- Meenakshi Kumar |
Max Fashion, which is owned by Dubai-based $9 billion Landmark Group is growing at a CAGR (compound annual growth rate) of 32 per cent year on year and targeting achieving Rs 5,000 crore revenue in three years. It’s aiming to add 60 more stores to take the total store count to 250 by end of the financial year 2017-2018 including Tier II cities.
The company also operates the multi-brand retail store chain Lifestyle, which deals in fashion products of higher prices. Asked how he keeps the two brands separate, Vasanth Kumar, Executive Director, Lifestyle International, Max Retail Division stated, Lifestyle is in the premium segment with 75 per cent other brands whereas Max is in the value fashion segment with 96 per cent private labels. Max price points are 35-40 per cent below Lifestyle.
This retailer is expecting this festive season to rake in 20 per cent more sales compared to last year. As Jiten Mahendra, Vice-President, Marketing, Max Fashion, points out the 45-day festive season between Durga Puja and Diwali would contribute about 15 per cent to the annual sales. He explains they are entering the second phase of festive season and hopeful to achieve growth targets.
To count the challenges faced by the category, Mahendra points out three major things making sure that international fashion is brought in India and sticking to the core values of fashion and staying true to the price. The brand doesn’t aim to launch any premium segment brand or sub-brand.
GST, which posed a huge challenge to many categories and brands, was taken positively by the retailer. Kumar feels GST will create a level playing field for organised players. It shall help increase overall consumption for value fashion. Demonetisation in November last year had minimum impact on the brand as it operates in the value fashion category.