MENSWEAR ON THE RISE · jayant arora, manager [email protected] Mob.: +91 9818626724...

AUGUST ,12

VOL. XIII

No. 8

`100

US$20

AUGUST ,12

VOL. XIII

No. 8

`100

US$20

F A S H I O N • M A R K E T I N G • R E T A I L I N G

STRATEGY Relevance of loyalty programmes used by most brands and retailers.

HIGH ON SUCCESSOne of the biggest apparel trade shows in the world extends its show duration.

MENSWEARON THE RISEBestselling trends of the season

cover_BoF_Aug_12.indd 1 8/3/2012 7:29:35 PM

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August 2012 | 132 pages | VOL. XIII No. 8 | www.imagesfashion.com

editor-in-chief amitabh taneja editorial director r s roy publisher s p taneja

editor-in-charge aakriti agarwal (senior correspondent) chief of bureau (mumbai) nivedita j pawar (sr. assoc. editor) sr. research correspondent nalini singh correspondent (mumbai) tista sengupta correspondent (bangalore) roshna chandran

creatives art director pawan kumar verma asst. art director dinesh devgan layout designer rajeev kumar sr. photographer vipin kardam

circulation & support assoc. vp – circulation & subscription anil nagar general manager – administration hemant wadhawan sr. manager – circulation r p singh dy. manager – operations rajesh kumar sr. executive – subscriptions kiran rawat production general manager manish kadam sr. executive ramesh gupta

The Indian fashion market has been likened to the game of Snakes & Ladders. The opportunities are unprecedented, but it all depends on the right strategy and tactics. Take right decisions, and you could shoot up the ladder of success, while a wrong move can be a serious setback for your business.

While many closed shops in recent years, and most are fighting it hard to survive and sail through the ongoing market turmoil, there are some dynamic retailers who have managed profitable growth in most difficult situations - re-inforcing the positive optimistic attitude that the fashion industry wears today.

What is the secret of their success? Do successful retailers not make mistakes? How do they take difficult decisions? How many turn right and how many wrong?

To help retailers at large to gain such insights we have invited several leading retailers to take us through their journeys in the exciting world of Indian fashion retail. There are a few other secrets that business veterans share at our events and in our magazines. For example, what could be the most profitable approach for brands to expand with single brand and multi brand outlets? How traditional textile retailers can make it really big with ready-to-wear brands, private labels and tailoring sections? What should be the ideal ratio for allocating space and investment in different departments?

Seasoned professionals talk of the relevance of loyalty programmes, reasons for early sales this season, the importance of visual merchandising, the choice of store location, growing potential in tier II and tier III cities, technology, success stories, business models, et cetera. They, thus, together make an effort on Images forums to take the fashion retail industry forward. Beginning this issue we start a new column ‘Vision 2020’ where our readers will have the opportunity to understand how industry leaders view the future of the business of fashion and how different stakeholders should strategise to be a part of this big business.

Amitabh Taneja

Advertising

Editorial.indd 11 8/1/2012 8:35:07 PM

21 MY THOUGHTS Indian Man Soaked in Colours Vipul Mathur, Head Marketing, Lee, talks about

change in men’s wardrobe with the addition of colours in last few years.

90 BRAND WATCH Creating Fast Fashion Moumita Chakrobarty, Brand Head, F-Square from

Prateek Apparels Pvt. Ltd. talks about carving a niche in the market.

98 RETAIL WATCH Pioneering Ready-made Retailing Anmol Pethkar, Director, Prakash Departmental

Stores in Pune talks about the strategies of running his woollen business round the year.

Cover Courtesy: CRIMSOUNE CLUB

11 Editorial

17 Letters To The Editor

40 July In Brief

61 Trade Calendar

64 Outlets

121 Window Trends

126 Season’s Offerings

E V E R Y M O N T H

126

COVER STORY68

90

98AUGUST 2012 VOL. XIII NO. VIII

CONTENTS

THE INDIAN MENSWEAR INDUSTRY IS ON AN UPSWING WITH MEN BEING MORE EXPERIMENTAL AND FASHIONABLE THAN EVER. IMAGES BOF SPEAKS TO BRANDS AND RETAILERS FROM FOUR REGIONS OF THE COUNTRY TO BRING FORTH SOME OF THE SEASON’S BEST-SELLING TRENDS.

Menswearon theRISE

Contents.indd 13 8/1/2012 8:43:48 PM

CONTENTSAUGUST 2012 VOL. XIII NO. VIII

102 STRATEGY The Loyal Royality Brand owners, loyalty programme providers and consultants

talk on how loyalty programmes work and their usefulness.

86 RETAIL EXCELLENCE Making Luxury Affordable Dilip Kapur of Hidesign talks of the journey of the brand and

future expansion to tier II and III cities.

106 VISION 2020 Textile and Fashion Industry: The Next Decade Arvind Singhal of Technopak suggests the need to adapt to new

strategies and changes to take a bigger pie of the global textile and apparel business.

112 EVENT High on Success The popular bi-annual apparel trade show held in Berlin

announced the antedate of the event.

114 Resurgence of EIGMEF The three day trade event, EIGMEF, was a stupendous success

with participation of some of the leading players of the apparel retail industry.

116 IN THE CLOSET Eye for Design Anaggh Desai, CEO, The Bombay Store, gives a glimpse of his

creative and classy wardrobe.

116

A Double-Edged SwordHarminder Sahni talks of in season sales being more beneficial than the EOSS for fashion brand retailers in the long run.

110

112

86

H A R D T A L K

Contents.indd 15 8/1/2012 8:43:53 PM

• JULY IN BRIEF •

August 2012 | IMAGES Business of Fashion | 43

by Shahona Datta

NoChild’s

Play

KIDSWEAR BRAND,ETEENZ, LAUNCHED ITSFIRST FLAGSHIP STORE IN KOLKATA ON 2 JULY.ANSUL AGARWAL, MANAGING DIRECTOR, TALKS TO IMAGES BOF ABOUT HIS CURRENT ENDEAVOURS AND EXPANSION PLANS.

Eteenz, a kidswear brand, from the parent company Dhananjai Lifestyle Ltd., has recently launched its flagship store spread across an area of 4,000 sq. ft. at Lindsay Street, one of the high streets in Kolkata. Eteenz looks all set to rock the kids’ retail scene in East India. Innovative marketing concepts coupled with affordable pricing, the brand has now become a household name to reckon with. It has licenses of famous international cartoon characters such as Doraemon, Spider-Man, Popeye, Barbie, Archie Comics, Handy Manny, Phineas and Ferbs, Little Krishna, Jungle Book collection of stories featuring Mowgli, Hotwheels, Fisher Price, which are prominently visible on its merchandise. Below are the excerpts from an interview on the recent success of Eteenz, challenges faced by the brand’s flagship store, the planned roadmap ahead for the current fiscal and their future expansion plans.

What were the initial hiccups faced while opening this first flagship store in Kolkata?Ansul Agarwal (AA): Our price points are much lower as compared to the rest of the leading brands, which often becomes a highly tricky situation as we have to pay high rentals for a 4,000 sq. ft. store. A higher price point would have helped us tide over these financial hiccups but in the long run it gets absorbed. However, there weren’t many challenges as we would have expected while opening this flagship store.

Update Str.indd 43 7/31/2012 6:24:24 PM

• COVER STORY •

THE INDIAN MENSWEAR INDUSTRY IS ON AN UPSWING WITH MEN BEING MORE EXPERIMENTAL AND FASHIONABLE THAN EVER.IMAGES BOF SPEAKS TO BRANDS AND RETAILERS FROM FOUR REGIONS OF THE COUNTRY TO BRING FORTH SOME OF THE SEASON’S BEST-SELLING TRENDS.

MENSWEARON THE RISEGone are the days when only women used to be fashion-conscious. To look stylish has now become a norm rather than an exception for both the sexes. This transition has resulted in a shift in attitude and now we get to see more men being experimental with their clothes. According to the Textile & Apparel Compendium 2012, by Technopak Advisors, a retail consultancy firm, the Indian textile and apparel market size was estimated to be `2,73,000 crore (USD 58 billion) in 2011 and is projected to grow at 9 per cent CAGR to `6,64,000 crore (USD 141 billion) by 2021. Menswear contributes to 43 per cent of the Indian apparel market and this contribution is expected to drop to 40 per cent by 2021 due to faster growth of womenswear and kidswear categories. Currently, menswear is the biggest segment of the apparel market. The consumer wardrobe has changed from only “need-based clothing” to “occasion-specific dressing” and is gradually becoming more detail oriented as its clear impact can be seen from the constant rise of menswear market.

To further re-inforce the same, we tried mapping the best-selling products of retailers and brands from East, West, North and South of India. The retailers who participated in the analysis include JadeBlue, Sohum Shoppe, Chunmun and Gupta Paridhan. The brands that participated in the analysis are Stori Fashions, Provogue, Turtle and Crimsoune Club. Other brands from each region who cooperated include Rex Straut, Youthopia, Silver Crest, Sheriff, Moxi and Hoffmen. To understand the best-selling styles in their stores, we came up with a comprehensive questionnaire which included almost every element of a menswear segment. The categories that brands and retailers were requested to respond to included formal shirts, casual shirts and T-shirts in topwear; and formal trousers, casual trousers, capris, shorts and bermudas in bottomwear.

68 | August 2012 | IMAGES Business of Fashion

Photo: Crimsoune Club

Photo: Arrow

80,950

1,20,350

Total menswear market INR (Cr)

1,82,800

2021 (P)2016 (P)2011(E)

CAGR 8%

Source:Technopak Advisors

Cover Story NEW.indd 68 8/3/2012 7:36:38 PM

• RETAIL EXCELLENCE •


MakingLuxury

Affordable

THE BRAND HIDESIGN HAS BECOME SYNONYMOUS WITH HIGH-QUALITY LEATHER ACCESSORIES. WHAT BEGAN AS A HOBBY OF ENTREPRENEUR DILIP KAPUR IN 1978 TODAY BOASTS OF 3,000 EMPLOYEES AND 78 EBOS AND AIMING TO EXPAND DEEPER INTO TIER II AND III CITIES.

Timeline1978: Hidesign begins with a two-person artisan workshop. The fi rst markets are small alternative shops in Australia and the U.S., refl ecting the brand’s rebellion against uniformity and mass production.

Timeline1978: Hidesign begins with a two-person artisan workshop. The fi rst markets aresmall alternative shops in Australia and the U.S., refl ecting the brand’s rebellion againstuniformity and mass production.

The premium leather accessories market in India is growing steadily over the past few years due to increasing wealth and fashion consciousness among people, which in turn is leading to a greater emphasis on products such as bags, belts, and wallets to go with one’s lifestyle. According to an estimate, the market for women handbags alone stands at `2,000 crore in India, growing at a CAGR of 15 per cent. The long-standing industry leader in the affordable but premium leather accessories segment in India is the Pondicherry-based brand, Hidesign, which clocked a turnover of around `120 crore in the last financial year and has been enjoying an average growth rate of 20–30 per cent year-on-year, according to the company officials.

The beginningHidesign was founded in 1978 as a hobby by Dilip Kapur, who was born in Delhi but moved to Pondicherry at a tender age of six to grow up in the Sri Aurobindo Ashram. Later, for higher studies, Kapur moved to the U.S. where he graduated from the Princeton University, and then went on to complete his PhD at the University of Denver. He took up a job in a leather company called Poor Richard’s while pursuing his studies and thus was born his interest with all things leather.

In 1977, Kapur returned to India to live in Auroville and started Hidesign next year as a two-man workshop to pursue his passion of leather crafting. Initially, the products used to be sent to alternative

by Payal Kapoor

Retail Excellence new 1.indd 86 7/31/2012 7:01:55 PM

• BRAND WATCH •


Prateek Apparels Pvt. Ltd. is an apparel manufacturing company from the bouquet of the Phulchand Group of companies. It is one of the biggest manufacturing hub for some of the best brands globally with six manufacturing units in Bangalore and Hubli. Prateek Apparels has the capacity to manufacture at a large scale and are able to provide benefits to its customers due to economy of scales. Thus, offering fashion at an affordable price. With this idea, Prateek Lifestyle, the retail arm of Prateek Apparels, launched the retail brand F Square in October 2009. It also owns the large format store, Coupon. Moumita Chakrobarty, Brand Head, F-Square, says, “We were the first organised apparel manufacturing company which started providing design to delivery solutions to domestic retail brands. This helped us in understanding the Indian retail market in a better way and in turn motivated us to launch a fashion brand and a retail format.”

F-Square is a unique concept of delivering fast fashion at value prices to consumers through a wide spread network of stores. It has an armoury of nine in-house labels that are retailed from its stores. Talking of its vision, Chakrobarty says, “F-Square has been conceived as a retail brand with a single-minded view of making India fashionable. We believe that there is an untapped opportunity in the pyramid that global brands cannot reach out to. Making fashion affordable to those

CreatingFast Fashion

THREE YEARS OLD RETAIL BRAND – F SQUARE – HAS CARVED A MARKET FOR ITSELF AND PLANS TO EXPAND FURTHER. BRAND HEAD MOUMITA CHAKROBARTY SPEAKS TO IMAGES BOF ABOUT FUTURE PLANS.

Brand Watch.indd 90 7/31/2012 6:42:43 PM

• RETAIL WATCH •


Ready-made Retailing Pioneering

HAVING BEST CUSTOMER SERVICE AND BUSINESS COMMITMENT AS ITS GOALS, PRAKASH DEPARTMENTAL STORES IS THE FIRST READY-MADE APPAREL RETAILER IN PUNE THAT SPECIALISES IN WOOLLENS FOR ALL AGE GROUPS AND OFFERS THEM THROUGHOUT THE YEAR. ANMOL PETHKAR, DIRECTOR, SHARES THE BUSINESS STRATEGY AND FUTURE PLANS WITH IMAGES BOF.

by Meher Castelino

In the heart of Budhwar Peth, opposite the popular Vasant Cinema in Pune, one of the busiest commercial areas of the city, stands the pioneering ready-made garment seller Prakash Departmental Stores. Reaching to the store can require great skill as the narrow lane makes it quite a task, but loyal patrons of the store brave the bottleneck to get to their favourite shopping destination. The retailer has set the trend for more such stores to emerge in the city known for its salubrious weather.

InceptionVasant Rao Manorkar, an enterprising visionary, started selling stationery and cutlery from a handcart at Budhwar Peth, Pune in 1945. In 1966, he opened Prakash Departmental Stores at the same place. The small shop selling stationery and cutlery is now converted

Retail Watch_Prakash Store.indd 98 7/31/2012 6:48:41 PM


EOSS:A Double-Edged Sword

Ihave received lot of calls from journalists from various business publications regarding the early start of “end of season sales” (EOSS) by most of the brands. All of them were quite agitated about the fact that EOSS has started a week or two earlier than normal. Their hypothesis was that the brands haven’t sold much during the season so they have been forced to pre pone their sales to have an extended period to dispose off this season’s merchandise to make way for the new collection. They are absolutely right because this is exactly the reason. But they are wrong in feeling agitated about this. A brand and more so a fashion brand has a compulsive responsibility of bringing freshness to their stores all the time and the necessary condition for that is to flush out the last season’s stock.

Any slow season in which the brand is unable to sell as much as it expected has a potential to choke the supply chain and impact the upcoming season. The only and most sensible option for retailers is to bite the bullet and absorb the hit as much as it may pain in the current season itself. Fashion brands should not hesitate to incur more losses in the same season but should ensure that the next season is totally isolated. The old unsold inventory is the single biggest reason for the demise of many fashion brands. Be it in the account books or in the store, the unsold stock starts stinking beyond a certain point, and that’s why it is called a dead stock.

So EOSS is a very significant event for fashion brands and a mistake made at this stage can be fatal for the business. In particularly bad seasons like the one we have witnessed just now, EOSS becomes even more important and has to be handled rather more carefully. I will actually give the credit to the brands for being bold enough to prepone the EOSS and not wait and keep hoping for consumers to suddenly change their minds and start shopping

• HARD TALK •

HARMINDER SAHNI EXPLAINS THAT IN-SEASON SALES RATHER THAN EOSS WOULD BE MORE BENEFICIAL FOR FASHION BRANDS AND RETAILERS IN THE LONG RUN.

Hard Talk.indd 110 7/31/2012 7:03:07 PM

MENSWEAR ON THE RISE · jayant arora, manager [email protected] Mob.: +91 9818626724...

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