Arvind Limited, the global textile conglomerate and leading apparel retailer, has launched a new EBO concept in Hyderabad. The Hyderabad outlet is the first example of this unique concept that brings together the best of custom tailoring and ready-made apparels. The Ahmedabad-based group is targeting a Rs 4,000-crores turnover this financial year, driven by B-to-C (business to customer) retail business in the domestic market.
The company which is one of the biggest denim makers of India sees denim demand in India growing at around 12 to 15 per cent per year. However, they feel the demand is still to catch up. “Unlike mature international markets, Indian domestic denim market is still in its infancy. Almost 100 per cent denim customers in markets like the US, Europe, Japan etc, are serviced through organized retail like Wal-Mart, Gap, H&M, Zara and the like. While the majority of customers in India are serviced through the unorganized sector which comprises denims mills, distributors, small garment manufacturers, garment wholesalers, small retailers et al all spread across the country,” explains Aamir Akhtar, CE-Lifestyle Fabrics Denim at Arvind. No wonder, nearly 60 per cent of Arvind’s denims are exported.
The group that covers all aspects of the textile value chain from growing cotton to branding and retailing is now focusing a lot on retailing. Sanjay Lalbhai, Chairman & Managing Director, Arvind Ltd pointed this out at the opening of the new EBO in Hyderabad. He said the EBO is a ‘first of its kind’ retail concept which they are introducing as a part of their aggressive expansion strategy. After the first EBO in Hyderabad, they plan to increase the number of outlets in the state to 20 by the end of ’11. This is part of their strategy to increase Arvind’s presence in the domestic market with 10 to 20 EBOs per state over the next couple of years.
By end of FY 2012-13, they hope to double their fabric retail revenues from Rs 400 crores to Rs 800 crores. They are hopeful that the newly-launched concept stores will account for around 25 per cent of this revenue generation. By blending the best of Arvind’s fabric and customized bespoke tailoring and readymade apparels, Arvind EBO is poised to become the ultimate men’s wear destination. The premium brands available at the outlet include Arrow, US Polo and Flying Machine.
Interestingly, Arvind’s new retail format will bring many firsts in Indian retail. Being introduced for the first time ever, perhaps in the world, is the ‘Arvind Denim lab’, a do-it-yourself denim offering where the customer can completely personalize his denim, right from the kind of leather patches and buttons he wants to placing his initials on the pocket.
That’s not all the brand will also introduce innovative denim fabrics for spring/summer ’11 especially for the domestic market. As Akhtar avers, “These are, fresh new colors in gamma shade -- a deep grey cast blue and omega shade. These will wash down very differently compared to regular blue. The other shades will be deep blue as a core shade. Other than the pure denim look, we will have some Ecrus, which can be over-dyed at garment stage in interesting colors.”