Targeting profitability through market

penetration in the Rs 60,000 crore branded garments market, India's

leading apparel maker Madura Fashion & Lifestyle will now aggressively

market their premium brand Van Heusen in smaller cities.

"Every year, the company will open at least 40 new exclusive

stores throughout the country, most of which would be in the tier-2

and tier-3 cities," Ajay Ramachandran, Brand Head of Van Heusen, told PTI here.

At present, 40 per cent of the brand's Rs 650 crore annual turnover

comes from their 120 exclusive stores, most of which are located

in the metros and large cities.

With the opening of new outlets, Madura Fashion, owned by the

Aditya Birla Group, is hoping that the turnover would jump to Rs

850 crore next year.

"At present, around 70 per cent of the brand's turnover comes

from the top 7-8 towns. Corporates like us have not given enough

importance to penetrating deep into the market," the company official said.

Pointing out that there is little headroom for growth in the

metros, he said that the sales figure reported from smaller cities

like Patna, Lucknow, Jaipur and Trichur are "mind-boggling".

"The per square foot sales is as good in the tier-2 cities as

we have in the metros. Plus, the rentals are lower by at least 50

per cent. So there is a clear retail profitability which is emerging

out of the smaller towns," Ramachandran said.

Places like Durgapur, Jamshedpur, Guwahati, Patna and Ranchi

are on their list this year.

Having invested around Rs 35 crore so far in opening exclusive

stores, they will now invest Rs 4-5 crore each year to open the new

outlets under a franchise model.

With aims to transform itself into a complete lifestyle brand,

non-apparels will also be sold under the international Van Heusen

brand, which was launched in India in 1990.

A whole gamut of products including men's ties, belts, footwear,

eyewear, watches and luggage will soon be available under the premium

brand name. They will also enter the women's shoes and bags segment.

"We expect a good demand for these products as we can offer

a complete shopping experience to our customers. In the next three

years, the non-apparel business should contribute around 8-10 per

cent to our total sales," Ramachandran said.