Cotton County to open 250 outlets by 2008

Cotton County, the chain of readymade garment stores, is on an expansion drive to take the number of its outlets from 250 to 500 during the financial year 2007-08.

After creating a strong base for itself in the North Indian market, the brand is looking to other zones, especially South India.

Sachin Sahni, Asssociate Vice President, Cotton County, told reporters that the brand will capitalise mainly on its strategy of catering to the price conscious mid-segment with attractive discounts and offers to take the business from Rs 100 crore to Rs 200 crore by March 2008.

Cotton County is promoted by Nahara Retil Limited, a wholly-owned subsidiary of Nahar Industrial Enterprises Limited, which is the flagship company of the Rs 2,500 crore Nahar Group.

Sahni said Cotton County will also enter the women's garments segment in a big way and start the children's garments business as well. "A soft launch has already been made by introducing Cotton County Femme range of women's wear and Tazo brand of kidswear," Sahni informed.

The expansion plan to double the number of Cotton County stores and to introduce the new lines of women's wear and children wear will necessitate expansion of garment making capacity, he explained. The company has planned to double its garment manufacturing capacity from 10,000 per day to 20,000 per day in the present year, he added.

The investment for doubling the capacity will be about Rs 10 crore but the major investment of about Rs 50 crore will come in stocks and logistics, he said.

Explaining Cotton County's business model, Sahni said it is run as a discount store by the manufacturer himself.

"We are enticing the price conscious, brand-inclined young customer to our brand with offers such as buy-two-get-four-free and playing the volumes game, keeping the margins low," he said.

Mid-range pricing of Rs 399 to Rs 899 coupled with the attractive discounts has worked well for the company.

Sahni added that being part of Nahar Group, an integrated player in the textiles business engaged in cotton procurement to fabric manufacturing has also helped to keep costs low, resulting into stable profitability.

Nahar informed that the company has started a premium garment range 'French Republic' which retails for price tags of Rs 1,699-2,699. These are super premium range offerings but the discount strategy is the same, he said.

Cotton County will eventually become a family store where all the garment needs of a family will be met, he informed. With this in mind the company has introduced handkerchieves and towels, as well as socks and ties.