Parx on a retail expansion mode, increasing focus on East India

Aiming to expand presence through large formats, followed by MBOs and EBOs, Parx the brand from Park Avenue is also looking at increasing footprint in eastern India. “We are present on a pan-India level. And Raymond shops with its wide network is helping us increase reach. We are targeting 18 percent growth. This fiscal, at retail, we would have crossed Rs 160 crores turnover. Three years down the line, we aim to achieve a target of about Rs 300 crores,” explains Sharad Walia, Parx.

The company is also looking at sourcing now, both from domestic markets and China and Bangladesh. “But the focus would be on profitability. No expansion at the cost of profitability,” asserts Walia.

Expanding retail presence

“There is no doubt that most of the growth is happening in Tier I, II and III cities,” says Walia, adding, “Penetration level of brands has increased in recent years. Tier I and II town consist of almost 55 percent of our total distribution and Tier III cities’ contribution is 45 percent of our total turnover.”

Parx has not launched its own web platform yet though the brand is available on third party ecommerce websites. The company has decided to take a wait and watch approach since most of the business online is based on discounts. “Once sales start happening without discounts, we will be able to see the real situation. Indeed we are in favour of online business and it is just a matter of time before we seriously consider launching our own platform. We cannot afford to give 40-50 percent discount online,” asserts Walia.

The brand is available through 21 EBOs, and plans are in the offing to open 4 to 5 EBOs this year. The range is also available through 70 large formats and 400 MBOs.

Strong product basket for the young

Parx product portfolio consists of trousers and shirts, denims and T-shirts as well as active wear range. “We have introduced a big collection of printed shirts and shorts this season. Prints is a story, we are following. Apart from this, we have two-three innovations that we keep repeating every year. One is cool max fabric, which keeps the body temperature 2 degrees below the normal range,” explains Walia.

Parx as a brand has a good constitution of knits. The total contribution of knitwear to its total turnover is around 14 to 15 percent. And Walia points out, though they are a dominant shirt and trousers brand, they have seen a tremendous growth in knitwear segment. “Knitwear as a category is growing at 15 to 20 percent per annum for our brand and industry as whole. The reason for growth is increasing fashion trends in denim and knits. We are seeing extreme success in graphic prints too.”

While active wear as a new category in India, the brand is experimenting in this segment. Parx has introduced joggers. “We have launched tracks, but not the usual ones. The range consists of various kinds of fabrics under different themes. Our products are a combination of aestheticism and functionality. They have anti-perspiring capability. Then some of these can be converted into shorts for outdoor,” he informs.