Kapsons: Bringing global brand experience to India

After inking a long term licensing agreement with Iconix Lifestyle India, to launch London Fog in the country, multi-brand retailer Kapsons has emerged strong in North India. It currently operates a network of more than 160 stores across India. “Trade is improving. Retail is growing.

But only people who know retail are able to sustain and face competition,” opines Darpan Kapoor, Director, Kapsons, adding, “Competition has increased and the customer is spoilt for choice. At one time there were only MBOs. Suddenly, customer preference has moved towards EBOs. As of now EBOs, MBOs and large formats are trying to do their best. Everyone has improved their service standards, store interiors, merchandise, and VM. It’s become a level playing field, whoever does better wins.”

Ramping up global brands in India

Kapsons was launched in 1989 in Chandigarh to bring national and international fashion brands under one roof. And 23 years later, it is today a leading retailer of brands like Tommy Hilfiger, Gant, FCUK, Gas, Nautica, United Colors of Benetton, Calvin Klein Jeans among others. The company has also acquired pan India licenses for leading global brands for children including Levi's Kids, Nike Kids and Jordan Kids.

Talking about the current business scenario, Kapoor says, “There was hardly any summer in April. We hope winter is better. In the garment trade, you hope for the next season. Global brands were coming in and most have settled in the country now. Once you have settled, you can introduce better schemes and discounts. So, by winter, I am sure most brands will be working on retail than on schemes and discounts.”

Spreading the retail gambit

Kapsons has established itself as a leading distributor in Noth India with more than 15 brands including Timberland, Puma Arrow, United Colors of Benetton, US Polo, Lee and Wrangler among others. It has been acknowledged as the ‘Best Distributor of North’ for four consecutive years by Clothing Manufacturers Association of India). Kapsons Agencies operates a distribution network across Chandigarh, Punjab, Haryana, Himachal Pradesh and Jammu and Kashmir.

On the advent of e-commerce in India, Kapoor says, “Online retail is now about 6 to 10 percent of the total business and growing. The customer gets goods at home. As an entrepreneur I feel that more consumption means more production. Whichever channel does well is good for the economy, for the country.” However, he feels that if a company is good in brick and mortar, it should stick to that. “If you want to go online you should know what you are getting into. Replicating someone else’s model isn’t a good idea. One should understand his strength. Jumping into online, without proper planning is not advisable,” he avers.

Having license for brands like Jordan, Levi's Kids and Nike, Kapsons tries to have a direct relationship with retailers. “But it doesn’t happen. You have to have local expertise. The local distributor or agent who is a service provider always has strength for transactions, payments and follow-ups. Deep penetration can happen only through channel partners. Otherwise your service cost will go high,” Kapoor clarifies.