NEW DELHI: Arrow, the men's formal wear brand by Arvind Fashions Ltd, is eyeing over 20 per cent year-on-year sales growth in the next 4-5 years. The brand is planning to open 55 exclusive brand outlets in tier II and III cities, the company said in a statement today.
"We will continue to see growth upwards of 20 per cent in the next 4-5 years. We don't see this growth slowing down," said Sumit Dhingra, COO, Arvind Lifestyle Brands - Heritage Brands.
As per Dhingra, there will be a surge in demand for work wear as a category in the foreseeable future. "However, the way people dress up for work is changing so we have three sub-brands within Arrow to meet that need," he said.
"We plan to open 55 exclusive brand outlets (EBOs) and 250 shop-in-shops this fiscal. One of the big initiatives of this year is to enter tier II and tier III markets. We are well represented (with stores) in top 6 cities. The bulk of our expansion this year will happen in tier II and tier III towns. Out of these 55 new outlets, 40 would be in tier II and tier III towns,” Dhingra added.
At present, there are over 250 Arrow EBOs, out of which 45-50 per cent stores are in top 6 Indian cities, and 1,000 shop-in-shops in multi-brands outlets like Shoppers Stop.
The brand expects online sales to contribute up to 20 per cent of Arrow's sales in the next five years.
"At present, online sales contribute 11 per cent of Arrow's overall sales. It is growing by 60 per cent year-on-year. We expect it to grow faster than other other channels and account for 18-20 per cent of Arrow's total sales in the next five years," he added.