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Tuesday, 02 August 2011 |
ITC is planning to revamp the product portfolio of its brand
Wills Lifestyle. It plans to add more designer wear and international designs and explore newer retail formats like boutique stores and specialized stores to reach out to luxury buyers. This will increase the average price of products at Wills Lifestyle to around Rs 3,000 from Rs 2,500 now. The brand feels a transition to the luxury segment will make its business model future-proof for the next 10 years. It wants to target buyers who are willing to upgrade and pay more. So Wills Lifestyle will launch products on cashmere wool, including pashmina jackets, priced upwards of Rs 25,000 and international design women’s wear on premium silk and chiffon starting at around Rs 6,000. Wills Lifestyle has been facing competition from the flurry of international brands entering India and its margins are under pressure. However, analysts are skeptical about the move. They feel it will be an uphill task for an Indian apparel brand to position itself in the luxury segment.
Last October, ITC had rolled out the Wills Luxuria, a menswear range at Rs 4,000 to Rs 5,000. It is also launching an international collection of formal women’s wear crafted by a Milan-based design house Figoli. ITC plans to ramp up its collection of such luxury products by more than 25 per cent as it expands its retail network to 100 Wills Lifestyle stores from 75 in 15 months. Wills Lifestyle has partnerships with a host of designers like Tarun Tahiliani, Rohit Bal, Rohit Gandhi, Rahul Khanna, Satya Paul and Ranna Gill, with plans to roll out a new line by Sabyasachi Mukherjee. Such designer wear contributes 15 per cent to the store’s overall sales. ITC also plans to open specialized luxury apparel stores in upmarket malls and boutique stores inside its own chain of hotels. It recently launched the first menswear luxury store in Chennai and three boutique stores in ITC hotels at Bangalore, New Delhi and Agra. ITC stores are in a break-even stage and the lifestyle retail division is close to profitability. The division is targeting a 35 per cent growth in revenues this year compared to 20 per cent last year. |
