Companies

‘Max'ing its youth appeal, Landmark tests new format

Sravanthi Challapalli Chennai | Updated on August 16, 2011 Published on August 16, 2011

For youth only: An exclusive retail outlet that will stock apparel and accessories for this section of customers. — K. Ananthan

If Max, the apparel and accessories value brand, is successful with its experiment, young shoppers will have one more store to head to. The Rs 368-crore value fashion brand for the family that is part of the Landmark group is testing a new retail format – a 4,000 sq. ft. store in Kolkata that stocks apparel and accessories only for youth.

Speaking to Business Line here, Mr C. S. Shekar, President, Max, said in the last five years, youth have exhibited a “very distinctive choice”. Max has a wide enough range to justify a dedicated store for that section of customers. If it works, Max should be able to open even 8,000-10,000 sq. ft stores, and perhaps for other categories such as children's and ethnic. “It's a new concept for the group which has had only large-format stores all along,” said Mr Shekar. If successful, it will plan to add 50 such stores very soon. Other than that, by 2012, it aims to increase the number of its stores to 78 from 52.

Products for young men and women contribute 50 per cent to the revenue, across apparel, footwear and accessories, he said.

Holding on to price is paramount for value fashion brands and despite the rise in the cost of inputs and duty hikes in the Budget, the prices of apparel have gone up by only 13 per cent as against 17-23 per cent in other stores, he said. World over, value brands die out in three-six years as few resist the temptation to raise prices, he said.

Max, being a value brand, sticks to safe colours, design and silhouettes, which helps stock move faster. Like-for-like store business is growing at 26-30 per cent annually, he added.

Mr Shekar said Max would launch clothes for newborns and sleepwear, and would expand the lingerie and accessories collection. The South contributes 45 per cent of the business. The brand hopes to earn over Rs 700 crore in sales in 2012 and Rs 1,000 crore by 2013-14.

Published on August 16, 2011
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