Anjana Reddy
CEO & Founder Universal Sportsbiz Pvt Ltd (USPL)
We can be India's first global youth-focused brand
Established to cater to an untapped sports and entertainment ecosystem in India, Universal Sportsbiz is every sporting enthusiast's dream. Anjana Reddy, CEO and founder of USPL, speaks to us about her fashion retail start-up company and its youth-centric brands.
Which points-of-sale are faring well for all the four brands?
We do well both online and offline; there is no major difference between online and offline profit share. However, it varies between brands-like Imara is a little more offline and Wrogn does fairly well online as well as offline. It is almost like a 50-50 split between online and offline.
How did you come up with the idea of USPL? How are USPL product offerings different from others?
The idea to start USPL cropped up when I was studying in the US. That was when I saw a gap in the branded space. We wanted to come up with a brand that the youth could relate to-that was the birth of USPL in my dorm room. It was not apparel we started with; we started with merchandising and began with Collectabillia, for which we signed up with Sachin Tendulkar for a host of merchandises. That was when we realised that the apparel market is growing, and decided to build the business around apparel.
We have introduced a lot of things with Wrogn, we made denim joggers and burn-out wash in polos. We have done lots of things, but one thing which is different for all the three brands is that they are literally by the youth and for the youth. If you see the brand ambassador, brand clothes and brand campaign-all of those are targeted at the youth. So, the brand position is very clearly defined for all our brands, and we also believe in putting in more into the product. Our products are well organised and they are very youth-centric, for the entire product line. We often get requests from channel partners urging why we don't just go for a ride and research what is doing well in the market. But we typically abstain from doing this because it does not fit with the youth, even though it (a product type) is probably selling right now in the market-such things do not go with our process.
What challenges did you face as a start-up in the apparel retail industry?
The biggest thing is that vendors should take you seriously, and for you to hit your minimum order quantities with the supply chain. Also, from the content perspective, convincing any large online or offline channel to pick up an unknown brand is a challenge. These are the multiple challenges you face as a new brand in the market, but I think we have done well to overcome that.
What is the break-up in terms of the number of stores these brands have?
Wrogn and Imara have 73 stores in association with Shoppers Stop, and Ms Taken will have about 35 stores by the end of the season.
Which regions do you plan to expand to?
Other than the 73 stores that we have in association with Shoppers Stop, we have 10 of our own EBOs across the country. This week, we are in the process of opening in Nagpur, Bilaspur and Patna, and we will also open in Bengaluru. We are focusing more on a creative market.
All USPL brands (Imara, Wrogn, Collectabillia, and Ms Taken) are backed by celebrities. What is the reason behind such associations?
There are so many brands in the market. In India, from the brand's perspective, the celebrity has to have a discoverable face. You have 2000-plus brands online on Myntra, and you have Virat, Shraddha or Kriti looking at you; you are more inclined to going and clicking on that brand. Therefore, for us the celebrity acts as a discoverability source and obviously they are also lending credibility to the brand face. Otherwise, they are just unknown brands without a celebrity. Discoverability and credibility act as assets for the brand's value in the customer's mind.
Will USPL promote only celebrity brands?
Right now, I don't think I am launching any other brand. I think all three brands are the celebrity ones. So, let's just leave it at that.
How were the last two fiscals, and what are your expectations for the next two.
We did a business of Rs 22 crore the year before, and Rs 61 crore in 2015-16. We are expecting a business of Rs 120 crore this year. Next year, we are looking at Rs 240 crore and I think we can leave it at that. I think today it is hard to predict beyond a year.
You are trying to raise $15 million in series C of funding for your company. Where will you invest?
I will not be able to talk about series C. It will be invested into the operations of the Shrimani supply chain, and a little bit into marketing and building the brand value.
What is the USP of each brand-Imara, Wrogn, Collectabillia, and Ms Taken. How do you plan to deal with the competition in a crowded marketplace?
As I said, it is very youth-focused and youth-centric; our product is key for us. All our celebrities are great in terms of discoverability, the product is king, and that is what is working well for the brand. The topmost priority for us internally is to focus on the product, and I think we should give more back into the product. The consumer today is so spoilt for choice, and the consumer recognises good quality products; that is what is working for us. Rather than focusing on what other people are doing, it is better for us to focus on how we can improve the product experience for the consumer season-on-season.
Do you plan to go omni-channel?
We are already omni-channel. We are in 73 stores offline and have a very large presence online between Myntra and Flipkart.
What is the response to your brands in tier-III and tier-IV towns?
Like I said, it is doing well-that is why we are opening our EBOs. We have opened two stores of Wrogn and Imara in Vijayawada, our Imara store in Agartala does phenomenally well, and we are opening Ms Taken stores in Patna and Bilaspur. Vijayawada has both Wrogn and Imara (which are standalone stores), Nagpur has Wrogn, and there is a combination of Wrogn and Imara in Bilaspur and Patna.
What are the top five points for young entrepreneurs planning to enter the apparel retail niche?
I do not know five, but the most important thing is to have a vertical plan, and inventory management is very critical. These are two of the most important things.
What do you plan to achieve at USPL in the next two years?
We can be India's first global youth-focused brand, and I think that will be a big achievement for us.
How would you describe the online apparel retail space in India? What is the percentage share of home-grown brands in this space?
It is great. I think it has changed the buying pattern. People used to buy festivewear or occasionwear during a couple of months in a year. But with e-commerce, the reach is a lot more, the product knowledge is a lot more, there is a lot of description and the data that the consumer gets to see. I think the consumer today is buying a lot more and there's the convenience of buying it and returning it if you do not like it or if it does not fit. So, e-commerce has done good. I think it is here to stay. But I would not be able to comment on the percentage share of home-grown brands as the data is not public. I would not want to give numbers that I am not comfortable with.
Published on: 17/11/2016
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
