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Indian retail chain Brand Factory plans expansion
Jan '12
A major expansion drive for Brand Factory, the retail chain of India's Future Group is on the rolls, targeting the metros as well as in Tier II and III cities.

Pursuant to the drive, Future Group proposes to increase the number of Brand Factory outlets to 35 from present 18 over the next 12 to 14 months.

Each of the proposed outlets would come up on an area of approximately 35,000 to 40,000 square feet.

Besides penetrating in Tier II and III towns in Tamil Nadu and Kerala, the Group would also enhance its presence in cities like Hyderabad, Pune, Bangalore, Kolkata and Ahmedabad, where it already has some outlets.

The Group may consider Tier II cities like Coimbatore, Madurai and Mysore for opening of the new Brand Factory outlets, which already are present in cities like Aurangabad and Nagpur.

The concept of Brand Factory is that of discounted retail format, where branded apparels, accessories and footwear are sold at 20-50 percent discounted rates, all throughout the year. The idea is to clear the surplus or leftover merchandise, which otherwise may keep piling up in high-end malls.

Brand Factory offers 190-200 brands under one roof, 120 of which are apparel brands. The retail chain contributes around Rs. 4 billion each year to the turnover of Future Group, and this is likely to double over the next few years.

The 18 existing Brand Factory outlets draw around 250,000 visitors every week and are growing at an annual rate of 20 percent.

The first of such discounted offerings outlet was opened in Bangalore in 2006, based on an idea that discounted prices may persuade people to buy those brands, which they may not otherwise buy.

People of all age-groups and classes buy in Brand Factory outlets, but it is mainly buyers in the age group of 18 to 25 years who keep hunting for discounted brands.

The Brand Factory outlets are purely a no-frills zone only for people willing to buy branded merchandise at discounted rates.

Fibre2fashion News Desk - India

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