{"id":1992,"date":"2007-01-31T12:42:00","date_gmt":"2007-01-31T12:42:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=1992"},"modified":"2022-09-15T08:11:12","modified_gmt":"2022-09-15T08:11:12","slug":"shakeout-in-store-in-branded-clothing-space","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/shakeout-in-store-in-branded-clothing-space\/","title":{"rendered":"SHAKEOUT IN STORE IN BRANDED CLOTHING SPACE"},"content":{"rendered":"\n

\n By MOLSHREE VAID, CNBC-TV18
\n 31 January 2007 <\/i> <\/p>\n

\n

After FMCG, now the second biggest retail category – the Rs \n 19,000 crore branded apparel sector is sizing up the changing \n retail scenario. While retail brands like Pantaloon are upping \n brand spends and big chains like Reliance are expected to launch \n private labels, branded players like Wills need to look at ramping \n up distribution strategies and tap new segments like women’s \n wear and accessories.
\n
\n Pantaloon’s mass casual wear brand DJ&C, endorsed by Himesh \n Reshammiya was one of the big winners at this year’s Republic \n Day Sale. Within three months of its launch, Pantaloon claims \n DJ&C has become a Rs 150 crore brand. Not surprisingly, \n it and 27 other Pantaloon-owned brands like Jealous 21 & \n UMM will by getting a big marketing push. A sizeable chunk of \n its Rs 200 crore advertising budget will be earmarked for them. \n This is also because Pantaloon wants to stock these brands in \n stores and chains beyond its own. <\/p>\n

Managing Director, Pantaloon Retail, Kishore Biyani told CNBC-TV18, \n “We want to do Rs 30,000 crore by 2010, Rs 10,000 crore needs \n to come out of the fashion business. It can’t come by only selling \n other people’s labels – we want to build up our own labels into \n brands, which can compete with any national brand in the country.” \n <\/p>\n

In the last 10 years, retailers have seen volumes come in \n courtesy private labels or store brands. This pads up the bottomline, \n as well as offers 15%-20% higher margins than regular brands. \n Tata-owned Westside built its business on the back of private \n labels. The multi-branded Shoppers’ Stop rakes in 1\/5th of apparel \n sales through store brands. It has moved up from the competitively \n priced shirt to fashionable and upmarket designs. It even claims \n to be making headway in western menswear, the original bastion \n of branded apparel.
\n
\n Managing Director, Shoppers’ Stop, BS Nagesh explains, “Tradtionally, \n more branded players in the men’s category are advertised. So, \n it’s difficult to move up in private labels in the men’s category. \n We felt so in the first 5-6 years of operations but in the last \n two years, we actually find we have a brand called Vittorio \n Frattini that has done well; Life’s done well in casuals for \n men, so now we find it easier because the customer is trusting \n us – not only for basics but also for fashion – and we are competing \n with the brands in the stores.” <\/p>\n

With an obvious shift in the balance of power in favour of \n big retailers, apparel brands from groups like Raymond and Arvind \n are expanding their retail operations. While a brand like Van \n Heusen may not increase its adspends, but will invest on a tailor-made \n shopping experience at shop-in-shop counters or exclusive stores. \n <\/p>\n <\/div>\n

\n
\n TABLE: BRAND BOUTIQUE<\/b> <\/p><\/td>\n \n \n \n
BRAND<\/b><\/td>\n Retail \n Turnover (Rs Cr)<\/b><\/td>\n <\/tr>\n
\n Madura
\n Arvind
\n Raymond
\n ITC
\n Blackberry<\/b><\/td>\n 		\n 600
\n 450-500
\n 270
\n 180
\n 90-100 <\/b><\/td>\n <\/tr>\n <\/table>\n <\/div>\n
\n

Pinched by high rentals in metros, brands like Cottons by Century, \n are also looking at smaller cities to expand their retail footprint. \n They are wooing mom-and-pop apparel stores and small multi-brand \n outlets to become their sole franchisee. Also, the brands are \n broadbasing. Wills Lifestyle launched a premium range under a \n tie-up with designer, Manish Malhotra. Louis Phillipe has entered \n sub-segments like luxury, formal and casual wear, Allen Solly \n is offering accessories like bags and shoes, and Arrow has started \n womenswear. Clearly, in the middle of this retailer-manufacturer \n tussle lies a fashion product, that needs innovation every season. \n Analysts say, there’s scope for brands to survive and thrive.<\/p>\n <\/div>\n <\/div>\n

\n

\n CEO, Third Eyesight, Devangshu Dutta says, “Women’s \n wear and children’s wear are difficult categories. Therefore, \n given a choice, I think the retailer would let suppliers handle \n the category and create a brand. So there exists an opportunity \n for branded players to create a footprint across markets, using \n the retail footprint of larger retailers for the launch.”<\/strong> \n <\/p>\n

But analysts expect a shakeout in the branded space, which \n remains pretty fragmented. The largest player, Madura commands \n barely 2% of the market. Here again, retailers like Pantaloon \n and Reliance are snooping around for buyouts or strategic alliances. \n <\/p>\n

Both retailers and standalone brands are also trying to outdo \n each other by roping international brands into their stable, \n whether it’s Shoppers’ Stop tying up with Mothercare or Madura \n getting Esprit on board. Going by the market buzz, as and when \n Reliance and Bharti-Wal-Mart start apparel retail, brands will \n be squeezed further. But given that brands have just 1\/5th of \n market sewn up – there’s a good way to go. <\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

By MOLSHREE VAID, CNBC-TV18 31 January 2007 After FMCG, now the second biggest retail category – the Rs 19,000 crore branded apparel sector is sizing up the changing retail scenario. While retail brands like Pantaloon are upping brand spends and big chains like Reliance are expected to launch private labels, branded players like Wills need […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1992","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"\nSHAKEOUT IN STORE IN BRANDED CLOTHING SPACE - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/shakeout-in-store-in-branded-clothing-space\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SHAKEOUT IN STORE IN BRANDED CLOTHING SPACE - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"By MOLSHREE VAID, CNBC-TV18 31 January 2007 After FMCG, now the second biggest retail category – the Rs 19,000 crore branded apparel sector is sizing up the changing retail scenario. 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