Tuesday, August 28, 2012

Indus-League mulls franchise model to expand in smaller cities

In a difficult retail environment when sales are subdued and retailers are battling pricing pressures, Future Ventures India Ltd-controlled Indus-League Clothing Ltd is using the franchise route to expand in smaller cities and keep entry-level prices intact. Indus-League sells apparel and accessories and owns brands such as Scullers, Indigo Nation, John Miller, Jealous 21, Urban Yoga, Daniel Hechter and has recently entered into a licensing agreement for Manchester United. 

“In smaller markets in tier II and III cities, we were finding it a little difficult to run our own stores owing to manpower and other logistical issues, and so we decided to open 10 franchise outlets more as a pilot project to see how they do. We gave them six months this year, and now we have decided to open another 10 by this Diwali. The franchise format would also speed up stores in these markets. While we are not opening any flagship stores there, we will use a combination of two-three brands in each store,” said Rachna Aggarwal, chief executive, Indus- League. 

The response to Manchester United stores and the merchandise has been extremely positive and we have been surprised by the kind of fan following the brand has, particularly among youngsters, Aggarwal added. 

“We have already opened seven Man U stores and will open another five stores in the next three months. The merchandise will also be available in Planet Sports stores and shop-in-shop formats. Though as of now Man U stores are mostly coming up in metros, we are opening one store in the new World Trade Centre in Jaipur,” said Aggarwal. 

Last year, the company opened around 16-18 flagship stores and is planning to open the same number of stores this year. Among this, 40-50 per cent will be in high streets and the rest in shopping malls. 

1 comment:

  1. Franchisee services is very important to know , if you are newbie in the market and you really want to make position in the business to take particular franchisee.



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