The upsurge in emerging economies and the growing disposable income of the millennial youth has altered the luxury market segment, thus leding to an unprecedented growth in this market. The luxury market is expected to cross $18.3 billion this year growing at a CAGR of about 25 per cent. Sensing the needs of this market segment, Da Milano, the leather accessories brand has added the high fashion premium footwear label ‘Rosso Brunello’ to its satchel.
Positioning itself in the bridge-to-luxury segment, Rosso Brunello has now marked its presence through 22 stores across seven states in India. In a conversation with Retailer, the managing director of Da Milano – Sahil Malik shared his vision and scale up plans for the brand.
How was the idea of Rosso Brunello conceptualized?
Graduation from Leather Accessory to Footwear was logical. It was to complete the requirement of all leather needs of men and women. The Footwear start-up Rosso Brunello was to provide comfort and style to a discerning clientele. It was conceptualized to provide quality that was affordable in the cluttered Footwear space. Design and Quality were to be differentiators. Though, there is no story behind the name, Brunello is a reference to dark brown and tanned colors and leather shoes blend with them.
What has been the retail channel of Rosso Brunello?
Rosso Brunello is present in 22 stores in India across seven states. These including shop in shop locations. With our own production facility that has capacity ramped up for over 50 stores the present business size is expected to grow to over 150,000 pairs in the next two years.
How have you detailed your consumer?
The Customer ranges from the crème-da-la-crème who likes both style and comfort of gait to the everyday office goer who blends signature style with aplomb and a comfort that sync’s with his or her office routine. The age group of 20 to 45 years is the target.
What is your current distribution in Brick and Mortar space?
The Brand sells through its Company / Group Owned and Operated stores and through online platforms. The future plans are to expand the Company Owned Company Operated Stores to 50 outlets in over 15 states in India.
Have you risen any funding so far?
Promoters Capital and Internal Accruals shall be adequate to ramp up to over 50 stores in the next two years. The Company Balance Sheet supports a possibility of raising institutional finance should the need so arise. The Business has no outside Investors. The Malik Family is provided the Promoter Capital. Group Companies and Promoters are endowed to provide the growth capital for the next three years.
What has been your biggest challenge so far in scaling -up?
The biggest challenge has been to get prime store locations in a cluttered footwear space. Quality and design of Rosso Brunello are the biggest mitigations. As Style and Comfort of the brand endears itself to the customer the challenge is being addressed.
How do you see growth scenario is this business? What is your future scale-up plan?
Footwear is a necessity – we have learnt it over the years. Comfortable footwear is what ensures confidence, while design and Style pronounce a personality. Workmanship and perfect leather are differentiators. Demand for niche leather footwear should continue to grow exponentially. Our scale up plans are to be at 50 select outlets in India over the next two years that caters to over 150000 pairs with designs and comfort in the footwear that has never been experienced earlier.