Van Heusen to step into non-apparel segment

Van Heusen, the premium lifestyle brand, brought to India

by Madura Fashion and Lifestyle, is aggressively diversifying its portfolio in the non-apparel segment. Meanwhile it’s also planning to add to its apparel segment with women and youth collections. Straddling the premium apparel range with a turnover of Rs 650 crores, the company is planning to increase its presence in the premium non-apparel space. From a small presence in men’s ties and belts, the non-apparel business plan includes a product portfolio of men’s footwear, eyewear, watches and luggage. It will also offer women’s shoes and bags.

Ajay Ramachandran, Brand Head, Van Heusen feels there is a good demand for these products and over the next five years, they expect the non-apparel business to contribute around 10 per cent of their targeted Rs 2,000-crores turnover. These new products will be under the Van Heusen brand umbrella although the company has yet to decide on the business model — either the licensing or the ‘buy-and-sell’ model.

Van Heusen is targeting a turnover of Rs 850 crores in 2011. The brand’s high revenues are a result of its product strategy as consumer sentiments improved, adequate merchandise and logistics arrangements. Also, its newly launched category Van Heusen ‘Sport’ offering smart casuals, ‘V Dot’ targeting the youth and Van Heusen Women received great consumer response.

Ramachandran expects Sport to account for five 5 per cent of their sales in the future. As a sub-brand, it can rake in Rs 80 crores quite fast he feels. V-Dot has grown by around 75 per cent this year. Their captive business, which includes exclusive VH stores and Planet Fashion MBOs, has seen doubling of sales. The women’s apparel line has also started to show significant traction in the past 18 months.

To be financially viable, Van Heusen may soon look at sourcing from Bangladesh and Sri Lanka. Currently, 90 per cent of the brands manufacturing is done in India while winter jackets and knits are sourced from China. They may soon source basic formals from these countries and since India has free trade agreements with them, the merchandise will not attract import duty.