Aditya Birla Nuvo to increase Van Heusen outlets, sales

Diversified corporate Aditya Birla Nuvo Ltd is hoping to increase the sales of the Van Heusen brand of readymade apparels by 20 percent and also the distribution network by 50 outlets to 300 stores, said a senior official.

"We will close this fiscal with 20 percent growth in the sales of Van Heusen ready to wear brand. Last year, the brand clocked a sale of Rs.1,500 crore," Vinay Bhopatkar, chief operating officer of Van Heusen, told reporters here Wednesday.

According to him, the company would also expand Van Heusen exclusive outlets by 50 to 300 this year.

Bhopatkar said the brand derives only two percent of the total sales from e-commerce.

"We do not give any additional discounts to e-commerce sites. It is they who give additional discounts. Perhaps they are burning their money to build larger online customer base. Our discounts are standard," Bhopatkar said.

"However, it does not make business sense to avoid the online channel as it has opened up brand awareness in smaller towns," he said.

"Even the expansion of our outlets will be happening in tier II and III towns," Bhopatkar added.

He expects the cash burning process by e-commerce portals would continue for another two years.

Meanwhile, in order to increase the conversion rates of walk-ins at the Van Heusen outlets, the company has married the off-line and on-line aspects through its My Fit concept.

He said that many a time, prospects used to walk out of a store without buying anything owing to the outlet's inability to customise the apparel to their satisfaction.

In order to prevent this, Aditya Birla Nuvo has introduced My Fit, whereby a prospect can customise the shirt or trouser as per his specification and preference.

"The changes will be ordered online and the final product would be delivered to the customer at his place. A customisation charge of Rs.300 will be charged extra. By this the customer is satisfied of getting what he liked and as per his specifications," Bhopatkar said.

He agreed that the company had to maintain a certain level of inventory for this purpose.

The company will shortly introduce the concept to the Van Heusen range of women's wear also.