Anuj, 29, his twin brother, Anup, and their mother 58-year-old mother Girija Ramachandra have their task cut out. They work out of their home in Bangalore, their laptops, the Internet connection and telephone being the mainstay of their venture. Plus, of course, their initiative and enthusiasm.
Their business is to provide the right fit for men's shirts. And, the name of their company – Peprismine. The “Pep” in the name stands for lively and “mine”, says Anup, is where you get some of the more precious stuff – gold, diamonds…
The brothers have a management qualification, while their mother underwent a two-month management programme for women entrepreneurs at the Indian Institute of Management – Bangalore.
“I always wanted to do some business,” says Ms Ramachandra. But then running the household kept her busy. “I could not do that because of family commitments,” she says, without a trace of regret, now that she has got the chance to be in business, playing an active with her sons. She got trained in mushroom cultivation and screen printing nearly 15 years back.
Online men's apparel
According to Anuj, they hit upon the idea of having an online men's apparel business when they found that they could not get the correct fit when they were shopping for shirts. The brothers then studied the problem in depth. Most retailers and brands stocked standard sizes – 38, 40, 42… But even here, they found that the sizes did not match.
This, and the fact that men are not generally eager shoppers, says Anuj, got them thinking and they hit upon the idea of starting an online men's apparel business. The three of them source the fabric – only cottons – including Egyptian Giza cotton and have tied up with a manufacturer in Bangalore to stitch the shirts according to their specifications.
When you log on to the company's Web site, you need to provide details such as your age, height, the most common brand of shirt that you wear, size, and whether the shirts fit you perfectly you or not. “We have developed our own algorithm by which we ensure that the fit is right,” says Anuj.
Peprismine's shirts do not have the size stitched on. “It is our own size and will not be the same as what the brands offer,” he says.
Adds Anup, by being online they are doing away with the retailer's margin and overheads, and hence are able to price their shirts competitively. “Customers want value. We reduce overhead cost and add value in terms of better pricing and better fit,” he says.
Peprismine's shirts are priced at Rs 899 and Rs 1,199. The company guarantees delivery within three working days and, if the fit is not right, free return. The initial problem was in getting this concept accepted. They pushed the idea with some corporates and have over the past few months seen some good response. The business itself is about a year old and they acknowledge that the challenges are many. But, they are confident that they will get it right.
Using social media
“Reaching a larger customer base needs financial support,” says Anuj. They ship about 125 shirts a month and are hoping to use social media to propagate the concept.
“We are right now focussing on search engine optimisation and social media optimisation,” says Anup. A bulk of their customers is in the 22-35 age group with Bangalore accounting for nearly half, and Delhi and Mumbai the balance.
They started off with their own money of Rs 5 lakh as capital for the business. “We don't take any salary,” says Anuj. They say they will need funding in the next few months. “We have had discussions with some angel investors,” he says. Angel investors, even though they fund early-stage ventures, would like to see some traction in the business before they commit their money, he adds. They also admit that being an entrepreneur is a long haul and say that it is better that they started off early rather than do something on their own later in life.
According to Anup, they will need funds to improve marketing and probably go in for a bigger warehouse once business picks up. They have 11 collections on their Web site and may add a few more shortly. Their margin is about 25 per cent, while for the retailer it will be much more. They also plan to increase the range of products to include men's trousers, wallets and accessories.
There are no plans to go offline, says Anuj. “It doesn't make economic sense to go offline, both from the customers' and the business perspective. Why would you pay more if you get better fit and service at a lower price, with the convenience of not having to go to a shop. It is like an ATM. Initially not many people went to them,” he adds.
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