Libas Unveils Plan to Open 100 Stores in the Next Year

Libas, a second-generation brand with a rich history in various businesses, initially thrived with an offline store and successful export ventures. However, around 2012, the business faced challenges and began to decline. In 2014, a significant turning point occurred when Sidhant Keshwani joined the company and spearheaded a complete reimagining of the brand. “Despite its prior establishment, we consider our official founding year as 2014, marking the beginning of our digital-first transformation,” said Sidhant Keshwani, Founder and CEO, Libas.

Having graduated from the University of Manchester, Sidhant observed the global rise of e-commerce and envisioned its potential success in India. This insight led to the decision to venture into the e-commerce space, particularly focusing on fashion. “The initial foray into online marketplaces yielded rapid success, instilling confidence in the viability of the industry. This success prompted us to evolve and expand our offerings beyond workwear, catalyzing substantial growth,” he stated.

In 2018, the brand took a significant step by launching its direct-to-consumer (D2C) platform, which quickly became its fastest-growing channel. The brand's momentum continued, and by 2021, amidst the challenges posed by the COVID-19 pandemic, it made a strategic move into offline retail. “Over the past two years, we have successfully established 15 stores and expanded our presence to 500-600 shop-in-shops across India, partnering with prominent retail chains like Lifestyle, Shopper Stop, and Reliance,” he added.

Distribution Strategy

Libas strategically focuses on three primary online channels – its official website, Myntra, and Flipkart. While its D2C website's share was once below 1 percent, it has remarkably surged to 20-25 percent this year, with plans to scale up to 40-45 percent in the coming year. The majority of its offline presence comprises 15 stores, strategically located in metros and high-footfall areas.

The brand’s store expansion strategy is meticulous, targeting metros primarily and a select few Tier I and II cities where its online performance has been exceptional. A curated list of 50-100 stores is in the pipeline, ensuring a balanced mix of locations based on consumer presence and preferences.

“Currently, our revenue share stands at 85 percent from online channels and 15 percent from offline channels. However, the rapid growth of our offline segment is evident, and we anticipate it reaching 25 percent by the next year,” noted Keshwani.

Beyond Ethnic Wear

Libas products are available in esteemed stores such as Shoppers Stop, Lifestyle, Centro, Reliance Trends, Amantra, and Kala Niketan. Additionally, we've established a significant presence in smaller mom-and-pop shops across India, strengthening our reach and accessibility nationwide.

Libas, as a fast fashion brand, boasts an extensive product range with over 4000 SKUs. While it has a diverse array of offerings spanning various categories, its Kurta sets category stands out as the cornerstone, representing the majority of its business. Beyond Kurta sets, the brand’s product portfolio extends to include bottom wear, mix-and-match kurtas, saris, lehengas, co-ord sets, dresses, and, most recently, a successful foray into kids' clothing.

“Looking ahead, we have ambitious plans for category diversification. In the next one and a half years, we will gradually introduce three to four new categories, beginning with accessories such as costume jewelry. Our expansion roadmap also includes venturing into footwear and handbags, with a long-term vision of entering the home furnishings space. Our meticulous approach involves six to eight months of thorough research before introducing any new category, reflecting our commitment to thoughtful and market-driven expansion,” he explained.

Growing Advent of Live Commerce

Libas is at the forefront of embracing the dynamic landscape of social commerce, particularly the burgeoning market of live commerce. This modern approach, marked by real-time product experiences, has proven to be exceptionally successful. Through strategic partnerships with major platforms like Myntra and Flipkart, it has delved into live commerce channels, witnessing tremendous success.

The live commerce trend is gaining substantial traction as consumers increasingly seek visual and real-time experiences with products. With internet penetration reaching Tier II and III cities, and even smaller towns and villages, the future of live commerce appears robust, especially with the advent of 5G technology.

“Influencers and marketers alike are adapting to this evolving concept, while continuous technological advancements are making the live commerce experience more interactive and user-friendly. We recognize the potential in this space and have collaborated with Myntra, leveraging their well-executed live commerce features. The results have been impressive, with performance metrics showing rapid month-on-month growth. As technology continues to evolve, we anticipate a sustained upward trend in the realm of live commerce over the next one or two years,” asserted Keshwani.

Tech-Forward Brand

Leveraging advanced customization tools, the brand has placed a strong emphasis on personalization, a crucial element for a fast fashion brand with an expansive assortment. “In anticipation of an increased SKU count—aiming for 8,000 to 10,000 next year—we recognize the potential for consumer confusion. Addressing this challenge, we have incorporated AI-driven solutions to understand customer behavior, offering personalized listings based on past preferences. This approach aligns with the overarching goal of preventing consumer overwhelm and enhancing the shopping experience,” he said.

Its commitment to technological excellence extends to an AI-driven search feature that efficiently connects users with their desired products, ensuring a seamless and focused shopping journey. These innovations collectively position Libas as a tech-forward brand, dedicated to enhancing customer satisfaction through a combination of advanced AI and a user-centric approach.

READ MORE: How to Launch a Successful Fashion Brand in 2023 and Beyond

Growth Outlook

Libas has consistently exhibited remarkable growth, achieving over 100 percent year-on-year expansion since its inception. Despite the challenges posed by COVID-19, the brand maintained a robust 10-12 percent growth during the pandemic. Over the last one and a half to two years, Libas is poised to close this year with an impressive growth rate of around 55 percent, projecting similar momentum for the upcoming year.

In terms of revenue, the brand anticipates closing the current year with a Gross Merchandise Value (GMV) of approximately Rs 950 crore, a substantial increase from the previous year's Rs 600 crore.

As a bootstrapped business since its inception, Libas is now strategically considering its first round of fundraising. The primary focus of this funding will be to accelerate offline expansions, a capital-intensive endeavor that requires careful planning. “Having spent one and a half years understanding market behaviors and customer preferences, we are well-positioned to embark on an ambitious plan to open 100 stores in the next year,” concluded Keshwani.