Brands bullish on growth, plan aggressive retail expansion

Despite slow economy, inflation, low consumer sentiment and tough competition from online players, apparel brand are optimistic about growth. They are investing in expanding their retail reach by opening more stores in metros as well as smaller towns. Even on the export front, players are hopeful of achieving the target set by the government for the current year.

After reporting positive Q2 numbers, brands like Monte Carlo, Allen Solly and Spykar are looking at expanding their retail footprint to tap unexplored regions. With plans of opening 40-50 exclusive stores every year, Allen Solly expects to boost its revenues through exclusive outlets. Spykar Lifestyle is pursuing an ambitious target of opening 60 franchise stores by 2016. While 80 percent of these stores would be launched in Tier II, III and IV cities, the other 20 percent will be opened in metros and Tier I cities.

And talking about export growth, Rahul Mehta, President of Clothing Manufacturers Association of India (CMAI) and President, IAF feels that the target for garment exports is around 18 billion dollars (over Rs one lakh crores) by the end of this year and this figure is quite achievable.

Adds Virender Uppal, Chairman of the Apparel Export Promotion Council (AEPC), “Despite the deceleration in overall export is almost 20 percent for the month of April/May 2015/16, the apparel exports have registered a growth of 7 percent, as compared to the same period of last year.