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FASTEST GROWING
FREE MARKET DEMOCRACY
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India. In 2004, ITC’s Chaupal Sagar became the first hypermarket to hit
rural Madhya Pradesh. ITC has come up with a special low-cost apparel
Raymond’s – the flagship
range called Springfield has debuted at this mall.
brand of the Singhania
Group-- is revamping its “In the past, one of the key challenges of the domestic apparel business
chain of 300 stores— was distribution,” says Darshan Mehta, President, Arvind Brands. It now
known as Raymond’s appears that the consumer boom has given various players an opportunity
Shops—and focusing on to address this supply chain link.
readymades at a cost of
around US $ 35 million. From franchise to company owned
Larger textile manufacturers were the first off the block in the nineties,
with big players like Raymond, Arvind Mills, Madura Garments and Zodiac
Clothing building extensive retail networks. Because the market potential
was still relatively small in the nineties, most players used the franchise
route to expand.
Now, companies are using their own funds to increase the capacities of
their retail stores. Previously, the Arvind Mafatlal Group had a chain of
below-1,000 sq ft stores to sell its flagship brand apparel: Arrow. Over the
last two years, the company management has closed down a number of
these small stores and gone in for bigger stores. The new stores have a
minimum 1,500 square feet space, and nearly per cent of Arvind’s apparel
business comes from these outlets.
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