Pepe to launch kids’ wear in India next year

With a long history of success behind it, Pepe Jeans is positioned as a brand not only for the youth but also for everyone who is young at heart. The casual and denim brand offers international, fashionable and premium clothing. While the company is on a retail expansion and store revamping drive, it plans

to launch a children’s clothing collection by Autumn/Winter next year. The collection would be for kids 4 to 12 years old.

Kids’ wear to strengthen portfolio

Pepe plans to launch a line for children next year. Pepe’s kids’ wear is a strong line for the company globally. It does well both in standalone and department store formats. Highlighting the brand’s plans for the label, Kavindra Mishra, Chief Executive Officer, Pepe explains, “We will just bring this line to India and maybe add one or two colours for the Indian market. Hence, it’s primarily a line that’s imported. This will give an international feel to the brand. The talent for designing kids’ wear is a limited here. So, we will do the a little merchandising here.”

Pepe’s product range consists of denims, non-denims, shorts, casual shirts, Polos, tees and accessories like backpacks, wallets, socks and belts. And for women, it plans to have the entire line like woven tops or knit tops. All products have a denim influence. Even casual fashion is influenced by denim.

Talking about current styles and trends in denims, Mishra says, “Use of tears and washes are strong. And because people in India are wearing denims to office, there is a demand for premium clean denim. The fabrics are premium but the wash is clean. A 35- to 38-year-old man can wear this to office with a jacket. These are two very strong trends. Brands that can capture this will get new markets.”

Rapid store expansion on the cards

The casual wear brand saw the most glorious years from 2004 to 2007, with the best growth coming in this period. “Since then, the brand has been doing well. We are strong in both metros and Tier II, III cities. Our distribution is strong and our partners have been with us for a long time. It’s a reflection of the way we manage relationships,” opines Mishra.

EBOs give 25 percent of the business, large formats 25 percent and distribution gives 50 percent. “Business from same stores is growing at 40 percent. That means, stores are becoming more profitable. When the stores become profitable you can speak to your partner and get more number of stores,” says Mishra. He points out that within the distribution channel also the contribution from EBOs will increase because distribution partners may also have stores. So within this 50 percent the contribution of stores will be higher. The stores will become more profitable.