Cotton County high on retail expansion

Cotton County the men’s wear brand known for its exceptional value and quality has been accepted very well by its target consumer groups. No wonder in a matter of five years, they have grown to have a presence across more than 425 cities

through 600 plus EBOs. Going ahead, the brand plans to add another 10-15 stores every month. As Baqar Iftikhar Naqvi, CEO, Cotton County says, “We are also exploring various other channels to promote and sell our products. We will stick to small and mid-sized stores as we find them most viable and profitable.” They also have plans of exploring e-retailing. “This channel will contribute to our overall sales in a significant way. Going forward, we are aiming for 35-50 per cent topline growth,” Naqvi adds.

Their retail expansion plans also include exploring other channels of distribution to reach untapped markets. “Our strategy is to penetrate as many cities as possible. Besides, we intend to make our products as affordable as possible by squeezing costs through a vertically integrated setup, and a direct retail distribution network,” he adds. The division of sales between metros and non-metros is 30:70 per cent. There are subtle changes in how they deal with metros vs non-metros. Largely, these differences are based on consumer preferences and retail economics in these cities. However, the moment they go to Tier III and Tier IV cities, the differences as compared to Tier I and II cities are far more visible.

Cotton County has positioned itself as a value brand catering to the needs of the middle class who want trendy but economically priced clothing. While most brands target consumers at the top end of the pyramid who are willing to pay a premium for ready-to-wear, Cotton County targets the market at the bottom of the pyramid. This has led to their huge success. Their brand, Youth 2216 is one of the key engines of growth. It is an affordable street fashion brand and has received good reviews from the market as well as from trade partners. Naqvi says, “The idea behind starting Youth 2216 was to cater to the requirements of the 16-22 year olds. Today, it contributes to almost one third of our sales.”

While their products are as good as any other brand, they are able to offer heavy discounts to customers and this makes them so popular. And the reason behind it is simple. Cotton County is vertically integrated from yarn to retail and has a lean supply chain; no frills retail; and has adopted other cost cutting measures. Even though their focus is men’s wear, the brand does plan to add kids and women’s wear in a limited way. “While we remain a men’s brand, we would like to have women’s and kids range, just in case our male customers come with their families or want to buy something for their loved ones. To that extent we would have kids and ladies range also,” concludes Naqvi.