Flying High: UFO aims to grow 100 per cent this festive season

Homegrown lifestyle brand UFO has been growing 100 per cent in the last fiscal and is now confident it will maintain this growth rate even this fiscal. All set for the festive season, UFO is banking on the high spending Diwali season to push up sales. Also, the brand will launch infant wear and boys night wear next summer.

Online is a good space to grow

As UFO builds its own website, the brand is certain the present scenario in the e-commerce sector will change. Most importantly, it hopes to see a change in the heavy discounts given out by e-tailers. Today, for any retailer it is important to be a part of the online business as it takes away 20-30 per cent sales. UFO has partnered big retailers such as Amazon, Myntra and Jabong to sell its apparels. However, the e-commerce sector is bound to get more competitive now with two big players Reliance and Tata jumping on to the bandwagon.

Unorganised sector poses maximum challenge

The market is very competitive but there is a big unorganised sector. Today, India has a competitive environment where big brands are coming in, so the consumers have a lot of choice. But manufacturers of reputed brands have to make sure that they sell the right products at the right price and quality. Competition is huge but unorganised players are the biggest challenge. Says Abhishek Aggarwal, Managing Director, “UFO is into a good season, driving 12 distributors for Diwali. We have done fairly well because we had no base line, no presence. So, for us it is a new venture. We have added about 12 distributors across India for entering the MBO market.”

UFO’s large format store footprint has grown and it is now going online with 12 to 13 partners. As for EBOs, the brand is adding two at present and plans to open three at the most. Later, it plans to take the number up to five. Presently, it is looking at expanding in the North and venturing into untapped territories like: Kolkata, Guwahati, Bhubaneswar, Delhi, Chandigarh, UP, Bihar and Jharkhand.

Says Aggarwal, “We are positive about LFS. In fact, it is not only a growth channel for us but a very important medium to sell. We are positive about LFS because we see LFS growing and we are growing along with them. We were awarded by Shoppers Stop for being their merchandise partner and achieving target. The simple reason is that our baseline is low. So, the only way for us from here is upwards and we are achieving that.”