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RP-Sanjiv Goenka Group retail arm Spencer’s is looking to scale up its apparel business, ‘2Bme’ on a standalone mode. From an only shop-in-shop presence at Spencer’s hypermarkets, the brand will now have its exclusive outlets.
Increased traction for the 18-month-old brand and ‘high double digit’ growth are seen as the two main reasons for expansion.
According to Shashwat Goenka, Sector Head, Spencer’s Retail Ltd, and son of group patriarch Sanjiv Goenka, the company has roped in actors Ranbir Kapoor and Shraddha Kapoor as brand ambassadors.
The idea, sources say, is to position the apparel brand as a standalone entity, with a distinct identity of its own.
Increased turnover
Introduced in February 2017 as a fast-fashion brand in the mid to mid-premium price range, ‘2Bme’ clocked a turnover of ₹100 crore in FY-18, its first full year of operations. It is present in 39 hypermarket formats of Spencer’s and offerings include western wear for men, women and children.
According to Goenka, ‘2Bme’ is likely to clock a turnover of ₹300 crore by FY-21 (over the next three years). At least 10-12 standalone stores or exclusive brand outlets, covering a 1,000–3,000 sq ft of space, have been planned over the next 12 months across 5-6 cities, mostly metro and non-metro ones.
“We will look at expanding through stores at high-street and malls. Stores will be company operated (with the space being taken on rent),” Goenka told BusinessLine . He, however, did not share investment details.
“Once we get scale and a stronger footing for the brand, we may explore alternative formats like e-commerce presence and so on,” he added.
Better margins
Incidentally, ‘2Bme’ was conceived at consolidating private label apparel brands of Spencer’s and improving its margins. Nearly 20-30 per cent of the apparels that Spencer’s offered were through private labels.
According to Goenka, private labels have a higher margin as compared to branded apparels and to a certain extent ‘2Bme’ did help add better numbers.
Nearly 5 per cent of Spencer’s topline comes from the apparel brand and the idea now is to take it to 10 per cent over the coming years.
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