- Posted on in Fashion
No. of Franchise Outlets:100
Investment Rs.20lac 50lac
Around the globe, Van Heusen is a brand that is patronised by average office goers. However, in India, it is at the premium end of the apparel segment. The brand from Madura Fashion and Lifestyle is shedding its formal tag for diversified portfolio including women apparel range, footwear and even a sportswear line.
To complement this diversified portfolio, the company has integrated its supply chain to ensure that it reaches the retail shelf in the shortest time period.
Vinay A. Bhopatkar, Brand Head, Van Heusen, “This (fiscal) year overall has been under pressure as footfalls have dropped for most players. We are building a buffer against slowdown with a diversified portfolio to create consumer interest.”
Madura Fashion and Lifestyle is the branded apparel business of the Aditya Birla Group. Van Heusen operates in India under license from Phillips Van Heusen, US.
Pointing that youth and women’s apparel range will be key growth drivers, Bhopatkar said both these are emerging categories.
The brand will roll out the 1,000-1,500 sq ft size new stores mainly in cities such as Aligarh, Bareilly, Bhilai, Guntur, Warangal and Tirupati and north east region.” Depending on the city and location, these new stores will require an initial investment of Rs 20-25 lakh each,” Bhopatkar said. He said it takes about 18-24 months to break even and book profits, he said.
He also said the Van Heusen will be retailing women’s western wear with a price tag of Rs 2,000 onwards. Besides, it will also be bringing out a limited edition series priced Rs 4,000-Rs 9,000. It will include shoes and accessories to complete the style quotient.
“We expect the women’s wear to contribute almost 8-10 per cent to the total turnover,” Bhoptkar said. Van Heusen had reported a turnover of Rs 800 crore last year and is looking to close the fiscal with 10-12 per cent growth.
The company said these stores will sell 4,000-5,000 styles of ready-to-wear apparels comprising of office wear, casual wear, party wear or ceremonial wear, making it a complete lifestyle brand.
Also on cards is to increase the number of stores for its cheaper sub-brand V Dot, Van Heusen Sports and its accessories business. V Dot stores are largely targeted at youth while Van Heusen Sports will sell casual wear.
Bhopatkar said the company is looking to move forward through planned retail and product expansions.
“We will be adding 40-50 franchise stores in the current year. These will be largely in tier 3 and 4 cities which have not reached saturation levels yet,” he added. There about 200-odd mono-brand stores, 350 counters in large format stores, besides significant presence in multi-brand retail formats.
He said the company which has so far been undertaking brand wise sourcing has centralized it as part of its leaner inventory management model.