Maxwell to foray into exclusive brand outlets
Mumbai-based Maxwell Industries with block bluster innerwear brands like VIP Frenchie, Bonus and lingerie brand - Feelings is mulling opening exclusive brand stores (EBOs) in the next fiscal year. Beginning from the next fiscal year, it plans to open 100 lingerie outlets in tier I and II cities across West, North and South India.
Maxwell Industries has always been driven by consumers. In the last 39 years of business, it has strived to service consumers at the points from where they intend to purchase the product.
The main reason for expanding in to EBOs is to present across all retailing formats. Currently Maxwell operates through the wholesale, distribution, MBOs and modern trade business formats and services around 35 million consumers per annum through these channels. However it does not have a presence in the EBO format.
“We want to provide our consumers a better experience of the brand in an environment that the brand stands for and also lift it to the next level. This can only be possible when the environment is controlled and hence an EBO. We also plan to enhance our product portfolio, which can be supported by our own stores only as, MBOs always have constraints”, Mr Sunil Pathare, MD & Vice-Chairman, Maxwell Industries told fibre2fashion.
Mr Pathare expects the EBOs to contribute around 20 percent to the revenues of Maxwell over a period of time.
Explaining about the investments in the new initiative, he said, “We will be operating on two different models - Company Owned and Company Operated (COCO) and Franchise Owned and Franchisee operated (FOFO). We are looking at opening stores, with a carpet size of 500 sq. feet. The initial investment will be around Rs. 1.5 million and we expect a ROI of 30%, but definitely not in the first year of operation”.
Informing about the new product offerings and target segments, he said, “There will not be much change in the current product segments but we will be definitely adding new segments and new products in the existing segments. We will be looking at supporting the store with a product portfolio that helps to provide the consumer maximum choice and also improving the Average Selling Price (ASP) in the store. We cater to males, females and kids through our product portfolio and will be targeting SEC 'A' and 'B' class of consumers of either sex”.
Giving his views on the spending behaviour of consumer, he explained, “On an average the Indian consumer spends about 10% of his income on apparel. This includes accessories also. There is a slight difference in the consumption of urban consumer and rural consumer. The urban consumer spends around 12% while rural consumer spends around 8%.
“There has been an overall increase in the spending of Indian consumer towards apparels and specifically on accessories. Consumers have started treating innerwear as fashion accessories. This has also led to lots of innovation in the product with respect to fabric / elastic / colours / styling.
“The differences in the preferences can be very clearly seen when you divide the consumers based on age groups, geographical location and income band. The broader differences are – consumer segment preference towards more functional / reliable product to preference towards stylish and fashionable product. Yes the common thread remains comfort”, he summed up by saying.
Fibre2fashion News Desk - India