The Hindu Business Line : Future group bets on Brand Factory

Hyderabad June 5 Future Group, which launched the Brand Factory (BF) format late last year, hopes to convert at least 20-25 per cent of the customers to the higher formats such as Central mall.

Brand Factory offers brands at factory prices. The four outlets of BF in different cities on an average attract over one lakh customers. "About sixty per cent of them are repeat customers. And we hope to turn at least a quarter of our customers into buying the full-price brands," Mr Sandeep Mukim, Chief of Operations (Central and Brand Factory), said.

"The BF outlets are like recruiters for our future customers of full-price branded apparel," he said.

Mr Mukim was here in connection with the launch of BF's outlet at Banjara Hills, the second one in the city.

The group launched the new format in October last.

Priced 20-50 per cent lower than brand new products, BF offerings would be enticing for the customers who found branded products prohibitive and unaffordable. "The idea is to break the ice with the set of customers who shy away from brands," he said.

BF outlets put 135 brands of all kinds on display.

"We plan to have a total number of 50 BF outlets by 2010. When we reach that figure, we can achieve a turnover of Rs 2,500 crore," he said.

On annualised basis, the five BF stores were expected to contribute Rs 260 crore to the group's turnover.

As the number grew, the group was also planning to diversify the product offerings at BF outlets.

"At the new outlet, we are offering non-apparel merchandise like footwear, mobiles and luggage," he said.

In the future, it might also look at selling home furnishings and furniture.

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