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Naagal Garments on product category & store expansion drive
Jul '11
Along with store count expansion, Naagal Garments, owners of apparel brands - MBA and Club Fox, plan to enter new product categories like winter suits and blazers under Club Fox and formal shirts and trousers under MBA.

MBA is a mid-segment casual wear brand with offerings like casual shirts, casual trousers and denims and targets the age group between 18 and 35. Club Fox offers formal as well as casual shirts, cotton and formal trousers, t-shirts and also denims.

However the biggest difference lies in the way both the brands are sold. While MBA is sold through distribution and multi-brand outlets, Club Fox is retailed through exclusive brand outlets (EBOs).

Currently Club Fox is available in 200 stores in tier I, II and III towns and cities, while MBA is sold in seven states across the country, mainly in the western and northern regions.

“We are planning to launch two new categories namely suits and blazers. We already have around 220 stores across the country and by the end of this financial year we wish to open another 80 more stores and cross the 300 mark”, Mr Arvinder Singh, Retail Head, Naagal Garments told fibre2fashion.

He further informed, “We have already explored Western and Northern India. We have a good presence in MP, Gujarat and Maharashtra and in north we have presence in Punjab, Haryana and UP. So now we are targeting Eastern and Southern India.

“We started with the West, moved to the North and so now we will be expanding to the East and the South. We will be expanding to Kolkata, Bihar, Jharkhand and Orissa in the East and in Southern India it will be Karnataka, Andhra and Tamil Nadu”.

Revealing more details he said, “To open our stores of around 500-800 sq.ft, the minimum investment required is Rs five million. The franchisee owners need to deposit the amount with our company, after which, we provide the stock to them on consignment basis, with the return on investment (RoI) being around 25% per annum”.

Speaking about the upcoming festival season, he informed, “Foreseeing the festive times ahead, we are expecting good sales during Diwali, and in East we are looking forward to good sales during Durga Puja. So, we see a good period ahead”.

“However, there has been a hike in prices of textile raw materials, resulting in a rise in garment prices, due to which consumer buying sentiment is low-key. There will be a downward trend in the buying patterns of the consumers, due to which, we are expecting 10-15% lesser sale in this festival season compared to the last year”, he summed up by saying.

Fibre2fashion News Desk - India

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