Top Story

e4m_logo.png

Home >> Marketing >> Article

Live-In to shut down own stores; plans to run on franchisees

20-October-2004
Font Size   16
Live-In to shut down own stores; plans to run on franchisees

Microtex India Ltd, part of the VIP group, is discontinuing the company-owned stores of its apparel brand, Live-In. The company is rejigging Live-In's retail plans and would focus on franchisee run stores and the distributor-led multi-brand outlet (MBO) channel to propel the mass marketed brand.

Company officials said that the decision to shut down own stores followed an understanding that it was not a "viable and profitable" business proposition.

"We are closing down most of our company-owned stores. We currently have nearly 25 exclusive stores which are run by the franchisees," they added.

The company also operates through nearly 27 distributors across the country, who will take the brand to the MBOs. Meanwhile, Microtex retails Live-In through its large format departmental store chain, Expo.

Live-In, which claims a retail sales turnover in excess of Rs 55 crore, had over 60 exclusive stores and had talked about plans to expand its retailing to cover the top 120 urban centres in the country.

A typical Live-In store occupied a space of 1,100-2,000 sq ft entailing an investment of Rs 3,000 per sq ft.

Microtex had talked about maintaining 1:2 ratio between company-owned and dealership-run stores. The brand, priced between Rs 550 to Rs 900, started off as a core denim brand before developing a sizable non-denim portfolio. In the mass marketed segment, it competed with Arvind's Newport and a host of other smaller regional labels.

The officials refuted market speculation that Microtex was scaling down operations of Live-In and was looking for an exit option from the business.

"We continue to promote the brand, and it is work as usual. We are running the brand campaign on national channels like Star Movies and SET Max, besides on regional channels."

The officials also claimed that the brand found its way to roughly 4,000 outlets even though they did not mentioned how many of them were active accounts.The South remains a strong market for the brand, which derives substantial revenues from Andhra Pradesh.

Tags

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In an exclusive data shared with e4m, Pan Masala/Zarda/Gutkha had the highest jump of 185 per cent in terms of ad volumes in the first 14 matches

Bose, who has a career spanning over two decades, was DNA’s Editor-in-Chief. He has previously been associated with the India Today Group

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compe...