Store network expansion to 4,000 outlets planned
Arvind Ltd., one of India’s largest integrated textile and apparel companies, is planning to build the ‘brand Arvind’ into a Rs. 2,000-crore brand by 2017-18. This premium fabric brand for both men’s and women’s fabrics clocked revenues of close to Rs. 500 crores in the last fiscal and is an important part of Arvind’s overall brands and retail portfolio which touched revenues of Rs. 1,900 crores in 2012-13. The four-fold growth strategy will see Arvind expand beyond its traditional distribution model with a rapid roll-out of its new retail format ‘The Arvind Store’ and growing in the premium fabric market with its new brand ‘Tresca’.
With 100 stores up and running, Arvind Ltd. is now aiming to expand the format multi-fold to over 400 stores in the next five years. Taking a step away from the conventional look and feel, the Arvind Store is a modern and futuristic layout to provide the best of Arvind merchandise under one roof. By exhibiting all of Arvind’s finest fabrics, customised tailoring, customised jeans and the best of the company’s ready-made brands, the Arvind Store is designed as a complete lifestyle destination. The store format provides a comprehensive wardrobe solution to the discerning consumer. The store franchise is likely to cross Rs. 600 crores in revenues by 2017-18.
Arvind Ltd. recently introduced its most premium fabric offering ‘Tresca’ targeting the high-end shirting and suiting market. With growing disposable incomes in India, the premium fabric market is a high growth one in which Tresca aims to establish itself as a leading brand. It will offer premium products, contemporary international design and a lifestyle positioning. Arvind aims to build Tresca into a Rs. 250-crore brand over the next five years.
Commenting on the plan, Mr. Kulin Lalbhai, Executive Director of Arvind Ltd., said: “Our aim is to make Arvind a Rs. 2,000-crore mega brand in the next five years. It will be made possible with the rapid roll-out of ‘The Arvind Store’ format which will have over 400 stores and revenues of over Rs. 600 crores by FY2017-18. Our new premium fabric brand ‘Tresca’ will target the fast growing premium shirting and suiting fabric market. The ‘Brand Arvind’ will play a critical role towards the company vision of building a $1 billion brands and retail business. Our aim for the brand Arvind is to attain a leadership position in the fabric brands and retail market in India.”
The Arvind Store aims to substitute the old and weary mom-&-pop channel with modern retail, which matches the aspirations of modern India. It widens the portfolio of products offered to attract the younger customer – casual fabrics, denim fabrics and Arvind Denim Lab, a concept new to the consumer. It plans to access a very large consumption market of more than 500 cities which can sustain this model.
“Tresca fabric is made primarily from three natural fibres – cotton, linen and wool. Quality is ensured by using the best raw materials and by using cutting edge technologies throughout the production phases from processing the fibre to finishing the fabrics. This fabric brand is designed for a discerning individual who wants to look young and trendy and one who wants to get rid of the boredom of a typical formalwear range,” added Mr. Kulin Lalbhai.
Tresca will be made available at leading retail outlets across India and is directly serviced by the company. It will showcase four collections in a year with over 2,000 designs to choose from.
Arvind Ltd. has mastered the learning curve of growing strong new brands. Five out of top 10 international brands in India have been built by Arvind which has the ability to address diverse segments through a differentiated portfolio. It has its presence across market segments, dominant in many segments already.
Arvind has its strong distribution strength to quickly grow new brands – high bargaining power with channel and strong reach leading to fast ramp-up. It is able to build strong and cost-effective supply chain and also to rationalise the cost of building brands.