New Delhi: After attaining a strong foothold in the southern India, fashion discount chain Brand Factory, part of the Kishore Biyani-led Future Lifestyle and Fashion Ltd, is looking to strengthen its presence in the north, including the national capital region, Uttar Pradesh, Rajasthan and Punjab.
As part of the move, Brand Factory organized a three-day sale—“The Free Shopping Weekend"—that ended Sunday. Outdoing its sales targets, Brand Factory recorded Rs110 crore in sales—Rs10 crore more than its expectations.
“We’re very strong in south, with 12 stores in Hyderabad and eight stores in Bengaluru. For the past two-three years, we have started moving out of the south and expanding our presence in the other zones. Hence, now the focus is northern India," said Suresh Sadhwani, chief executive officer at Brand Factory.
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The fashion supermarket currently operates 50 stores across the country and on an average adds 12-13 stores every year. The decade-old chain offers 200 brands, including Levis, Lee, Wrangler, Nike, Jack and Jones and Louis Phillipe and 20-70% discount on all products throughout the year.
“We keep on adding new brands to our portfolio. Soon, we will introduce Tommy Hilfiger and Forever New in Delhi," said Sadhwani.
Brand Factory closed the financial year 2016 with Rs950 crore in revenue and is expecting to end 2016-17 with a revenue of Rs1,500 crore.
Going forward, the company plans to invest Rs150 crore in the next three years in a bid to open 40 new stores.
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Earlier in April, Brand Factory had announced its plans to take on online marketplace retailers like Snapdeal, Flipkart and Amazon India by speeding up its overall expansion drive. “We are also looking at an omni-channel strategy and e-commerce. We have begun the work, but have not decided any timeline. Our motto is to remain profitable," Sadhwani added.
According to a March survey by consulting firm AT Kearney, the Indian fashion and lifestyle sector is expected to touch Rs394,000 crore over the next five years, growing at a compound annual growth rate (CAGR) of 12%. Currently, the market is estimated at Rs221,000 crore.