French brand Lacoste looking at franchisee model to expand

French luxury brand Lacoste is planning to explore the franchisee model for expansion into tier-II cities in India.

The decision follows the good response it got in some tier-II cities such as Jalandhar, Jaipur, Chandigarh, and Pune.

According to Rajesh Jain Managing Director & CEO, Lacoste India, good responses were seen from tier-II towns located near the big cities. This apart, an increase in brand awareness coupled with rising proliferation of shopping malls in smaller towns are good indicators.

“While expansion in tier-II towns will mostly be through franchise routes, we will look to stick to the own-store format in major cities,” he told BusinessLine. Lacoste is currently present across 45 tier-I and II locations mostly through the company-owned model.

Plans are afoot to double the point of sales 90 over the next four years (FY-19). Created in 1933 by René Lacoste, the brand – famous for its polos (collared t-shirts) – entered India in 1993. Lacoste India is a strategic alliance between Lacoste and Sports and Leisure Apparel Ltd (SLA).

Most of the apparels sold here are manufactured from its existing facility in the country.

The company has one unit located in Noida, and the second one – in the same complex – is expected to be operational over the next six months.

Lacoste did not share the capacities or the investment details but maintained that units would suffice its India requirements.

According to Jain, the company was also mulling the entry into Nepal and Sri Lanka over the next one year.

Currently, SLA has the exclusive rights to manufacture Lacoste branded garments in India.

Aviraté to open 9 stores

Aviraté, a premium international women’s western apparel brand retailed exclusively in India by Fashion 365 Retail, a subsidiary of Sri Lankan Timex Garments, is expanding its footprint across India with a total investment of Rs 20 crore. 

The brand will also enter the Far East, West Asia and Australia in the next two years with separate investments. 

The Aviraté brand from privately held Timex Garments is one of the top five apparel manufacturers of Sri Lanka with sales revenues of Rs 1,200 crore (FY2012). The firm derives 90 per cent of its revenues from garment exports to international brands such as Espirit, Wallis, M&Co, Jones New York, Diesel and Marks and Spencer. 

Timex Garments has already invested Rs 10 crore in India in stores and stocks and will invest an additional Rs 10 crore to open nine more company owned stores across India in the next financial year. The firm will open four more stores across Chennai, Delhi, Mumbai, and Chandigarh in the next six months. 

India’s retail sector is currently estimated at around $450 billion, and organised retail accounts for around five per cent of the total market share, out of which the demand for ready made and western outfits is growing at about 40-45 per cent annually.

Reliance Brands opens first Superdry store in India at Mumbai

Reliance Brands has opened the first Superdry store in India at Palladium mall, Lower Parel, Mumbai. Spread over 1,750 sq.ft., the outlet stocks T-shirts, jeans, sweaters, joggers, shirts, rugby shirts, polo shirts, bags, and accessories for both men and women.

SuperGroup and Reliance Brands entered a long-term franchise agreement this year in July to bring the British fashion brand Superdry to India. SuperGroup, which employs over 2,000 staff, owns the Superdry brand. 

The collection at the store targets young people between 15 and 30 years.

Superdry claims that it has been worn by celebrities from David Beckham and Ben Stiller to Ewan McGregor, Jamie Oliver, Shakira, Mariah Carey, Pixie Lott, and Helena Christensen.

The price range for menswear is from Rs 2,000 to 12,000 while womenswear ranges from Rs 1,500 to Rs 8,000.