Retail Nov, 16 2011

Pair it up with denim franchise

Just as a pair of jeans plays an important role in almost every individual's daily dressing, so does denim wear for the apparel industry in India. Read on to grasp the profits involved in making denim franchise your daily bread.

By Neha Prashar
Sub Editor
Pair it up with denim franchise

Denim plays the most valuable and the most versatile of all wardrobe products. This anytime, anywhere garb has a rapid modernising effect on the Indian apparel scenario. With more and more international and national players joining the league, the Indian denim industry has become an important profit making opportunity for entrepreneurs. Denim franchise has left a long-lasting impact on various franchisees across the country. The industry is filled with a number of organised and unorganised players with the ratio of the latter being much more than the former. Sanjay Vakharia, Director, Spykar India said: “Organised retail is percolating into the Indian Diaspora. We will see the retail getting organised in entire country. This may not be the most desired but it is inevitable.”

Franchise proposal

Denim franchise is a phenomenon that has lived on to various fashion trends and technology revolution for over a century. Growing at a quick rate, the industry has lured many global and Indian players into its coverlet. With the youth becoming more and more fashion conscious, we see a number of denim brands entering the Indian biosphere and escalating the percentage of competition faced by the players. The other factor that has acted as a growth factor for the industry is the international influence of global brands. With people becoming well travelled, the Indian population is also taking hold of the trends in the east, helping brands to innovate and expand. With more brands jumping into this trade, the level of competition is also on a rise which is also adding to the augmentation of the industry. “We face a similar kind of competition as other denim wear brands. But Spykar is unique in its proposition; it is the only home grown national youth brand which is consistently growing since last 18 years. The downturns of the past years did not affect the brand and its delivery,” said Vakaria.

The ‘Brand’ wagon

The denim franchise situation in India has changed extensively since the last few years. All thanks to the new players entering the field. International denim wear brands like Levis Strauss, Tommy Hilfiger, Pepe, Lee, Lee Cooper, Gas etc. have successfully become a part of the industry by opening various retail franchised outlets across different Indian states. Apart from the international players, Indian denim players like Numero Uno, Killer Jeans, Flying Machine, Wrangler, Spykar, Koutons etc. have also put their best foot forward to set their mark.

Franchising being one of the many and best ways of expansion is leading brands to bringing on board franchisees from across the country to strengthen their presence. “The trade recognises the strength and tenacity of the brand and from that perspective it is probably the best brand to partner for a franchisee,” stated Vakaria. Available in the various retail counters in India, Spykar presently operates 236 stores pan India, all of which are through the franchise route. It is planning to open 400 stores by the end of 2013-2014.

MM Kamath, Director, Gas Jeans Pvt. Ltd said: “Keeping in mind the market dynamics, the premium and lifestyle positioning of the brand, understanding the expectance of GAS in the Indian Market with the vast clientele, GAS chose to be in India on its own, having full control of their brand, under the Cash and Carry format. Under this format, we had to take the franchise route to open stores in India.” Currently Gas has two franchised outlets, one each in Mumbai and Ahmedabad so far. It is now planning to improve its distribution starting with the five new exclusive brand stores in the major cities like Mumbai, Delhi, Bengaluru, Ludhiana and Chandigarh. In the next three years, GAS is also planning to open 12 exclusive brand outlets.

Perpetuate future

Where every denim wear brand wants to stand tall in the competition, franchising is aiding them to set their mark in the apparel market. With more and more brands entering the Indian denim market and franchising being one of the key factors for their expansion, the market is seen redefining itself. Looking ahead, the road seems quite smooth for this industry.

Related: Lingerie industry blossoms with franchising

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