 "Biba targets 15-20% annual growth as ethnic wear demand revives")
Ethnic apparel brand Biba is eyeing a mid-double-digit revenue growth in the next three years as consumer sentiment starts to improve after a prolonged slowdown.
“There is definitely a change in consumer mood since August. Things are looking up after a slowdown in the last couple of years. The onus, I think, is on brands to evolve with the changing customer tastes,” Sidharth Bindra, managing director, Biba, told Business Standard.
Bindra said Biba is expected to clock a growth rate of 15-20 per cent in the coming three to four years. With approximately 430 stores, 350 Biba stores and 80 Rangriti, they plan to add 50 new stores in the ongoing financial year.
“Next year, we will really accelerate on store expansion and should be opening close to 100 new stores,” he added.
The brand clocked a revenue of ₹769 crore in FY24 and a loss of ₹95.5 crore, linked to a transformation to SAP and a warehouse fire. However, the company has “turned profitable since July,” he said.
Talking about the recent GST rate cuts, Bindra said the brand has been negatively impacted by the move as most of its portfolio is priced above ₹2,500.
“We have not raised prices yet and are absorbing the impact of the GST rate measures. We are hoping that the consumers reward us for it,” he further said, adding that the brand will raise prices once the festival season is over.
But still, to make the most of the GST rate cut measures, the company has tweaked price points. Products earlier priced around ₹2,999 and ₹3,299 have been brought down to ₹2,500 till Diwali.
Speaking about evolving with changing tastes, Bindra pointed out that the company launched its first bridal store in Delhi’s Chandni Chowk, with higher price points starting at ₹15,000 and going up to ₹100,000.
“It is a category that is seeing increased action and we are positively surprised with the reaction in the first week of the store’s opening,” he said.