We are already present in 50 shopping malls in Tier 1 and Tier II cities: Shivani Poddar
In conversation with Shivani Poddar, co-founder, FabAlley, who speaks about the brand’s future plans.BY Shwetha Satyanarayan | September 13, 2017 | comments ( 0 ) |
High street fashion brand FabAlley has ventured into offline expansion with at least 10 stores to be open in metros in the next 1 year. In conversation with Retailer, co-founder Shivani Poddar shares that the fashion forward brand will continue to cater to the urban women with its bold mix of choices.
FabAlley has been the brand for urban women mainly in Tier 1 cities. What target group are you looking at with offline expansion?
The offline expansion is only an extension of what we do online. The same mix of products will be available at our stores and we will continue to cater to every need of women who shop at both e-commerce platforms and shopping malls. There will be no change in the target group, but we want to be present everywhere- online and offline.
What is the current market growth like?
There has been massive growth in online fashion industry. We have seen about 2X times growth YOY.We are already present in 50 shopping malls in Tier 1 and Tier II cities and have opened our first brick and mortar store in Phoenix Market City,Bangalore. We have seen 40% growth in revenue in FY 17 and we are on-track to achieve 100% YOY revenue growth in the next 12 months.
What kind of sales are you looking at through offline retailing?
We are aiming at least 20-25% increase in revenue through offline expansion.
You have raised second round of series A funding. What are the compa/ny targets for this financial year?
We are working towards becoming a Rs 100-crore company and are targeting Rs 9 crore sales per month.
International brands like GAP, Zara are foraying into Indian market with local tie-ups. How difficult is it for Indian start-ups to sustain the competition?
In the last 18-24 months, International brands have made their presence felt while retailing through Myntra, Amazon and similar channels. However, the market is fairly large. It’s a multi-billion dollar market. FabAlley is fashion forward and with products priced at Rs 1100 or Rs 1,500 we are price point. We don’t feel the pressure of competition.
Are you looking at franchising model for business expansion?
Right now franchising is not on the cards. We will be opening 10-15 stores in the next one year and initially these will be launched in metros like NCR, Mumbai, Bengaluru, Hyderabad and Pune and they will all be company-owned. At least in the next 12 months we will not be franchising.
What kind of marketing strategies are you planning out for offline expansion?
We are mainly into digi-marketing with social media like Facebook, Twitter and other websites. We also have tie-ups with magazines, we are holding events and placing advertisements. In-store activities in malls have been going on. For now, our focus is on digi-marketing.