An Indian brand specializing in loungewear and comfort apparel, Sweet Dreams has reached a milestone by opening its 50th EBO, demonstrating a strong commitment to its physical store strategy.
Established in 1989, Sweet Dreams offers a wide range of products including athleisure, sleepwear, innerwear, and kidswear.
Hitesh Ruparelia, Chairman and Managing Director, highlights, the EBO model is a key driver in the brand's push towards higher-end products and increased profitability. Currently, about 11 per cent of the company’ sales come from its own stores, and the firm aims to expand this number, explains Ruparel, According to him, these stores provide much better profit margins—significantly exceeding the company's average of 28 to 30 per cent—because it eliminates reliance on intermediaries and has greater control over pricing and promotions."
Sweet Dreams has adopted a consistent, non-discounted pricing strategy across all its stores, which Ruparelia believes has helped reduce overall discounting. Today, consumers are willing to invest an extra Rs 500 to Rs 1,000 for superior quality and comfort. While traditional retailers might still focus on discounts, modern shoppers prioritize value, he notes.
Online sales account for 15 per cent of the company’s business, with their website generating approximately Rs 5 million in revenue each month.
Following a successful public offering last year, where they raised 649.8 million rupees, Sweet Dreams is financially stable and profitable. According to Ruparelia, they don't currently require additional external funding to support their store expansion plans.
