Kewal Kiran eyes non-metros with affordable apparel line-up

Kewal Kiran Clothing, a leading apparel retailer, plans to focus on tier-II and tier-III cities with the launch of new brands in the affordable category and doubling of distributors across India from 125 to 200.

The company, which retails under popular brands such as Killer Jeans, Lawman Pg3, K-Lounge, Integriti, Easies and Addiction, plans to launch a new brand — Immortal — to gain market share in the low- priced segment (ranging between 1,300-1,600 per unit). Recently, the company also acquired Desi Belle to mark its entry into the womenswear segment and expects to generate a revenue of 400 crore in five years.

Kewalchand P Jain, CMD, Kewal Kiran Clothing, said there is a general trend of people shifting their online apparel purchases to ambiance stores to get the right fit and feel of fabrics.

Moreover, the e-commerce business is more a metro and urban phenomenon, and managing deliveries in smaller towns is a cumbersome task.

Expanding reach

The company has set aside 100 crore for acquiring a leading kidswear brand in an attempt to reach smaller towns with a complete package for the entire family, said Jain. Dubbing the e-tailers’ strategy of offering huge discounts to grow the topline as a valuation game, he said the company is focussed on growing profitability and revenue by widening the market reach and offering value-for-money apparels rather than discounts.

Kewal Kiran has already expanded its exclusive brand outlets to 336 from 318 last year, to increase footprint in North India.

Earlier, the company followed a conservative approach, selling garments to wholesalers and distributors through an outright purchase agreement. Though this strategy helped in building a strong balance sheet with better cash flows, it did not provide access to key northern markets. The company will now offer garments to traders in North India with a commitment to take back 20-30 per cent of the goods if not sold.

[“source=thehindubusinessline”]