Strategies

Leverage leadership position in women’s bottom-wear market and focus on additional product launches and
Same Store Sales Growth

The women’s bottom-wear market in India accounted for 8.3% of women’s apparel market and stood at = 135,470
million in Fiscal 2020 and is expected to grow at a CAGR of 12.35% to reach = 243,150 million by Fiscal 2025.
The organised women’s bottom-wear market is expected to reach = 92,400 million or 38% in Fiscal 2025 growing
at a CAGR of 24.3% from Fiscal 2020. With the relatively lower penetration of brands, and the growing disposable
income of modern women, this segment has become the focus of many retailers and brands. Consumers are
moving away from conventional need-based purchase to occasion specific clothing, from unbranded to branded
apparel, from ready-to-stitch fabric to ready-made apparel, from limited colours and styles to experimentative
colours and styles. (Source: Technopak Report).

Our diverse product portfolio available in varied price ranges, styles and colours ensures that we are well-
positioned to cater to the needs of women of varied ages, economic backgrounds and segments and address the
growing demand in this segment. Further, the fragmented nature of the industry and the lack of organized players
and limited competition positions us well to benefit from the growth in the bottom-wear segment (Source:
Technopak Report). There is a lot of scope for expansion in the bottom-wear category given that bottom-wear is
a horizontal category enabling multiple extensions and new products (Source: Technopak Report). Our existing
portfolio coupled with our ability to launch new products that address the requirements of women’s bottom-wear
ensures that we are better equipped to offset an impact on one or more product categories, due to temporary
disruptions in the market, by focusing more on the other part of the portfolio. We intend to expand into
loungewear, a work-from-home collection, athleisure and other new products in the ethnic, western and fusion
wear segments.

Continue to expand retail network with a focus on EBOs

We have, in the past, expanded our stores
through a cluster-based expansion model and
intend to continue to expand our presence by
setting up EBOs. We intend to follow the
COCO model that will ensure better
operational control over our stores. As part of
our growth strategy, we intend to expand our
EBO network in other regions across India. By
having our products be reasonably priced and
essential, we hope to increase our footprint
and scale of operations across India. Bottom-
wear being a core essential category and
having limited print or design is relatively
insulated from changes in fashion trends and
is acceptable across the country (Source:
Technopak Report). Given our cluster-based
approach of establishing EBOs primarily in
tier I cities, we will focus on establishing
additional EBOs on a similar model across tier
IL and tier III cities. Distributive growth across
the country is resulting in the growth of
demand from tier II, III and IV cities which together accounted for 34% of the demand in the apparel market in
Fiscal 2020 and is further expected to grow in the coming years (Source: Technopak Report). We expect to
leverage our existing extensive store network and our ability to expand our store network, and in particular our
EBOs, to tap this growth opportunity. This could allow us to maintain the quality of our operations, whilst also
improving the visibility of our brand and a standardized customer experience. We intend to leverage the
experience of our operations and business development teams to grow our network in existing and newer
geographies. Our expansion into newer markets offers us potential for market share gains, increased brand
recognition and economies of scale. In Fiscals 2019, 2020 and 2021 and in the three months ended June 30, 2021
we opened 130, 133, 42 and two EBOs, respectively. LFSs are a capital efficient model to expand footprint
nationally as they offer the advantage of capital efficiency and brand building opportunity (Source: Technopak

 

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