Raymond on an extensive brand expansion spree

Raymond aims to reposition its brands' presence into a full wardrobe opportunity to venture into informal clothes category. It also plans to add 30 to 40 exclusive brand outlets in the coming year and is looking at a four-brand portfolio to capture major markets. Highlighting company’s growth expanse, Gaurav Mahajan, President-Group Apparel, Raymond, said in a recent interview that Raymond Group is very ambitious and aggressive as far as the branded apparel business is concerned. Over the last two years, the company has outperformed the market in terms of growth and this trend is continuing strongly. In order to drive growth, the company will adopt three or four strong levers. First, redefining the the brand positioning to ensure there is a large canvas for each of the brands. Second, aggressively push for retail expansion. It will also look at all channels for expansion including exclusive brand outlets, multi-brand outlets and even the lifestyle store channel. The company is also exploring online channels.

Verticals to get a boost

All five branded businesses including Raymond, Park Avenue, ColorPlus and Parx are slated for growth. The company will reposition these four brands by separating them and redefining their core positioning to expand into a larger market segment. Giving an example, Mahajan said Park Avenue is deeply rooted in formal occasion wear segment and will expand into casual wear going ahead. It will also foray into fashion accessories, footwear and any other relevant categories possible.

Revamped Raymond Next

The company has revamped Raymond Next and is launching an online tailoring service. It has also enhanced its presence on the online platforms. Additionally, they are investing in backend capability to create more digital presence. Mahajan says, it is not so much about how much business one does online. For most organizations, with a brick-and-mortar legacy the opportunity lies in creating strong online presence. To be present in the digital space and online is not just about e-commerce portals, online is also about social media, reaching out to consumers through the digital medium rather than the physical medium. Raymond has created a digital customer centre having a dedicated team, which specifically focus on building digital capabilities not just in an incremental manner but in a breakthrough manner.

Global alliance

As far as expansion into international market is concerned, the company has a presence in the international markets by virtue of being a manufacturer as well exporter. They are now looking at retail expansion; with offices in the Middle East and London they are now looking at the US market as well. From a retail perspective, Middle East is the immediate opportunity, though they already have limited presence there and but now are looking to expand that.

Mahajan expects the market to be strong. The company experienced some turbulence during demonetisation but it has already bounced back and poised to come out stronger in the coming financial year. There is a tremendous growth opportunity for anybody who is focusing on the consumer, looking at creating the right kind of retail/digital experience and focussing on supply chain strategies. The bottom line is that if your fundamentals in place, if your implementation is in line with your intended strategy, there is ample growth opportunity in the market.