Baggit, a vegan brand, has been selling non-leather handbags and accessories for women and men since more than two decades now. Started in early nineties, the brand has a very humble beginning. The journey of the brand started with its maiden store in Mumbai. During the span of the last 25 years Baggit has grown at a healthy pace that has made it a market leader consistently. Today brand share a rich footprint of 48 exclusive stores spread across 90 Indian cities. Besides this, the brand has 350 LFS counters and a huge network of 1000 trade partners, and the brand is expanding month-on-month basis. Apart from robust offline network, the brand also retails products at online marketplaces like Myntra, Flipkart, Amazon and Jabong and its official website as well.
The brand is now shifting the focus on tier II market. Speaking on same, Nina Lekhi, Managing Director and Chief Design Curator at Baggit informed, “We are currently present in 90+ cities through brick and mortar outlets but to reach out to the last mile audiences, we are also available in the leading market places of India. We are on a path of opening a lot more outlets in each city of India, especially targeting tier II and tier III towns beside our current presence. In addition to our own e-commerce portal www.baggit.com, our business goal is to be a leading international fashion brand.”
In order to escalate the footprint in the small towns the brand has launched an affordable designer’s brand called “Nina Lekhi by Baggit”. The new range is priced between Rs.1,800 and Rs.2,200; however, the other collections of Baggit are priced between Rs.3,200 and Rs.4,000. Speaking on new line Lekhi said, “ With new line we can reach out to the growing fashion conscious segment of consumers that follow and set national and international fashion trends. Baggit is seeing constant double digit growth in past few years, but due to demonetization not only Baggit, but the entire retail industry is experiencing a certain level of setback, but given the way we are getting back on the growth path, hopefully we will be able to meet our targets.”
The brand is also exploring the franchising opportunities for tier II expansion.” Considering the tremendous potential and accelerating growth rate in tier II and III cities of India, we are looking at franchising opportunities in these areas to strengthen the brand’s footprint and just so that we can give our customers a reason to accessorize them with world class products,” said Lekhi.
In order to expand the brand’s reach the company is working to solidify its omni-channel strategy. The brand is working towards creating a seamless experience by integrating each platform and device that the consumers utilize to provide the Baggit brand experience. The other reality is that any form of online experience does not form bulk of the business but its presence is increasing constantly which means a strategic investment in terms of resources. Speaking on same, Lekhi said, “We will be giving equal emphasis to all the channels, across businesses, but the resource allocation for omni-channel will purely be dependent on the business and consumer need and demand. At the same time our approach is that omni-channel experience is akin to a journey that needs to constantly keep changing and evolving to fulfill the inherent needs of the consumer.”
According to a March survey by consulting firm A.T. Kearney, the Indian fashion and lifestyle market is expected to touch Rs.3,94,000 crore over the next five years. Currently, the market is estimated at Rs.2,21,000 crore and is growing at a compounded annual growth rate of 12 percent.