How do you assess the denim market in India? What would be the estimated market share of Deal Jeans into the overall market?
India is a big market with a lot of untapped potential for the denim industry despite the fact that the industry has been growing robustly over the past few years. For a majority of the Indian youth, denim is not just a casual wear, but more of a fashion statement. Among all types of denim wear, jeans are the most popular articles among Indian women. Women in different age brackets of all shapes and sizes like to wear denim as it is comfortable, functional, and durable. Also, women who are not at ease with western wear have taken up to wearing jeans by pairing them with Indian ethnic wear. This mix and match style is gradually picking up, particularly among women in small towns who come from a traditional background and is likely to fuel the growth of the segment. At this point, it is difficult to judge Deal’s market share into the overall market.
Kindly highlight your current distribution including EBOs, MBOs and online? What are the strategies to scale-up the same?
Initially, Deal started with MBO (Multi- brand outlet) as its first distribution channel. With Deal products gaining immense response, the brand then incorporated modern retail through Large Format Stores to channelize further penetration. With invention in technology and online shopping being most preferred by consumers, Deal then expanded its unique selling point to online shopping portals wheregrowth of online shopping helps to establish the brand much faster, there is no geographical boundary anymore. After capturing the market through MBO’s and LFS, the brand added another channelof standalone stores to increase further market penetration. Today the brand has its 11 exclusive outlets across PAN India, 1 international outlet and is available at 1300+ MBO’s, 120+LFS and all leading online shopping portals. The brand is currently focusing on expansion of exclusive brand outlets in India and internationally.
Levi’s is the market leader in the denim category. Do you see them as your competition?
Levi’s is the leader in denim category but unlike Levi’s, Deal brings denims with rips and embellishments which does not make us the competitors as the product designing differs to that of Levi’s category. Deal is known to introduce the concept of designer denims in Indian market which gives the brand a different positing to that of Levi’s.
Kindly shed light on your design and manufacturing unit?
The designing team at Deal explores latest trends in fashion capitals of the world. These trends are then curated to meet the needs of target audience that the brand caters, offering fashion with comfort. Around 2500 styles are crafted every year in all product categories, which then goes through production plan. Deal’s manufacturing units are based overseas where the production process takes place under the leadership of production team at Deal Jeans.
What is your starting and exiting price point? Kindly also mention your average bill size?
Deal offers its merchandise ranging from an entry level price point of Rs. 695 & exit at around Rs. 2795. The average bill size stands at Rs. 3000.
What sort of your market strategies you have adopted and how much budget is allocated for same?
Target market strategy adopted by Deal is basically on having long-term relations with its customers and to provide them with best product. Deal promotes its products effectively within segments by print media as well aselectronic media, e.g. Newspapers, Billboards, Banners, Lifestyle Magazines,Social Media, etc. Dealjeans.com also plays a very important role in promoting the brand image. For the promotion of sales Deal adopts a very effective but comprehensivestrategy and the budget allocated is approx. 8% of the annual turnover.
Have you raised any sort of PE fund so far? If no, are you scouting investor’s fund to scale up your operations?
Till now the brand hasn’t raised PE fund. However, in future since the brand would have further expansion, the brand may undertake PE funds.
At last, kindly mention your growth plans?
The brand is largely looking at expanding its presence through standalone stores PAN India and international countries for the fiscal 17-18.Also, the brand expansions are taking place towards the online space as this helps the brand to establish much faster and there are no geographical boundaries.