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Retail 23-08-04

Targeting 600 stores pan-India, Max Fashion gears up to leverage value-fashion market

04 August 2023, Mumbai

Max Fashion has been a popular brand for the Indian diaspora living in the Gulf countries for the longest time and it is only befitting that Max Fashion’s flagship store is in Kochi (Kerala), where most Gulf Indians are from.

Known for its trendy and budget-friendly clothing, accessories, and footwear, the UAE-based Landmark Group has not only spun a success story around this label in the Middle East but is taking on the likes of Trent’s Zudio, Reliance Trends, and Shoppers Stop Intune.

Proliferates

As market expansion in the value apparel, accessories, and footwear segment expands prolifically across India, particularly in Tier II and III cities, Max wants to get ahead in the game.

Harminder Sahni, Co-founder of Gurgaon-based retail consultancy Wazir Advisors, says the shift towards value retail will help companies such as Max Fashion, catch consumers who are shifting from unbranded to branded products.

Nearly 500 stores and counting

The brand opened its first outlet in Indore in Madhya Pradesh, the choice being a strategic one, targeting Tier II youth moving from unbranded to branded, and today Max Fashion is present in over 200 cities, covering Tiers I, II, and III.

By next year, Max Fashion plans to add another 100 stores across India.

This aggressive expansion plan seems to be taking on a similar journey that another popular Indian value-fashion brand Zudio is already on. Max Fashion’s 465^th outlet is in Kochi which is also the brand’s biggest – a comprehensive big-format retail experience.

Spoilt for choice

At the launch of the flagship store, Sumit Chandana, Deputy CEO, of Max Fashion India said the consumer will be spoilt for choice in the 25,000 sq. ft store. South India is a key market for Max Fashion as it relies on the Indian expat community’s familiarity and the Kochi store is a strategic step towards consolidation of the Kerala market.

This is the retailer’s way of giving back to the community as an Onam gift.

Recently, Max Fashion opened an outlet at The Whitehouse Shopping Center in Bapu Nagar, Ahmedabad. The other new big retail outlet launch was in Udaipur. Spread across 18,000 sq. ft, the store is located at Bhumika Group-owned Urban Square Mall.

Marquee brands; This mall also features other brands like Adidas, Puma, Asics, Shoppers Stop, Marks & Spencer, Tata Westside, Tata Zudio, Reliance Trends, and Levi’s among others. Max Fashion has positioned its products at an economical Rs 129 per unit for kids and Rs 199 onwards for youth.

Turning the heat on competitors

Max Fashion is playing in the value retail space where competition is tough and most players have ramped up their marketing and sale network. Tata Trent’s Zudio is a case of aggressive expansion and growth.

Trent has cottoned on to where the expansion lies– it is not growing its mid-market brand Westside as much as Zudio the value retail brand. While opening 14 new Westside stores the numbers are different for Zudio.

On the roll

Touted as the biggest success for Trent, Zudio would open 200 more stores in FY 2024 compared to the 117 stores opened in FY 2023.

Currently, Zudio’s pan-India store count is 352. Boasting high-quality products in the value-fashion segment, Zudio’s pricing is below Rs 1,000 for collections.

Apple of one's eye; Zudio is also the pride and joy of the Tata Group’s retail division as its revenue grew 61 percent to Rs 2,171 crore in the third quarter of fiscal 2023 and saw a tidy profit of 21 percent.

On the expected lines

Along similar lines, Shoppers Stop’s Intune has priced its products under Rs 500 per unit for men, women, and children.

In the April-June period, three Intune stores were opened on a trial basis. The plan is to take up the number to 10 in the next few months. Venu Nair, MD and CEO of Shoppers Stop stated that Intune was created in a fashion-for-all format directly targeting young families.

The new format will be 100 percent sell private labels but not follow the Shoppers Stop format under which it also retails third-party brands. The outlets will also be smaller, focussing on affordable products.

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Retail 23-08-04

Cantabil Retail Expands to Azamgarh

04 August 2023, Mumbai

Cantabil Retail India Ltd., known for its aggressive expansion in tier 2-3 markets, has proudly announced the opening of its latest retail store in Azamgarh, Uttar Pradesh. Situated at Agrasen Chauraha, Civil Lines, the spacious store covers an area of 2500 sqft.

Vision

The brand envisions this new store as the epitome of retail experience, offering an extensive range of formal wear, casuals, and ultra-casual clothing for men, women, and kids at competitive prices. With this addition, Cantabil Retail now boasts an impressive tally eyeing 500 stores across India, emphasizing its commitment to expanding its retail footprint.

Impressive performance

The management highlighted the brand's popularity among customers in the mid-premium segment, spanning all age groups and stressing the importance of making stylish, trendy, and contemporary fashion apparel readily available to their loyal clientele.

With this new store being the 72nd one in Uttar Pradesh, the company aims to further solidify its nationwide presence and pursue aggressive expansion in the coming years.

Expanding retail operation

The company's growth plans underscore the potential in tier 2-3 markets throughout India. Cantabil Retail's revenue saw an impressive increase for the full Financial Year ending on March 31, 2023.

The expansion of its offline retail network played a vital role in driving this remarkable growth.

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Retail 23-08-04

Max Fashion Plans multiple Store Expansion

31 July 2023, Mumbai

Max Fashion, the Dubai-based international fashion chain, has announced its ambitious expansion strategy to add 100 new stores by the end of the coming year.

Plans for rapid growth

The chain aims to extend its presence to more than 200 cities across India, with a focus on top-tier and developing urban centers.

Targeting India's key markets

This plan follows the recent inauguration of Max Fashion's largest store in Kochi, spreading across an impressive 25,000 square feet.

The new store in Kochi aims to strengthen the company's foothold in South India and capture the market in Kerala.

Range for all

With this addition, Max Fashion now boasts a remarkable 465 stores in India and a total of 850 globally.

The Kochi store will also feature a 5000 square feet Home Centre section, catering to all home needs. Presently, Max Fashion offers an extensive collection of trendy apparel, footwear, and accessories for men, women, and children.

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Retail 23-07-31

Vizag's 'InOrbit Mall' by K Raheja in the building

28 July 2023, Mumbai

Real estate development giant, K Raheja Corp, is set to transform Vizag's retail scene with its ambitious project - a sprawling 6 lakh square foot InOrbit Mall in Andhra Pradesh.

The mall aims to become a vibrant hub for fashion and beauty brands, enhancing the city's shopping landscape.

Foundation Laying Ceremony with Chief Minister's Presence

Group has graciously invited Chief Minister Y S Jagan Mohan Reddy to visit the site and participate in the foundation laying ceremony, scheduled for August 1 at Kailasapuram.

Full Operation within three years

As per the Andhra Pradesh state government's press release, the mall is projected to be fully operational within three years, promising an exciting addition to the city's retail offerings.

Diversified Investments in the State

Apart from this grand venture, K Raheja Corp is actively exploring other investment opportunities in Andhra Pradesh, demonstrating its commitment to the state's development.

K Raheja Corp's Established legacy

InOrbit Malls in Mumbai and Vadodara, K Raheja Corp, the parent company of Shoppers Stop and InOrbit Mall chain, has a proven track record of offering a delightful mix of Indian and international brands, including Puma, W, Levi’s, Just In Time, Mufti, Go Colors, and many more.

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Retail 23-07-28

Uniqlo expands in India

03 August 2023, Mumbai

Japanese global apparel retailer, Uniqlo, is all set to inaugurate its 11th store in India, this time in Faridabad.
To expand presence in NCR
New store in Pacific Mall; The upcoming store will be housed in the sprawling Pacific Mall, spanning an impressive 3.8 lakh sq. ft., offering visitors a diverse range of experiences, including renowned fine-dining restaurants, state-of-the-art cinema, and a family entertainment center.
Super-exciting
Occupying around 14,000 sq. ft. of carpet area within the mall, Uniqlo's newest store is anticipated to open its doors to the public in the forthcoming months.
Patrons can look forward to a vast collection of Uniqlo's signature LifeWear products, featuring casualwear, outerwear, and accessories catering to men, women, and children. This marks Uniqlo's third store in the National Capital Region (NCR), following successful ventures in Delhi, Gurugram, and Noida.
Growth is a way of life
Furthermore, the company is eyeing the launch of its first store in Mumbai later this year. Uniqlo's expansion in India signifies its unwavering commitment to establishing a prominent presence in the country.
Having entered the Indian market in 2019, the brand has achieved rapid growth, boasting a total of 10 stores nationwide.
Vision
The company envisions the launch of more outlets in the years to come, reinforcing its dedication to providing customers with exceptional and fashionable apparel choices.

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Retail 23-08-03

Cantabil Retail expands with multi stores

31 July 2023, Mumbai

Cantabil Retail, a renowned apparel brand, plans to expand into footwear and athleisure with 5 exclusive outlets by September.

To Expand the Product Range

It will also introduce 12 Exclusive Brand Outlets offering women's and kids' apparel and accessories.

Expand footprints

The ambitious growth strategy includes overwhelmingly opening 80 new stores in tier II and III cities, with 12 dedicated to women's and kids' products and 5 to footwear and athleisure.

Growth Plans

Cantabil will invest Rs 25-80 crore for these stores, having already piloted the new categories in 30 existing stores. Currently, 25% of stores are in tier-I cities, but the brand aims to enter 40 new cities this fiscal year.

Cantabil's revenue for the previous year was Rs 550 crore and expects Rs 675 crore this fiscal year. It strives to increase its online revenue contribution to 6%.

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Retail 23-07-31

Mega Mall Coming to Faridabad

28 July 2023, Mumbai

Unveils 'The Mall of Faridabad':

Pacific Group, excitedly announced the forthcoming masterpiece, 'The Mall of Faridabad,' continuing the tradition of creating iconic destinations.

The group's vision is to elevate shopping and entertainment to unparalleled heights, promising a world-class experience.

A diverse shopping haven

Spanning 3.8 lakh square feet, the mall will house an array of Indian and international brands, such as Nykaa, Lifestyle International, Uniqlo, Trends, Fashion Hub, and Deerika.

Visitors can relish a delightful food court and diverse entertainment facilities.

Expanding horizons

Adding to their impressive portfolio of six malls across North India, including Dehradun and Sahidabad, this expansion solidifies Pacific Group's presence.

Anticipated as one of India's most sought-after retail destinations, the grand opening is set to redefine world-class shopping and entertainment.

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Retail 23-07-28

Tale of India’s Tier II cities: Retail therapy the new high

02 August 2023, Mumbai

The rise of Tier II cities is not a new phenomenon in India as the overburdened Tier I cities are already groaning under over-population, high cost of living, and infrastructure that wasn’t built to sustain such a large population.

As India’s economy grows and new manufacturing and service hubs spring up, Tier II cities have their own growing talent pool and are delivering work at par with their Tier I city counterparts.

A great bonus is that professionals living in Tier II cities have a higher disposable income in many cases due to the lower living costs associated with these towns.

Commercial real estate developers riding on the quest for retail spaces in these cities poured in and up came the malls.

And then e-commerce unlocked the craze for “shop until you drop” with its never-ending variety, access, robust pricing, and favorable return policies. E-commerce hit the right spots and let people flock by the droves, a delight for smaller brands with pan-India ambitions.

Growing retail among Tier II consumers

Data has it that residents of India’s Tier II cities and beyond are spending 2 hours 25 minutes per week shopping online, totaling 124 hours a year per individual (women tend to spend 149 hours annually).

Of course, Gen Z shoppers lead the consumer segment shopping online with 51 percent whereas millennials are at 47 percent.

CyberMedia Research (CMR), a technology market research and advisory firm, conducted a consumer study in May, with a sample size of 3,000-odd consumers across eight Tier I and II cities.

Aspirational

The survey titled ‘CMR Consumer Aspirations and e-Commerce in Bharat’ revealed these figures. The research also revealed how deeply Amazon and Flipkart have penetrated household in these cities with 72 and 70 percent of purchases being made on these two platforms.

Meesho is a distant third at 30 percent whereas JioMart and Reliance Retail take up the last two top-five slots with 20 and 14 percent respectively.

The two top drivers prompting online shopping sprees are at 57 per cent – attractive prices and convenient exchange and returns. Irresistible offers and deals clock in as the third most key trigger at 49 per cent.

Clothes and accessories are the leading categories of online purchases by residents of Tier II towns with 62 per cent of share of wallet whereas personal electronic gadgets and devices come in as second with 54 per cent.

Surprisingly, beauty products occupy the fifth position in the top five with 21 per cent whereas groceries and health & personal care come in third and fourth respectively, with 33 and 23 per cent.

On the back of this report, CMR issued a statement that in a large, diverse market such as India, both online and offline retail will continue to coexist. As consumers continue to gain digital fluency, the e-commerce boom will also significantly benefit small business owners. This will contribute to the rise of India’s trillion-dollar internet economy.

E-commerce valued at $ 325 billion by 2030

While the value of India’s e-commerce was a mere $70 billion in 2022, it is projected to grow into a $ 325 billion sector by 2030, as there seems to be no slowdown in buying things online – as per Deloitte India report ‘Future of Retail’.

The report states retail penetration is projected to grow at an extraordinary rate and it would outpace offline retail by 2.5 times in the next decade – the key drivers of this phenomenal growth may be attributed largely to residents of Tier II cities and Tier III towns.

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Retail 23-08-02

35th GGMA Concludes on A Success Note

Held at the Helipad Exhibition Center in Ghandhinagar, Ahmedabad on July 20th, 21st, and 22nd, 35th edition of the GGMA National Garment Fair 2023, organized by The Gujarat Garment Manufacturers Association, was a great success.

The fair served as a remarkable platform for manufacturers to showcase their latest collections and cutting-edge designs. Attendees were treated to a diverse array of products, including traditional and contemporary garments, men's wear, kid's wear, ethnic wear, western wear, and accessories, creating a captivating showcase of the finest creations in the fashion industry.

The fair played a crucial role in fostering meaningful connections between manufacturers and potential buyers, retailers, wholesalers, agents, dealers, and distributors from different regions. The event facilitated productive networking sessions and trade negotiations, resulting in a significant number of orders being placed for the upcoming season.

The fair also celebrated creativity and craftsmanship through captivating displays, leaving fashion enthusiasts and buyers inspired by the artistic prowess demonstrated by the exhibitors.

Retail 23-07-29

Shoppers Stop reports Q1FY24 results

27 July 2023, Mumbai

Shoppers Stop Ltd. unveiled its Q1FY24 financial results on July 24, 2022, showcasing a Profit Before Tax (PBT) of Rs. 19 Crores and a Profit After Tax (PAT) of Rs. 13 Crores. The company's success was bolstered by an 8% ATV growth, achieved by emphasizing premiumization in various categories.

CAPEX

Investing Rs. 43 crores in capital expenditure, Shoppers Stop added 1 HomeStop and 6 Beauty stores, along with renovating 3 Department and 1 HomeStop store.

The newly launched "Fashion For All" brand, "Intune," featuring 100% private brand products, further expanded with 3 new stores opened in Hyderabad and Dombivali (Mumbai).

Growth in ‘Beauty & Non-Apparel Categories’

The Beauty segment surged with a 13% YoY increase in sales, reaching Rs. 216 crores. Non-Apparel also witnessed a strong 13% growth, driven by the travel and luggage segment (+50%) and the watches segment (+9%).

Loyalty program

The First Citizen loyalty program played a significant role, contributing 80% to the total mix, with 67% of members being repeat customers. This, combined with premiumization strategies, resulted in an 8% increase in ATV and a 5% rise in Average Selling Price (ASP), marking 13 consecutive quarters of growth.

Resilience

Shoppers Stop, highlighted the company's resilient and competitive performance amid challenging market conditions.

With a strategic focus on personalization, premiumization, and private label offerings, Shoppers Stop continues to drive sustainable growth and cater to diverse customer segments.

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Retail 23-07-27

Reliance Retail ready to make a splash in value-fashion space with new brand

02 August 2023, Mumbai

Reliance Retail Ventures currently has a lot going on for it. On a positive note, profits have jumped 18.8 per cent year-on-year in the first quarter of 2023-24 to Rs 2,448 crore; gross revenue rose by 19.5 per cent year-on-year led by its grocery, electronics excluding personal devices, and fashion and lifestyle divisions.

Aided by growing footfalls, new store additions, and high conversions, Reliance Retail posted a 12.9 per cent growth in net profit to Rs 2,415 crore in Q4 of FY23, up from Rs 2,139 crore a year ago. For the year ending FY23, net profits grew 30 per cent to Rs 9,181 crore.

Meanwhile, Reliance Retail is refreshing its flagship high-street retail store brand Trends and as per media reports, it will launch a value-brand in the fashion division code-named Yousta which will go head-to-head with the Tata Group’s Zudio.

The plan is a big one and includes establishing a national footprint through 200 to 250 outlets in the coming years, with the brand launch happening in August 2023 at an undisclosed mall in Hyderabad. The plan also includes opening a 10,000 sq. ft. flagship store in Delhi.

Value fashion market a lure

The mass-clothing market in India has largely been through the unorganized sector and as lifestyle aspirations grow fast and furious across the country. This customer base promises great growth opportunities because of its sheer numbers.

Value fashion is the ‘new’ lucrative side of fashion retail that conglomerates operating particularly in garment retail are seriously interested in.

As Harminder Dingh, Co-founder of retail consultancy Wazir Advisors explains, while premium lifestyles and therefore premium brands are penetrating the Indian market at a healthy rate, 90 per cent of India’s overall consumption is going to happen in the value space. The opportunity in fashion is huge as millions of Indian consumers move up from unbranded apparel to branded fashion and lifestyle products.

In the works

Before Reliance Retail’s foray into this space, the Tata Group and Shoppers Stop were already working in this space. 1India Family Mart and V-Mart, the two dominant organised players in the large value market are now bracing themselves to rattle sabres with the corporate Goliaths.

The Tata Group’s Zudio, positioned as affordable fashion is on a quick expansion drive with plans to open 130 new outlets by the end of 2023, hoping to cash in as much as possible during the festive season.

With 350 stores nationwide in the bag, Zudio will have nearly 500 stores by the end of the year. Zudio seems to have cracked the code of India's fashion industry.

Value retailing

The $500-million fashion brand, which was unknown two years ago, is now giving established retailers like Westside, Pantaloons, and Max a run for their money. It has nailed value pricing by offering everything under 999.

Shoppers Stop, not to be left behind in the race has already rolled out its brand InTune in the value fashion segment and operates two stores in Hyderabad and Mumbai. Meanwhile, Reliance Retail has not yet divulged the code-name Yousta’s pricing range.

Refreshing Trends to capture the affordable fashion market

As value-fashion-led markets expand across the country in volumes, Reliance Retail is busy nurturing its already-in-play brand Trends. Spread across 1,100 cities across India, Reliance Retail already has 2,300 Trends stores, much more than Zudio.

The Trends chain is now undergoing a facelift to be more attractive and style-relevant to Indian Gen Zers, its base customers.

The facelift focuses beyond the design of the apparel – self-checkout counters, electronic shelf labels et al to attract its young customer base. Trends unveiled the new offer and format by opening a new outlet in Surat.

As the heartland of India moves into labels and brands, the conglomerates with their inherent advantages are set to win this one.

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Retail 23-08-02

Shoppers Stop Expands Intune

29 July 2023, Mumbai

Shoppers Stop expands Intune to 10 stores, targeting India's lower-end apparel market. The move aims to compete with Trent's Zudio and Reliance Trends in this segment.

Target Tier-2 and Tier-3 consumers

The decision is driven by the significant market share in tier-2 and tier-3 cities, and the ongoing shift from unorganized to organized retail.

The Intune stores offer affordable products for women, children, and men, focusing on 100% private-label merchandise. Unlike the traditional Shoppers Stop model, Intune will only sell private labels, not third-party brands.

Optimism

Despite recent challenges in the apparel business, Shoppers Stop remains optimistic about a gradual recovery in demand, especially in the second half.

Non-apparel categories like beauty, luggage, and watches showed growth, but inflationary pressures impact the mass market segments.

Targets ‘Lower-End Apparel’

The strategic expansion aims to strengthen Shoppers Stop's presence in the lower-end apparel market, leveraging India's evolving retail landscape.

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Retail 23-07-29

Reliance Retail modernizes Trends stores

26 July 2023, Mumbai

Reliance Retail is set to modernize approximately 150 Trends fashion stores nationwide, embracing cutting-edge technology and contemporary aesthetics, aimed at capturing the attention of younger clientele.

Unveils ‘Revamped Stores’

The revamp will encompass self-checkout counters, electronic shelf labels, and RFID-enabled systems, revolutionizing the shopping experience for customers. With a fresh brand identity, the revamped stores will exhibit a complete makeover from facades to fixtures, lighting, ceiling, and flooring, offering an aspirational ambiance to shoppers.

Evolving customers

The objective is to cater to evolving consumer demands and provide them with novel and distinctive shopping experiences. The first renovated store with the new identity has already opened in Surat, with numerous others scheduled to follow.

All forthcoming Trends stores will adopt this modern format, which may even incorporate dedicated spaces for local artisans to showcase the city's unique identity through their creative expressions.

Digitization

The company emphasized the integration of innovative tech interventions in the VIP Road, Surat store, including self-checkouts, electronic shelf labels, RFID enablement, and dual-sided cash tills. Global best practices in merchandising and product display have also been incorporated to enhance product discovery for customers.

Pivot

Trends constitute a significant portion of Reliance Retail's garment sales, operating over 4,000 fashion and apparel stores, featuring popular brands such as Trends, Centro, Azorte, and Fashion Factory. This new concept aims to retain the brand's wide appeal across diverse demographics while embracing warmth and inclusivity.

Premiumization

Moreover, Reliance Retail's recent quarterly results demonstrated a notable shift towards premiumization, as consumers are increasingly investing in apparel and footwear.

The fashion and lifestyle stores have witnessed increased footfall and average bill values, indicating a trend towards smart casuals and leisurewear that cater to both office and non-office settings.

Customer Delight

The re-imagination of Trends stores by an international innovation studio underscores Reliance Retail's commitment to staying ahead of consumer trends and delivering fresh and unique retail experiences across India.

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Retail 23-07-26