What is the trigger for unlimited selling?
The trigger is our strategy to focus on six major guilt brands. We believe those six brands are the focus areas for our growth strategy. In this case, other things are not so important. We realized that it should be where the unrestricted priority is. So, over the last two years, he has had a new team and they have done an amazing job of bringing him closer to the breakeven to make the future owner happy. Then we met someone we believed was an unlimited partner for the future. So the strategy behind these six brands is to focus our efforts on capital, talent or resources.
It will be better than V-Mart, an expert in the Unlimited Future Value category. We believe we have a very fair deal to get the total value of Unrestricted Assets and we are moving 74 physical stores mostly in India in the South and in the West in the West. We want to deploy that capital in our six brands.
With the epidemic hitting markets, isn’t the value component a better chance?
We thought a lot, and we thought our main competence was a very enviable portfolio of six brands. Most of our brands have a relaxed, casual feel so they are perfect for post-production, homework, casual wear. In July and August, our products are undergoing a strong recovery because our portfolio is ideal for in-house work.
Can you explain more about recovery? How much have they been hurt?
The Cowboys were both very strong and very bad. Any store lock due to homosexuality and in many ways, even online, is bad for business because it affects the retail business. But one thing that helped me was having a playbook. We did things last year, so we had some kind of muscular memory on how to manage expenses and cash flows. The issue of rights in May also helped us.
Covi was bad, but compared to the 2019-20 Q1 or pre-Kovid period, we have a 50% net sales value (NSV) in Q1 this year. So our recovery was 50%.
But compared to last year, our business has quadrupled in the first quarter. Much of that growth has come from our energy products as well as digital. So this quarter (revenue) has grown compared to the first quarter of the previous budget ₹250 kroner. And beyond ₹250 kroner increase in income, ₹150 million are digital.
July was much better when most malls started, our recovery at the company level was close to 80%, and 90% in energy products. And August is a further addition to our recovery, many brands have now crossed the pre-Kovid August 19 numbers.
I wish Maharashtra malls be open, because it is a very important part of some of our brands. Immunization rules are very strict. Our staff is very young, and the government says workers who have received two vaccines will be allowed to continue working in malls. These are all young people, in the early 20’s, most of them only got one needle. But it was amazing to recover everywhere except Maharashtra.
The bow is your standard dress. Do you extend that to athletics?
Cassation in India began in a decade and not just in Kovid times. In Kovid, casualization is only accelerated.
Ten years later, we began to see a relaxed line in the bow. So there is a line called Archer Sports, which is a smart, semi-regular line, and now the archery business is half over.
One thing I always say is that when we all live in big metros, India lives in 200 cities. And a typical customer in a city like Indor can only wear a casual check shirt and chino to work every day, or it could be jeans. This is the reality of India. And all brands are always in line with changing consumer experiences. We have evolved the bow and now it has three lines – one is the regular bow, the bow sport and now we have the New York bow for young professionals.
Talking about growing digital – how much is your site through NNNOW.com and how much is it in the marketplace?
There are two parts to digital business, and it’s really growing. In Q1FY22 we made it close ₹200 million in revenue. We are at a fast pace ₹1,000 kroner run. Arvind Fashion is a market leader in the digital business in our industry.
Of this 200 rubles: 30% of that business is owned by NNNow (a website made by us) from our so-called consumer. And then there are markets. So, we control the whole consumer experience in the markets, we manage the classification, pricing, catalog, everything and it sells in portals like Mintra, Ajo, Amazon and Flickart etc.
If the focus is online, will you return to expanding physical stores?
If you ask me how we can grow these six major guilt brands, you will get an answer to your question.
We have two aspects and strategies. But the first thing I discussed was digitalization – the partnership with Porter, Omni connects with our users.
Over the past quarter, we have added 100 more stores to our Omni network, and our quarterly contribution to digital connectivity in our physical storage has reached the mid-teens.
Then we have back-end capabilities built on warehouses, product placement, unique online products.
The second strategy for us is to create corresponding categories in these brands. Take our biggest, most powerful American polo. Over the years, we have built children’s clothes, shoes, underwear … in Polo, USA.
Similarly, in Arrow, clothing and bras are a big focus እን We may make small leather items such as bows and belts and wallets.
The third is now offline. I think this will answer your question. What is special about India is that you cannot ignore the power and trade in small towns: Levels 2 and 3.
And even in online tracking, level two, level three contributions are growing very, very fast. We are now speeding up the opening of physical shops in these small Indian cities. And they will not be the typical offline stores of the past, they will be the all-encompassing digital tracks for all of our brands.
Can you name some of these cities and the percentage of business coming from small towns?
Traditionally, AFL products have an urban bias, which is a big urban business. We have Calvin Klein, our main category, on the bridge to the luxury room, US Polo, bow. We only have a flying machine as a value brand.
I can tell you that a great contribution (business) is coming from the 30 cities.
But now we are seeing the attraction of our brands in small towns. We now have the information to make it easier for us to start expanding stores.
Clothing retailers such as Aditya Birla Fashion and Reliance Brands have been purchased by Indian designer labels. Does Arvind have similar plans?
I respect the competition because I’m sure they thought of their strategy and their game plan. So good luck to them.
In the case of the AFL, we want to focus on the six biggest guilt brands in the near future. In the long run, we will see how the industry plays out and how the AFL plays out, but in the short term we have no choice but to renew the growth of these six high-profile brands.
Flipkart has invested in a flying machine. Are there any associations for any other brand with any marketplace?
I don’t know the plan at the moment but, you know, we will let you know if there is anything.
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