Having established itself as a marquee player in the men's wear category, branded apparel and retailing major Arvind Fashions is looking for a more diversified portfolio.
From a 80:20 ratio in its men’s wear versus other segments portfolio three years ago, the newly demerged entity has already seen this shift to 65:35, on the back of 40-50 per cent growth in its children’s wear and innerwear business. Its women’s wear category has also seen decent growth.
Now, backed by strong brands like US Polo, Calvin Klein, Tommy Hilfiger and GAP, it is expecting the product portfolio to shift to 50:50 between men’s wear and other segments, says J Suresh, managing director and chief executive. Among the other segments, the Arvind Group firm is banking on strong growth in children's wear and inner wear, on the back of growing online sales and distribution expansion.
In innerwear, for instance, compared to market leaders with 60,000 channels, Arvind Fashions is currently at 12,000.
“We have a very strong brand in US Polo Association, which we are leveraging to grow even inner wear and kids’ wear. If we take inner wear, then we have very strong brands there like Calvin Klein and US Polo; in kids’ wear, brands like GAP, US Polo and Tommy Hilfiger. Nobody can match us with this portfolio of brands in these categories. Strength of the brand and promotion strategies, along with distribution expansion across channels, is helping these categories grow,” says Suresh.
It foresees at least a fivefold potential rise in distribution. In children’s wear, it says it is becoming a dominant player in department stores or multi-branded stores, with around 2,000 such.