Raymond trims and cuts
By FashionUnited
loading...
Apparel major Raymond has decided to withdraw its Notting Hill brand that caters to the affordable segment
from Tier-I and Tier-II cities. The reason: low demand. This is part of Raymond’s revamp exercise of its garment business.In 2007, the group had launched Notting Hill, along with Manzoni, an international high-end luxury brand aimed at the metros. Raymond’s new strategy for its brands comes at a time when the company is looking at options to reduce its debt by unlocking the value of its real estate assets in Mumbai and through cost-cutting measures. A consulting firm had advised Raymond to retain only three to four brands. The strategy could also include realigning the high-visibility ColorPlus brand with its flagship brand Raymond.
In 2008, Raymond had called off its joint venture with international high-end luxury brand GAS on concerns of falling sales.
Raymond now would like to extend its reach to a larger set of consumers, including the young consumer, without causing dissonance to its core consumer. Raymond is also implementing cost-cutting programs such as manpower restructuring, relocating stores and closing non-performing shops. So far it has reduced its managerial head count by 300 people in the past six months and has closed over 20 non-performing stores.