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Puma India to expand into bags, perfumes

Puma India to expand into bags, perfumes
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First Published: Tue, Sep 23 2008. 05 13 AM IST
Updated: Wed, Sep 24 2008. 10 25 AM IST
Bangalore: Shoes and sportswear maker Puma Sports India Pvt. Ltd, a subsidiary of Puma AG Rudolf Dassler Sport, will start selling bags and perfumes in the country from February.
“We want to latch (on to) new customers and offer Puma products which are already available overseas,” said managing director Rajiv Mehta. “It makes sense to have bags and accessories as they...are clearly visible. It is our brand building strategy to expand our offering to customers.”
Puma’s Ferrari luggage range would include passport holders, trolleys, and wash, golf, laptop and shoulder bags. The bags and trolleys would be priced between Rs3,000 and Rs6,000.
Puma’s fragrance line for both men and women will also be sold in India. Internationally, Puma fragrances are distributed by Procter and Gamble Co. The company declined to name its Indian distributor, saying it is still in talks.
To attract more customers, Puma Sports India already sells watches and sunglasses. With its extended accessories range, the company expects revenue contribution from the segment to increase to 20% from the current 10%.
The firm declined to disclose its turnover last year. Its luggage and fragrances will be available only in Puma stores.
One expert said by launching these products, Puma is trying to fill a gap in its product line, particularly as other sportswear firms such as Nike India Pvt. Ltd, Adidas India Marketing Pvt. Ltd and Reebok India Co. already have them.
“Travel luggage, perfumes, bags are adjacent to sportswear. Also, these are high-margin products,” said Zahir Abbas, associate director of retail at management consultancy Technopak Advisors Pvt. Ltd. Abbas said a superior-quality accessories range can attract new customers, who may not necessarily buy shoes or sportswear.
Meanwhile, Puma Sports India plans to make up for a drop in sales earlier this year, in the festive months of October to December. “There has been a 10% to 15% drop in sales for all retailers but that is seasonal and happens every year,” says Mehta.
During Diwali, which is in the last week of October, the company will come out with what it says a “bundle of offers” for 15 days, which would include options such as a free wallet with a pair of shoes.
The company will also introduce its Puma Black Station Alexander McQueen range in mid-October. This high-end men’s shoes would be priced at an average of €200 (about Rs13,200). It does not plan to launch in India its high-end designer footwear range for women for the time being, the company said.
Puma Sports India is also looking to expand its reach outside of metro cities. Currently, it has 40 stores and plans to open 20 more by March 2009 in smaller cities that would include Jaipur, Pune, Kochi, Patna and Ranchi. Mehta said the price of goods sold in these cities would be up to Rs5,000.
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First Published: Tue, Sep 23 2008. 05 13 AM IST