With the demand for premium apparel brands increasing in the metropolitan cities, Bangalore-based Madura Garments, which has international brands such as Louis Philippe and Van Heusen under its fold, has plans to expand its network of exclusive outlets in high streets and malls.
According to company executives, the total number of exclusive stores for both the brands will cross 100 in the next 18 months.
The new stores will come up in Delhi, Bangalore, Mumbai, Chennai and Kolkata and other emerging metros. At present, Louis Philippe is available in 22 exclusive stores, while there are 25 exclusive stores for Van Heusen in major cities.
“Louis Philippe, a men’s wear brand, targets customers aspiring for status, style and high-quality luxury while Van Heusen is a lifestyle brand that attracts youngsters. Both brands are witnessing accelerated growth. We will aggressively expand the network of exclusive outlets for both brands in metropolitan cities where the demand is increasing due to high disposable income,” said Hemchandra Javeri, president, Madura Garments.
The company’s plans are in sync with other apparel brands, which have taken the exclusive outlet format. According to apparel business consultancy firm Technopak, the market is growing at 17 per cent to 19 per cent in the categories that are relevant for Van Heusen and Louis Phillipe.
“Many players in the premium category apparel are now taking the exclusive brand outlet (EBO) route to ensure better control over display and better margins in the long term,” pointed out Technopak vice-president Preeti Reddy.
“The presence of Louis Philippe will go up to 26 stores by the year-end. We will add another 15 stores in the coming days. All the stores will be of 5,000 square feet to 7,000 square feet size,” he added. During the last fiscal, the brand recorded Rs 200 crore revenue. It is expected to go up by 25 per cent this financial year.
“We are investing heavily in the metros to add another 40 stores. We are also planning exclusive stores in cities which have a population in excess of one million. We are expecting Rs 225 crore retail sales this year from Van Heusen,” he noted.
Reddy stated that the Indian retail industry is estimated at $250-300 billion and growing at a rate of 5-6 per cent per annum.
“Urban India accounts for about 45 per cent of the total retail industry. Though organised retailing accounts for only 3.2 per cent of the total Indian retail market, it is estimated to be growing at a rate of 25-30 per cent per annum,” she said.