Tirupur-based Royal Classic Group is gearing up to strengthen its flagship brands in the Indian market. While Classic Polo, specialising in men’s wear, will witness retail expansion, Smash, an innerwear brand, will have heavy media presence. Though Classic Polo has been around for over four years now, Smash was introduced in the market in April this year.
According to Anand Aiyer, Brand Head of Royal Classic Group, the company was committed to brand building. “We have invested close to Rs 4 crore this year for brand building and will invest the same amount, if not more, for our new brand Smash. Both are positioned as premium brands available at affordable prices,” he said.
Although Percept/H handles creatives for both the brands, the company is on the lookout for a new agency for Smash. Initiative will continue to handle media buying for the company. The total ad spend for both brands combined will figure in the region of Rs 8-10 crore.
The focus of the group is to expand in the domestic market by increasing the number of exclusive retail stores. Said Aiyer, “Last year, we focused on backward integration to increase the production capacity. This year, the focus is towards front-end expansion.” He further mentioned that the domestic market had matured sufficiently to accept valuable added products at higher price.
Currently, there are eight exclusive stores in Bangalore, Vizag, Coimbatore, Hyderabad and Indore. Apart from opening two new stores in Pune, the company has an aggressive retail expansion plan for 2005-07, with a target to reach 50 exclusive retail stores.
Over the next two months, the target cities for exclusive stores will be Indore, Calicut, Trishur, Kochi, Mysore and Chennai, followed by northern and eastern markets. The two strategies for expansion are ‘company owned stores’ and franchise-operated and managed stores.