funds by diluting minority stake to a private equity player.
The chain has also roped in actors Rajkummar Rao and Shruti Haasan as brand ambassadors ahead of the festive season. CityLife, which competes with V-Mart, currently has 106 stores spread over 13 states with an average store size of 10,000 square feet focussed on tier t ..
India’s retail sector is projected to grow to $1.3 trillion by 2020 from the level of $672 billion in 2017, said Anuj Kejriwal, Managing Director & CEO, Anarock Retail.
“The India’s retail sector is on a faster roll than ever before and the boosters acting on retail sector are rapid urbanisation and digitisation, rising disposable incomes and lifestyle changes, particularly that of the middle-class,” he explained.
Over the last two decades, the Indian retail market witnessed phenomenal changes, evolving rapidly from traditional shops to large multi-format stores in malls offering a global experience, and on to the highly tech-driven e-commerce model. According to Kejriwal, these changes have resulted in unprecedented growth in overall consumption with numbers suggesting that consumer expenditure in India is expected to almost double to $3,600 billion by 2020 from $1,824 billion in 2017.
Another highlight of this growth story is that organised retail is gaining ground. Growing significantly at a CAGR of 20-25 per cent annually, organised retail penetration is expected to be over 10 per cent of the total Indian retail market by 2020 as against just 7 per cent currently.
The organised retail market is estimated to increase to 19 per cent across the top seven cities during the same period from the current 9 per cent.
High demand for a superior customer ‘experience,’ penetration of big brands into smaller towns and cities, enhancement in business strategies and operations, along with the movement from unorganised to organised business have been key factors driving this growth.
Furthermore, liberalisation in FDI policies by the Centre has repositioned the Indian retail sector on the global map, attracting a large number of global retailers into the Indian diaspora and further fuelling growth of organised retail in the country.
The government’s decision to allow 51 per cent FDI in multi-brand retail and 100 per cent FDI in single-brand retail under the automatic route is the icing on the cake which has attracted giants like Walmart to make a foray into India. By easing the FDI norms in the retail sector over the past few years, the government has hit the bull’s eye.
The introduction of the Goods and Service Tax (GST) as a single unified tax system in July 2017 was another major policy overhaul that is attracting foreign players. The government’s move to provide a single-policy framework for retail, FMCG and e-commerce in order to offer a level playing field to stakeholders is another step in the right direction.
Animation International India has got the licensing and merchandising rights of comic legend Charlie Chaplin. This will help his fans to get their hands on a wide range of products based on him.
“Chaplin is a dream come true for our team. We have all grown up seeing him, loving him and wanting a piece of him. Now that chance has come for us to not just create some innovative merchandise around Chaplin, but also to share it with his fans,” Nitin Kalra, Director, Animation International India, said in a statement.
Animation International India, part of the four-decade-old Animation International Limited (Hong Kong), has been instrumental in launching the licensing programmes for Marvel, Hello Kitty and many iconic brands in India over the last 14 years.
The company will be the master licensee for Charlie Chaplin across all SAARC countries and across all categories and events.