Arvind Fashions has identified e-commerce as a growth strategy medium as digital is seeding brands in cities and towns where its brands do not have a presence
Arvind Fashions Ltd, the recently created entity after the demerger from Arvind Ltd, is looking to double its revenue to INR 8000 crore in the next five years. The branded apparel firm, which retails both international and home-grown brands, is all set to be listed individually in the coming weeks.
“This is a vertical listing and we are not raising any money. Independent businesses end up creating a lot more value and we are confident that the business has achieved the scale to stand independently,” said Kulin Lalbhai, executive director, Arvind Ltd.
The firm, which retails mid-premium, premium, luxury and value brands such as GAP, Calvin Klein, Arrow and US Polo, said growth will be driven by new product extensions of its brands, value retail and cosmetics business.
“Product extensions such as innerwear and footwear are growing dramatically, contributing 10% to the overall sales. Kidswear is another growing segment contributing 10% to our overall sales as customers are willing to spend money on products which have a shelf-life for three to four months,” added Lalbhai.
The company is also riding on the value retail segment through its store chain Unlimited which currently has 100 stores and is expected to touch INR 1000 crore revenue next year, growing at 30 %.
“Value retailing is a huge segment for us,” he added.
The company has identified e-commerce as a growth strategy medium as digital is seeding brands in cities and towns where Arvind brands do not have a presence. The strategy is to track online demand from cities such as Kanpur, Jalandhar or Surat and decide to open the store there later. Arvind has recently started selling Sephora products on its group website Nnnow.com. The firm is looking to turn Sephora into an over-INR 500 crore business in three years.
The brick-and-mortar retail model has seen a big revival in the last 12 -18 months as retailers have improved shoppers’ experience, Rajat Wahi, partner at Deloitte India, said. “Fashion retailers are also expanding across categories focussing on the value segment, which is growing at the fastest rate offering stylish products at competitive rates.”