The Hindu Business Line : Arvind Brands plans tie-ups with retailers

A category captain model is a concept whereby a brand owner takes up cudgels on behalf of the retailer to get growth into a particular category using its own expertise.

Mumbai , April 14

Arvind Brands is exploring the option of developing a `category captain model' by partnering with retailers to help them grow the apparel category.

Speaking to Business Line, Mr Darshan Mehta, President, Arvind Brands, said, "It is a dynamic market and we are looking at a new arrangement with retailers. The concept of a category captain model, which already exists in other countries, is being thought of and we might consider it within the next one year." A category captain model is a concept whereby a brand owner takes up cudgels on behalf of the retailer to get growth into a particular category using its own expertise. Adds Mr Mehta, "FMCG players are already doing it in a big way. For instance, in many countries, Unilever has partnered retailers to grow the hair care or skin care categories. We might consider doing the same by partnering a single retailer to grow the apparel category. This may or may not include the competitor's brands as well."

Arvind Brands is scouting for a suitable retailer for partnership.

However, it has decided to restrict its category concept model to its domestic brands such as Excalibur, New Port and Flying Machine and the potential mass international brands it might bring at a later stage. "Typically, the category captain model would take care of the stocking, supply chain and back-end and front-end manning for the retailer in the category concerned. The model would be to ensure that the retailer gets a certain growth in the category compared to its competitors," explains Mr Mehta, who intends to get the mass brands under this concept since luxury retailing is still a nascent in India.

More brands

Meanwhile, the Lalbhai group company has decided to bring in more brands from VF Corp and these include brands such as Nautica (a sportswear brand), Kipling (a men's brand) and Jansport (back pack brand). Besides, it has also recently brought in the super premium lifestyle apparel brand - Gant - and launched its first showroom in Mumbai.

In spite of attracting steep import duties at nearly 60 per cent, the company has been able to absorb costs in the form of lower rentals and retailing costs compared to its counterparts in the rest of the world.

As Mr Mehta says, "We have been able to absorb the import costs since the cost of retailing is almost half of what it is in other countries."

With eight international and four domestic brands in its portfolio, the Rs 430-crore Arvind Brands expects to grow at 30 per cent this fiscal.

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