American speciality retailer The Children’s Place enters India

America’s largest speciality retailer of children’s apparel and accessories, The Children’s Place is staging an entry into the India market with the opening of its first 2,500 sq ft store in Bengaluru’s Orion Mall on Saturday.

Brought to India by Arvind Lifestyle Brands Ltd, TCP is the country’s first head-to-toe fashion destination for children from 0-14 years, at price points beginning from Rs 399 to Rs 3,999. TCP offers the entire gamut from everyday casuals, party wear, innerwear, nightwear, outdoor wear, beachwear, winter wear to fashion accessories spanning, sunglasses, footwear, ties, jewellery, belts, scarves, hair accessories, purses and bags for boys and girls.

“We have been in discussions with TCP since 2011, in order to understand the brand, product range, pricing, fits and sizing for the India market, before launching it here. Typically, Indian shoppers cannot get branded fashion wear from apparel to accessories under one roof for their kids. TCP has it all at great pricing, which will be the biggest surprise for Indian shoppers” Suresh J, Managing Director & CEO, Arvind Lifestyle Brands Ltd, told Business Line. Arvind has created a lot of entry price points for the India market with tees at Rs 399, tops from Rs 499 – Rs 899 and so on.

Stating that TCP respresents a Rs 500 crore revenue opportunity over the next five years, Suresh said, a total of 10 stores with two stores each in Mumbai, Chennai, Hyderabad, Delhi and Bengaluru will be opened by May 2016, at an investment of Rs 2.5 crore per store. Arvind will invest Rs 100 crore to open 40-50 stores, spanning 2,000 – 2,500 sq ft over the next five years.

The Indian fashion apparel market is pegged at Rs 2,50,000 crore, of which children’s fashion apparel constitutes Rs 50,000 crore. While 16 per cent of the overall fashion apparel market is organized, just 6 per cent of the kids market is organized, representing a huge addressable market opportunity for Arvind.

“We have a head start in the market and will focus on growing and expanding it by enticing people away from the unorganised market to the branded fashion apparel market with TCP merchandise, which represents high fashion at attractive price points” said Suresh. Arvind will buy all the merchandise from TCP at cost price and pay them a royalty every quarter, which constitutes a percentage of the total sales achieved for the quarter. US Polo, Elle, GAP, Gant, Nautica, Tommy Hilfiger, Cherokee and Flying Machine are the other brands in the Arvind portfolio that offer children’s apparel.

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