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Tuesday, 02 November 2010 |
Launched with much fanfare four years ago, kid’s wear Zapp! pulled out of the market due to its inability
to perform as per the stringent benchmark of the owner company Raymond. It may be noted that Raymond has a continual program to pull out the non-performing brands. The textile and apparel maker, which announced its quarterly earnings, said termination costs eroded margins in the branded apparel business for the September quarter though retail analysts said the brand shutdown had been gradual.
In recent years Raymond has perfected following the Boston Product Matrix to the T. The owner of brands such as Park Avenue, Parx, Manzoni, ColorPlus and the flagship Raymond has been selectively closing down brands. In June, it shut home accessories brand Be: Home because of poor performance two years after it was launched. Last year, it wound up mass-segment brand Notting Hill in metros and large cities, and confined its sales through Raymond stores in smaller towns.
A while ago, Raymond withdrew from a joint venture with Grotto SpA Group of Italy under which it retailed GAS, the casual denim brand. Zapp! was launched in 2006 to expand its apparel portfolio for children of 4-12 years and planned to open 12 stores. Expert say Zapp’s premium pricing didn’t go down well with Indian shoppers, who didn’t see any value in it, which is why the brand didn’t do well. Raymond is focusing on brands such as Park Avenue and ColorPlus, which contribute more than 60 per cent to its more than Rs 600 crores apparel business while is expanding franchise formats such Neckties & More and Shirts & More. Raymond has 665 stores across the country occupying 1.4 million sq. ft, of retail space. |
