The Aditya Birla group has planned to invest more than Rs 400 crore in growing its apparel retail business under group company Aditya Birla Nuvo. This initiative will shift the company’s garments business from wholesale to a retail-oriented play.
The group is banking on sharp consumerist trends to boost revenues of the apparel retail business to about Rs 6,400 crore in five years. Madura Garments has some high-profile brands, including Peter England and Allen Solly. Recently, group chairman Kumar Mangalam Birla launched Peter England People, a branded family garments store in Mumbai that complements the Birlas` move to increase focus to garment retail.
"Peter England is a strong brand and this store is part of our efforts to account for a larger share of the retail market," Mr Birla told reporters. The group will open 80 Peter England People stores across 10,000-12,000 sq ft in five years, he added, pointing that the shift represents the change; the group earlier had 10% retail and wholesale about 90%. It has almost reversed.
At a conference on Friday, Mr Birla, who was accompanied by senior executives of the Aditya Birla group, said the fast growing apparel market and increased share of organised retail offers growth potential for organised players. An Aditya Birla Nuvo official said that the market for apparel retail is estimated at Rs 49,000 crore and is expected to grow to Rs 1,30,000 crore in five years.
As per Vikram Rao, business director of textiles and branded apparels, four Peter England People stores will be launched in Delhi, Bangalore and Hyderabad.
Mr. Birla says, "Going forward, our vision is to be India`s dominant fashion apparel retailer. Our plans are built on continuing the momentum of current brands, executing new growth initiatives and targeting select new opportunities. Our strategic architecture rests on five touch points. Firstly, providing end-to-end clothing solutions to customers, including accessories that strengthen our core apparel offering. Secondly, aggressively bolster our retail play. Thirdly, being present across price-points to cater to multiple segments. Fourthly, upscale our presence in the women`s wear and youth segments. Fifthly, enter the children`s segment. In sum, we plan to have brands straddling mass, premium, super-premium/luxury segments. To bring our vision to fruition, we have restructured the apparel business into three divisions which cater to the mass, premium, and super-premium/luxury segments". He continues, “Our foray into the mass segment began with the Peter England brand. To capitalise on the opportunity to cater to the mid-priced segment for clothing, we decided to launch a retail play under the Peter England umbrella to cater to the entire family. This is the Peter England People retail brand — a brand that stands for fun, fashion and family personality. Our vision is to make Peter England People India`s favourite family brand.”