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Koutons fashions retail success around Tier II Indian cities
Nov '09
Undoubtedly, metros contribute majorly to most of the retail industry's financial success, but Koutons definitely eyes Tier II and Tier III cities for the 'real' figures.

Revealing this to Fibre2fashion, Mr. DPS Kohli Chairman, Koutons Retail India Ltd. said, “The biggest contributor to our sales continues to be the metros. But over the last couple of years, lifestyle of the people in small towns and cities has undergone a change and as a result, these cities are fast assuming an important role in the growth story of retail companies.”

He adds, “Penetrating further into the Tier II and III cities, opening family stores and introducing new product lines forms our agenda for the next quarter.”

This leading retailer has achieved very good top line and bottom line growth this quarter compared to corresponding quarter as well last one.

Besides the aforesaid reasons, Kohli attributes their corporate success to sound business model in place adding, “We witnessed upward growth momentum even during the economic downturn. Right from introducing new product lines to exploring new markets, a host of initiatives were taken by our team which helped us to move forward with relative ease. We are now looking to take up these initiatives even more aggressively in the next quarter.”

Speaking about pan Indian presence, he states, “We have over 1400 outlets covering 12.67 lakh square feet of space spread all over the country out of which 3.99 lakh square feet was added during the current fiscal year. Today, Koutons can boast of a strong presence in all the zones of the country, in big and small cities, alike. In fact, it is our strategy of growing in all parts of the country that have brought us exponential sales.”

Entering Benaras, Meerut, Rudrapur, Bhilwara, Mohali, Panipat, Bhilai and other small towns and cities have accelerated the pace of growth process within Koutons, a fact duly acknowledged by Kohli.

“We entered at a time when people were deprived of choices when it came to fashionable apparel and so, this helped us in grabbing a big share of these markets. Further, our stores opening shop in Tier II cities proves to be more economical since it requires lower investment in terms of land and manpower,” he said.

Koutons normally has family store of the size 2,500- 3,000 square feet as compared to the 1,500 square feet of the stand alone stores and their largest family store is in Hyderabad occupying a space of 10100 square feet.

Rounding off, Kohli quips, “Our brand of shoes called K2One catering to men, women and children of all age groups and our men's innerwear range are the latest additions to our product portfolio and both have met with excellent response. These as well as the women's wear line called Les Femme and the kid' wear line called Koutons Junior, which we introduced last year are high margin product categories.”

Fibre2fashion News Desk - India

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