Targeting profitability through market penetration in the Rs 60,000-crore branded garments market, the country’s leading apparel maker Madura Fashion & Lifestyle will now aggressively market their premium brand Van Heusen in smaller cities.

“Every year, the company will open at least 40 new exclusive stores throughout the country, most of which would be in the tier-2 and tier-3 cities,” Mr Ajay Ramachandran, Brand Head of Van Heusen, told PTI here.

Currently, 40 per cent of the brand’s Rs 650 crore annual turnover comes from their 120 exclusive stores, most of which are located in the metros and large cities.

With the opening of new outlets, Madura Fashion, owned by the Aditya Birla Group, is hoping that the turnover would jump to Rs 850 crore next year.

“At present, around 70 per cent of the brand’s turnover comes from the top 7-8 towns. Corporates like us have not given enough importance to penetrating deep into the market,” the company official said.

Pointing out that there is little headroom for growth in the metros, he said that the sales figure reported from smaller cities such as Patna, Lucknow, Jaipur are “mind-boggling”.

Having invested around Rs 35 crore so far in opening exclusive stores, they will now invest Rs 4-5 crore each year to open new outlets under a franchise model.

With aims to transform itself into a complete lifestyle brand, non-apparels will also be sold under the international Van Heusen brand, which was launched in India in 1990.

Related Topics
comment COMMENT NOW