New Delhi: Handbag and accessories brand Baggit India Pvt Ltd has developed an alternative model for its next phase of growth. The Mumbai-based company will now operate a new range of bags and accessories at almost half the price to that of the company’s earlier collections to cater to a wider range of consumers in smaller cities across the country.
Baggit is a vegan brand and sells non-leather handbags and accessories for women and men. The company’s new range will cost between Rs.1,800 and Rs.2,200, while other collections of Baggit are priced between Rs.3,200 and Rs.4,000.
“The market has become very competitive. We will be selling the low-priced range in smaller towns. It is an affordable line for such places and also works well on online platforms,” said Nina Lekhi, managing director and chief design curator at Baggit. Baggit closed 2015-16 at Rs.73 crore in revenue and expects to earn Rs.95 crore in 2016-17.
To be sure, the company has been testing the waters for almost six months by offering this range of products in some of its stores. “We have got good response for the low-priced range of products. We expect this range to contribute at least 40% to the total revenues of the company,” said Lekhi.
The new range will be launched in existing Baggit outlets (in smaller cities like Amritsar, Udaipur and Bhubaneswar) by the end of November.
Launched in 1990, Baggit currently sells handbags and accessories across 71 cities through 44 stand-alone stores and 300 multi-brand outlets.
The company also retails products at online marketplaces like Myntra, Flipkart, Amazon and Jabong and its official website as well. Going forward, Baggit plans to add 10-12 stores this year.
According to a March survey by consulting firm A.T. Kearney, the Indian fashion and lifestyle market is expected to touch Rs.3,94,000 crore over the next five years. Currently, the market is estimated at Rs.2,21,000 crore and is growing at a compounded annual growth rate of 12%.