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Jaipur-based entrepreneur is looking to reverse the trend from online retailing to the conventional brick-and-mortar stores to sell premium women's garments. Mohammed Arif Kagzi plans to primarily focus on off-line retailing for his newly launched premium women's wear brand Kashana.
"As against the online websites, which offer heavy discounts, we have an advantage of lower inventory cost and the economy of scale in manufacturing of these garments. Therefore, we will be able to price it more competitively and be successful in offline retailing," said Kagzi. The Kashana brand of garments will be sold under Kagzi Apparels, an arm of Kagzi Group, known for its handmade paper industry.
Having a combined group turnover of Rs 100 crore, the Kagzi Gorup has its own textile processing and garments division in Rajasthan. As a part of forward integration, the company plans to set up physical retail outlets through a mix of company-owned and franchisee stores across India.
"We have strong backward integration from fabric to garments. The branded retailing is our step forward in the value chain," he said.
The group has textile processing facility in Sanganer, a hub for textiles and handmade paper industry. It has garment making facility at Sitapura near Jaipur with installed capacity of 2,50,000 pieces per month.
Commenting on the inventory and stocks, Kagzi mentioned that the group is in better position to manage inventory by adjusting production as per the demand. "For the distributors, unlike other branded garment companies, we will provide up to 70-80 per cent stock correction in the unsold stock. Every 15 days we will have new designs and patterns. This will also reduce the burden for retailers," added Kagzi.
The company plans to set up 50 retail stores across India in the next one year, of which 10 stores will be opened in the first phase in the next three months starting with first store in Udaipur.
The company has roped-in Bollywood actor, Evelyn Sharma as brand ambassador for the Kashana brand, which will offer ethnic wear, Indo-western and Wester wear collections in the women's category.
(The writer was in Jaipur at the invitation of Kashana)
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