Indus League to open 16 stores, eyes tier-II cities for expansion

BANGALORE:
Apparel retailer Indus League Clothing is sewing recovery plans as consumer
spending picks up during festive season.

The Future group company
plans to open at least 16 stores, including exclusive showrooms for its brands
such as Daniel Hechter, Indigo Nation and Scullers. The company, which saw 30%
rise in sales in November as compared to same period last year, is now bullish
on growth prospects and is hiring 300 people for its front-end
operations.

Earlier this year, there was not only a 10% dip in
same-store sales, walk-ins too fell by 20%. But the company got a boost with the
onset of consumer spending in festive season. “The festive season has
brought back growth in November,” says Rachana Aggarwal, CEO, Indus League
Clothing.

The company, which has already opened nine stores this
year, plans to expand into tier-II towns. “We are moving into tier-II
cities such as Madurai and Vizag with our John Miller and Indigo Nation
brands,” said Aggarwal.

The company has also rejigged its
marketing spend, with print ads coming down in favour of more direct marketing.
Promotions inside malls have gone up. Also, the company has put up LED screens
in Bangalore, where customers who are part of the loyalty programme can put up
their travel pictures. For their teen brand Jealous 21, the company is planning
big shows in colleges and universities. “We are still spending around to
8% of our revenue on ads. But we are using new channels to get the message
across, which rewards loyal customers” said Aggarwal. For example, in
Bangalore, Hyderabad and Cochin, exclusive jazz music and party events were
organised just for customers on the loyalty programme. This new ad strategy
seems to be working well to retain customers, she added.

Revenues are
expected to rise to Rs 450 crore the coming year, she said, adding that the
consumer spend happening now is not just a festive trend, but an overall
improvement in the sentiment. “People are more cautious yes, but they are
back to spending.” However, she added that this time round more business
is coming from hypermakets like Brand Factory, for the same brands. This means
that while a person might continue buying Sculler casuals, he is more likely to
shop for it in Brand Factory than at the brand’s showroom. “A
showroom has this idea of being pricier. That might be the reason. But he is
back to buying,” says Aggarwal.

Hyper-market brands Privilege
Club and Jay Walk, which are available at Big Bazaar, have shown a 30-40% growth
in recent times, and drove sales during the slowdown. Indus League sells
products across the price spectrum – Privilege Club, Jay Walk in the value
segment, Indigo Nation and John Miller in the mid-price segment, and Scullers,
Urbana and Daniel Hechter in the premium band.

Earlier this year,
when the company saw its growth plummet along with the retail sector, it
introduced new entry-level price points for all its brands. So, Scullers got
cheaper by Rs100 to Rs 799 for its new corporate line for women. The range is
still priced at Rs799-1,099, lower than the Rs 899-1,299 range for its previous
lines. Similarly, an Indigo Nation shirt was moved to an entry-level price of Rs
799 against Rs 899 earlier.