In 2006, two visionaries, the Co-Founders Rahul Bhalla and Saurav Jhingan, embarked on a journey that would shape the landscape of women's fashion in India. Latin Quarters, a brand synonymous with elegance and quality, has evolved over the past 17 years to become a powerhouse with close to 400 locations across India.
Latin Quarters has established its footprint in diverse locations, with nearly 27 owned Exclusive Brand Outlets (EBOs) and a presence in renowned department stores such as Shoppers Stop, Pantaloons, Lifestyle, and Central. The brand's D2C website and partnerships with leading marketplaces like Myntra, Amazon, Nykaa, and Ajio have further expanded its reach.
“Our revenue stream, which touched approximately Rs 107 crore last year, reflects a commitment to profitability, boasting double-digit EBITDA margins. Despite challenges in 2020 and 2021, we navigated the storm, breaking even and achieving commendable success in 2022 and beyond,” said Rahul Bhalla, Co-Founder and CEO, Latin Quarters.
While the initial focus was on metros and Tier I cities, Latin Quarters recognizes the evolving dynamics of consumer behavior. The surge in growth is now emanating from Tier II and III cities, where a more fashion-savvy and digitally connected audience is emerging. The brand acknowledges the importance of delivering value not just in terms of revenue but also in the quality of products and experiences for consumers, employees, and vendors.
The brand maintains a two-fold approach to expansion, with a focus on both owned EBOs and partnerships with channel partners. The recent openings in Delhi, Indore, Bengaluru, and Siliguri signify the brand's commitment to seizing opportunities wherever quality real estate is available. “We envision a future where it taps into the untapped potential in various cities, considering both Tier II and III cities for sustained growth,” he stated.
Latin Quarters recognizes the transformative power of e-commerce, contributing approximately 8-9 percent of its overall sales. Post-COVID, the brand intensified efforts in e-commerce, launching exclusive styles and expanding its team dedicated to managing online operations.
“We aspire to increase this percentage to around 19-20 percent, emphasizing the importance of selling at full price online rather than relying solely on discounted merchandise,” asserted Bhalla.
With a robust offering of around 1600 SKUs, the brand caters to a diverse range of women's fashion needs. Dresses, especially occasion wear, stand out as its flagship category. The brand strategically tailors its product selection to regional preferences, recognizing that a one-size-fits-all approach doesn't suffice in a diverse country like India.
“An interesting experiment involves a petite collection tailored for Northeast stores, addressing specific customer feedback about dress lengths. This showcases our commitment to blending art and science to optimize our product offerings,” he noted.
Latin Quarters leverages technology for data-driven decision-making. Business intelligence tools analyze customer preferences, enabling the brand to stay ahead of trends. The adoption of 3D CAD technology has revolutionized product development, minimizing wastage and reducing lead times.
Omnichannel experiences, facilitated by partnerships with companies like Find Technologies, enable customers to seamlessly transition between online and offline shopping. The brand has also explored cutting-edge in-store technologies like 3D avatar mirrors, offering customers a futuristic and interactive shopping experience.
With an optimistic outlook, Latin Quarters anticipates reaching close to Rs 120 crore in the current fiscal year. The brand attributes the recent consumption dip to external factors but remains bullish about the festive season.
In terms of funding and investment, the brand adheres to a philosophy of organic growth and profitability. “The goal is to reach a run rate of Rs 200 crore within the next 24 months. This strategic approach emphasizes letting the business generate funds for its expansion, ensuring a sustainable and robust financial future,” concluded Bhalla.
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