Spencer's rolls out new apparel brand
The Rs. 19,000 crore RP-Sanjiv Goenka Group, through its retail arm-Spencer’s Retail Ltd, is now foraying into apparels business, rolling out apparels for men, women and children under the brand-‘2Bme’. The company expects to notch up Rs 300 crore revenue from this brand over the next four years, top company officials said.
“Hitherto food and staples was the main pillar of the group’s retail business, but from now on, there will also be accent of on apparel for children, women and men. We expect the brand to contribute revenue of Rs 300 crore in the next 3-4 years,” said retail sector head Shashwat Goenka.
Fashion contributes less than 4 percent of the retailer’s revenue and with the launch of new brand, it expects the segment will contribute over 5.5 percent in the first year, he said. Significantly, the clothing requirement of a country of nearly 1.5 billion population is enormous and the Spencer’s new accent on this business is a natural culmination of the group operating largely through Spencer’s Retail. The new range of apparels under the brand were unveiled at the eight hyper stores of the retailer in Kolkata, NCR, Hyderabad, Lucknow, Vizag and Chennai. It has 123 outlets, of which 37 are hyper stores.
Goenka said that apparel business contributes about 7 per cent of the retailer’s margin and they expect it to go up to 10 per cent. The average revenue per square ft per month is about Rs 1600, which is higher than the industry average, he said.
Responding to queries, Goenka said, “We have in house team of 10 designers. As the brand develops, we are open to possible tie up with designers. The brand will change its look in every three weeks and over 60 per cent of the range will have an overhaul in six weeks.”
Interestingly, the roll out of the apparel brand has been preceded by extensive research studies on consumer requirements. The revamped range of products willbring in an international flavour. 2Bme aims to provide contemporary and exciting, comfortable yet affordable fashion.
Ritwik Mukherjee