Ritu Kumar brand bets on ‘Label’ for long- term growth
- Top Axis Bank executives Sidharth Rath, V. Srinivasan have resigned
- You still can’t file I-T returns without Aadhaar number
- Is Big Data a threat to free democratic choice?
- PSU bank privatization is not a panacea for the ills of the banking sector
- Change settings on your social media accounts to delink third party apps
New Delhi: Designer-wear brand Ritu Kumar, known for its traditional and bridal clothing, is now trying to bring its casual-wear sub-brand Label under the spotlight by expanding the product offering and increasing the marketing spends.
In the past one year, the company has increased its advertising budget to 5-7℅ of its revenues, up from less than 3℅ last year. “ We are focusing on digital video campaigns to promote our line. We have also widened our product line by introducing ‘everyday clothing’ this year. We want people to discover Label,” said Amrish Kumar, chief executive at Ritu Kumar, adding that the new strategy had increased the year-on-year sales of the brand by 94% in October.
Priced between Rs 800 and Rs15,000, Label competes with fast-fashion international brands like Zara and H&M. Label’s maximum apparel range, Kumar said, is priced between Rs3,000 and Rs5,000.
Apart from Label, Ritu Kumar fashion house has two distinct brands—Ri, a premium bridal and formal wear line and Ritu Kumar, a traditional pret brand offering ethnic daily and semi-formal wear.
While, Label caters to women in the age group of 20 and 35 years, “Ritu Kumar brand picks up where Label leaves off i.e. above the age of 35 years. Ri caters to bridal wear across ages,” Kumar said.
“Ritu Kumar (priced between Rs3,000 and Rs15,000) will be a big revenue churner for next two years because of high ticket price but eventually Label would be a larger brand in long-term. Its runway is longer because the prices are lower,” he added.
Currently, the company sells all three brands through 52 exclusive outlets and 17 multi-brand outlets across the country. It also operates five exclusive stores abroad (two in Dubai and three in Mauritius). In the next three years, Ritu Kumar is expecting to add 35-40 new exclusive stores, taking the total store count to 90.
Established in 1960s, the company also sells through online marketplaces like Flipkart, Myntra and Jabong, along with its own e-commerce platform. As of now, it earns 5% of its revenues through online platforms, but is hoping to increase it to 15-20% in the next two years.
“For the last five years, we have been clocking a growth rate of 20-25℅. This year, we were hoping to grow at 35% before demonetisation. We are waiting to see how things unfold now” said Kumar.thirdMAds
According to a March survey by consulting firm AT Kearney, the Indian fashion and lifestyle market is expected to touch Rs3,94,000 crore over the next five years, growing at a compound annual growth rate (CAGR) of 12%.
Currently, the market is estimated at Rs 2,21,000 crore.