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After clocking a turnover of ₹1,800 crore through its brick and mortar format, Max Fashion, part of the Dubai conglomerate Landmark Group, said it is looking at tapping the booming e-commerce market with its group-led online platform
The e-commerce channel from the group — landmarkshops.in — is expected to go live next month.
Ramanathan Hariharan, CEO, Max Fashion and Group Director, Board Member of Landmark Group told BusinessLine, “We are launching our e-commerce platform by January. We expect the sales from brick and mortar to complement the e-commerce. We are also exploring the omni-channel retail. It is a journey which we will begin”.
Max entered India in 2006 and has about 135 stores in 50 cities. Currently, it has a strategic collaboration with Flipkart to sell its range of merchandise.
Most brick and mortar players in organised apparel retailing like Aditya Birla launched abof.com.
Others like Mahindra Group floated a wholly-owned subsidiary Mahindra E-marketplace for its online. Tata and Reliance Industries too, are eyeing the space.
Expansion plans Hariharan said the company plans to expand its presence both in metros and tier II cities.
“We are looking to open one store a week for the next three years. We plan to have about 80 stores by 2018,” he said, adding each store will entail an investment of ₹2.5 crore. The company, which offers fashionable garments for less, said its store size will average at 12,000 sq feet.
The company has both franchise-led and company-owned-company operated stores. “For our expansions into tier II and III cities, we largely prefer a franchisee model. We are looking at tapping populated but under-served catchments”.
Vasanth Kumar, Executive Director, Max Fashion said that the company has seen a 16 per cent growth in its like-to-like sales. Like-to-like sales refers to sales from stores which have been open for over a year. Speaking on clocking revenue of ₹1,800 crore, both Kumar and Hariharan pointed out that the company’s strategy of fast fashion along with value pricing had helped it achieve a growth in topline. Kumar said that Max has about seven collections in a year.
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