Men’s fashion is taking a big leap in recent times. With gents opting for semi formal and customised clothing in selective fits and styles, the basket size is growing.
Fashion for men no longer means just formals and casuals; it now has interesting possibilities including customised designs, cuffs, fits and even installing Bluetooth chip in ‘smartwear’ collection. As Suman Saha, Chief Operating Officer, Raymond Apparel and MTM, observes, this is quite a change from the days when men’s fashion is an alien word. “Men were once hesitant to spend money on clothing, but today they are willing to pay a premium for high-quality products. The coming-of-age masculine men are starting to make fashion a priority,” points out Saha.
Men’s growing fashion aspirations have led to an increase in customer spends; the average spend per customer is about Rs 3000-4,000. “For us, formal shirts contribute the highest at 33 per cent to the overall sales while suits and jackets add 25 per cent and casual shirts are at 8-9 per cent but growing the fastest,” says Sharad Walia, Director, Park Avenue.
Most strikingly, the line between formal and casual clothing is now blurring. “Customers earlier used to follow a strict formal dressing to office and casuals for other events. With cultural shifts, the corporate work environment has begun to accept, and even encourage, relaxed clothing,” adds Walia.
As per industry experts, men’s wear is expected to grow at a CAGR of 9 per cent for the next 10 years. Further, men’s fashion is closing the gaps between metros and upcountry markets. “While metro cities are the highest grocers, we also have a huge customer base in Tier II and III cities. For us, these upcountry markets are extremely crucial as about 50 per cent of our revenue comes from these regions. As far as denims are concerned, customers are not extremely price-sensitive if the quality is excellent,” adds Sanjay Vakharia, CEO, Spykar.
FRANCHISE EXPANSION
To cater to the increasing demands, most of the menswear brands are up for franchise expansion in the Tier-II and Tier-III locations. “We are planning to add 100 stores across India over the next three years. Majority of these stores will be in upcountry markets. The franchise model is helping us reach out to maximum customers in these markets,” says Vakharia. In addition, Raymond Apparel plans to open 40 stores. Saha says, “With ongoing strong growth momentum in upcountry locations, we expect to almost double our revenues over the next two years.”
The start-up investment for a franchise store of a brand like Park Avenue is estimated at Rs 50 lakh for 1,000 sq. ft and Rs 40 lakh for a 700 sq. ft store. “The investment will include stock deposit of Rs 1,300 per sq. ft and interior deposit of Rs 3,000 per sq. ft,” discloses Walia. Monthly revenues may be expected in the range of Rs 10-15 lakh, which may go up to Rs 25 lakh during the festive season. Overall, a store can expect gross profits in the range of 10-15 per cent of the revenues.
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