S Kumars to rejig brand strategy

Wednesday, 22 December 2010

To keep pace with brisk growth, S Kumars Nationwide (SKNL) is repositioning its brands that include Reid & Taylor and Belmonte. The apparel and textile major now wants separate strategies for each of its brands. SKNL is in almost all segments of textiles: fabric, ready-to-wear and home textiles. It retails half-a-dozen brands in the ready-to-wear segment and a handful in fabrics, which are across price segments. Within ready-to-wear, the company sells Stephen Brothers in super premium, Reid & Taylor in premium, Belmonte in the mid-price segment and World Player in economy. Reid & Taylor, Baruche, Belmonte and S Kumars are in fabrics.

Apart from setting up an integrated supply chain and focusing on designs and merchandising, the Group will launch individual strategies for each of the brands. The strategy will decide which cities to target, what type of communication to adopt for each brand, which type of events to be associated with etc. SKNL has already carved out 10 strategic business units such as home textiles, luxury suitings and so on and has half-a-dozen chief operating officers to manage the RTW brands. The new branding strategy is also important for SKNL as it is looking to diversify its portfolio and launch new brands at different price points.

SKNL’s brands are growing 200 per cent in terms of revenues compared to last year. The company wants to increase the share of ready-to-wear in total sales to 25 per cent in FY 2011 and 40 per cent in the next two years from the current 11 per cent. It is also planning to take Reid & Taylor to the US in the next six to eight months. SKNL posted a net profit of Rs 77.89 crores and sales of Rs 1,211.42 crores in the quarter ended September 30.