Arvind to focus on luxury custom-made menswear with new Creyate store
Arvind also plans to double the number of Creyate stores it has from the current 13 over the next 12-18 months
Bengaluru: Textile and apparel company Arvind Ltd launched its first luxury flagship Creyate store in Bengaluru’s upscale retail mall, UB City, last week to ramp up revenue generation in its custom-made menswear business.
Arvind also plans to double the number of Creyate stores it has from the current 13 over the next 12-18 months. While the mix of new stores will remain heavily skewed towards the regular format, it will look at opening at least a couple more luxury Creyate outlets too.
When Arvind first launched its Creyate brand in end-2015 under its e-commerce arm Arvind Internet, its executives knew growth in this particular premium venture will not come from pushing up volumes but from focusing on increasing average transaction values (ATVs).
The company already has 12 Creyate stores, which it labels a mass-customisation menswear brand rather than a bespoke offering, mostly located in metros.
The new luxury version of Creyate, which officially opened its doors to customers in Bengaluru on 23 March, looks and feels more upscale than the regular format. But the big differentiator for Arvind is the ATV or average bill size per transaction—it will be close to Rs1 lakh in luxury stores compared to Rs30,000-32,000 ATV at its other regular Creyate stores.
“We have launched newer fabrics for spring-summer and we have come up with a range called Linea D’oro (Line of gold in Italian)—a line of ultra-luxurious fabrics that are 100% wool etc that are not available in some of our other stores because they are not relevant. But here all of this is available. We are trying to speak to customers of UB City, who are looking for something exclusive,” said Tejinder Singh, chief operating officer of Arvind Internet.
The average starting price for suits at Arvind’s luxury Creyate store will be higher than Rs60,000 and the strategy is for the store’s staff to focus more on its range of suits that cost Rs2 lakh and more. In comparison, customers can get suits made for as low as Rs24,000 at regular Creyate stores. Arvind is in advanced talks with two or three luxury malls to open a few more stores under this format.
All of the company’s Creyate stores are profitable and are growing at over 20% on a like-to-like basis, Singh said, adding that the brand is in no real hurry to expand.
Another reason why the textile maker is not desperate to expand its Creyate footprint is because 25% of its current orders come from home visits, while another 10-15% via online orders on its app from repeat customers.
The company also runs around 50 shop-in-shop retail outlets in Japan, mostly selling its custom-made denim wear. That business is doing well and helping establish the brand in Japan, Singh said, adding that the company is also looking at expanding Creyate to other countries that could include Singapore, Dubai, London and the US.
“The premium formal wear is a niche but fast growing market with increasing adoption of formal suits by professionals and is even a preferred attire for marriages considering the re-usability. There is a white space in India between the global luxury brands and the mass premium brands, which custom tailoring using branded clothing could cater to. Today this space is unorganized and catered to by specialist tailors in each city,” said Sreedhar Prasad, partner and head of consumer markets at KPMG.
At the lower end of the spectrum in Creyate luxury stores, i.e. suits that cost around Rs60,000, the brand will be a notch above offerings from Raymond’s Made to Measure or Brooks Brothers, for instance. Whereas, the highest end of Creyate’s offerings (suits that cost more than Rs2 lakh) will pit it against global brands like Hugo Boss and Armani.
- No concern on liquidity of NBFCs: SBI chairman Rajnish Kumar
- Infosys, TCS, 3 other IT firms shortlisted to implement RBI’s CIMS
- Over 40% firms feel RBI may further hike rates: CII survey
- Taiwan takes India to WTO’s safeguard committee on solar duty
- ONGC Videsh slapped with ₹7,666 crore service tax demand
Editor's Picks »
- Ransomware, fileless attacks and cold boot give firms the shivers
- VMware: Taking the smart cloud to where data resides
- Internet of Things (IoT) startups that improve efficiency
- Regional languages give Indian startups a voice of their own
- DHFL, IL&FS aftermath: RBI and Sebi join hands to calm volatile markets
- India’s renewable energy sector hits a milestone but loses speed
- All eyes now on share swap ratio in this mega bank merger
- Jet Privilege can actually get higher valuation than Jet Airways
- Profitability of cement firms to take a hit due to weak prices, high costs
- Pidilite’s shares hold their ground despite weak rupee and rising crude