FITTING IT JUST RIGHT

How was the year gone by for you in terms of revenue?

Where do you see the next opportunity coming from?

Tier 2 is a phenomenal opportunity. Up until two years ago, only 30% of our sales came from Tier 2 or Tier 3 towns. The same is now 60%. Tier 2 and Tier 3 cities are where the next wave of internet growth is happening. The aspiration for brands and the unavailability of high-fashion products gives a perfect reason for mass premium focused brands to reach these pockets.

What are the profit margins in the lingerie business?

Lingerie is a highly technical product. While the perceived value is high, the production costs, if managed well, can be tightly controlled. A strong unit-economics brand in super-premium can sell its products at a mark-up of almost five times while premium brands can do anywhere between 3.5 – 4.5 times.

What’s the key to succeed in franchising business?

Strong processes, working closely together in partnership and good personal synergy with the brand will be highly critical. The franchisee should be aligned with the brand’s vision and ethos. Also, as the franchise is closer to the business, his ideas on promotion and marketing are highly valuable for the brand’s marketing teams. The bottom line is about finding the right location relevant to the brand. Plus, having highly efficient operations targeted towards high EBITDA margins for the franchisee partner and focused branding to increase footfall are important ingredients for the franchisee play. Beyond that, it will be the power of your product that decides the customer’s loyalty.

What was your turnover for FY17 and what are the growth projections for the ongoing fiscal?

Clovia is now one of the fastest growing brands in a 4 billion market where the top 10 players are still holding less than 8% of the market. The lingerie market in India is growing at over 22% CAGR while we grew 30%+ over the last year. The growth projected is upwards of 50% for the coming fiscal. Also, Clovia has set shop in one international territory and we are planning to enter two more markets soon.

Comment