OCM plans 25 stores in small towns

With growing awareness about fashion and brands in smaller towns, OCM

 is planning to target the emerging young consumers in Tier II and Tier III cities. It’s launching 25 new stores in smaller cities. The company also changed its logo recently providing a fresh and young identity to the brand. OCM, having a base in Amritsar is a part of WL Ross & Co LLC and currently offers its products through 1,100 points of sale across India. It now aims to more than double its revenue to Rs 300-350 crores in the next three years.

Late last year, OCM had declined reports of WL Ross, who owns 94 per cent stake, having mandated the company to get rid of all its losses by March 2013. WL Ross had invested about $37 million in 2007. Though the overall accumulated losses are less than what the investor had invested in OCM, experts speculate that the investor wants to clear the losses before making an exit from the company.

The company’s rapid expansion strategy by penetrating smaller towns hints at its plans to achieve revenue targets quickly. Hoping to achieve 7-8 per cent growth in the next three years relying upon the aspiring middle-class consumer, the company plans to invest Rs 50 crores on technology upgradation and another Rs 15 crores on brand promotion. In 2011, OCM had invested around Rs14 crores on marketing and distribution. The company has a network of 55 wholesalers and 1,200 retailers.